- Conversion of traditional IRA (Individual Retirement Account) to Roth IRA. For the first time, people with modified adjusted gross incomes of more than $100,000 will be allowed to convert. Individuals with modified adjusted gross incomes up to $120,000 and couples with up to $176,000 are now eligible. Use this link to go to wikipedia for user-friendly information (including potential tax advantages) on this subject: http://http://en.wikipedia.org/wiki/Roth_IRA Or, go to our site - http://www.elwellinc.com - and use our FREE question space to submit your question.
- No estate tax in 2010. This law will only be in effect until December 31, 2001. There have been many jokes about wealthy people being on life support to live over the New Year so that their heirs wouldn't need to pay taxes on the inheritance. If you are very wealthy, this joke may not be funny (i.e., watch your backside!). This law will not be renewed in 2011.
There are also a variety of smaller deductions and write-offs that may apply to you - especially if you have a small business. We will announce them through these mini-newsletters throughout the first quarter.