The document discusses tax planning strategies in light of upcoming tax increases and steps business owners can take to reduce their audit risk. It summarizes upcoming changes to individual income tax rates, capital gains tax rates, the payroll tax holiday expiration, provisions of the Affordable Care Act, and the American Taxpayer Relief Act of 2012. It stresses the importance of maintaining thorough financial records supported by source documents to substantiate tax filings and withstand potential audits. Business owners should organize records by year and transaction type and retain them for the applicable statute of limitations.
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.
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.
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.
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.
Attached is an excellent, easy to read newsletter summarizing the important changes, legislative extensions, and issues relating to your individual tax return for 2009 and beyond. Please read it well before 12/31 as there are items that need to be considered or acted upon before the end of this year to take full advantage of the legislation. It’s the best one I’ve come across. Its current and includes some commentary, planning suggestions, and even some health care issues as they relate to your taxes.
I will later post a copy of year end letters for both businesses and individuals that my clients receive.
If you should have any questions at this time on any of these items, please contact me anytime.
Thanks
Wally Wleklinski
Please take the opportunity to view this presentation on why there are positives out there in the market, while looking at those that still concern us!
TAG Tax - Global Perspectives Call (U.S. Tax Update and Romania / Moldova Ove...TAG Alliances
The TAG Tax Specialty Group is proud to present its first in a series of virtual sessions aimed at exposing members to various international tax structures, policies and trends.
Date: February 8, 2017 at 11:00 am EST (New York, GMT-05:00)
Duration: 30 to 45 Minutes (Approx.)
Via: Webex (Register via the link below)
Complimentary for all TAG Alliances Members
[Note: If you are unable to attend or the time is not convenient for your time zone, please register for the webinar and you will receive a recording once it becomes available.]
~ In this edition: ~
U.S. Tax Update and What "Might" Be Ahead
International tax lawyer, Anna Derewenda of Williams Mullen (VA & NC, USA - TAGLaw), will provide members with an overview of what potentially lies ahead for the U.S. tax code and what businesses and individuals, both those in the U.S. and those with U.S. interests, can possibly anticipate.
Tax Overview Romania and Moldova
Bogdan Nastase of Group Expert Consulting (Romania - TIAG) will discuss common tax strategies in these very close, but very different countries. For example, even though these countries use the same language and business culture, Romania is an EU Member while Moldova is not—an interesting picture of international tax and financial planning.
Andrew has been helping high net individuals with financial planning since 1996. In his career he has been named one of the top 100 financial planners in the United States and he is a 4 Year Winner from Five Star Professionals.
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.
What Is The Federal Estate Tax Marital DeductionMark Eghrari
When you are planning your estate, you should be aware of of the existence of the federal estate tax which can significantly erode assets that you are passing on to your loved ones. Learn more about federal estate tax in this presentation.
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.
Status of Estate and Gift Tax Law as of Jan 2010; planning opportunities in 2010; cautions and traps if retroactive estate tax passed in 2010; planning for 2011.
Hass associates accounting 10 tax traps for 2014khyalethomson
Taxpayers in 2014 don't have to worry about a lot of tax surprises. The American Taxpayer Relief Act of 2012 enacted on Jan. 2, 2013, made many existing tax laws permanent and extended other provisions through 2013. But even in the most stable tax and political environments, there's always something to worry about when it comes to taxes. Here are 10 tax traps you need to watch out for in 2014.
Attached is an excellent, easy to read newsletter summarizing the important changes, legislative extensions, and issues relating to your individual tax return for 2009 and beyond. Please read it well before 12/31 as there are items that need to be considered or acted upon before the end of this year to take full advantage of the legislation. It’s the best one I’ve come across. Its current and includes some commentary, planning suggestions, and even some health care issues as they relate to your taxes.
I will later post a copy of year end letters for both businesses and individuals that my clients receive.
If you should have any questions at this time on any of these items, please contact me anytime.
Thanks
Wally Wleklinski
Please take the opportunity to view this presentation on why there are positives out there in the market, while looking at those that still concern us!
TAG Tax - Global Perspectives Call (U.S. Tax Update and Romania / Moldova Ove...TAG Alliances
The TAG Tax Specialty Group is proud to present its first in a series of virtual sessions aimed at exposing members to various international tax structures, policies and trends.
