Posts from: Tax News
Tax-Free IRA Distributions
The American Taxpayer Relief Act of 2012 (2012 Taxpayer Relief Act) extends through 2013 the provision which allows individuals who are at least 70½ by the end of the year to exclude from gross income qualified charitable distributions up to $100,000... (more...)
2012 Resolves Many Uncertainties
2012 Resolves Many Uncertainties, Creates Others; Sets Stage For Future Tax Reform. Uncertainty during 2012 over what tax laws would govern in 2013 and beyond because of the expiring Bush-era tax cuts clearly was the most significant development of the... (more...)
3.8 Percent Medicare Tax on Investment Income
The health care reform package (the Patient Protection and Affordable Care Act and the Health Care and education Reconciliation Act of 2010) imposes a new 3.8 percent Medicare contribution tax on the investment income of higher-income individuals. Although... (more...)
Business deduction for the entire cost of qualified property
Businesses should consider accelerating purchases into 2012 to take advantage of the still generous Code Sec. 179 expensing. Qualified property must be tangible personal property that a taxpayer actively uses in its business, and for which a depreciation... (more...)
Small Employer Health Insurance Credit
Employers with 10 or fewer full-time employees and that pay average annual wages of not more than $25,000 may be eligible for a maximum tax credit of 35 percent on health insurance premiums paid for tax years beginning in 2010 through 2013. Tax-exempt... (more...)
2012 Year-End Tax Planning for Businesses
In recent years, end-of-the-year tax planning for businesses has been complicated by uncertainty over the future availability of many tax incentives. This year is no different. In 2010, Congress extended many business tax incentives for one or two years.... (more...)
Taxpayers who did not establish insolvency must recognize COD income
Taxpayers who settled a credit card debt for $4,412 less than they owed in 2008 had to include that amount in income because they did not prove they were insolvent under Sec. 108(a)(1)(B) at the time of the debt discharge (Shepherd, T.C. Memo. 2012-212).... (more...)
The Startup Business Needs CPA
There is a joke in Hollywood that no matter what one’s day job is, everyone has a headshot in their back pocket. In business, the back pocket accessory isn’t the headshot—it’s the business plan. The startup community is exploding across the U.S.... (more...)
Self-employed can deduct Medicare premiums
Explaining a recent reversal of a long-held IRS stance, the Office of Chief Counsel advised IRS attorneys on Friday that self-employed individuals may deduct Medicare premiums from their self-employment income. Chief Counsel Advice (CCA) 201228037 clarifies... (more...)
Married Taxpayer Filing Separately Not Entitled to Full Deduction
Married Taxpayer Filing Separately Not Entitled to Full Deduction of $1.1 Million for Mortgage Interest. A taxpayer who elects married filing separately is limited to a deduction for interest paid on $500,000 of home-acquisition indebtedness plus interest... (more...)
California—Corporate and Personal Income Taxes
California—Corporate, Personal Income Taxes: Enhanced Electronic Installment Agreement Application Announced,(Jul. 17, 2012). The Franchise Tax Board (FTB) has enhanced its electronic installment agreement (eIA) application to pay outstanding California... (more...)
CFO – Strategic Thinking
CFOs are increasingly involved in setting strategy – a transition that is requiring them to become more effective communicators and to think more holistically. CFOs from multinational companies such as Nike, Coca-Cola Enterprises, Ralph Lauren, Xerox,... (more...)
Business and Tax News
President Signs Highway/Student Loan Bill (Jul. 9, 2012). President Obama on July 6 signed the Moving Ahead for Progress in the 21st Century Act (MAP-21) (HR 4348 ), which raises $20.4 billion in revenue and reauthorizes the fuel and ticket excise taxes... (more...)