President Obama on December 17 signed legislation extending all 2001 and 2003 tax cuts for two years. This follows months of contentious debate with Congress over whether to make the Bush-era tax breaks permanent.  The multi-billion dollar tax cut package, the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, gives individuals and businesses some certainty for tax planning for the next two years.  However, these tax cuts are only temporary and will be re-addressed in the presidential election year 2012, when they are scheduled to expire.

A major impact of the bill continues the 2010 individual income tax rates through December 31, 2012.  The bill also extends unemployment benefits and the AMT patch through 2011, reduces the Social Security payroll tax from 6.2 percent to 4.2 percent for 2011 and provides 100-percent business expensing for one year.  The following link to the CCH Tax Briefing provides key highlights to the new law:

There is still time to do some year-end tax planning based on this most recent tax enactment.  Give us a call to discuss tax planning alternatives and strategies to minimize your tax situation.

About Blackman & Sloop CPAs, P.A.:

Blackman & Sloop is a full-service CPA firm headquartered in Chapel Hill, North Carolina and is actively involved in auditing, taxation, management consulting, financial planning, and related services. The firm directs a large part of its services toward providing management with advice on budgeting, forecasts, projections, financing decisions, financial analysis, and tax developments. The firm also performs review and compilation services and prepares not-for-profit, corporate, individual, estate, retirement plan, and trust tax returns as well as technology consulting services regarding installation and training on QuickBooks. Blackman & Sloop provides services in Raleigh, Durham, Chapel Hill, RTP, Hillsborough, Pittsboro, Charlotte, and the rest of North Carolina. To find out more please visit

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