Higher Wage Earners Penalty

Medicare Tax For Hospital Insurance Tax 0.9%   The employee’s share of the Federal Insurance Contributions Act (FICA) or medicare withholding from wages has increased from 1.45%to 2.35% on wages in excess of $250,000 for joint filers and $200,000 for married taxpayers filing separately. The extra tax is imposed on the combined salaries of the spouses […]

How We Pay For Medicare Services

 Net Investment Income Tax (NIIT)   Starting in 2013 a 3.8% Medicare tax is imposed on certain net investment income (NII) of individuals, estates, and trusts by the 26 USC § 1411 on the lesser of:    1.­ Taxpayer’s net investment income is the investment income reduced by applicable associated cost; interest, dividends,rents, annuities, royalties, […]

Hopefully You’re on The Other Side of This

Cancellation of Debt (forgiveness) The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude up to $2 million of forgiven debt ($1 million if married filing separately) from the discharge of debt on their principal residence through foreclosure, restructuring, or short sale, thorough December 31, 2016. Tax Tip: If you are in such an […]

Building an Estate with Purpose

How Estate Planning is Important- Incorporate money management goals by building a relationship between assets, income and cash Distinguish how investments are taxed Learn ways to amplify investments Budget income into cash by containing expenditures and developing discretionary income Take advantage of tax investments by acceleration, postponements and leveraging Four Basic Types of Income Taxable […]

What Is A Breakthrough Session?

CXO COLLECTIVE™ BREAKTHROUGH SESSIONS (BTS) Our Common Interest is Your Success- Business executives across the globe face any number of common challenges regardless of the product or service provided. Obstacles to success may include, but are not limited to: personnel conflicts, cash flow, stagnating revenue, missed growth opportunities, executive transitions, succession planning, declining or stalled […]

Choosing the Right Taxing Entity for Your Business

Types of Entities: And How They Function- C Corporation- Tax filing is due on the 15th day of the third month following the close of its tax year. Extensions are filed on form 7004 extending for six months. For personal service corporations (PSC), the flat 35% tax rate applies. Personal holding companies (PHC) are subject to […]

Cost Segregation Benefits

What is Cost Segregation? Investors who own commercial and residential rental properties are allowed a cost recovery known as depreciation. Depreciation allows a taxpayer to recover the cost of an asset over the period of time or useful life the asset is expected to be able to produce income. The Internal Revenue Code (IRC) defines depreciation as a […]

831 (b) Captive Insurance Companies

What is a captive insurance company? A captive insurance company (CIC) is a licensed insurance company formed to write policies for a related entity or group. A small captive has annual income exclusions up to $1.2 million under the IRS code section 831(b). IRS code section 831 (b) Benefits • Annual premiums received by a […]