As the next in a series of winter storms moves into the region, property owners and residents should be aware of the weight loads these storms may be creating, especially on flat roofs.
The unprecedented snow load on roofs in the Northeast has led to some building damage and collapse. Schools, churches, commercial and residential buildings, carports and awnings have been affected. Read more now in this PDF from Hanover Insurance.
Thomas C. Chester, CFP®, AIF®, CPFA®
Thomas C. Chester, financial advisor at Allen Insurance and Financial, has achieved the designation of CERTIFIED FINANCIAL PLANNER™ Professional.
The CFP® designation has become the most recognized in the financial planning community. Requirements include meeting stringent education and experience standards and a rigorous 10-hour exam. Chester joins his colleague Michael Pierce as the second CFP® on the Allen Insurance and Financial staff.
Chester, of Lincolnville, graduated from the University of Massachusetts-Lowell with a bachelor of science in business administration and a concentration in marketing. Before joining the Allen Insurance and Financial, he was a financial advisor at Bancnorth Investment Planning’s local office. His previous work experience includes Eaton Vance Wealth Management in Boston.
He has expertise in the fields of life and health insurance and is an Investment Adviser Representative of Commonwealth Financial Network, a Registered Investment Adviser.
He is a past officer at the Camden-Rockport-Lincolnville Chamber of Commerce, past president of the West Bay Rotary Club and a past trustee for the Watershed Community School.
Most equity markets lost ground during the holiday-shortened week, with only one of the major domestic indices—the Dow Jones Industrial Average—posting a positive return. Read more now (PDF, new window).
Last week’s auction for the 10-year Treasury note saw the highest demand since the debt yielded 4 percent back in April. The bid to cover was 3.30 percent, the second highest since April, as institutional investors and foreign central banks were very active in the auction. Yield on the 10-year fell to 3.36 percent, while short yields were little changed, at 0.60 percent. Read more now. (PDF, new window)
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 was signed into law on December 17, 2010. Without this compromise legislation, income and estate tax rates for most Americans would have increased. But this reprieve is only temporary, as most of the new tax provisions expire at the end of 2012. Here’s a quick guide to the key provisions.
Individual income tax rates: Rates will remain at the 2010 levels for 2011 and 2012 for all taxpayers, including couples with income over $250,000 and single taxpayers with income over $200,000. The lowest marginal tax bracket will remain at 10 percent and the highest will stay at 35 percent.
Capital gains and qualified dividends: Long-term capital gains and qualified dividend rates will remain at a maximum tax rate of 15 percent for 2011 and 2012. Taxpayers in the 10-percent and 15-percent brackets qualify for a 0-percent tax rate on all or some of their capital gain income. This provision is good news to taxpayers who rely on dividend income; without Congressional action, dividends would have been subject to tax rates as high as 39.60 percent in 2011.
Itemized deductions and personal exemptions: Taxpayers will use their itemized deductions and personal exemptions regardless of their income. Repeal of the itemized deduction and personal exemption phaseouts will continue through 2012. (For some taxpayers, several itemized deductions are not recognized under the Alternative Minimum Tax calculation.)
Marriage penalty: The standard deduction for married couples who file jointly will continue to be double the deduction for single filers through 2012.
Alternative Minimum Tax: The 2010 and 2011 AMT exemptions were increased, resulting in a reduction of the impact of the AMT on middle class taxpayers. More significantly, certain nonrefundable personal credits can be used to offset AMT liability for 2010 and 2011. These include the Child Tax Credit, Child and Dependent Care Credit, Nonbusiness Energy Property Credit, and others.
Charitable IRA: For tax years 2010 and 2011, taxpayers over age 70½ are permitted to make a tax-free transfer of up to $100,000 from their IRAs to qualified charities. Transfers intended to qualify for the 2010 tax year can be made as late as January 31, 2011. Making a transfer from your IRA can satisfy some or all of your required minimum distribution.
