The document summarizes key provisions of the American Taxpayer Relief Act of 2012, which addressed the impending "fiscal cliff." It permanently extended many of the tax cuts that had been in place but were set to expire. It retained most individual income tax rates but established a new top rate of 39.6% for high earners. It made the alternative minimum tax exemption amount permanent and indexed to inflation. It also made estate tax provisions like portability permanent while increasing the top tax rate to 40%. The act extended some business tax provisions through 2013, including expanded section 179 expensing and a 100% exclusion on gains of certain small business stock. It also discussed new taxes related to health care reform taking effect in 2013.
We acquire many of our customers through referrals from
satisfied clients. Beyond the benefit of being able to expand
our business, there are other reasons why we appreciate referrals.
When a client thinks enough of us to recommend
our services to a family member, friend, or co-worker, we
attain a higher quality clientele than those we acquire from
more random marketing efforts.
On-demand drivers for ridesharing companies, such as
Uber or Lyft, are not employees and are instead considered
independent contractors for tax purposes. Being an
independent contractor means you are self-employed.
We acquire many of our customers through referrals from
satisfied clients. Beyond the benefit of being able to expand
our business, there are other reasons why we appreciate referrals.
When a client thinks enough of us to recommend
our services to a family member, friend, or co-worker, we
attain a higher quality clientele than those we acquire from
more random marketing efforts.
On-demand drivers for ridesharing companies, such as
Uber or Lyft, are not employees and are instead considered
independent contractors for tax purposes. Being an
independent contractor means you are self-employed.
Proactive Year-end Financial and Tax Planning StrategiesAICPA
In the third webcast in the AICPA Insights Live webcast series, Beth Gamel, CPA/PFS, Robert S. Keebler, CPA, Ted Sarenski, CPA/PFS and Scott Sprinkle, CPA/PFS, CGMA came together to discuss year-end financial and tax planning strategies, specifically to address the American Taxpayer Relief Act and the Net Investment Income Tax. Below you can find an audio recording from the webcast, as well as the accompanying presentation. Be sure to explore the other webcasts in the AICPA Insights Live webcast series.
Year-End Tax and Financial Planning by myStockOptions.comBruce Brumberg
This presentation provides a timely overview of year-end financial-planning and tax topics for stock compensation, including points of importance for employee education and for financial advisors. Special attention is given to issues involving tax-rate increases. While each annual edition features planning concerns specific to that year-end, the general ideas presented here are perennially useful.
The 2014 Essential Tax and Wealth Planning Guide discusses opportunities available through the final few months of 2013, and the planning environment beyond as policymakers continue a tax reform debate that could fundamentally change how individual taxpayers compute their taxes.
The tax-related decisions you make today, and at various points in your career, may have a marked effect on how you save for retirement and how much you will have down the road to support your goals. Many tax decisions you make about retirement are one-time choices that can be very costly to change, so it pays to plan.
For more information, visit http://www.deloitte.com/us/taxandwealthguide
Get the very latest on important tax law changes that will impact returns for Tax Year 2013. There are so many changes to keep track of each year. Let us us do the legwork and keep you up to speed on the current status of tax law changes and extenders. Topics will include the Defense of Marriage Act, Post 2013 Affordable Care Act changes and other IRS initiatives.
EY - US Employment Tax Year in Review (November 2013)EY
The presentation covers:
- FICA on severance
- Fiscal cliff legislation – impacts for 2013 and beyond
- The additional Medicare tax began this year
- Reporting change in responsible party to the IRS
- 2010 HIRE Act – IRS notices and refund deadline
- Same-sex partner benefits in wake of Supreme Court ruling
- Affordable Care Act – what to know about 2014
- Unemployment insurance – new laws mean a new approach
- States go retro in 2013
- Pay card controversy – seven things employers should do
The purpose of Roth IRA conversions as it relates to NIIT is to lower modified adjusted gross income (MAGI) below the threshold amount over the long-term. Some benefits of Roth conversions include lower overall taxable income, tax-free compounding, no required minimum distributions at age 70 ½, tax-free withdrawals for beneficiaries, and more effective funding of the “bypass trust”. Converting to a Roth IRA creates opportunities to reduce the overall size of the estate and to take advantage of greater tax-free yields and favorable tax attributes. Bob Keebler walks you through the mathematics of conversion through examples, tactical considerations, and a four-step process for Roth conversion planning.
