Joe Ramos, CEO & Sr. Wealth Advisor
Joe Ramos, CEO

Letter from the CEO

Tax Planning Update


February 2010

On November 6, 2009, President Obama signed into law The Worker, Homeownership, and Business Assis-tance Act of 2009 (H.R. 3548). The new legislation extends two popular but temporary tax incentives: the homebuyer tax credit and the five-year net operating loss carryback provision for businesses. We detail the provisions in New Legislation Extends Incentives for Homebuyers and Businesses.

By law, the dollar amounts for over three dozen taxprovisions are revised each year by the Internal Revenue Service (IRS) to keep pace with inflation. However, as aresult of minimal inflation during the first three quarters of 2009, tax rate brackets and the dollar amounts associated with various tax benefits will remain unchanged or increase only slightly in 2010. We provide more infor-mation in Inflation Has Little Effect on Taxes in 2010.

There are few upsides to losing your job. But if you do become unemployed, it is important to understand how this life change will affect your taxes. In addition, you may qualify for tax breaks on retirement account withdrawals, as well as on expenses incurred during the job search or in relocating for a new job. In Tax Facts for the Unemployed, we discuss the tax implications of unemployment.

Finally, in Understanding Standard Mileage Rates, we explain the rates for calculating the deductible costs of operating an automobile for business, medical or moving, or charitable purposes.

As always, we welcome your comments,

C. Joseph Ramos