Date: February 8, 2017 at 11:00 am EST (New York, GMT-05:00)
Duration: 30 to 45 Minutes (Approx.)
Via: Webex (Register via the link below)
Complimentary for all TAG Alliances Members
[Note: If you are unable to attend or the time is not convenient for your time zone, please register for the webinar and you will receive a recording once it becomes available.]
~ In this edition: ~
U.S. Tax Update and What "Might" Be Ahead
International tax lawyer, Anna Derewenda of Williams Mullen (VA & NC, USA - TAGLaw), will provide members with an overview of what potentially lies ahead for the U.S. tax code and what businesses and individuals, both those in the U.S. and those with U.S. interests, can possibly anticipate.
Tax Overview Romania and Moldova
Bogdan Nastase of Group Expert Consulting (Romania - TIAG) will discuss common tax strategies in these very close, but very different countries. For example, even though these countries use the same language and business culture, Romania is an EU Member while Moldova is not—an interesting picture of international tax and financial planning.
Andrew has been helping high net individuals with financial planning since 1996. In his career he has been named one of the top 100 financial planners in the United States and he is a 4 Year Winner from Five Star Professionals.
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.
What Is The Federal Estate Tax Marital DeductionMark Eghrari
When you are planning your estate, you should be aware of of the existence of the federal estate tax which can significantly erode assets that you are passing on to your loved ones. Learn more about federal estate tax in this presentation.
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.
Status of Estate and Gift Tax Law as of Jan 2010; planning opportunities in 2010; cautions and traps if retroactive estate tax passed in 2010; planning for 2011.
Hass associates accounting 10 tax traps for 2014khyalethomson
Taxpayers in 2014 don't have to worry about a lot of tax surprises. The American Taxpayer Relief Act of 2012 enacted on Jan. 2, 2013, made many existing tax laws permanent and extended other provisions through 2013. But even in the most stable tax and political environments, there's always something to worry about when it comes to taxes. Here are 10 tax traps you need to watch out for in 2014.
PR and SEO Tips from SAScon | Online PR | | SEO PR | Digital PRJames
SEOs are from Venus and PRs are from Mars, will the planets ever collide? This is a presentation by James Crawford of http://www.pragencyone.co.uk which looks at the challenges faced if SEO and PR will ever meet. The presentation also includes actionable insights on how SEOs can deploy PR tactics to improve link building and search engine visibility
SEO PR Insights For Public Relations and Digital ProsJames
Here are some SEO PR Insights from @jamescrawford of http://www.pragencyone.co.uk This is a beginners guide and was presented at Search Me, a conference in Manchester which is orgranised by Don't Panic.
PCO Bookkeepers is an accounting and business advisory firm obsessed with providing pest control companies’ information they need to prosper in today’s competitive business environment
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.
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.
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
The National Association of Realtors Fiscal Cliff Summary for Mortgage Interest Deductions, Mortgage Relief for Short Sales, Leasehold Improvements, Energy Efficiency Tax Credit summary
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
Generative AI Deep Dive: Advancing from Proof of Concept to ProductionAggregage
Join Maher Hanafi, VP of Engineering at Betterworks, in this new session where he'll share a practical framework to transform Gen AI prototypes into impactful products! He'll delve into the complexities of data collection and management, model selection and optimization, and ensuring security, scalability, and responsible use.
DevOps and Testing slides at DASA ConnectKari Kakkonen
My and Rik Marselis slides at 30.5.2024 DASA Connect conference. We discuss about what is testing, then what is agile testing and finally what is Testing in DevOps. Finally we had lovely workshop with the participants trying to find out different ways to think about quality and testing in different parts of the DevOps infinity loop.
Epistemic Interaction - tuning interfaces to provide information for AI supportAlan Dix
Paper presented at SYNERGY workshop at AVI 2024, Genoa, Italy. 3rd June 2024
https://alandix.com/academic/papers/synergy2024-epistemic/
As machine learning integrates deeper into human-computer interactions, the concept of epistemic interaction emerges, aiming to refine these interactions to enhance system adaptability. This approach encourages minor, intentional adjustments in user behaviour to enrich the data available for system learning. This paper introduces epistemic interaction within the context of human-system communication, illustrating how deliberate interaction design can improve system understanding and adaptation. Through concrete examples, we demonstrate the potential of epistemic interaction to significantly advance human-computer interaction by leveraging intuitive human communication strategies to inform system design and functionality, offering a novel pathway for enriching user-system engagements.
