Welcome to Universal Advisor’s 2009 Year-End Tax Guide, coordinated by Plante & Moran’s Emerging Tax Issues Committee (ETIC) with assistance from our Traverse City office. ETIC is Plante & Moran’s group of “gumshoes” that keeps a close eye on tax legislation and developing trends. While many of our prior issues have focused on traditional year-end planning ideas, this issue focuses on targeted solutions for businesses that can substantially reduce personal and/or business tax liabilities in addition to the traditional year-end planning ideas.
While 2009 — so far — has been relatively quiet, significant tax changes are expected later this year and in 2010. Rate reductions and changes in estate and gift tax laws passed during the Bush administration will “sunset” on December 31, 2010, and tax rates will return to higher pre-2001 levels unless Congress acts. We expect these changes to play out between late-2009 and mid-2010. Like any good mystery, clues have appeared that the Obama administration is ready to keep many of the tax cuts — but not those for taxpayers with incomes exceeding approximately $200,000–$250,000.
