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We want to keep you abreast of
the latest tax law changes. Here are just a few....
Education Credits
Hope and Lifetime Learning Credits are credits related to tuition paid
to higher educational institutions. Phase outs applied and for married
individuals credits are not available in adjusted gross income exceeds
$130,000 and for single individuals exceeds $65,000. Dependants can take
the credit if either the parents or grandparents pay the tuition. Credit
are presently $3,000 per student.
Student Loan Interest
The maximum deduction for interest paid on qualified education is $2,500.
Individual Retirement
Accounts
The Adjusted Gross Income phase out range for active retirement plan participants
to contribute to a deductible IRA is $20,000 for joint filers
and $50,000 for single taxpayers. Maximum contribution is currently
$4,000 or $4500 if over 50 years of age.
Estate and Gift Taxes
The unified estate and gift tax exemption rises to $2,000,000 for
2006 and 2007. The generation skipping tax exemption is $1,100,000.
The $12,000 annual exclusion for gifts remains currently.
A tax professional should be contacted
to determine if your specific circumstances permit these deductions.
Please contact us for assistance in identifying and
implementing the best strategies for you.
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