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taxgirl® - tax news, tax info and tax policy:

I’ve been tossing around blog post after blog post in my head, trying to figure out what to write exactly about the tax provisions in the most recent bailout package. And I think I’ve finally figured out what’s been bothering me: the darn thing just doesn’t make sense.

I knew that the bill was going to be a hot mess. The bill which managed to pass the Senate wasn’t just about the bailout - it was everything but the kitchen sink. But the final bill is even worse.

So here’s just a taste of what the bill, known as H.R. 1424, the Emergency Economic Stabilization Act, says:

FDIC caps raised. As previously reported, the FDIC insurance limit was raised from $100,000 to $250,000. This cap is temporary and was supported by both Senators McCain and Obama. And yes, it’s supposed to make us feel better about our banks (is it working?).

AMT “relief”. Congress finally did something to fix the AMT before the end of the year… Really. But just like in prior years, this is a temporary patch. We’ll be yelling about it again next year.

Gain or Loss From Sale or Exchange of Fannie Mac and Freddie Mac Stock. The bill treats losses on sales of Fannie Mae and Freddie Mac preferred stock by financial institutions or banks as ordinary losses.

Golden Parachute Rules Modified. The bill applies limits on executive compensation and golden parachutes for executives of employers who participate in the bailout.

Extension of…