Observability Concepts EVERY Developer Should Know -- DeveloperWeek Europe.pdfPaige Cruz
Monitoring and observability aren’t traditionally found in software curriculums and many of us cobble this knowledge together from whatever vendor or ecosystem we were first introduced to and whatever is a part of your current company’s observability stack.
While the dev and ops silo continues to crumble….many organizations still relegate monitoring & observability as the purview of ops, infra and SRE teams. This is a mistake - achieving a highly observable system requires collaboration up and down the stack.
I, a former op, would like to extend an invitation to all application developers to join the observability party will share these foundational concepts to build on:
GraphSummit Singapore | The Art of the Possible with Graph - Q2 2024Neo4j
Neha Bajwa, Vice President of Product Marketing, Neo4j
Join us as we explore breakthrough innovations enabled by interconnected data and AI. Discover firsthand how organizations use relationships in data to uncover contextual insights and solve our most pressing challenges – from optimizing supply chains, detecting fraud, and improving customer experiences to accelerating drug discoveries.
Unlocking Productivity: Leveraging the Potential of Copilot in Microsoft 365, a presentation by Christoforos Vlachos, Senior Solutions Manager – Modern Workplace, Uni Systems
Alt. GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using ...James Anderson
Effective Application Security in Software Delivery lifecycle using Deployment Firewall and DBOM
The modern software delivery process (or the CI/CD process) includes many tools, distributed teams, open-source code, and cloud platforms. Constant focus on speed to release software to market, along with the traditional slow and manual security checks has caused gaps in continuous security as an important piece in the software supply chain. Today organizations feel more susceptible to external and internal cyber threats due to the vast attack surface in their applications supply chain and the lack of end-to-end governance and risk management.
The software team must secure its software delivery process to avoid vulnerability and security breaches. This needs to be achieved with existing tool chains and without extensive rework of the delivery processes. This talk will present strategies and techniques for providing visibility into the true risk of the existing vulnerabilities, preventing the introduction of security issues in the software, resolving vulnerabilities in production environments quickly, and capturing the deployment bill of materials (DBOM).
Speakers:
Bob Boule
Robert Boule is a technology enthusiast with PASSION for technology and making things work along with a knack for helping others understand how things work. He comes with around 20 years of solution engineering experience in application security, software continuous delivery, and SaaS platforms. He is known for his dynamic presentations in CI/CD and application security integrated in software delivery lifecycle.
Gopinath Rebala
Gopinath Rebala is the CTO of OpsMx, where he has overall responsibility for the machine learning and data processing architectures for Secure Software Delivery. Gopi also has a strong connection with our customers, leading design and architecture for strategic implementations. Gopi is a frequent speaker and well-known leader in continuous delivery and integrating security into software delivery.
In his public lecture, Christian Timmerer provides insights into the fascinating history of video streaming, starting from its humble beginnings before YouTube to the groundbreaking technologies that now dominate platforms like Netflix and ORF ON. Timmerer also presents provocative contributions of his own that have significantly influenced the industry. He concludes by looking at future challenges and invites the audience to join in a discussion.
UiPath Test Automation using UiPath Test Suite series, part 5DianaGray10
Welcome to UiPath Test Automation using UiPath Test Suite series part 5. In this session, we will cover CI/CD with devops.
Topics covered:
CI/CD with in UiPath
End-to-end overview of CI/CD pipeline with Azure devops
Speaker:
Lyndsey Byblow, Test Suite Sales Engineer @ UiPath, Inc.
Transcript: Selling digital books in 2024: Insights from industry leaders - T...BookNet Canada
The publishing industry has been selling digital audiobooks and ebooks for over a decade and has found its groove. What’s changed? What has stayed the same? Where do we go from here? Join a group of leading sales peers from across the industry for a conversation about the lessons learned since the popularization of digital books, best practices, digital book supply chain management, and more.