Explore the New IRS Form for Net Investment Income TaxAICPA
Bob Keebler goes line by line through Form 8960, Net Investment Income Tax for Individual, Estates and Trusts, to help members understand key elements they need to know for tax season.
State of the States: An Analysis of the 2015 Governors’ AddressesALEC
State of the States is an in-depth study of governors’ tax, budget and pension reform proposals. The report gives insight into which states proposed economic reform to protect taxpayers and which states took steps toward increasing state revenue. This report also features graphics that reveal regional trends in proposed reforms while also highlighting which states have a newly elected governor.
In einer Welt, die durch Komplexität, Vernetzung und zunehmende Trendbrüche gekennzeichnet ist, beherzigen erfolgreiche Projektleiter zwei Dinge: Sie leben ein neues Verständnis von
Risikomanagement und nutzen die Kraft der Unterschiede und der Dynamik in Team. Das übliche Risikomanagement gleicht einer Planwirtschaft und drangsaliert jeden strategisch denkenden und
wirtschaftlich handelnden Mitarbeiter. Im Versuch die Kontrollillusion der Projektmanagement
Techniker durchzusetzen, wird die Kreativität und Energie der Mannschaft im Maschinenraum des
Projektschiffes gefangen genommen, statt sie auf das Denken in Alternativen auszurichten.
Projektteams, die Ungewissheit von vornherein einbeziehen, statt zu versuchen, sie durch Tools wegzukalkulieren, nehmen Überraschungen den Schrecken und stellen sicher, dass sie sinnvoll auf Änderung reagieren können. Genau das ist es letztlich, wofür Projektmanagement gebraucht wird. Denn Pläne stur abarbeiten könnten auch Maschinen.
Proactive Year-end Financial and Tax Planning StrategiesAICPA
In the third webcast in the AICPA Insights Live webcast series, Beth Gamel, CPA/PFS, Robert S. Keebler, CPA, Ted Sarenski, CPA/PFS and Scott Sprinkle, CPA/PFS, CGMA came together to discuss year-end financial and tax planning strategies, specifically to address the American Taxpayer Relief Act and the Net Investment Income Tax. Below you can find an audio recording from the webcast, as well as the accompanying presentation. Be sure to explore the other webcasts in the AICPA Insights Live webcast series.
Year-End Tax and Financial Planning by myStockOptions.comBruce Brumberg
This presentation provides a timely overview of year-end financial-planning and tax topics for stock compensation, including points of importance for employee education and for financial advisors. Special attention is given to issues involving tax-rate increases. While each annual edition features planning concerns specific to that year-end, the general ideas presented here are perennially useful.
The 2014 Essential Tax and Wealth Planning Guide discusses opportunities available through the final few months of 2013, and the planning environment beyond as policymakers continue a tax reform debate that could fundamentally change how individual taxpayers compute their taxes.
The tax-related decisions you make today, and at various points in your career, may have a marked effect on how you save for retirement and how much you will have down the road to support your goals. Many tax decisions you make about retirement are one-time choices that can be very costly to change, so it pays to plan.
For more information, visit http://www.deloitte.com/us/taxandwealthguide
Get the very latest on important tax law changes that will impact returns for Tax Year 2013. There are so many changes to keep track of each year. Let us us do the legwork and keep you up to speed on the current status of tax law changes and extenders. Topics will include the Defense of Marriage Act, Post 2013 Affordable Care Act changes and other IRS initiatives.
EY - US Employment Tax Year in Review (November 2013)EY
The presentation covers:
- FICA on severance
- Fiscal cliff legislation – impacts for 2013 and beyond
- The additional Medicare tax began this year
- Reporting change in responsible party to the IRS
- 2010 HIRE Act – IRS notices and refund deadline
- Same-sex partner benefits in wake of Supreme Court ruling
- Affordable Care Act – what to know about 2014
- Unemployment insurance – new laws mean a new approach
- States go retro in 2013
- Pay card controversy – seven things employers should do
The purpose of Roth IRA conversions as it relates to NIIT is to lower modified adjusted gross income (MAGI) below the threshold amount over the long-term. Some benefits of Roth conversions include lower overall taxable income, tax-free compounding, no required minimum distributions at age 70 ½, tax-free withdrawals for beneficiaries, and more effective funding of the “bypass trust”. Converting to a Roth IRA creates opportunities to reduce the overall size of the estate and to take advantage of greater tax-free yields and favorable tax attributes. Bob Keebler walks you through the mathematics of conversion through examples, tactical considerations, and a four-step process for Roth conversion planning.
