:: Expiring Tax Provisions ::

-- Sales Tax on Vehicle Purchases. This above-the-line deduction phases out at $125,000 singles and $250,000 married and expires on 12/31.

-- AMT Relief. Although relief may still be provided, estimated payments for 2010 cannot assume a further extension.

-- COBRA Assistance. The federal government 65% subsidy of COBRA premiums for employees who were involuntarily terminated between 9/1/08 and 12/31/09 will end, but payments continue for 9 months after termination and may continue into 2010.

-- Temporary Estimated Tax Relief for Small Businesses. For a tax year that begins in 2009, if an individual has adjusted gross income below $500,000 and more than 50% of that income comes from a small business, the individual will not incur a penalty for underestimating taxes if the payments made are equal to at least 90% of the tax liability for the year. For this provision a small business is defined as a business with fewer than 500 employees. As 2009 includes one more estimated payment in January, be aware that the 90% rule can help keep away from penalties for underestimating tax liability.

-- Small Business Expensing Rules will be lower in 2010. In the 2008 stimulus legislation, Congress increased the expensing provisions for small businesses to $250,000 for assets purchased in 2008, and increased the phase-out to businesses purchasing more than $800,000 in assets. The American Recovery and Reinvestment Act of 2009 extended the $250,000 limit for expensing until the end of 2009. After December 31st, the limit will go back to $125,000 with a phase-out for business that purchases more than $400,000 in assets. There's still time to purchase business assets and take the more generous 2009 Section 179 deduction.