Its been about 2 months, but things have been wierdly hectic for an end of summer. I wanted to let you know that I will be watching the Small Business Tax Bill that may or may not come out of Congress. The easiest approach would be to extend the Bush Tax cuts for all to January 1, 2012 and that would allow the next Congress to tackle tax issues on a more cohesive basis. If they put in some hybrid to deal with high income earners, that will be create some interesting issues. Will it for example exclude capital gains from the $250,000 threshhold? So, for example elderly couple wants to move into a nursing home and sells their house for $1 Million. Their basis is $40,000 and they get a $500,000 exclusion. Their adjusted gross income will be $460,000 (without even counting things like retirement and social security). Will they get hit by the new taxes? Whenever complexity is added to the Code there are opportunities for planning.