January 9, 2013
The American Taxpayer Relief Act of 2012., also known as the Fiscal Cliff law has many tax changes. Highlights of the bill include:
Permanent Alternative Minimum Tax (AMT) patch, adjusted for inflation. This will protect 30 million taxpayers from AMT liability.
Preservation of the Bush-era tax cuts for individuals earning less than $400,000 (AGI) and families earning less than $450,000. Tax rates will increase from 36% to 36.5% for taxpayers above those income thresholds.
Preservation of the $5 million individual ($10 million per couple) exemption for estate taxes. Estate value above that threshold will be taxed at 40% rate, up from the current 35%. Portability is also maintained. That means if one spouse dies not using all of the $5 million exemption, the surviving spouse can take advantage of the difference.
Increase in the dividends and capital gains tax rate from 15% to 20% for individual taxpayers earning above $400,000 (AGI) and families earning above $450,000.
An end to the payroll tax holiday. The social security withholding rate is reset to its previous 6.2% rate on the first $113,700 in earnings for each individual taxpayer. This means an immediate tax increase for all working people. This increased tax will be reflected in paychecks immediately.
Extension of the $1,000 Child Tax Credit, the enhanced Earned Income Tax Credit, and the enhanced American Opportunity College tuition tax credit.
January 7, 2008
Lottery Winners Lose!
The 11th U.S. Circuit Court of Appeals in Atlanta ruled Dec. 19 that Bertucci and the others around the country who sold their winnings to investment companies must pay regular income taxes on the lump sum they received rather than the lowe capital gains rate.
November 2, 2007
Congress Fails to Repeal AMT
The Alternative Minimum Tax (AMT) which shocks many middle income taxpayers with big tax bills, has not yet been repealed by Congress. Because the AMT was enacted in 1969 and has not been indexed for inflation, more taxpayers have to pay increased taxes each year.
Some items that affect the AMT include:
Children Under 18 subject to the “Kiddie Tax”
Gains on S Corporations conversions
If you have any questions about this, call now while some planning can be done!
Ronald J. Cappuccio, J.D., LL.M.(Tax)
October 29, 2007
Plan Now to Lower Taxes!
How much income and expenses do you have? This is the start of the information needed for year-end tax planning.
If your income is too high for the year you will need to increase expenses. For example, you can pay expenses early, buy equipment, make an extra contribution to an employee benefit plan, pay bonuses early and accellerate rents and other payments due in January and February.
You can also control income. To boost income, you might want to acccelerate the collection of receivables. Or, if your income is too high, simply avoid billing in December to push receivables into the next tax year.
October 26, 2007
Forming a business as a Limited Liability Company has all the liability limitation advantages of a corporation and all of the tax advantages of a proprietorship or partnership. Only in rare circumstances should a new business be started as a sole proprietorship, partnership or S corporation. The LLC serves most new and growing business well.
Click Here for the full article
October 26, 2007
LLCLawyer.com is my website designed to provide information on forming, running and merging Limited Liability Companies. I will address the business, tax and legal issues surrounding LLCs. Also see my main website, http://www.taxesq.com