Explore the New IRS Form for Net Investment Income TaxAICPA
Bob Keebler goes line by line through Form 8960, Net Investment Income Tax for Individual, Estates and Trusts, to help members understand key elements they need to know for tax season.
State of the States: An Analysis of the 2015 Governors’ AddressesALEC
State of the States is an in-depth study of governors’ tax, budget and pension reform proposals. The report gives insight into which states proposed economic reform to protect taxpayers and which states took steps toward increasing state revenue. This report also features graphics that reveal regional trends in proposed reforms while also highlighting which states have a newly elected governor.
In einer Welt, die durch Komplexität, Vernetzung und zunehmende Trendbrüche gekennzeichnet ist, beherzigen erfolgreiche Projektleiter zwei Dinge: Sie leben ein neues Verständnis von
Risikomanagement und nutzen die Kraft der Unterschiede und der Dynamik in Team. Das übliche Risikomanagement gleicht einer Planwirtschaft und drangsaliert jeden strategisch denkenden und
wirtschaftlich handelnden Mitarbeiter. Im Versuch die Kontrollillusion der Projektmanagement
Techniker durchzusetzen, wird die Kreativität und Energie der Mannschaft im Maschinenraum des
Projektschiffes gefangen genommen, statt sie auf das Denken in Alternativen auszurichten.
Projektteams, die Ungewissheit von vornherein einbeziehen, statt zu versuchen, sie durch Tools wegzukalkulieren, nehmen Überraschungen den Schrecken und stellen sicher, dass sie sinnvoll auf Änderung reagieren können. Genau das ist es letztlich, wofür Projektmanagement gebraucht wird. Denn Pläne stur abarbeiten könnten auch Maschinen.
Von der Prinzessin zur Königin - so nenne ich ein Konzept, das es uns Frauen leicht macht, genau hinzuschauen: Wo sind wir noch (immer) sweet sixteen, wo herrschen wir entspannt über unser Leben?
This is a short description of how all the tax changes in 2010 impact your 2011 tax year. This was drafted presented on January 27, 2010, so additional changes might have occurred to impact the posted information. Check with your attorney or CPA to confirm this information.
Your Taxes 2013 - What will change (and what won't)csawaf
Several tax hikes, some tax breaks. Now that the fiscal cliff deal assembled in Congress is becoming law, it is time to look at some of the tax law changes that will result.
GAMABrief: Preparing for the Capital Gains Tax HikeChristina Gagnier
Tax season is just around the corner and changes to the capital gains tax rates will affect taxpayers filing their returns at the beginning of 2014. If you sold capital assets during 2013, you might be subject to the increased rates. This brief provides important information on preparing for the capital gains tax hike.
Capital gains tax is the tax on capital asset profits—the profit made from selling an item bought for personal investment. On January 1, 2013, the government passed the American Taxpayer Relief Act of 2012 (ATRA). The ATRA added a top federal income bracket of 39.6% and increased the long-term capital gains tax rate to 20% starting in the 2013 tax year.
Highlights of the Final Tax Cuts and Jobs ActSarah Cuddy
The combined tax reform bill includes plans to lower tax rates on individuals and businesses and change many deductions. Those hoping for tax simplification, however, may be disappointed.
Thanks to Ulster Savings Bank for hosting this event, guest speaker Jonathan Gudema of Planned Giving Advisors and to all of our participants for joining us to learn more about the impact of the new tax law on charitable giving.
January 2021 Tax Tips Newsletter
Harman CPA PDF Of Jan 2021 Newsletter Content
JANUARY 2021 NEWSLETTER CONTENT WHICH
APPEARED ON OUR WEBSITE
John Harman, CPA PLLC
1402 S. Custer Rd, S-102
McKinney, TX 75070
info@mckinneytax.com
Phone: (469) 742-0283
https://www.mckinneytax.com/
YouTube videos here: https://www.youtube.com/user/mckinneytax
John Harman, CPA PLLC, January 2021 Tax Tips Newsletter, mckinneytax, JANUARY 2021 NEWSLETTER
Honourable Finance Minister Nirmala Sitharaman has presented her second Union Budget in the Parliament on 01 February 2020. This Budget focused on bringing a series of measures aimed at promoting investments in the country, creating a world class infrastructure and stimulating economic growth.
