The American Taxpayer Relief Act of 2012 made permanent several temporary tax provisions for businesses and individuals. It retained lower income tax rates for most taxpayers but raised rates on higher income levels. It also returned the phase out of personal exemptions and itemized deductions for higher income taxpayers and allowed the payroll tax cut to expire.
The Impact of the Tax Cuts & Jobs Act on High Tax Bracket Individuals - Show ...gppcpa
Objective: To quantify the effects of the Tax Cuts & Jobs Act for taxpayers in the highest individual tax bracket; to quantify the effects of the increase in the lifetime estate and gift tax exemption for taxpayers at all levels of wealth; and to identify the challenges and opportunities available for taxpayers as a result of these changes.
This document provides a summary of personal and corporate income tax rules in Canada. It discusses how personal income taxes are calculated based on taxable income and tax brackets. It also outlines some types of income that are not taxed, such as gifts and inheritances. For corporate taxes, it describes taxes paid by corporations and differences between public corporations, private corporations, and Canadian-controlled private corporations. It also briefly discusses provincial/territorial corporate income taxes.
United Californians for Tax Reform (UCTR) proposes reducing the top tax rate from 35% to 20% by eliminating the deduction for state and local taxes and the personal exemption. This proposal would simplify taxes for over 90% of taxpayers, make the tax code more fair, and promote economic growth while remaining revenue neutral.
The document summarizes the Community Development Division's proposed fiscal year 2017 action plan and budget for community services in two US cities. It will allocate $983,111 in CDBG funds and $372,432 in HOME funds towards affordable housing, public facilities, economic development, and public services like healthcare and childcare. The budget is part of the cities' 5-year consolidated plan to address housing, homelessness, and economic needs. It was developed through public hearings and meetings, and requires city council and HUD approval.
Mike Weber from PGAV Planners presented on several topics related to TIF planning and closeout. He discussed the differences between property tax and sales tax TIFs, the importance of planning for TIF closeout by developing revenue and obligation projections. He also reviewed the process for distributing any surplus funds at the end of a TIF according to statutory requirements. Key questions around combining property and sales tax TIFs or handling revenue received after TIF termination were also discussed.
The document summarizes the results of a performance audit of the Bryan/College Station Convention & Visitors Bureau (CVB). The audit reviewed the CVB's accounting procedures, direct economic impact, expenditures, and management/governance. It found that 85% of transactions reviewed were sufficient but some lacked oversight, documentation, or verifiable business purpose. It provided recommendations to improve the CVB's strategic direction, board engagement, and use of impact estimation tools. However, the CVB only concurred with some recommendations and not others like improving liquidity or implementing job costing.
This document provides an investment memorandum for Aspen Meadow Apartments, a 258-unit apartment complex located in Hopkinsville, Kentucky. It outlines the purchase details, renovation plans, financial projections, and investment structure. The sponsors plan to purchase the property for $15.48 million, complete renovations, stabilize occupancy and rents, then refinance with HUD debt within 24 months. Financial projections estimate a 19.9% annualized return over 5 years for investors.
The Impact of the Tax Cuts & Jobs Act on High Tax Bracket Individuals - Show ...gppcpa
Objective: To quantify the effects of the Tax Cuts & Jobs Act for taxpayers in the highest individual tax bracket; to quantify the effects of the increase in the lifetime estate and gift tax exemption for taxpayers at all levels of wealth; and to identify the challenges and opportunities available for taxpayers as a result of these changes.
This document provides a summary of personal and corporate income tax rules in Canada. It discusses how personal income taxes are calculated based on taxable income and tax brackets. It also outlines some types of income that are not taxed, such as gifts and inheritances. For corporate taxes, it describes taxes paid by corporations and differences between public corporations, private corporations, and Canadian-controlled private corporations. It also briefly discusses provincial/territorial corporate income taxes.
United Californians for Tax Reform (UCTR) proposes reducing the top tax rate from 35% to 20% by eliminating the deduction for state and local taxes and the personal exemption. This proposal would simplify taxes for over 90% of taxpayers, make the tax code more fair, and promote economic growth while remaining revenue neutral.
The document summarizes the Community Development Division's proposed fiscal year 2017 action plan and budget for community services in two US cities. It will allocate $983,111 in CDBG funds and $372,432 in HOME funds towards affordable housing, public facilities, economic development, and public services like healthcare and childcare. The budget is part of the cities' 5-year consolidated plan to address housing, homelessness, and economic needs. It was developed through public hearings and meetings, and requires city council and HUD approval.
Mike Weber from PGAV Planners presented on several topics related to TIF planning and closeout. He discussed the differences between property tax and sales tax TIFs, the importance of planning for TIF closeout by developing revenue and obligation projections. He also reviewed the process for distributing any surplus funds at the end of a TIF according to statutory requirements. Key questions around combining property and sales tax TIFs or handling revenue received after TIF termination were also discussed.
The document summarizes the results of a performance audit of the Bryan/College Station Convention & Visitors Bureau (CVB). The audit reviewed the CVB's accounting procedures, direct economic impact, expenditures, and management/governance. It found that 85% of transactions reviewed were sufficient but some lacked oversight, documentation, or verifiable business purpose. It provided recommendations to improve the CVB's strategic direction, board engagement, and use of impact estimation tools. However, the CVB only concurred with some recommendations and not others like improving liquidity or implementing job costing.
This document provides an investment memorandum for Aspen Meadow Apartments, a 258-unit apartment complex located in Hopkinsville, Kentucky. It outlines the purchase details, renovation plans, financial projections, and investment structure. The sponsors plan to purchase the property for $15.48 million, complete renovations, stabilize occupancy and rents, then refinance with HUD debt within 24 months. Financial projections estimate a 19.9% annualized return over 5 years for investors.
This document reviews the accounting system and business operations of a rental property owner and provides recommendations for improvements. It finds that the current accounting system is inefficient and flawed, using Excel instead of dedicated accounting software. It recommends switching to QuickBooks, establishing clear objectives and marketing strategy, and improving internal controls, record keeping, and expense tracking. Key financial metrics of the four rental properties are analyzed, showing variations in revenue, occupancy, and equity levels across locations. With adjustments to the accounting system and operations, the business could run more profitably and sustainably.
Q4 2014 earnings call presentation final 11.19.14Hillenbrand_IR
Hillenbrand reported financial results for the fourth quarter and full year of 2014. For Q4, revenue increased 6% to $469 million driven by growth in the Process Equipment Group. Adjusted EPS grew 22% to $0.61 per share. For the full year, revenue was $1.67 billion, up 7% from the prior year, and adjusted EPS was $2.06 per share, an increase of 10%. For 2015, the company expects revenue growth of 2-4% and adjusted EPS in the range of $2.05-$2.15.
Microsoft Corporation reported financial results for the quarter and fiscal year ended June 30, 2004. Revenue increased 15% to $9.3 billion for the quarter and 14% to $36.8 billion for the fiscal year. Net income increased 82% to $2.7 billion for the quarter and 9% to $8.2 billion for the fiscal year. Earnings per share increased 79% to $0.25 for the quarter and 9% to $0.76 for the fiscal year. The company's largest segments by revenue were Client, Server and Tools, and Information Worker.
