“Fiscal Cliff” law increases taxes

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.


Lottery Winners Lose

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.


New Jersey Ends Death Penalty

December 14, 2007


New Jersey Ends Death Penalty!

 

The State of New Jersey Assembly and Senate approved the abolition of the Death Penalty on December 13, 2007. The Governor promises to sign it into law. It’s about time!


Congress Fails to Repeal AMT

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The Alternative Minimum Tax (AMT) which shocks many middle income taxpayers with big tax bills, has not yet been repealed by Congress.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:
Capital Gains
Children Under 18 subject to the “Kiddie Tax”
Gains on S Corporations conversions
Options
Tax-Free Income.

If you have any questions about this, call now while some planning can be done!

Ronald J. Cappuccio, J.D., LL.M.(Tax)
856 665-2121


Plan Now to Lower Taxes

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.

 

Please see http://www.taxesq.com or call Ronald J. Cappuccio, J.D., LL.M. (Tax) at (856) 665-2121.


LLC’s are the predominate form of Business!

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


Welcome to My Blog

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

 Thank you!

 Ron Cappuccio