We bring you our analysis of Direct Tax proposals announced by the Hon'ble Finance Minister at her budget speech. Some of the key takeaways are highlighted below:
• 15% concessional tax regime for new domestic manufacturing companies will now be applicable to Power-generating companies as well;
• Alternative personal tax regime made available for Individual/ HUFs
• Abolition of Dividend Distribution Tax (DDT);
• Advance Pricing Agreement and Safe Harbour Rules to cover Income Attribution to a Permanent Establishment (PE);
• Thin Capitalization provisions liberalized and have been made inapplicable to a debt provided by PE of non-resident engaged in the business of banking in India;
• TDS on e-commerce transactions;
• TCS on overseas remittances under Liberalised Remittance Scheme (LRS), purchase of overseas tour packages and purchase of goods;
• Threshold of residency for citizens & PIOs visiting India reduced from 182 days to 120 days. Further, definition of ‘Not ordinarily resident’ is also narrowed;
• Donations to charitable institutions made to be pre-filled in IT return form to claim exemptions for donations easily. Further the Income Tax exemption approvals to Charitable Institutions is made subject to renewal every five years
Regulation us tax - aicpa 2019-convertedmadhuri199
To learn more about the following career choices, you will visit our USA, CMA USA, CFA etc. controller centers. In the metropolis, Bangalore, Delhi, Gurgaon, Hyderabad or visit www.simandhareducation.com
Many clients assume that when retirement rolls around, they should draw
cash from their taxable accounts first. Generally, this is a good idea—
but not always.
1. SEPS Times
White Paper Edition: 1st quarter 2013
Fiscal Cliff Update
During the early morning hours of Tuesday January 1, 2013, the Senate passed a bill “The American
Taxpayer Relief Act, H.R. 8”, with some modifications targeting the wealthiest Americans with higher
taxes, the act permanently extends provisions of the Economic Growth and Tax Relief Reconciliation Act of
2001, P.L. 107-16 (EGTRRA), and Jobs and Growth Tax Relief Reconciliation Act of 2003, P.L. 108-27
(JGTRRA). It also permanently takes care of Congress's perennial job of "patching" the alternative
minimum tax (AMT). It temporarily extends many other tax provisions that had lapsed at midnight on
Dec. 31 and others that had expired a year earlier.
Among the tax items not addressed by the act was the temporary lower 4.2% rate for employees' portion
of the Social Security payroll tax, which was not extended and has reverted to 6.2%.
Here of some of the act's key features impacting businesses:
General:
Individual tax rates
All the individual marginal tax rates under EGTRRA and JGTRRA are retained (10%, 15%, 25%, 28%,
33%, and 35%). A new top rate of 39.6% is imposed on taxable income over $400,000 for single filers,
$425,000 for head-of-household filers, and $450,000 for married taxpayers filing jointly ($225,000 for
each married spouse filing separately).
Capital gains and dividends
A 20% rate applies to capital gains and dividends for individuals above the top income tax bracket
threshold; the 15% rate is retained for taxpayers in the middle brackets. The zero rate is retained for
taxpayers in the 10% and 15% brackets.
Alternative minimum tax
The exemption amount for the AMT on individuals is permanently indexed for inflation. For 2012, the
exemption amounts are $78,750 for married taxpayers filing jointly and $50,600 for single filers. Relief
from AMT for nonrefundable credits is retained.
Estate and gift tax
The estate and gift tax exclusion amount is retained at $5 million indexed for inflation ($5.12 million in
2012), but the top tax rate increases from 35% to 40% effective Jan. 1, 2013. The estate tax "portability"
election, under which, if an election is made, the surviving spouse's exemption amount is increased by the
deceased spouse's unused exemption amount, was made permanent by the act.
Business Specific Provisions
Reduction in S Corporation Recognition Period Built-in Gain - Section 1374(d)
An S corporation generally is subject to the built-in gains tax during its "recognition period." The
recognition period is defined as the 10-year period beginning with the first day of the first tax year for
which the corporation is an S corporation. For years 2012 and 2013, this recognition periodic reduced
from 10 years to 5 years. Thus, no built-in gain tax will be due if an S corporation is 5 years into its built-
in gain period by the beginning of Years 2012 or 2013.
