Preparing for the 0.9% Obamacare Tax
With all of the talk about signing up for exchange insurance, losing insurance plans, and broken websites, individuals may not be aware of the 0.9% Medicare surtax that will be assessed on 2013 taxes. This surtax will be assessed on wages and self-employment income over a specified amount. For married couples it will be applied…
Even with rising exemptions, 2013 annual exclusion gifts still a good idea
Recently, the IRS released the 2014 annually adjusted amount for the unified gift and estate tax exemption and the generation-skipping transfer (GST) tax exemption: $5.34 million (up from $5.25 million in 2013). But even with the rising exemptions, making annual exclusion gifts is still a good idea. The 2013 gift tax annual exclusion allows you…
Handing Down the Family Business
As more and more boomers are getting ready to retire, many are looking at handing down the small businesses that they created. According to Avi Kestenbaum, a partner and co-chair of the Trusts & Estates Department at the law firm of Meltzer, Lippe, Goldstein & Breistone, only 30% of family businesses successfully pass from one…
2013 may be your last chance for a “charitable IRA rollover”
If you’re age 70½ or older, you can make a direct contribution — up to $100,000 — from your IRA to a qualified charitable organization in 2013 without owing any income tax on the distribution. This “charitable IRA rollover” can be used to satisfy required minimum distributions. The American Taxpayer Relief Act of 2012 (ATRA)…
Filing Season Delayed
Due to the recent government shutdown, the IRS has announced that there will be a one to two week delay in the start of the 2014 filing season as a result of this shutdown. The delay will allow the IRS to prepare and test systems. Originally the date for return filing was scheduled for January…
Maximize your 2013 depreciation deductions with a cost segregation study
If you’ve recently purchased or built a building or are remodeling existing space, consider a cost segregation study. It identifies property components and related costs that can be depreciated much faster, perhaps dramatically increasing your current deductions. Typical assets that qualify include decorative fixtures, security equipment, parking lots and landscaping. The benefit of a cost…
Do Both You and Your Spouse Understand Your Finances?
Very often in a marriage there is a division of labor between spouses, with one spouse managing the bills and the assets. Most of the time this is a good way to delegate responsibility, but it is important that each spouse have a baseline understanding of the family finances. Often this is a difficult topic…
Will your exec comp be subject to expanded Medicare taxes?
Maybe. The following types of executive compensation could be subject to the health care act’s 0.9% additional Medicare tax: Fair market value (FMV) of restricted stock once the stock is no longer subject to risk of forfeiture or it’s sold FMV of restricted stock when it’s awarded if you make a Section 83(b) election Bargain…