Those taxpayers in higher income tax brackets may have noted that they’ve lost portions of their itemized deductions and some or all of their personal exemptions because of their income levels. This situation is gradually being eliminated, and the amount of the reduction in 2006 was only two thirds (2/3) of that which was applicable in 2005. It will be only one third (1/3) of that amount in 2007, and the reduction will be completely eliminated in the calendar year 2008.
You may want to consult your tax professional for replacement tax-savings strategies.
By: Bruce M. Fogel, Esquire
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