Tax Legislation:

End of the Year Legislation for 2000

On December 21st, 2000 President Bill Clinton Signed a $31.5 billion dollar "Community Renewal" bill (for details read the article here about what the bill encompasses) in addition to another bill to extend the pilot program for Medical Savings Accounts for another two years. MSAs were initially offered to self-employed individuals and small businesses with less than 50 employees.

Republicans were pushing to make this permanent but they opted to wait until next year when president-elect Bush will be in the white house. To read more about MSAs, click here. A small piece of legislature was also passed along with these bigger bills that allows parents of abducted children under the age of 18 to claim exemption for them. The exemption can be claimed until the child officially reaches the age of 18 and he/she has not been found.

President Clinton signed installment tax correction act of 2000 on December 28th, 2000. A year ago congress took away favorable installment sale tax treatment of small businesses that use "accrual" method of accounting. This bill once again would provide the same benefits to these businesses. To read more about what are installment sales, click here.