The document summarizes Alupar Investimento S.A.'s 1Q15 results. Key highlights include adjusted net revenue increasing 10.3% year-over-year to R$357.6 million. EBITDA grew 12.5% to R$316 million and net income rose 1.6% to R$178.2 million. Transmission saw adjusted net revenue and EBITDA increase 11.7% and 12.3% respectively. Generation reported higher net revenue and lower net income compared to 1Q14. Net debt increased 36% to R$3.379 billion at the end of 1Q15.
This presentation was delivered at the April 23, 2009 Smart-ups event in Eugene, OR by Dan Vishny (CFO for two start-ups companies). Dan is also known for having one of the top 10 best scores on the CPA exam - for the entire U.S.A.!
The document provides a summary of revenues and expenditures for all funds of the City of Blue Earth for fiscal year 2004. Total revenues for all funds were $5,292,359 while total expenditures were $5,543,220, resulting in a difference of ($250,861). The largest sources of revenue were the General Fund at $1,381,300 and Debt Service Funds at $1,731,845. The largest expenditures were also in the General Fund at $1,381,300 and Debt Service Funds at $2,085,428. Non-Enterprise Funds totaled $4,071,403 in revenues and $4,434,650 in expenditures, with a difference of ($363,
Clear Channel reported first quarter 2002 revenues of $1.70 billion, a 4% increase over 2001. EBITDA was $370 million compared to $404 million in 2001. Free cash flow for the quarter was $191 million, a 2% increase over 2001. Radio revenues increased 3% to $783 million while radio EBITDA rose 3% to $304 million. Outdoor revenues declined 7.5% to $369 million and EBITDA fell 36% to $75 million. Entertainment revenues grew 18.6% to $476 million but EBITDA declined 10.6% to $15 million.
The court reviewed the valuations of a 15% interest in a private company completed by experts for the estate and IRS. Key issues included the appropriate financial data, adjustments, valuation methods, and assumptions. The estate's DCF analysis projected higher growth but excluded pension adjustments. The IRS analysis relied more on market methods and lower projections. The court generally sided with the IRS experts but made some adjustments, such as constructing its own projections between the two. It applied discounts of 23% for lack of control and 31% for lack of marketability.
AmCorp Management is an expert in helping companies claim export tax benefits through the EIE and IC-DISC provisions. They offer no-cost feasibility studies to determine if a company qualifies for these tax savings programs. The EIE allows companies to exclude a percentage of their foreign trade income from federal taxes, potentially saving 15-30% on export income. The IC-DISC allows up to 50% of foreign trade income to be taxed at a lower 15% dividend tax rate instead of the usual 35% corporate rate, providing significant cash flow benefits. AmCorp can help qualified exporters take advantage of these provisions to recover additional tax savings on their international business activities.
The city is projecting a $1.075 million surplus in its FY13 budget based on estimated revenues of $57.4 million and expenses of $56.3 million. However, the city has identified $2.855 million in priority funding needs for items like employee raises, street maintenance, and expanded animal services. To help fund these priorities, the city council is providing guidance to focus on priority services, consider increasing user fees over tax revenues, and begin saving more in future years. One proposed way to generate more revenue is by charging appropriate user fees for facilities, rentals, and permits.
Tax planning for the dentist in an era of uncertaintygppcpa
The document summarizes upcoming tax changes that may impact dentists, including increases to payroll taxes, reductions to depreciation deductions and AMT exemptions, new excise taxes on medical devices, and changes to tax brackets, capital gains rates, and deductions for medical expenses. It recommends tax planning strategies for dentists such as deferring income and expenses between years, accelerating capital gains, and evaluating retirement plans to minimize taxes and navigate future uncertainty around tax laws.
Tax planning for the dentist in an era of uncertaintygppcpa
The document summarizes tax planning strategies for dentists given current tax law and anticipated changes. It notes that dentists should manage their taxable income for 2012 by deferring expenses to 2013. They should also consider accelerating capital gains and restructuring investment portfolios to avoid additional Medicare taxes on net investment income. Dentists should evaluate retirement plans and consider pushing business deductions or deferring losses to 2013 for tax planning in an era of ongoing tax law uncertainty.
Tax Tools and Tips and Traps ... Oh My!Doeren Mayhew
The document provides an overview of US tax revenue sources and tax rates. It summarizes that in 2011, the US government collected $3.3 trillion in tax revenue with the income tax making up the majority. It shows data on the number and total income of individual tax returns based on adjusted gross income brackets. Most returns and total income come from those earning under $200k. Year-end legislation extended some individual and business tax breaks through 2014. The President has proposed making some tax credits permanent while increasing taxes on high earners, estates, and businesses.
The document summarizes key changes to US tax law from the Tax Cuts and Jobs Act of 2017. It discusses reductions to individual and corporate tax rates. It also outlines changes to deductions and credits for individuals, as well as new tax rules for businesses, pass-through entities, and international income.
This document provides an overview of scheduled tax changes for 2012 and 2013, including increases to income, capital gains, and Medicare tax rates. It discusses opportunities for tax planning for individuals and businesses before year-end, and notes some decisions that may be best to wait until after the election due to ongoing presidential tax proposals.
Tax Cuts and Jobs Act: Tax Reform UpdateSkoda Minotti
Understand the new tax rules resulting from the Tax Cuts and Jobs Act of 2017, and undertake a general review of the tax changes taking effect in 2018 that result from the Tax Cuts and Jobs Act of 2017.
The document provides an overview of tax law changes for 2012, including:
- Repeal of the 3% withholding requirement for government contractors.
- Stricter eligibility rules for the health insurance premium assistance credit beginning in 2014.
- Many expired tax provisions from 2011 that may be extended, such as AMT relief and education credits.
- Changes to tax rates, capital gains rates, payroll taxes, and other provisions set to expire at the end of 2012.
- Reporting requirements for employer-provided health plans and partnerships.
- Standard mileage rates and inflation adjustments for 2012.
- Additional Medicare taxes for high-income individuals and a higher medical expense deduction threshold beginning in 2013 under the Affordable Care
Intuit Presents Tax Law Changes for Tax Year 2012intuitaccts
Get the very latest on important tax law changes that will impact returns for Tax Year 2012 from Intuit's Mike D'Avolio. These changes seem to come later and later each year. Let’s us do the legwork and keep you up to speed on current status of tax law changes and extensions.
This presentation discusses the American Taxpayer Relief Act of 2012, better known as the “fiscal cliff” legislation, extended many key tax provisions from the Bush era for both individuals and businesses. Also addressed were the key tax provisions contained in this Act as well as a number of other tax planning issues that you should be aware of this year.
This presentation was part of a CPE webinar. Full details at http://www.macpas.com/webinar-recap-2013-tax-update/.
More info at www.macpas.com
This document reviews the accounting system and business operations of a rental property owner and provides recommendations for improvements. It finds that the current accounting system is inefficient and flawed, using Excel instead of dedicated accounting software. It recommends switching to QuickBooks, establishing clear objectives and marketing strategy, and improving internal controls, record keeping, and expense tracking. Key financial metrics of the four rental properties are analyzed, showing variations in revenue, occupancy, and equity levels across locations. With adjustments to the accounting system and operations, the business could run more profitably and sustainably.
