• 39.6% top tax bracket for individuals over $400,000 and couples over $450,000
• 2% Payroll tax holiday ends
• AMT patched, retroactively to 2012. AMT exemptions will automatically increase in future years
• Dividends and Cap Gains rise from 15% to 20% for individuals over $400,000 and couples over $450,000
• Itemized deduction phase out reinstated for individuals starting at over $250,000 and couples over $300,000
• Personal exemptions for dependents phase out reinstated for individuals starting at over $250,000 and couples over $300,000
• Threshold for deducting medical expenses rise from 7.5% to 10% for taxpayers under age 65
• Broadened the in-plan 401(k) Roth conversion of vested balances rules, to now include basically everything in a traditional 401(k) -
     Note: there is no Roth-IRA-like recharacterization feature for these 401(k) conversions
     To get the availability of the recharacterization feature taxpayers would still need to first convert their 401(k) to an IRA, a much more daunting procedure
• $5,250,000 lifetime gift tax exclusion for 2013, but rate rises from 35% to 40% (other provisions may have tax rates of 45% and 55% and the $5MM base may be lowered to $3.5MM)
• Annual Gift tax exclusion rises from $13,000 to $14,000
• Retroactively extends section 179 deduction for for LHI
• Retroactively extends the 15-year SL cost recovery for LHI.
• 50% bonus depreciation extended through 2013, and a temporary election allows taxpayers to monetize some of their AMT tax credits in lieu of claiming this bonus depreciation
• Retroactive charitable donation of an IRA may be used for 2012 for payments made to charity before February 2013.
• "Automatic" Safe Harbor $1,500 Home Office deduction @ 5/sq ft allowed starting in 2013.(depreciation is not taken) see Rev. Proc. 2013-13 

Last updated: January 20, 2014