Tax Change Summary 2010 - 2017

 

Recent tax law changes have made definitive long-term tax planning more challenging. Clients are inquiring as to what the current and expiring laws will mean for them. The chart below highlights the changes over the next few years that will impact many of our clients. 

 

Many of the tax breaks in recent tax-relief bills were designed to be phased in over a number of years, or are indexed to inflation. To help you determine how these tax laws affect your long-term planning, this article explains the changes scheduled to come into effect through 2017.

 

Pick a year from the list below to learn what tax changes affect that year's returns. We include changes for 2010 because they affect the tax returns you'll be working on in the spring of 2011. Congress made many significant tax changes in late 2010, including passage of the Tax Relief Act, that will have a major impact over the next several years.

Tax Year
2010
2011
2012
2013
Top Federal Tax Bracket
35%
35%
35%
39.6%
Qualified Dividends 
15%
15%
15%
Ordinary Income 
Long-Term Capital Gain Rate 
15%
15%
15%
20%
Medicare Tax on Investment Income 
N/A
N/A
N/A
3.8%
Add'l Medicare Tax on Wages 
N/A
N/A
N/A
0.9%
New QSBS Acquired 
75% gain exclusion taxed at
28% rate through 9/26/10.
100% gain exclusion up
to $10MM after 9/26/10 
100% gain
exclusion up to $10MM 
50% gain exclusion,
taxed at 28% rate 
50% gain exclusion,
taxed at 28% rate 

  • ESTATE TAX
Tax Year
2010
2011
2012
2013
Top Estate Tax Rate
35% with full step-up inbasis,
or election for 0%
estate tax but apply limited 
basis step-up amounts below
35%
35%
55%
GST Tax Rate
0%
0%
35%
55% 
Estate and GST
Tax Exemption
$5MM
$5MM
$5MM
 $1MM
(GST exemption subject 
to inflation adjustment) 
Lifetime Gift Exemption
$1MM
$5MM
$5MM
$1MM
Annual Gift Exclusion
$13,000
$13,000
$13,000*
$13,000*
Basis
Step-Up of $1.3 MM(Additional
 $3MM to surviving spouse)
Carryover basis on
remainder of assets
Full step-up in basis  
Full step-up in basis  
Full step-up in basis 



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