Q4 2014 earnings call presentation final 11.19.14Hillenbrand_IR
Hillenbrand reported financial results for the fourth quarter and full year of 2014. For Q4, revenue increased 6% to $469 million driven by growth in the Process Equipment Group. Adjusted EPS grew 22% to $0.61 per share. For the full year, revenue was $1.67 billion, up 7% from the prior year, and adjusted EPS was $2.06 per share, an increase of 10%. For 2015, the company expects revenue growth of 2-4% and adjusted EPS in the range of $2.05-$2.15.
Microsoft Corporation reported financial results for the quarter and fiscal year ended June 30, 2004. Revenue increased 15% to $9.3 billion for the quarter and 14% to $36.8 billion for the fiscal year. Net income increased 82% to $2.7 billion for the quarter and 9% to $8.2 billion for the fiscal year. Earnings per share increased 79% to $0.25 for the quarter and 9% to $0.76 for the fiscal year. The company's largest segments by revenue were Client, Server and Tools, and Information Worker.
The document summarizes Alupar Investimento S.A.'s 1Q15 results. Key highlights include adjusted net revenue increasing 10.3% year-over-year to R$357.6 million. EBITDA grew 12.5% to R$316 million and net income rose 1.6% to R$178.2 million. Transmission saw adjusted net revenue and EBITDA increase 11.7% and 12.3% respectively. Generation reported higher net revenue and lower net income compared to 1Q14. Net debt increased 36% to R$3.379 billion at the end of 1Q15.
This presentation was delivered at the April 23, 2009 Smart-ups event in Eugene, OR by Dan Vishny (CFO for two start-ups companies). Dan is also known for having one of the top 10 best scores on the CPA exam - for the entire U.S.A.!
The document provides a summary of revenues and expenditures for all funds of the City of Blue Earth for fiscal year 2004. Total revenues for all funds were $5,292,359 while total expenditures were $5,543,220, resulting in a difference of ($250,861). The largest sources of revenue were the General Fund at $1,381,300 and Debt Service Funds at $1,731,845. The largest expenditures were also in the General Fund at $1,381,300 and Debt Service Funds at $2,085,428. Non-Enterprise Funds totaled $4,071,403 in revenues and $4,434,650 in expenditures, with a difference of ($363,
Clear Channel reported first quarter 2002 revenues of $1.70 billion, a 4% increase over 2001. EBITDA was $370 million compared to $404 million in 2001. Free cash flow for the quarter was $191 million, a 2% increase over 2001. Radio revenues increased 3% to $783 million while radio EBITDA rose 3% to $304 million. Outdoor revenues declined 7.5% to $369 million and EBITDA fell 36% to $75 million. Entertainment revenues grew 18.6% to $476 million but EBITDA declined 10.6% to $15 million.
The court reviewed the valuations of a 15% interest in a private company completed by experts for the estate and IRS. Key issues included the appropriate financial data, adjustments, valuation methods, and assumptions. The estate's DCF analysis projected higher growth but excluded pension adjustments. The IRS analysis relied more on market methods and lower projections. The court generally sided with the IRS experts but made some adjustments, such as constructing its own projections between the two. It applied discounts of 23% for lack of control and 31% for lack of marketability.
AmCorp Management is an expert in helping companies claim export tax benefits through the EIE and IC-DISC provisions. They offer no-cost feasibility studies to determine if a company qualifies for these tax savings programs. The EIE allows companies to exclude a percentage of their foreign trade income from federal taxes, potentially saving 15-30% on export income. The IC-DISC allows up to 50% of foreign trade income to be taxed at a lower 15% dividend tax rate instead of the usual 35% corporate rate, providing significant cash flow benefits. AmCorp can help qualified exporters take advantage of these provisions to recover additional tax savings on their international business activities.
The city is projecting a $1.075 million surplus in its FY13 budget based on estimated revenues of $57.4 million and expenses of $56.3 million. However, the city has identified $2.855 million in priority funding needs for items like employee raises, street maintenance, and expanded animal services. To help fund these priorities, the city council is providing guidance to focus on priority services, consider increasing user fees over tax revenues, and begin saving more in future years. One proposed way to generate more revenue is by charging appropriate user fees for facilities, rentals, and permits.
Tax planning for the dentist in an era of uncertaintygppcpa
The document summarizes upcoming tax changes that may impact dentists, including increases to payroll taxes, reductions to depreciation deductions and AMT exemptions, new excise taxes on medical devices, and changes to tax brackets, capital gains rates, and deductions for medical expenses. It recommends tax planning strategies for dentists such as deferring income and expenses between years, accelerating capital gains, and evaluating retirement plans to minimize taxes and navigate future uncertainty around tax laws.
Tax planning for the dentist in an era of uncertaintygppcpa
The document summarizes tax planning strategies for dentists given current tax law and anticipated changes. It notes that dentists should manage their taxable income for 2012 by deferring expenses to 2013. They should also consider accelerating capital gains and restructuring investment portfolios to avoid additional Medicare taxes on net investment income. Dentists should evaluate retirement plans and consider pushing business deductions or deferring losses to 2013 for tax planning in an era of ongoing tax law uncertainty.
Tax Tools and Tips and Traps ... Oh My!Doeren Mayhew
The document provides an overview of US tax revenue sources and tax rates. It summarizes that in 2011, the US government collected $3.3 trillion in tax revenue with the income tax making up the majority. It shows data on the number and total income of individual tax returns based on adjusted gross income brackets. Most returns and total income come from those earning under $200k. Year-end legislation extended some individual and business tax breaks through 2014. The President has proposed making some tax credits permanent while increasing taxes on high earners, estates, and businesses.
The document summarizes key changes to US tax law from the Tax Cuts and Jobs Act of 2017. It discusses reductions to individual and corporate tax rates. It also outlines changes to deductions and credits for individuals, as well as new tax rules for businesses, pass-through entities, and international income.
This document provides an overview of scheduled tax changes for 2012 and 2013, including increases to income, capital gains, and Medicare tax rates. It discusses opportunities for tax planning for individuals and businesses before year-end, and notes some decisions that may be best to wait until after the election due to ongoing presidential tax proposals.
Tax Cuts and Jobs Act: Tax Reform UpdateSkoda Minotti
Understand the new tax rules resulting from the Tax Cuts and Jobs Act of 2017, and undertake a general review of the tax changes taking effect in 2018 that result from the Tax Cuts and Jobs Act of 2017.
The document provides an overview of tax law changes for 2012, including:
- Repeal of the 3% withholding requirement for government contractors.
- Stricter eligibility rules for the health insurance premium assistance credit beginning in 2014.
- Many expired tax provisions from 2011 that may be extended, such as AMT relief and education credits.
- Changes to tax rates, capital gains rates, payroll taxes, and other provisions set to expire at the end of 2012.
- Reporting requirements for employer-provided health plans and partnerships.
- Standard mileage rates and inflation adjustments for 2012.
