Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA)

What it is:

The Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) was signed into law on May 17, 2006.

How it works (Example):

TIPRA was passed to achieve five primary goals:

  • Prevent a scheduled increase in the number of people subject to the alternative minimum tax (AMT)
  • Preserve lower capital gains and dividends tax rates in effect through 2010
  • Preserve higher limits for expensing the purchase of certain assets
  • Remove an income ceiling on certain IRA conversions
  • Apply the so-called "kiddie tax" to more taxpayers under age 18

Why it Matters:

In general, TIPRA was a mishmash of tax changes, most of which benefited most taxpayers.