iShares Silver Trust (SLV)

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Here are some tax implications that came out of deal:

Some specifics on the deal as follows. This is not all inclusive, text of the Bill: http://www.govtrack.us/congress/bills/112/hr8/text

Note that many provisions that were expired at the end of 2011 have been renewed for 2012 and continue through 2013 (such as $500k Section 179, R&D Credit)

Tax rates
Same as 2012, except:
1. New 39.6% for singles/couples starts at $400k/$450k
2. New cap gains and dividends rates at 20% for singles/couples starts at $400k/$450k. Below that threshold – 15% (or 0% if in the 15% bracket)
NOTE – At this point IC DISC planning opportunities continue though 2013 due to the continued top OI rate vs Div rate disparity. The disparity, however, is reduced from 20% (35% – 15%) in 2012 to approximately 16% in 2013 because of the 3.8% investment tax already in place under the ACA

Itemized deduction and exemption phaseouts
After a brief hiatus, they are back, starting for singles/ couples at $250k / $300k AGI.
They are familiar –
Personal exemption – 2% reduction for each $2500 of AGI over the threshold amount
Itemized deduction – 3% reduction based on amount of AGI over threshold amount, with a reduction limited to 80% of itemized deductions


AMT
Permanent patch, indexed for inflation. Exemption amounts for singles/ couples is $50,600/ $78,750 in 2012


Payroll taxes
2% cut is no more, so look for paychecks to go down starting with the next one


Depreciation
50% bonus depreciation for 2013
15 year qualified LI, restaurant buildings and improvements, retail improvements through 2013
Section 179 - $500,000 for 2012 and 2013 (note: the previous law was $125,000 for 2012, with the new law it is retroactive to 2012 at $500,000)
Section 179 phase out starts at $2m in purchases


Estate tax
$5m floor per individual/ $10m per couple (adjusted for inflation, these amounts are now slightly higher)
Max rate increased from 35% to 40%


Business Credits & provisions of note
Through 2013:
1. R&D Credit
2. New markets tax credit
3. Work opportunity tax credit
4. 5 year period for Built in Gains from an S-Corp
5. Energy Efficient new homes credit



Personal Credits
5 more years of:
1. American Opportunity Credit
2. Refundable child credit
3. Increased Earned Income Tax Credit


Other misc provisions of note extended through 2013
1. Teachers deduction on page 1 of 1040
2. Exclusion for debt discharge on principal residence
3. Deduction for mortgage insurance
4. Deduction for state sales taxes
5. Qualified tuition deduction
6. IRA distribution direct to charity