100 percent gain exclusion on certain small business stock - Code Section 1202
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (Tax Relief Act)
increased the capital gain exclusion from the sale of Qualifying Small Business Stock "QSBS" held more
than five years to 100% for qualified stock acquired after September 27, 2010, and before January 1,
2. 2012. This 100% gain exclusion has been extended to included stock acquired before January 1, 2014.
Thus, qualified stock acquired in Year 2012 and Year 2013, if held for a period of at least 5 years, will be
subject to a 100% gain exclusion when sold.
Expending limit for section 179 property set at $500,000 - Code Section 179
For tax years beginning in 2012 and 2013, the maximum amount a taxpayer can expense is $500,000 and
the phase-out threshold amount is $2 million.
Treatment of certain real property as section 179 property - Code Section 179(f)
For tax years beginning in 2012 and 2013, up to $250,000 of qualified real property costs may be included
as a part of the section 179 deduction limit. Qualified real property includes, (I) Qualified leasehold
improvement property costs as defined by IRC Sec. 168(e)(6), (II) Qualified restaurant property costs as
defined by IRC Sec. 168(e)(7), and (III) Qualified retail improvement costs as defined by IRC Sec.
168(e)(8).
Fifteen-year straight-line cost recovery for qualified leasehold improvements, qualified restaurant buildings
and improvements, and qualified retail improvements - Code Section 168(e)
For tax years beginning in 2012 and 2013 (I) Qualified leasehold improvement property as defined by IRC
Section 168(e)(3)(E)(iv), (II) Qualified restaurant property as defined by IRC Section 168(e)(3)(E)(v),
and (III) Qualified retail improvement property as defined by IRC Section 168(e)(3)(E)(ix), will be
depreciated over a 15 year recovery period as opposed to a 39 year recovery period.
New Taxes
In addition to the various provisions discussed above, some new taxes also took effect January 1 as a
result of 2010's health care reform legislation.
Additional hospital insurance tax on high-income taxpayers.
The employee portion of the hospital insurance tax part of FICA, normally 1.45% of covered wages, is
increased by 0.9% on wages that exceed a threshold amount. The additional tax is imposed on the
combined wages of both the taxpayer and the taxpayer's spouse, in the case of a joint return. The
threshold amount is $250,000 in the case of a joint return or surviving spouse, $125,000 in the case of a
married individual filing a separate return, and $200,000 in any other case.
For self-employed taxpayers, the same additional hospital insurance tax applies to the hospital insurance
portion of SECA tax on self-employment income in excess of the threshold amount.
Medicare tax on investment income.
Code Section 1411 imposes a tax on individuals equal to 3.8% of the lesser of the individual's net
investment income for the year or the amount the individual's modified adjusted gross income (AGI)
exceeds a threshold amount. For estates and trusts, the tax equals 3.8% of the lesser of undistributed net
investment income or AGI over the dollar amount at which the highest trust and estate tax bracket
begins.
For married individuals filing a joint return and surviving spouses, the threshold amount is $250,000; for
married taxpayers filing separately, it is $125,000; and for other individuals it is $200,000.
Net investment income means investment income reduced by deductions properly allocable to that
income. Investment income includes income from interest, dividends, annuities, royalties, and rents, and
net gain from disposition of property, other than such income derived in the ordinary course of a trade or
business. However, income from a trade or business that is a passive activity and from a trade or business
of trading in financial instruments or commodities is included in investment income.
Medical care itemized deduction threshold.
The threshold for the itemized deduction for unreimbursed medical expenses has increased from 7.5% of
AGI to 10% of AGI for regular income tax purposes. This is effective for all individuals, except, in the
years 2013-2016, if either the taxpayer or the taxpayer's spouse has turned 65 before the end of the tax
year, the increased threshold does not apply and the threshold remains at 7.5% of AGI.
What income streams do you have in place that can provide protection, and guaranteed
growth that is either tax deferred or tax free with inflation protection? Many people are
converting existing Annuities, IRA/401K/Pensions plans to Tax Free Income Streams for
future income. Call us to set your appointment to review this important planning option.
Mark Pruitt 2012 National Advisor of the Year. Feel free to read about it at the following Link:
http://www.lifehealthpro.com/2012/09/04/advisor-of-the-year-2012
___________________________________________________________
Mark Pruitt, Founder/CEO/President, 13455 Noel Rd, Two Galleria Tower, Suite 1000, Dallas,
TX 75240, Office: 1-800-381-8870, www.strategicestateplanning.com
email: seps4u@gmail.com