The 2003 Tax Act: A Handful of Provisions, an Abundance of Opportunities

Welch, Julie A.; Gardner, Randy
October 2003
Journal of Financial Planning;Oct2003, Vol. 16 Issue 10, p30
Academic Journal
This article deals with a major tax cut package. The Jobs and Growth Tax Relief Reconciliation Act of 2003 was enacted on May 28, 2003. Both individuals and businesses benefit from these tax changes. The child tax credit was increased from $600 to $1,000 for 2003 and 2004. The standard deduction for joint returns increased to twice the standard deduction for single returns for 2003 and 2004. The alternative minimum tax exemption for married taxypayers filing jointly increased from $49,000 to $58,000. A key benefit included in last year's tax law change was the temporary allowance of 30 percent bonus depreciation. The first-year bonus depreciation increased from $4,600 to $7,650 for new luxury automobiles acquired after May 5, 2003, and before January 1, 2003. Doug's Professional Service Firm bought $2000,000 of furniture after May 5, 2003. The 10 percent and 20 percent rates on long-term net capital gains were reduced to 5 percent and 15 percent, respectively. This new reduced rate enhances the opportunity to gift appreciated stock owned more than one year to a family member in the 10 percent or 15 percent tax rate bracket before selling the stock. Knowing the new provisions will help you and your clients take advantage of all that the new law has to offer.


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