Link to video recording: https://bnctechforum.ca/sessions/selling-digital-books-in-2024-insights-from-industry-leaders/
Presented by BookNet Canada on May 28, 2024, with support from the Department of Canadian Heritage.
Dr. Sean Tan, Head of Data Science, Changi Airport Group
Discover how Changi Airport Group (CAG) leverages graph technologies and generative AI to revolutionize their search capabilities. This session delves into the unique search needs of CAG’s diverse passengers and customers, showcasing how graph data structures enhance the accuracy and relevance of AI-generated search results, mitigating the risk of “hallucinations” and improving the overall customer journey.
A tale of scale & speed: How the US Navy is enabling software delivery from l...sonjaschweigert1
Rapid and secure feature delivery is a goal across every application team and every branch of the DoD. The Navy’s DevSecOps platform, Party Barge, has achieved:
- Reduction in onboarding time from 5 weeks to 1 day
- Improved developer experience and productivity through actionable findings and reduction of false positives
- Maintenance of superior security standards and inherent policy enforcement with Authorization to Operate (ATO)
Development teams can ship efficiently and ensure applications are cyber ready for Navy Authorizing Officials (AOs). In this webinar, Sigma Defense and Anchore will give attendees a look behind the scenes and demo secure pipeline automation and security artifacts that speed up application ATO and time to production.
We will cover:
- How to remove silos in DevSecOps
- How to build efficient development pipeline roles and component templates
- How to deliver security artifacts that matter for ATO’s (SBOMs, vulnerability reports, and policy evidence)
- How to streamline operations with automated policy checks on container images
Threats to mobile devices are more prevalent and increasing in scope and complexity. Users of mobile devices desire to take full advantage of the features
available on those devices, but many of the features provide convenience and capability but sacrifice security. This best practices guide outlines steps the users can take to better protect personal devices and information.
GraphSummit Singapore | The Future of Agility: Supercharging Digital Transfor...Neo4j
Leonard Jayamohan, Partner & Generative AI Lead, Deloitte
This keynote will reveal how Deloitte leverages Neo4j’s graph power for groundbreaking digital twin solutions, achieving a staggering 100x performance boost. Discover the essential role knowledge graphs play in successful generative AI implementations. Plus, get an exclusive look at an innovative Neo4j + Generative AI solution Deloitte is developing in-house.
Secstrike : Reverse Engineering & Pwnable tools for CTF.pptx
Tax talk
1. Tax Talk
How to Plan for the Coming Tax Increases
and Steps to Take to Reduce Audit Risk
Daniel S. Gordon, CPA
2. The Government
Needs Money! The short term solution
will be to enforce the current tax rules and to raise taxes. The result
for the business owner will be to operate in a business environment
where the likelihood of tax audits will rise as well as be subject to
increasing tax rates.
3. Agenda
Background
Payroll Tax Holiday Expired
Healthcare Act
American Taxpayer Relief Act of 2012
Record keeping
4. Background
Speaker of the House Tip O’Neill, an old-time Democratic politician
from Massachusetts, would say all kinds of mean things about
President Reagan. But rather than get angry or carry a grudge, the
President invented a rule that Tip could say whatever he wanted
during the day, but at 6 PM, the politics would stop and they would be
friends. Nothing told the story of Ronald Reagan’s magnanimity more
than pictures of those two old Irishmen swapping stories and laughing
uproariously in the evening after a day of pretty intense verbal
assaults.
5. Background
Enemies
Obama campaigned on a platform to raise taxes on the wealthiest Americans,
declaring that millionaires and billionaires need to "pay their fair share."
Romney at a May fundraiser, declaring that 47 percent of the population is made
up of people who believe they are “victims,” and are “dependent on government.”
6. Background
Congress ended 2012 with a 15 percent average
approval rating -- its lowest yearly average in history,
according to Gallup. The legislative branch of
government began 2013 with a 14 percent approval
rating, Gallup found.