Payroll tax reduction: In 2011, payroll taxes will be reduced 2 percent. Because the tax act was passed so close to the start of 2011, expect some delay before the reduction is reflected in your paycheck.
Energy-efficient improvement credit: Expenses paid for energy-efficient furnaces, water heaters, insulation, windows, doors, and other qualified property may qualify for a credit through 2011, although the maximum lifetime credit is reduced to $500 for 2011. If a credit was taken in a prior year, no further credit is available.
Other deductions: The expanded student loan interest and Coverdell education savings deductions were extended through 2012. State and local sales tax, higher education tuition, and teacher’s classroom expense deductions were extended only through 2011. Please note: Although it is not a deduction, you can still exclude from income up to $5,250 of employer-provided educational assistance for higher education.
Other credits: Tax credits directly reduce your tax liability and are potentially more valuable than deductions. The refundable Child Tax Credit, the expanded Child and Dependent Care Credit, and the American Opportunity Tax Credit (formerly the Hope Credit) have been extended through 2012.
Business tax extenders: Several business-related tax provisions scheduled to expire in 2010 were extended. If you are a business owner, contact your tax advisor as to provisions that may affect you.
Estate and gift taxes: Based on the expiration of previous legislation, there was no estate tax for taxpayers who died in 2010. There was also no automatic “step-up in basis” that brought an heir’s basis in his or her inheritance up to fair market value. So, in 2010, some beneficiaries realized a higher income tax impact when they sold the inherited assets than they would have paid in estate taxes. Congress attempted to fix this inequity by giving executors the choice of tax treatments. Executors for decedents who died in 2010 have the choice of:
1. A $5 million exemption and a 35-percent top estate tax rate or
2. No estate tax, but a cap on an income tax basis increase for estate assets.
The lifetime gift tax exclusion for gifts transferred in 2010 remains $1 million. For deaths after December 31, 2010, the estate tax returns. The new act reunifies the gift and estate tax exemption and increases it to $5 million per taxpayer, with a maximum tax rate of 35 percent. This means that you can potentially give away $5 million during your lifetime without tax impact. The generation-skipping tax exemption will also increase to $5 million. Remember that, for lifetime gifts, you can apply a $13,000 per donee annual exclusion to your gifts before you tap into your unified credit exclusion. Married couples can double the annual exclusion and gift $26,000 per donee.
A new provision added to the tax code is the portability provision, which permits a spouse to apply the unused portion of a deceased’s spouse’s $5 million exemption to increase the surviving spouse’s available exemption. In light of the new estate provisions, 2011 is a good time to have your estate planning documents reviewed by your attorney to ensure the language is flexible enough to adapt to your goals.
This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Investors should consult a tax or legal professional regarding their individual situation.
The 10-year Treasury ended last week at 3.38 percent—below its recent high of 3.48 percent but still well above its November lows.
Equity prices pushed higher in the first week of the new year. Read more now.
Stephanie Griffin of Camden has joined Allen Insurance and Financial as a receptionist in the company’s Camden office.
A native of Appleton, Griffin is attending the University of Maine in Augusta, working toward a bachelor’s degree in public administration; in addition, she expects to earn a certificate in human resource management from UMA in December.
Customer service has been a focus throughout her working life, Griffin said, which makes her position at Allen Insurance and Financial a good fit.
“Meeting new people is the best part of my job,” she said. “In Camden, we are very lucky to have a variety of people from all over the world. It is always interesting to hear their stories. At work, I get to be a small part of so many people’s lives.”
Outside of work, Griffin enjoys spending time with her large extended family as well as spending time reading, baking and enjoying the Maine outdoors.
Equity markets, as measured by the S&P 500 Index, closed out the year with a nominal gain; the holiday week was characterized by low volumes. Read more now.
Equity markets gained ground on the holiday shortened week, with the S&P 500 Index gaining more than 1 percent. Read more now.
A “Santa Claus” rally brought modest gains to equity markets last week; the S&P 500 was up 0.31 percent. Read more now.
