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.