Preview of the Proposed New Tax Relief Act of 2010 - Part 1

 

 

There’s a lot of talk about the New Tax Relief Act of 2010. 

At the time of this writing, it isn’t law, and with our current political logjam, there is likely to be a fair bit of change between now and then. 

We thought, however, that our clients would like to hear some of the elements that are of most direct interest to their welfare, and to the health of their estate.

Once again.. this is a preview of what is currently under discussion.  It is NOT law, and should not be looked at as political, legal, or financial advice.  This is only  a brief look at some of the currently debated act, as it impacts our senior clientele.

Reductions in Individual Income Tax Rates

Under contemplation is to temporarily extend the 10% bracket. The 10% individual income tax bracket expires at the end of 2010, and this impacts a great deal of our elder law clients. If nothing happens, the lowest tax rate will be 15%. This proposal extends the 10% individual income tax bracket for an additional two years, through 2012.

 

Part 2 will look at the proposed changes to Capital Gains and Dividends as well as The Dependant Care Credit.

 

Your friends at…

Cohen & Oalican, LLP

Boston ElderLaw Attorneys
Raynham ElderLaw Attorneys
Andover ElderLaw Attorneys

Boston Elderlaw Attorneys Present:: Sharing of Data Leads to Progress on Alzheimer's Disease

"Living Longer on Less in Massachusetts:"

These tough economic times have made it increasingly difficult for many Massachusetts seniors to make ends meet. The Institute on Assets and Social Policy recently released a report entitled: "Living Longer on Less in Massachusetts: The New Economic (in)Security of Seniors." This report highlights some of the financial difficulties faced by seniors today and discusses proposed changes to the law.
The study identified five factors critical in determining the economic stability of seniors. These factors are: Housing costs, healthcare expenses, household budget, home equity, and household assets. According to the study, 68 percent of all senior households in the state are financially at risk. Single and widowed seniors face the greatest financial hardships. The study recommended that seniors meet minimum financial criteria to be considered financially stable. To view the criteria and the proposed changes to state law, click on the following link to read the article in it's entirety:
Article
If you have any questions pertaining to Medicaid, guardianship, or other elderlaw issues, please feel free to contact us at scohen@cohenoalican.com or eoalican@cohenoalican.com or by phone at (617) 263-1035 Boston or (508) 821-5599 Raynham

Real Estate Tax Abatements

Real Estate Tax Abatements


Think your home is overvalued? If so, consider filing an application for a real estate tax abatement. A real estate tax abatement reduces the tax you pay on the value of your home. To obtain the abatement form, contact your town's tax assessor's office. This is an important first step because each of the 351 cities and towns in Massachusetts may have different forms. Most towns have their own website with instructions on how to complete the form.

Applications for abatements must be submitted by the due date of the first actual tax bill of the year. In communities that have quarterly tax bills, the application is due with the 3rd quarter tax bill, usually on February 1st. To meet the deadline, the application must be in the tax assessor's office by close of business day, or postmarked no later than the due date.

To determine if a bill is an actual tax bill or an estimated bill, the taxpayer should look on their bill for a property assessment value and a designated tax-rate. The application must be completed and filed by the current owner or their agent. Under certain circumstances other parties with an interest in the property may file the abatement. You should contact your assessor's office for any special rules that may apply.

Filing an abatement does not guarantee that your tax bill will be reduced. However, you won't know unless you ask. Remember the deadline is February 1, 2010. You can obtain additional information by clicking on the following link:

MA state website.

If you have any questions, please see our contact information below or visit our website: Cohen & Oalican.

Cohen & Oalican, LLP.
18 Tremont Street, Suite 903
Boston, MA 02108
Telephone 617-263-1035 x310
Fax 617-263-1038
scohen@cohenoalican.com