Estate Planning

President Bush Threatens to Veto AMT Patch and Charitable Rollover Extension

By Gregory Herman-Giddens

A veto would also kill the extension of the $100,000 IRA Charitable Rollover, which is scheduled to expire at the end of this year.  Tax expert Professor Christopher Hoyt of the University of Missouri (Kansas City) Law School is betting there will be no veto.  The following was released by Tax Analysts:

The White House November 8 threatened to veto the House's alternative
minimum tax patch and extenders package.

According to a statement of administration policy, the Bush
administration opposes the Temporary Tax Relief Act of 2007 (H.R. 3996)
because it couples an AMT patch with what it called "a tax increase on
other taxpayers."

The measure would provide a one-year patch of the AMT at a cost of
roughly $ 50 billion in 2008 and extend for one year several popular tax
breaks, including the research credit and the deduction for teachers'
classroom expenses, at a total cost of roughly $ 21 billion over 10
years, according to a Joint Committee on Taxation revenue estimate. Two
of the bill's largest offsets include provisions that would tax
nonqualified deferred compensation paid by offshore hedge funds to
investment managers and tax as ordinary income the carried interest
income of private equity partners performing investment management
services. A third large offset would implement an eight-year delay in
allowing worldwide allocation of interest expense.

The administration highlighted its opposition to tax provisions that it
warned would "undermine the competitiveness of U.S. businesses in the
global economy." The administration cautioned that lawmakers should
remove those tax provisions before passing the final bill.

The White House also said it disapproved of a provision in the bill that
would eliminate the IRS private debt collection program.

The House is expected to take up the bill November 9, but House Speaker
Nancy Pelosi, D-Calif., indicated November 8 that due to scheduling of
other bills, a vote on the package could slip into the following week,
since its timing was "not absolutely certain."

Full post as published by North Carolina Estate Planning Blog on November 09, 2007 (boomark / email).