- Additional Medicare taxes for high-income individuals and a higher medical expense deduction threshold beginning in 2013 under the Affordable Care
Intuit Presents Tax Law Changes for Tax Year 2012intuitaccts
Get the very latest on important tax law changes that will impact returns for Tax Year 2012 from Intuit's Mike D'Avolio. These changes seem to come later and later each year. Let’s us do the legwork and keep you up to speed on current status of tax law changes and extensions.
This presentation discusses the American Taxpayer Relief Act of 2012, better known as the “fiscal cliff” legislation, extended many key tax provisions from the Bush era for both individuals and businesses. Also addressed were the key tax provisions contained in this Act as well as a number of other tax planning issues that you should be aware of this year.
This presentation was part of a CPE webinar. Full details at http://www.macpas.com/webinar-recap-2013-tax-update/.
More info at www.macpas.com
Three projects were monitored for compliance by Research Valley Partnership (RVP) in 2015. FUJIFILM Diosynth Biotechnologies Texas met its payroll and employment targets at both its National Center for Therapeutics Manufacturing and Biocorridor locations. Reynolds & Reynolds exceeded both its investment and payroll requirements.
M&A and Exit Planning Trends 2021 Webinar | Hosted by Laurie Barkman, SmallDo...Laurie Barkman
This document discusses trends in mergers and acquisitions (M&A) and exit planning for 2021. It first covers the impact of 2020 tax changes and provides an outlook for 2021. It then reviews M&A market trends in 2020, finding a 20% decline in deal activity and falling price multiples. The document also outlines the exit planning process and benefits of planning. It poses poll questions to business owners on their long-term goals, timelines, and definitions of wealth. The presentation encourages owners to assess their readiness by taking complimentary assessments.
GROWING AND PRESERVING ASSETS THROUGH TAX AND ESTATE PLANNING - Tina Davis, C...IFG Network marcus evans
Presentation by Tina Davis Milligan, CPA, Managing Director, Family Office Services, CTC | myCFO - Speaker at the IFG Wealth Management Forum Oct 2015 at the Trump Doral in FL
The document provides an overview of the changes to individual and business taxation resulting from the 2017 tax reform law. For individuals, it summarizes changes such as lower tax rates, increased standard deduction, changes to certain deductions. For businesses, it discusses expanded expensing allowances, limitations on interest expense deductions, changes to meals and entertainment deductions. It also provides details on the new 20% pass-through deduction and its limitations.
The passage of the Tax Cuts and Jobs Act will have widespread and long lasting implications throughout the country and will change how most taxpayers will prepare their tax returns. Citrin Cooperman recently hosted a seminar in Philadelphia to provide insight on where we are now, how we plan to move forward, and how the new law will impact your overall business and tax strategies. Join us to get answers to questions in the following areas:
Corporate and Businesses
Pass-Through Entities
International Issues
Individuals
The New Tax Law: Here's What You Should Knowgppcpa
The new Tax Cuts and Jobs Act made some significant changes to the U.S. tax code. These reforms will impact individuals and business in an important way. It is crucial to know how you will fare given the new rules.
This document summarizes the 2014 tax update and hot topics presented by Drew Rogers, CPA. It discusses the impact of 2013 tax law changes such as rate increases and limitations on deductions. For businesses, it covers expiring tax provisions, deductions, and credits. It also discusses entity choice, multistate planning, and exit planning strategies. For individuals, it summarizes rate schedules and provides planning tips for items like the Net Investment Income Tax, deductions, charitable giving, and the Alternative Minimum Tax. The presentation concludes with an overview of South Carolina tax credits that may provide benefits.
This document proposes a 0.25% income tax increase for the City of Tiffin to address declining revenues from the state. It summarizes how state funding to Tiffin has decreased significantly in recent years, resulting in a projected loss of over $700,000 for Tiffin in 2013 compared to 2010. The tax increase is estimated to generate $960,000 annually which would help maintain current city services and infrastructure like police, fire, street maintenance and parks that are at risk of cuts without additional revenue. The impact on average Tiffin residents would be small, around $1.75 per week for someone making $36,400 annually.
This document summarizes various provisions of the Tax Cuts and Jobs Act (TCJA) including:
1) Individual and corporate tax rates that were reduced under the TCJA.
2) Changes to itemized deductions such as capping state and local tax deductions, mortgage interest deductions, medical expense deductions, and suspending some miscellaneous itemized deductions.
3) Strategies like "bunching" deductions, qualified charitable distributions, and investing in Qualified Opportunity Funds to maximize savings under the new tax law.
This document provides an overview of search engine optimization (SEO) and pay-per-click advertising strategies. It discusses what SEO and pay-per-click advertising are, how they can benefit businesses, and some of the key capabilities available for each strategy, including keyword research, on-page optimization, content creation, link building, Google Ads, Google Display Ads, YouTube ads, and social media ads. The document also poses three questions for businesses to consider for each strategy to help determine how they can be effectively implemented.
Elevate 2019: Financial Professional SlidesSkoda Minotti
This document provides an overview of ethics standards and rules for CPAs, including those from the AICPA and other standard-setting bodies. It discusses the AICPA Code of Professional Conduct, which establishes principles like integrity, objectivity and independence. The Code also contains rules for members in public practice and business regarding issues like conflicts of interest, confidentiality, acts discreditable to the profession, and independence. Additional topics covered include statements on tax services, IRS Circular 230, continuing education requirements, and responding to client errors or omissions.
Smart Manufacturing Workshop: An Interactive Improv SessionSkoda Minotti
Learn how you can increase revenue, decrease costs and improve profitability all while improving your overall equipment effectiveness, quality, on-time delivery and much more!
Your business faces risks on multiple fronts, so risk management should be a strategic priority. Identifying and addressing risks helps your business run smoothly, and keeps you focused on pursuing your business objectives. We discuss strategies to mitigate your IT threats, explore insurance options and assess your internal control needs.
Navigating the Tax and Accounting Implications of CryptocurrenciesSkoda Minotti
This document provides an overview of cryptocurrencies and their tax and accounting implications. It discusses what bitcoin is, key facts about cryptocurrencies and blockchain, and how to account for and tax cryptocurrency transactions. Cryptocurrencies are treated as property for tax purposes in the US. Gains and losses from transactions are taxed similarly to capital assets. Accounting for cryptocurrencies also follows fair value accounting. The document concludes with opportunities blockchain presents for the accounting industry through automation and transparency.
By providing regular feedback to your employees, you drive accountability and productivity within your business. This also is one of the largest predictors of employee engagement. A company without regular feedback loses the ability to make direct connections between employees and management. In addition, employees who achieve their goals and who are appropriately rewarded will continue to drive high performance. This session outlines the essentials of performance management and structuring rewards to best engage and motivate employees.
