Penalties Are Rising on Late Tax Payments

 Estimated Taxes In most cases, you must pay estimated taxes for any year if both of the following apply. a)  You expect to owe at least $1,000 in tax for the tax year, after subtracting your withholding and refundable credits.  b)  You expect your withholding and refundable credits to be less than the smaller of:  […]

Last Year for This Senior Benefit

Itemized State & Local Taxes, Medicare and Miscellaneous Deductions Beginning Jan. 1, 2013, you can claim deductions for medical expenses not covered by your health insurance that exceed 10 percent of your adjusted gross income. There is a temporary exemption from Jan. 1, 2013 to Dec. 31, 2016 for individuals age 65 and older and […]

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 […]

Timing Is Helpful When Selling Investments

Capital Gains Tax   Capital Gains and Dividends tax rates increased from 15% to 20% for taxpayers with taxable income in excess of the thresholds mentioned above ($400,000 for single filing status, etc). Net capital gains from selling collectibles such as coins or art are taxed at a maximum 28% rate. The rate will remain […]

Timing The Sale On Lossing Stocks

Timing The Sale On Lossing Stocks       Wash Sale Rule   Under the “wash sale” rule that applies to the disposition of an asset when a loss is recognized,the IRS doesn’t permit taxpayers deduct the loss if they repurchase the same or identical investment during the 30 ­day period before or after the sale date. Section […]

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 […]

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 […]