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May 18, 2006

Some Excerpts From The Tax Increase Prevention and Reconciliation Act of 2005

Includes a two-year extension of the 15% top tax rates on capital gains and dividend income.

The small business expensing provision would extend the 2003 enhanced provision of $100,000-not increase it to $400,000 as some had expected-through the end of 2009.

The AMT provision would extend exemption levels through the end of 2006 at a higher level-$62,550 (married) and $42,500 (other).

Increase from under 14 to under 18 the age of minor children whose unearned income is taxed as if it were the parent's income.

Require interest paid on tax-exempt bonds to be subject to information reporting in a manner similar to that for interest paid on taxable obligations.

2005 C J M cjmalleyaccountancycorp