Non-Qualified Deferred Compensation Programs for Private CompaniesSkoda Minotti
This document discusses non-qualified deferred compensation programs (LTIPs) for private companies. LTIPs are used to reward and retain current employees, attract new employees by focusing on long-term results, and supplement tax-qualified retirement programs. LTIPs can take the form of equity shares, stock options, phantom shares or fixed/variable payments. Employers must consider who participates, what triggers payment, the payment form, amounts, and compliance with IRS rules. Benefits are unsecured and subject to employer credit risk, so some employers informally fund LTIPs using assets like corporate-owned life insurance, which provides tax advantages over mutual funds. The design process involves determining performance requirements, analyzing reward structures, and funding
This interactive session is designed for both novice and seasoned interviewers alike. During the course, you will explore the concepts of motivational fit and behavioral-based interviewing. We will also uncover common mistakes made by most interviewers and what questions are legal to ask a candidate.
Valuation Issues in Developing and Executing Buy-Sell AgreementsSkoda Minotti
A buy-sell agreement is one of the most common tools utilized by lawyers and business advisors in protecting their business owner clients. In this presentation, you will learn about valuation issues that are critical to buy-sell agreements, such as the use of formulas and valuation discounts, which can significantly impact the parties to the agreement if and when it is triggered.
ABC Presents: Recruiting and Retaining Top TalentSkoda Minotti
Businesses today are experiencing a workforce shortage that is crippling production and growth. Even more, our workforce has become increasingly disengaged as companies expand and diversify. Never before has it been so challenging to recruit, hire, develop and retain a skilled construction workforce. Estimates are that there will be a shortage of 1.4 million construction workers in the next 10 years. How can you build your company and its workforce? Heidi Hoyt, Skoda Minotti’s managing director of Staffing, shares views about staffing challenges and opportunities for organizations of every size and scope.
State and Local Tax Nexus Issues and the Impact on Mergers and AcquisitionsSkoda Minotti
The document discusses state and local tax nexus issues and their impact on mergers and acquisitions. It covers state income tax nexus standards such as physical presence and economic nexus thresholds. It also summarizes the Supreme Court's Wayfair decision that overturned the physical presence standard for sales tax nexus and allowed states to implement economic nexus standards. The document stresses the importance of conducting thorough due diligence on state tax issues during M&A transactions to identify potential liabilities.
Future-Proofing Your Business with TechnologySkoda Minotti
Technology is rapidly moving from a business enabler to the core of the business. New technologies such as “big data” and analytics, the internet of things (IoT), robotics, mobile technology, artificial intelligence and cybersecurity are transforming the way business gets done.
We explore the business implications of technology and their impact on businesses of all sizes and scopes, and presents strategies for charting a path through these disruptive times.
Manufacturing in Northeast Ohio: Where We Stand, Where We’re HeadedSkoda Minotti
What are the concerns and challenges of manufacturing companies in Northeast Ohio? How do they perceive opportunities and issues confronting them in 2019? Where are they allocating time, money and resources, and what is their rationale?
Today’s job seekers think and act differently. Attracting and retaining top talent takes a mix of new-school technology and old-school sensibility. The good news: Developing a sound strategy is well within your reach.
Stacy Bauer, Co-Founder of BauerGriffith, LLC, Heidi Hoyt, Skoda Minotti's Managing Director of Staffing, and Laura Rohde, Skoda Minotti's Managing Director of HR Services, share their views about staffing challenges and opportunities for organizations of every size and scope.
New Ohio Cybersecurity Law RequirementsSkoda Minotti
Skoda Minotti’s Risk Advisory Services Group and Insurance Services Group are working closely with insurance industry licensees to meet the considerable requirements under the Ohio cybersecurity law. This presentation provides more detailed information about the law, and assists you with your understanding and implementation of the requirements.
This document provides an overview of Medicare coverage options and enrollment periods. It discusses:
1) The parts of Original Medicare including Part A for hospital coverage and Part B for medical coverage.
2) Supplemental coverage options like Medigap plans and Medicare Advantage plans.
3) Enrollment periods for signing up including the initial enrollment period at age 65 and the annual enrollment period.
The document aims to help readers understand their Medicare coverage options and choose the best path for their needs and budget.
Five Digital Marketing Trends Your Company Needs to Know in 2019Skoda Minotti
This document provides information about Skoda Minotti, a CPA and business advisory firm, and their director of digital marketing, Bob Goricki. It also outlines their strategic marketing group services including digital marketing, websites, content development, and branding. Additionally, it discusses marketing technology, social media advertising, SEO trends, marketing automation, and GDPR compliance.
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2. SKODA MINOTTI TEAM
Michael Minotti, CPA Steven Hartstein, CPA, JD Mike Trabert,
Partner Partner CPA, CVA, CMAP, CEPA
Partner
Jim Forbes, CPA Jenna Staton, EA Matt Soful Anna Marie Ricciardi
Principal Manager Business Development Marketing Specialist
7. The American Taxpayer Relief Act of 2012
• Senate vote 89-8, House 257-167
• Signed into law on January 2, 2013
• Retains ―Bush Tax Cuts‖ for all but higher income taxpayers
• Increased tax on Qualified dividend and capital gains for most
taxpayers
• Many extensions for expiring provisions
• Delay in sequester
9. BUSINESS TAX CHANGES
Permanent Extensions
Various temporary tax provisions enacted as part of Economic
Growth and Tax Relief Reconciliation Act of 2001 were made
permanent:
• The exclusion for employer-provided educational assistance
(Sec. 127);
• The employer-provided child care credit (Sec. 45F);
• Repeal of the collapsible corporation rules (Sec. 341);
• Special rates for accumulated earnings tax and personal
holding company tax (Secs. 531 and 541); and
• Modified tax treatment for electing Alaska Native Settlement
Trusts (Sec. 646)
10. BUSINESS TAX CHANGES
Temporary Extensions
Also extended are many business tax credits and other provisions:
• Temporary minimum low-income tax credit rate for non-federally
subsidized new buildings (Sec. 42);
• Housing allowance exclusion for determining area median gross
TODAY’S AGENDA
income for qualified residential rental project exempt facility bonds
(Section 3005 of the Housing Assistance Tax Act of 2008);
• Indian employment tax credit (Sec. 45A);
• New markets tax credit (Sec. 45D);
• Railroad track maintenance credit (Sec. 45G);
• Mine rescue team training credit (Sec. 45N);
11. BUSINESS TAX CHANGES
Temporary Extensions
• Employer wage credit for employees who are active duty members of
the uniformed services (Sec. 45P);
• Work opportunity tax credit (Sec. 51);
• Qualified zone academy bonds (Sec. 54E);
• Fifteen-year straight-line cost recovery for qualified leasehold
TODAY’S AGENDA
improvements, qualified restaurant buildings and improvements, and
qualified retail improvements (Sec. 168(e));
• Accelerated depreciation for business property on an Indian
reservation (Sec. 168(j));
• Enhanced charitable deduction for contributions of food inventory
(Sec. 170(e));
• Election to expense mine safety equipment (Sec. 179E);
12. BUSINESS TAX CHANGES
Temporary Extensions
• Special expensing rules for certain film and television
productions (Sec. 181);
• Deduction allowable with respect to income attributable to
domestic production activities in Puerto Rico (Sec. 199(d));
• Modification of tax treatment of certain payments to controlling
exempt organizations (Sec. 512(b));
• Treatment of certain dividends of regulated investment
companies (Sec. 871(k));
• Regulated investment company qualified investment entity
treatment under the Foreign Investment in Real Property Act
(Sec. 897(h));
• Extension of subpart F exception for active financing income
(Sec. 953(e));
13. BUSINESS TAX CHANGES
Temporary Extensions
• Look through treatment of payments between related
controlled foreign corporations under foreign personal holding
company rules (Sec. 954); Temporary exclusion of 100% of
gain on certain small business stock (Sec. 1202);
• Basis adjustment to stock of S corporations making charitable
contributions of property (Sec. 1367);
• Reduction in S corporation recognition period for built-in gains
tax (Sec. 1374(d));
• Empowerment Zone tax incentives (Sec. 1391);
• Tax-exempt financing for New York Liberty Zone (Sec. 1400L);
14. BUSINESS TAX CHANGES
Temporary Extensions
• Temporary increase in limit on cover-over of rum excise taxes to
Puerto Rico and the Virgin Islands (Sec. 7652(f)); and
• American Samoa economic development credit (Section 119 of the
Tax Relief and Health Care Act of 2006, P.L. 109-432, as
modified).
