Sentences with phrase «pease rules»

Ironically, it probably would have been easier if we simply never (re --RRB- adopted the PEP and Pease rules back in 2012, and simply raised the top three tax brackets by a percentage point or few.

The AMT applies any time the total tax liability (and thus the effective tax rate) is higher under the AMT system than the regular tax system, and when such situations occur it's necessary to plan based on the AMT system using its tax brackets and deductions instead, not the regular tax system (and its PEP and Pease rules)!

Itemized deductions: The TCJA wipes out several itemized deductions and modifies others in conjunction with the repeal of the «Pease rule» reducing deductions for upper - income taxpayers.

The personal exemption phaseout begins to apply at the same income levels as the Pease rule.

This page explains the Pease rule.

The true practical effect of the Pease rule is to increase the rate of tax you pay on income above the threshold, generally by a little over 1 percentage point.

Capital gains are included in AGI, so the Pease rule can be triggered by a capital gain.

If, like most people, you're securely within the category of taxpayer for whom the 80 % rule doesn't matter, then the Pease rule does not have any effect on tax planning for itemized deductions.

The Pease rule reduces your itemized deductions by $ 30,000, so you'll get to deduct $ 40,000 if you don't make the charitable contribution.

The American Taxpayer Relief Act of 2013 raised the income levels at which the Pease rule starts to apply.

If you're in the 35 % bracket, the Pease rule adds 1.05 percentage points to your effective tax rate.

A rule that reduces itemized deductions for relatively high - income taxpayers is sometimes called the Pease rule, for the congressman who originated the idea.

The Pease rule is often misunderstood.

Some commentators have suggested that the Pease rule will affect charitable giving and other forms of itemized deduction planning, but the number of people for whom this might be true is very small.

We'll see later that few taxpayers have to be concerned with the application of the Pease rule to particular itemized deductions.

For those few taxpayers, the following itemized deductions are protected from application of the Pease rule:

The vast majority of individuals with income high enough to be affected by the Pease rule also have unprotected itemized deductions large enough so that the 80 % rule is irrelevant, and the only rule that matters is the 3 % rule.

The personal exemption phaseout and the Pease rule for reducing itemized deductions are revived, but at higher income levels than under prior law.

However, the reinstatement of the Pease rule suggests that policymakers are eyeing itemized deductions, like the mortgage interest deduction, as potential revenue raisers in future fiscal debates.

The Pease rule phases out itemized deductions for taxpayers above and below the commonly cited middle class threshold of $ 250,000, thereby weakening the benefit of the MID.

Not exact matches

The infamous duo of PEP and Pease are rules that reduce deductions that would otherwise be allowed to relatively high - income taxpayers.

Until then, however, it is crucial to evaluate all of the rules that can affect marginal tax rates, from the tax brackets themselves, to PEP and Pease, Medicare surtaxes, the Alternative Minimum Tax, and more!

These two rules, triggering a phaseout of itemized deductions and personal exemptions, are also known respectively as the Pease Limitation on itemized deductions (named after Representative Donald Pease [D - Oh.]