7. So Politics in America are still broken but:
On January 1, 2013 by a vote of 89 to 8 the US Senate approved the
American Taxpayer Relief Act of 2012 where it was sent to the House
of Representatives and passed by a margin of 257 to 167 and signed
by the president
Background
8. We may not like it but at least we now know the Rules
Because of the last minute nature of the passage of the law, Tax Preparers
have been delayed in when they can start E-Filing Tax Returns because
many of the tax forms need to be updated
Rules
Background
9. Payroll Tax Holiday Expired
The Government Giveth then Taketh Away - Payroll Tax Cut
On December 17, 2010 President
Obama signed a multi-billion dollar
tax cut package, the Tax Relief,
Unemployment Insurance
Reauthorization and Job Creation
Act of 2010.
10. Payroll Tax Holiday Expired
The Government Giveth then Taketh Away - Payroll Tax Cut
One of the Provisions reduced the employee-share of Social Security tax
from 6.2% to 4.2% for wages earned in calendar year 2011 up to $106,800
– a maximum savings of $2,136.
Similarly, the Social Security portion of the self-employment tax dropped
from 12.4% to 10.4%.
This was a 2% raise to all employees and owners who are subject to self
employment tax (Most everyone in your company including yourself).
The Payroll Tax cut was extended for tax year 2012
11. Payroll Tax Holiday Expired
It was meant to be temporary and Spur on the Economy
In fairness it wasn’t an income tax but rather funding Social
Security
Beginning in 2013 the Holiday is Over
The result is that the average household making
$50,000 a year will pay an extra $1,000 this year in
taxes.
12. Payroll Tax
Holiday
Expired
Tax The Rich?
Consider this:
The wage earner making $50K will pay
$1,000 or 2% of his Salary from this tax.
The wage earner making $1million will
pay $2,274 or .223% of his salary
13. The Patient Protection and Affordable Care Act commonly called
Obamacare. Tax Provisions relating to Obamacare for 2013:
3.8% Medicare Contribution Tax
.9 additional Medicare Tax
$2500 contribution Limit on Health Flexible Spending Accounts
Increase Threshold for Itemized Medical Expenses
Healthcare Act
14. Medicare Contribution Tax
The Affordable Care Act imposes a 3.8 percent Medicare contribution
tax on the unearned income of higher-income individuals, estates and
trusts effective January 1, 2013.
The Medicare contribution tax applies to net investment income (NII),
and will generally apply to passive income. The Medicare contribution
tax also applies to capital gains from the disposition of property.
For individuals, the Medicare contribution tax will apply to the lesser of
the taxpayer’s NII o r the amount of “modified” adjusted gross income
above a specified threshold.
S-Corp Exception
Healthcare Act
15. Additional Medicare Tax
The Affordable Care Act also imposes an
additional 0.9 percent Medicare tax on higher
income individuals, effective January 1, 2013.
The additional Medicare tax applies to total
wages, other compensation, and self
employment income that exceeds the
applicable threshold amount for the individual’s
filing status.
Healthcare Act
16. Definition of Higher Income Individuals for Medicare
Contribution Tax and Additional Medicare tax is:
Modified Adjusted Gross Income of $200,000 for a Single,
$250,000 for Married Filing Jointly and $125,000 for Married
Filing Separately
Healthcare Act
17. Itemized Deduction for Medical Expenses
For tax years beginning after December 31, 2012, the Affordable Care
Act increases the 7.5 percent threshold for itemizing medical expenses to
10 percent.
However, the Affordable Care Act temporarily exempts individuals age
65 and older from the 10 percent threshold.
Healthcare Act
18. Health Flexible Spending Arrangements
After 2012, the Affordable Care Act caps the maximum salary
reduction contribution to a health flexible spending arrangement
(health FSA) at $2,500.
Salary reductions in excess of $2,500 will subject the employee to
tax on distributions from the health FSA. The $2,500 limit will be
indexed for inflation for tax years beginning after December 31,
2013.
Healthcare Act
20. Individual Income Tax Rates on Ordinary Income:
Starting in 2013, the 10%, 15%, 25%, 28%, 33% and 35% tax brackets
would remain in place.
There would be a new 39.6% rate, which would begin at the following
thresholds:
• Married Filing Jointly: $450,000 of taxable income
• Qualifying Widow(er): $450,000 of taxable income
• Head of Household: $425,000 of taxable income
• Single: $400,000 of taxable income
• Married Filing Separately: $225,000 of taxable income
American Taxpayer Relief Act of 2012
21. Tax Rates on Long-Term Capital Gains:
The law retains the zero percent tax rate on long-term gains,
modifies the 15% rate, and proposes a new 20% rate.