16. BUSINESS TAX CHANGES
Bonus Depreciation
• 50% first-year bonus depreciation
• Qualified property is tangible property depreciated under MACRS
with a recovery period of 20 years or less
• Must meet original use, timely acquisition, and timely placed in
service requirements
• Extended retroactively for property placed in service before
January 1, 2014
• Applies automatically; must opt-out by asset class
• Can create a loss
17. BUSINESS TAX CHANGES
Section 179 – Expensing Election
• Dollar Limitations
− Was scheduled to go down to $139,000 for 2012 and $25,000 for 2013
− Increased to $500,000 retroactively for 2012 and for 2013
• Reduction in Limitations
− Was scheduled to go down to $560,000 for 2012 and $200,000 for 2013
− Increased to $2,000,000 retroactively for 2012 and for 2013
• Section 179 cannot create a loss
• Available for used property
18. BUSINESS TAX CHANGES
First Year Depreciation Cap for Autos & Trucks
• For 2012 the luxury auto limit was scheduled to be $3,160 for autos
and $3,360 for light trucks and vans
• The applicable first-year depreciation limit has been increased by
$8,000
− $11,160 for autos
− $11,360 for light trucks and vans
19. BUSINESS TAX CHANGES
Section 179 Example
2012 Deduction 2012 Deduction
Cap-Ex Old Law New Law
$50,000 $50,000 $50,000
$150,000 $139,000 $150,000
$500,000 $139,000 $500,000
$700,000 -0- $500,000
23. PERSONAL TAX CHANGES
Highlights
• Bush tax cuts retained for most taxpayers
• Raises top rate for dividends and capital gains
• Expiration of payroll tax holiday
• Permanently ―patches‖ AMT
• Return of phase outs of itemized deductions and personal
exemptions
24. PERSONAL TAX CHANGES
Tax Rates
• Obama initially proposed $250K/$200K threshold for higher
rates
• Boehner proposed an increase on those making more that $1
million
26. PERSONAL TAX CHANGES
Payroll Taxes
• Started January 1, 2011
• Employee FICA rate reduced from 6.2% to 4.2%
• Extended for 2012
• Expired as of January 1, 2013
27. PERSONAL TAX CHANGES
AMT Permanent Patch
Alternative Minimum Tax (AMT) Relief
• Increased exemption for 2012
• $50,600 Single, $78,750 MFJ
TODAY’S AGENDA
• Without fix - $33,750 Single, $45,000 MFJ
• Indexed for inflation
28. PERSONAL TAX CHANGES
Future of AMT
• Could be abolished in the future
• Obama proposed to replace part of the AMT with the so-called ―Buffet
Rule
• Buffet Rule would ensure taxpayer making over $1 million would pay
TODAY’S AGENDA
an effective rate of at least 30 percent.
• 2012 – Senate rejected the ―Paying a Fair Share Act‖
29. PERSONAL TAX CHANGES
Return of Phase Outs
Itemized Deduction Phase Out
• Reduces itemized deductions by 3% of the amount by which AGI
exceeds threshold, not to exceed 80%
TODAY’S AGENDA
• Single $250,000 MFJ $300,000
Personal Exemption Phase Out
• Reduces exemption by 2% for each $2,500 (or portion thereof) by
which AGI exceeds threshold
• Single $250,000, MFJ $300,000
30. PERSONAL TAX CHANGES
Individual Tax Credits Available in 2012
Adoption Credit – Available if you adopted a child and paid-out-of-pocket
expenses relating to the adoption
• Amount of credit is directly related to the amount of money spent on
TODAY’S AGENDA
the adoption
• Adoption of special needs child allows for the full amount of the credit
even If out-of-pocket expenses are less than the credit amount
• The maximum value of the credit is $12,650 per eligible and it is non-
refundable
• Phase-out is between $189,710 - $229,710
• Need to file FORM 8839 to claim
31. PERSONAL TAX CHANGES
Individual Tax Credits Available in 2012
• Child and Dependent Care Credit – Available if child is under 12
years of age, or a dependent of any age who cannot care for
themselves. To qualify, you must have earned income and the care
must enable you to work or look for work
TODAY’S AGENDA
− Must reduce deduction by any amount provided by employer through
a dependent care benefits plan
− The value of the credit depends on AGI and is between 20% - 35% of
qualified expense
− The maximum amount of qualified expenses that can be claimed is
$3,000 for one child and $6,000 for two or more children
− Must file Form 2441 to receive credit
• Planning Opportunity – Flex spending Account
− Can set aside a portion of paycheck, up to $5,000 tax free to pay for
dependent care expense
32. PERSONAL TAX CHANGES
Individual Tax Credits Available in 2012
• Retirement Savings Credit – Credit available for low to moderate
income workers who contribute to a qualified plan. AGI must be less
than:
− $57,500 Married filing jointly
TODAY’S AGENDA
− $43,125 Head of Household
− $28,750 Single
o Amount of credit varies depending on AGI and amount of contribution
made
• Work Opportunity Credit – Rewards employers that hire individuals
from targeted groups. The value of the credit can be as high as $9,600
for qualified veterans. This credit is a general business credit.
− Examples of these target groups:
o Veterans
o Felons
33. PERSONAL TAX CHANGES
Energy Credits
• For taxpayers who have not utilized their energy credit for energy
saving biomass stoves, heating, ventilating, and air conditioner unit,
insulation, roofs, water heaters (non solar), and windows and doors, a
tax credit of 10% of up to $500 (for all tax years after 2005 and only
TODAY’S AGENDA
$200 can be used for windows) is still available.
