>>Welcome!

Dear Friends:

This firm is committed to providing quality service to its clients. This E-Newsletter is one means of providing that quality service.

We hope you enjoy in this issue, with practical information on tax law changes, real estate and beneficiary designation. We feel all our clients and acquaintances could benefit from this information. Feel free to pass this E-Newsletter along to others.

Please let me know if there is an area of interest that you want covered in future newsletters.

Feedback and suggestions? Please e-mail me:
whc@whc-law.com

>>Working Families Tax Relief Act of 2004

On October 4, 2004, President Bush signed H.R. 1308, the "Working Families Tax Relief Act of 2004" (WFTRA) into law. Multiple tax relief provisions are included in the law.

(click here to read the full article)

>>Tax Reminders

Reduction of capital gains rates for sales after May 5, 2003 is 5% or 15%

Tax rate on divided income is 5% and 15%, same as capital gain rates

Marriage penalty relief became effective in 2003, instead of 2005

Full exclusion of gain on sale of office-in-home

Tax rate reduction accelerated to 2003, was scheduled for 2006

IRA contribution limits increased to $3,000, $4,000 for 2005 through 2007

Additional IRA contributions of $500 for those 50 years old and older, $1,000 in 2006

401(k) deferral amounts increased to $13,000 for 2004; $14,000 for 2005

Annual gift tax exclusion increased to $11,000 per donee per calendar year.

(Tax Law Changes for 2004)

>>Florida Hurricanes

The Law Firm of William H. Copperthwaite Jr. is deeply saddened by disasters that occurred from the hurricanes in Florida. Our American tradition has always been one of joining together as a community to comfort one another and provide solace and counsel to those whose hearts have been touched by these disasters.

>>Corporate Tax Changes

The American Jobs Creation Act, just passed by Congress, is the most significant change in US corporate taxation since the 1986 Act. The American Jobs Creation Act is loaded with a variety of incentives and revenue raisers including: extensions of the amount subject to be expensed, changes in the Subchapter S Corporation area, allows for an election to deduct state sales tax, fixing the tax problems faced by a plaintiff in an employment discrimination suit, significant changes to the nonqualified deferred compensation rules, and the imposition of significant penalties on taxpayers & their advisors with respect to transactions the IRS deems to be tax shelters.

(Click here for more details)

>>New Jersey enacted new Realty Transfer Tax

Effective August 1, 2004, New Jersey enacted new tax rates on real property transfers.

A new fee on the transfer of real property zoned for residential use in excess of $1million is imposed on the buyer. (This has been nicknamed the "Mansion Tax".)

>>Teddy Roosevelt on The Critic

"It is not the critic who counts: not the man who points out how the strong man stumbles or where the doer of deeds could have done better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood, who strives valiantly, who errs and comes up short again and again, who knows his place shall never be with those cold and timid souls who knew neither victory nor defeat."

-Teddy Roosevelt