Starting in 2013 the tax rates on long-term gains would be:
• 0% if income falls below the 25% tax bracket
• 15% if income falls at or above the 25% tax
bracket but below the new 39.6% rate
• 20% if income falls in the 39.6% tax bracket
American Taxpayer Relief Act of 2012
22. Qualified Dividend Rates: Since 2003, taxpayers have enjoyed a
maximum tax rate of 15 percent on qualified dividends received by
individuals
The Act permanently extends the 15 percent dividend rates for most
taxpayers.
But the Act adds 20 percent dividend rate, the same as the Capital Gains
Rate for taxpayers with annual income in excess of the income tax
threshold amounts described on the prior slide
American Taxpayer Relief Act of 2012
23. Limitations on Itemized Deductions
Itemized deductions will be reduced by the lesser of 3% of the taxpayer's
adjusted gross income (AGI) over the threshold amount or by 80% of
otherwise allowable itemized deductions.
The threshold amounts at which itemized deductions would start to be limited
are:
Married Filing Jointly: $300,000 of AGI
Qualifying Widow(er): $300,000 of AGI
Head of Household: $275,000 of AGI
Single: $250,000 of AGI
Married Filing Separately: $150,000 of AGI
These threshold amounts would be indexed for inflation for years after 2013
American Taxpayer Relief Act of 2012
24. Limitations on Personal Exemptions:
The personal exemption will be phase-out starting in 2013.
Taxpayers would see their total personal exemptions reduced by two
percent for each $2,500 (or fraction thereof) by which adjusted gross
income exceeds the threshold. The threshold amounts for 2013:
Married Filing Jointly: $300,000 of AGI
Qualifying Widow(er): $300,000 of AGI
Head of Household: $275,000 of AGI
Single: $250,000 of AGI
Married Filing Separately: $150,000 of AGI
These threshold amounts would be indexed for inflation for years after
2013.
American Taxpayer Relief Act of 2012
25. Deductions, Credits, and Income Exclusions:
The following tax provisions are extended through the end of the year
2017:
American Opportunity Credit
Child Tax Credit at $1,000 maximum and partially refundable
Earned Income Credit for 3 or more dependents
Others
American Taxpayer Relief Act of 2012
26. The following provisions are extended through the end of 2013:
Educator expenses deduction
Exclusion for cancellation of debt on primary residences
Mortgage insurance premium deduction
Deduction for state and local sales taxes
Tuition and fees deduction
Others
American Taxpayer Relief Act of 2012
27. Business Provisions:
Section 179 Expensing of New Assets – 2012 and 2013 Limits are
$500,000 with a $2,000,000 investment limit.
This is probably the one provision that positively impacts our firms as
the 2012 and 2013 limits were moving down significantly.
Observation: 2012 is closed so the planning opportunity is gone
American Taxpayer Relief Act of 2012
29. Built In Gain for C Corps that have converted to S Corps:
5 Year Period Extended thru 2013
Will revert back to 10 years in 2014 unless the law is modified
American Taxpayer Relief Act of 2012
30. Record Keeping
We need to maintain accurate financial records. The most
obvious reasons for doing so:
To assess the results of operations against past periods, current
budgets, or to formulate future projections.
However, there is an external partner in your business that needs to
be fed accurate information and if that partner requests, you as an
owner/manager must prove the accuracy of the information
If you are wrong or can’t prove that the information is accurate, you
may be subject to fines. So who is this partner?
Well actually, there are several; and they are the IRS, and the state
and local taxing authorities.
31. Record Keeping
Essentially, you are responsible for providing these taxing authorities financial
statements that summarize the results of your operations in order to report tax
liabilities as well as provide payment of taxes.
Depending upon the type of legal entity you operate, you may be required to
provide a Balance Sheet as well as a Profit and Loss statement.
It’s your responsibility to be able to support each and every number on your
tax return with collaborating documentation.
32. Record Keeping
Sounds like a lot of work
And it is….