− Qualifying improvements must be placed into service to the taxpayer’s
personal residence located in the United States
− Claim of Form 8695
• The 30% (with no upper limit) credit for geothermal heat pumps, small
wind turbines, and solar energy systems does not expire until
December 31, 2016
35. MEDICARE TAX CHANGES
Patient Protection and Affordable Care Act
• Two Parts
− 0.9% increased Medicare tax due on wages and self-employment
earnings
TODAY’S AGENDA
− 3.8% surtax on at least a portion of investment income such as capital
gains, dividends and net rental income
36. MEDICARE TAX CHANGES
Tax Earnings
An additional 0.9% surtax on higher Thresholds
income households
Single Taxpayer
The tax applies to wages and $200,000
self-employment income in TODAY’S AGENDA
excess of threshold
Married Taxpayers
There is no employer match on Filing Jointly $250,000
the 0.9 percent tax
37. MEDICARE TAX CHANGES
Tax Earnings
Ron .9% Surtax
• Single Taxpayer Would
• Employee
• $500,000 Earnings APPLY
Single $300,000
to ax Payer
Excess of Earning Threshold $200,000
=
$500,000 Married$2,700
taxpayers
- 200,000 filingjointly Tax
Additional
$300,000 $250,000
38. MEDICARE TAX CHANGES
A Bit of a Hidden Increase
2012 2013
FICA Withholding $4,624 $7,049
Medicare Withholding 7,250 7,250
Medicare Surtax - 2,700
TODAY’S AGENDA
Ron‟s Cost $11,874 $16,999
FICA Withholding $6,826 $7,049
Medicare Withholding 7,250 7,250
Employer‟s Cost $14,076 $14,299
Funds for Social $25,950 $31,298
Security System
39. MEDICARE TAX CHANGES
A Bit of a Hidden Increase
• Ron’s increased cost $5,125 and 43%
• Increased funds to Social Security System $5,348 and 21%
Single ax Payer
$200,000
Married taxpayers
filingjointly
$250,000
40. MEDICARE TAX CHANGES
3.8% Medicare „Surtax‟ Overview
Investment Income
• Beginning with the 2013 tax year, a new 3.8% Medicare
―surtax‖ will apply to all taxpayers whose income exceeds a
certain ―threshold amount‖ Single ax Payer
$200,000
• This new ―surtax‖ will, in essence, raise the marginal income
tax rate for affected taxpayers Married taxpayers
filingjointly
• Thus, a taxpayer in the 39.6% tax bracket (i.e. the highest
$250,000
marginal income tax rate in 2013) would have a marginal rate
of 43.4%!
41. MEDICARE TAX CHANGES
3.8% Medicare „Surtax‟ Overview
Current Tax Rate Tax Rate in 2013 Tax Rate in 2013
+ (with surtax)
10% 15% 15%
15% 15% 15%
25% 28% 28%
Single ax Payer
28% 31% 34.8%
$200,000
33% 36% 39.8%
35% 39.6% 43.4%
Married taxpayers
NOTE: The chart above assumes that the 3.8% Medicare surtax would not begin to apply
filingjointly
until a person’s taxable income reaches the 31% tax bracket (based on certain net
$250,000
investment income and itemized deduction assumptions). However, there are times when
the 3.8% could apply to a person in a lower tax bracket (i.e. 15%, 28%) or may not apply
to a person in higher tax brackets (31%, 36%, 39.6%).
42. MEDICARE TAX CHANGES
3.8% Medicare „Surtax‟ Overview – Individuals
1. Net Investment Income
OR Single ax Payer
3.8% X $200,000
2. The Excess (if any) of –
the lesser of • ―Modified Adjustable Gross
Income (MAGI)
Married taxpayers
• ―Threshold Amount
filingjointly
$250,000
43. MEDICARE TAX CHANGES
3.8% Medicare „Surtax‟ Overview – Critical Terms
Three critical terms associated with the 3.8% Medicare surtax
• ―Net investment income‖ (NII)
• ―Threshold amount‖ (TA)
• ―Modified adjusted gross income‖ (MAGI)
Married taxpayers
filingjointly
$250,000
44. 3.8% MEDICARE ‘SURTAX’
OVERVIEW – NII
Exempt from Surtax:
Subject to Surtax:
• Wages
• Taxable Interest
• Exempt Interest
• Dividends
• Active Royalties
• Annuity Income
• IRA Distributions
• Passive Royalties
• 401(k) Distributions
• Rents
• Pension Income
• RMDs
• Social Security Income
Married taxpayers
filingjointly
$250,000
45. MEDICARE TAX CHANGES
3.8% Medicare „Surtax‟ Overview – Threshold Amount
“Threshold Amount”
• Is the key factor in determining the ―lesser of‖ formula for purposes
of calculating the surtax
Threshold Amounts
• Single taxpayers — $200,000 Married taxpayers
• Married taxpayers — $250,000 filingjointly
$250,000
46. MEDICARE TAX CHANGES
3.8% Medicare „Surtax‟ Overview – MAGI
“Modified Adjusted Gross Income”
• Is the amount that is compared to the ―threshold amount‖ to
determine the ―net investment income‖ that is subject to the surtax
MAGI Equals
• Adjusted gross income
− i.e., Form 1040, Line 37
• PLUS Net foreign earned income exclusion
Married taxpayers
− i.e., gross income excluded under the foreign earned income
filingjointly
exclusion less certain deductions or exclusions that were
$250,000
disallowed due to the foreign earned income exclusion
48. MEDICARE TAX CHANGES
3.8% Medicare „Surtax‟ Example
John 3.8% Surtax
Would NOT
• Single Taxpayer
Apply
• $100,000 of Salary
MAGI is Less
• $50,000 Net Investment Income Than
Threshold
Married taxpayers
MAGI is $150,000 filingjointly
$250,000
Threshold is $200,000
49. MEDICARE TAX CHANGES
3.8% Medicare „Surtax‟ Example
Linda
• Single Taxpayer 3.8% Surtax
Would Apply
• $0 Employment Income to $25,000
• $225,000 Net Investment Income
Tax = $950
Excess of MAGI Over Threshold Married taxpayers
filingjointly
$225,000 $250,000
- 200,000
$ 25,000
50. MEDICARE TAX CHANGES
3.8% Medicare „Surtax‟ Example
Tina & Terry 3.8% Surtax
Would
• Married, Filing Jointly
NOT
• $300,000 Combined Salary Apply
• $0 net Investment Income Wages
Exempt
Married taxpayers
MAGI is $300,000 filingjointly
Threshold is $250,000 $250,000
Excess is $50,000
51. MEDICARE TAX CHANGES
3.8% Medicare „Surtax‟ Example
Peter & Paula
3.8% Surtax
• Married, Filing Jointly
Would Apply
• $400,000 Salary Income to
$50,000
• $50,000 Net Investment Income
Tax = $1,900
Excess of MAGI Over Threshold Married taxpayers
filingjointly
$450,000 $250,000
- 250,000
$200,000 But $50,000 < $200,000
52. MEDICARE TAX CHANGES
3.8% Medicare „Surtax‟ Example
Sarah & Scott
• Married, filing jointly 3.8% Surtax
would apply
• $200,000 salary income
to $100,000
• $150,000 net investment income
Tax = $3,800
Excess of MAGI Over Threshold Married taxpayers
filingjointly
$350,000 $250,000
- 250,000
$100,000
53. MEDICARE TAX CHANGES
PLEASE NOTE
• A taxpayer should never pay both the 0.9%
tax on earned income and the 3.8% surtax
on net investment income on the same
item of income!
