With time running out before the Christmas break, Congress finally got down to business this morning and passed a revised bill to limit the impact of AMT on Americans next year.
The new bill provides another one-year patch that sets the AMT threshold limits at $66,250 for couples filing jointly and $44,350 for single taxpayers. These new limits mean AMT will hit about 5 million Americans, rather than the 23-25 million that were expected to get slammed under the old 2001 limits of $45,000 and $42,500 respectively.
I’m waiting to read the full text of the bill to give you a more in-depth analysis. But I am breathing a sign of relief tonight for myself and for many of our DKAffiliated clients, who have been waiting to see which way the shoe would drop.
I’m also waiting to read the full text of the Mortgage Forgiveness Debt Relief Act of 2007, which was also passed today. The version I saw earlier today did not contain the changes to the capital gain exclusion on second homes. The measure approved Tuesday would waive taxes for mortgage debts forgiven from Jan. 1, 2007, to Dec. 31, 2009, and would be paid for by increasing the penalties on late S Corporation and Partnership tax returns, along with increasing the interest rate for C Corporations that make late payments of their estimated quarterly taxes. Look for more on these two topics later this week!