The U.S. Senate passed the extension of the “American Taxpayers Relief Act of 2012” on a bipartisan 89-9 vote late January 1st, 2013 extending the tax rates for households earning less than $450,000 and $400,000 for individual filers. According to NAR Households earning above these limits tax rate would slip back to where they were in 2003. The Taxpayers in the highest bracket would pay 39.6% up from 35% in 2012. According to NAR The tax rate on Capital gains will also stay the same. Read the full article from NAR. Happy "2013".
Remember to always consult with your CPA, Attorney or financial professional for advice, as the current law but, it appears that the current law will continue unchanged and that is good news.
TITLE II—INDIVIDUAL TAX EXTENDERS
Sec. 201. Extension of deduction for certain expenses of elementary and secondary
Sec. 202. Extension of exclusion from gross income of discharge of qualified
principal residence indebtedness.
Sec. 203. Extension of parity for exclusion from income for employer-provided
mass transit and parking benefits.
Sec. 204. Extension of mortgage insurance premiums treated as qualified residence
Sec. 205. Extension of deduction of State and local general sales taxes.
Sec. 206. Extension of special rule for contributions of capital gain real property
made for conservation purposes.
Sec. 207. Extension of above-the-line deduction for qualified tuition and related
Sec. 208. Extension of tax-free distributions from individual retirement plans
for charitable purposes.
Sec. 209. Improve and make permanent the provision authorizing the Internal
Revenue Service to disclose certain return and return information