The problem is that we get so involved with running our businesses that
many times we put record keeping on the back burner and do a mad
dash at tax time to organize our records.
A small business has many moving parts
These issues make the bookkeeping function an extremely important
task that is required frequently rather than only at year end.
33. Record Keeping
So What Records are required?:
The IRS does not have a prescribed recordkeeping system. You may
choose any recordkeeping system that suits your needs as long as it
clearly shows your income and expenses.
Your recordkeeping system should also include a summary of your
business transactions. This summary is primarily the ledgers that are part
of your accounting system.
Most businesses that I work with use QuickBooks for their general ledger
requirements. It provides adequate detail when drilling into sub ledgers.
As long as the transactional information is accessible, accurate and
detailed enough to trace and agree to a source document, a small
business will fare well in the data presentation phase of an audit.
34. Record Keeping
Assuming your ledgers are correct, each transaction needs to be
supported by a source document (By the way these documents may be
electronic).
Purchases, sales, payroll, and other transactions will generate
supporting documents such as invoices, receipts and other supporting
documents.
These documents contain the information that must be recorded in your
ledgers. It is important to keep these documents because they support
the entries in your books and on your tax return.
You should keep them in an orderly fashion and in a safe place. For
instance, organize them by year and type of income or expense.
35. Record Keeping
Important Point:
A record not only needs to be verifiable, but it must support a
transaction that is includible in income or deductible as an expense
as allowed by the tax code and regulations promulgated there under.
In other words just showing you paid an item is not sufficient.
It must be necessary and reasonable supporting a business purpose
in order to be deductible.
36. Record Keeping
Here are some basic records that substantiate the following
items:
Gross receipts are the income you receive from your business. You
should maintain supporting documents that show the amounts and
sources of your gross receipts.
Documents for gross receipts include the following:
Signed Service Tickets or Invoices
Bank deposit slips
Credit card charge slips
Forms 1099-MISC received from customers
37. Record Keeping
Purchases are the items you buy and resell to customers or materials you
apply during your service visits.
Your supporting documents should show the amount paid and that the
amount was for purchases.
Documents for purchases include the following:
Vendor Invoices for Chemicals, Supplies and Equipment
Cancelled Checks
Credit card sales slips
38. Record Keeping
Expenses are the costs you incur (other than purchases) to carry on your
business.
Your supporting documents should show the amount paid and that the amount
was for a business expense.
Documents for expenses include the following:
Cancelled checks
Legal Agreements such as leases, note payable, mortgages etc.
Account statements
Credit card sales slips
Vendor Invoices
Petty cash slips for small cash payments
39. Record Keeping
How long should I retain records?
The minimum amount of time to retain records for tax purposes
depends on the item, when it is recorded and if it will be part of a future
transaction (for example, a if you purchase a vehicle and sell it in 5
years. The transaction 5 years hence would be a future transaction that
information from the original purchase would be needed).
Generally, you must keep your records that support an item of income
or deductions on a tax return until the statute of limitations for that tax
return runs out.
40. Record Keeping
The statute of limitations is the period of time in which you can amend
your tax return to claim a credit or refund, or that the IRS can assess
additional tax – usually three years after filing.
In the following situations you will need to produce records past the
normal statute of limitations:
You will need to produce your records for up to six years after
filing if you fail to include income that you should have reported,
and it is more than 25% of the gross income reported on the
original return.
You will need to produce your records for up to seven years after
filing if you file a claim for a loss from worthless securities or bad
debt deduction.
41. Record Keeping
Keep all employment tax records for at least 4 years after the
date that the tax becomes due or is paid, whichever is later.
If you file a fraudulent return or you don’t file a return, your
records may be examined indefinitely.
Keep records relating to property purchases and improvements
until the statute of limitations expires for the year in which you
dispose of the property. These records must be kept to figure any
depreciation or amortization and to figure the gain or loss when
you sell or dispose of the property.
42. Record Keeping
Conclusion:
A successful business person needs to keep accurate and complete
records that are supported by a well maintained bookkeeping system.
The benefits of doing so, allows and owner/manager to perform
proper planning for growth and profit.
Just as important though it also allows an owner/manager to comply
with any requests for records during an IRS audit should you be
called on to prove your tax return is accurate.