Archives for Taxes

Tax Season – Time to Get Organized and Start Filing

If you didn’t begin creating year-end tax plans before last December 31, it could be worth your while now to start gathering together all your documentation and get organized. The Internal Revenue Service started accepting tax returns as of Tuesday, January 19, though you could have prepared a return on paper or with tax software and submitted it earlier. The IRS wouldn’t accept such returns until the 19th however. Filing early helps to lower any
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Research and Development Credits Updates

On 12/19/2014, President Obama signed the H. R. 5771 Bill, known as the Tax Increase Prevention Act.  This means that a host of tax credits are being extended to another tax year. Among these is the Research and Development credit. Many small and middle sized businesses do not claim the credit because of the complications in calculating it: The research credit equals the sum of: (1) 20% of the excess (if any) of the qualified
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Latest Updates on the Tax Increase Prevention Act of 2014

On December 16, 2014, Congress passed what is known as an extenders package including more than 50 of the tax credits that expired at the end of 2013. President Obama has signed the Act on December 19, 2014 and it is effective for the 2014 tax year only. Some of the most prominent tax credits are: state and local sales tax deduction, higher education tuition deduction, and the exclusion for discharge of mortgage debt, business and
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Alternative Minimum Tax

AMT (Alternative Minimum Tax) AMT was created back in the 1970’s and then with serious teeth in the 1986 tax reform act which was to simplify taxes. AMT is a political system that renders certain tax deductions useless like state income and property taxes.  AMT was actually created and refined when Republicans held the legislative and executive branches and is seen by many as a way to equalize the field for taxpayers in high state
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Expiring 2014 Tax Provisions

  List of 2014 Expiring Tax Provisions 55 tax breaks are expiring, here is a list of some of the most important ones. A tax credit for research and development, benefiting a wide range of industries, including manufacturers, pharmaceutical makers and high tech companies. The tax break saved companies an estimated $6.2 billion in 2013.  This is a 20% tax credit on R&D expenditures. An exemption that allows banks, insurance companies and other financial firms
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Obamacare New Taxes 1/1/14

Obamacare Taxes 3% Tax on Medical Device Manufacturers 2014 10% Tax on Indoor Tanning Services 2014 Blue Cross/Blue Shield Tax Hike Excise Tax on Charitable Hospitals which fail to comply with the requirements of ObamaCare Tax on Brand Name Drugs Tax on Health Insurers $500,000 Annual Executive Compensation Limit for Health Insurance Executives Elimination of tax deduction for employer-provided retirement Rx drug coverage in coordination with Medicare Part D Employer Mandate on business with over
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IRS debt – Ways to consolidate your back taxes

People who have dealt with the Internal Revenue Service (IRS) before know how much of a herculean task it is come out of their grip unscathed. This federal tax collection body is entrusted as the guardian of the nation’s tax code. However, if the ground realities are to be considered, then people are bound to face financial crisis at any moment that may force them stop making tax payments and spend those money on more
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Tax Planning 2012 and Beyond

Starting in 2010, tax planning has been exceedingly difficult.  The Bush tax cuts were extended till 1/1/2013 – 2011 & 2012 tax years.  After 2012, tax rules revert to pre Bush tax cut days. Here is a list of tax cuts expiring: Top marginal income tax rate will increase from 35% to 39.6%, a 4.6% increase.  This tax bracket hits taxpayers the following way:  Single, Married Joint, Head of Household brackets – Over $388,350;  Married
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Patient Protection and Affordable Care Act (PPACA)

Patiently waiting, the PPACA has now passed muster with the Supreme Court.  Only 2 provisions were changed. The provision on penalty for PPACA for the individual mandate (all individuals must have health insurance) is now called a “tax” under Congress’s power to levy taxes.  Also states that opt out of Medicaid provisions, may not be mandated to follow-thru on the mandated Medicaid rules.  In essence, if these states don’t want to burden of administering the
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2011 Year End Tax Planning

This first article is entitles Part I because of uncertainty regarding some key developments that may or may not pass: Obama’s payroll tax cut extension and the Republican counterweight, odds are both are dead in the water and some pieces of it may pass possibly by year end. Longer term tax planning is especially challenging this year because of uncertainty over whether Congress will enact sweeping tax reform that could have a major impact in
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