Married taxpayers
filingjointly
$250,000
54. MEDICARE TAX CHANGES
What Else is Exempt?
• S Corp distributions to owners who materially participate
• Rents received by ―real estate professionals‖ who materially
participate in underlying rental activity
• Grouping of rental activities with businesses in which owners
materially participate
• Re-characterized rents received from businesses intaxpayers
Married which
filingjointly
owner materially participates (whether or not PAL grouping
$250,000
election has been made)
55. MEDICARE TAX CHANGES
Applications to S Corp Earnings
• K-1 profits for S Corp owners who materially participate are not
subject to either the 0.9% tax on earned income OR the 3.8%
surtax on net investment income
• Distinguish portfolio income which is separately stated
• Passive owners would still be subject to the 3.8% surtax
Married taxpayers
filingjointly
$250,000
56. MEDICARE TAX CHANGES
Applications to S Corp Interest
• For material participants, only net gain or loss attributable to
property held by the entity which is not ―property attributable to
an active trade or business‖ is taken into account (e.g. stocks,
bonds, other investment property) for the 3.8% surtax
• For passive investors, any and all gain or loss will be included
in calculating net investment income
Married taxpayers
filingjointly
$250,000
57. MEDICARE TAX CHANGES
Applications to Partnership Earnings
• Earnings for partners who materially participate are not subject
to the 3.8% tax on net investment income BUT will be subject
to the 0.9% tax on earned income
• Passive owners are just the opposite
− They would be subject to the 3.8% surtax on NII, but not
the 0.9% tax on earned income Married taxpayers
filingjointly
$250,000
58. MEDICARE TAX CHANGES
Applications to Partnership Interest
• For material participants, only net gain or loss attributable to
property held by the entity which is not ―property attributable to
an active trade or business‖ is taken into account (e.g. stocks,
bonds, other investment property) for the 3.8% surtax
• For passive investors, any and all gain or loss will be included
in calculating Net Investment Income
Married taxpayers
filingjointly
$250,000
59. MEDICARE TAX CHANGES
Understanding the „Surtax‟ Code 469 PAL Rules
Trade or Business
Activity
Entity Materially 3.8% Tax .9% Tax
Participate
S-Corp Yes No No
S-Corp No Yes No
Partnership Yes No Yes
Partnership No Yes No
60. SINGLE TAXPAYER
2012 2013 Change
Wages $200,000 $200,000
Itemized Deductions (8,900) (8,900)
Exemptions (3,800) (3,900)
Taxable Income $187,300 $187,200
Federal Income Tax $ 46,337 $ 45,907 ($430)
Married taxpayers
filingjointly
$250,000
61. SINGLE TAXPAYER
2012 2013 Change
Wages $250,000 $250,000
Itemized Deductions (11,814) (11,814)
Exemptions (3,800) (3,900)
Taxable Income $234,386 $234,286
Federal Income Tax $ 61,957 $ 61,445 ($512)
Surtax - 450Married taxpayers
450
filingjointly
Total $ 61,957 $ 61,895 $250,000($ 62)
Surtax is .9% on excess wage of $250,000 - $200,000 threshold.
62. SINGLE TAXPAYER
2012 2013 Change
Wages $200,000 $200,000
Rents 50,000 50,000
Itemized Deductions (11,814) (11,814)
Exemptions (3,800) (3,900)
Taxable Income $234,386 $234,386
Federal Income Tax $ 61,957 $ 61,445 ($512)
Married taxpayers
Surtax -___ 1,900 1,900
filingjointly
Total $ 61,957 $ 63,345 $1,388
$250,000
Surtax of 3.8% on rents of $50,000
No surtax if married filing joint return.
63. SINGLE TAXPAYER
2012 2013 Change
Wages $450,000 $450,000
Capital Gains 100,000 100,000
Itemized Deductions (29,589) (20,589) (9,000)
Exemptions 3,800 -___ (3,800)
Taxable Income $516,611 $529,411 $12,800
Federal Income Tax $137,575 $147,811 $10,236
Surtax 3.8% -___ 3,800 3,800
$137,575 $151,611 $14,036
Surtax of 3.8% on capital gains of $100,000.
Additional $2,250 in the .9% surtax with held at source.
64. SINGLE TAXPAYER
2012 2013 Change
Retirement Income $150,000 $150,000
Social Security 17,000 17,000
Dividends 50,000 50,000
Itemized Deductions (8,900) (8,900)
Exemption (3,800) (3,900)
Taxable Income $204,300 $204,200
Federal Income Tax $ 44,557 $ 44,030 Married taxpayers
($527)
Surtax 3.8% -___ 646 filingjointly
646
Total $ 44,557 $ 44,676 $250,000 $119
65. MARRIED TAXPAYERS
2012 2013 Change
Wages $280,000 $280,000
Interest 10,000 10,000
Dividends 30,000 30,000
Business Income 90,000 90,000
Capital Gains 50,000 50,000
SE Tax Deduction (1,205) (1,205)
Itemized Deductions (24,065) (19,301) (4,764)
Exemptions (7,600) Married taxpayers
-____ (7,600)
filingjointly
$250,000
Taxable Income $427,130 $439,494 $12,364
66. MARRIED TAXPAYERS
2012 2013 Change
Federal Income Tax $103,459 $106,946 3,487
AMT 10,669 6,456 (4,213)
114,128 113,402 (726)
Self-Employment Tax 2,410 2,410 -
Surtax 3.8% - 3,420 3,420
Surtax .9% -____ 1,080 1,080
$116,538 $120,312 $3,774
Surtax of 3.8% on NII of $90,000 ($10,000 + $30,000 + $50,000)
Surtax of .9% on wages of $280,000 + profits of $90,000 less threshold
67. MARRIED TAXPAYERS
2012 2013 Change
Wages $280,000 $280,000
Interest & Dividends 40,000 40,000
Business Income 200,000 200,000
Capital Gains 50,000 50,000
Rental 200,000 200,000
SE Tax (2,678) 2,678
Itemized (42,345) (28,325) $14,020
Exemption (7,600) Married taxpayers 7,600
-____
filingjointly
Taxable Income $717,377 $250,000
$738,997 $21,620
68. MARRIED TAXPAYERS
2012 2013 Change
Federal Income Tax $204,221 $224,609 $20,388
SE Tax 5,356 5,356 -
Surtax 3.8% - 11,020 $11,020
Surtax .9% ___ -___ 2,070 2,070
$209,577 $243,055 $33,478
Married taxpayers
filingjointly
Surtax of 3.8% on NII of $40,000 + 50,000 + 200,000
$250,000
Surtax of.9% on $280,000 + 200,000 less threshold $250,000
69. QUESTIONS?
Contact Us:
Mayfield Village Office Akron Office
ph 440-449-6800 ph 330-668-1100
Michael Minotti, CPA Jim Forbes, CPA
mminotti@skodaminotti.com jforbes@skodaminotti.com
Steven Hartstein, CPA, JD Jenna Staton, EA
shartstein@skodaminotti.com jstaton@skodaminotti.com
Mike Trabert, CPA, CVA, CMAP, CEPA
mtrabert@skodaminotti.com