Tax publisher RIA clarifies the point that important tax changes like the repeal of carried interest tax breaks for investment managers and the increase in long-term capital gains tax rates don’t take effect until 2011. This is a relief, as some media had reported these two tax changes might take place in the later part of 2009.
From RIA: “On May 11, the Treasury Department released the ‘General Explanations of the Administration’s Fiscal Year 2010 Revenue Proposals,’ known as the Green Book for the color of its cover. This 130-page document carries a fairly comprehensive blueprint of the tax proposals the Administration hopes to shepherd through Congress to make its FY 2010 budget plans a reality.”
Other key excepts:
“For tax years beginning after 2010, carried interests would be taxed as ordinary income.”
“For tax years beginning after 2010, a 20% tax rate on long-term capital gains and qualified dividends would apply for married taxpayers filing jointly with income over $250,000…”
RIA did not recap the potential repeal of 60/40 for futures dealers.
RIA observation: “The Green Book’s revenue raising tax proposals would pose significant tax planning challenges for higher-income individuals, higher taxes for many businesses, and higher compliance costs for business of all sizes.”
