16 Tax Issues Facing Small Business Owners in 2014

2014 will be a challenging tax year for businesses and higher-income taxpayers. The following issues are concerns that may impact you and your company’s tax liability in the new year.  Small Business Health Insurance Credit – The tax credit to small employers (25 or fewer equivalent full-time employees) that provide an affordable health insurance plan for their employees and supplement at least half the premiums,...

Read More

Did You Take Your Required Minimum Distribution for 2013?

Article Highlights In the year you reach 70½, you become subject to the required minimum IRA distribution rules. Failure to take the required minimum distribution can result in a 50% penalty. The penalty can be waived under certain circumstances. IRA-to-charity transfers are possible in 2013. The IRS does not allow IRA owners to indefinitely keep funds in a Traditional IRA. Eventually, assets must be distributed...

Read More

Mandatory Health Insurance Starts Next Month—Are You Ready?

Beginning in January, everyone, with certain exceptions, is required to have minimum, essential health care insurance. This issue has received a significant amount of press coverage recently, both negative and positive. Regardless of your opinion related to the issue, the mandatory insurance requirement, together with the accompanying penalties for not being insured, premium assistance credits, and insurance subsidies, all begin in 2014. The...

Read More

Small Firm Health Insurance Marketplace Postponed

Article Highlights: Small Employer Health Insurance Credit Credit Qualifications Administration Delays Availability from Government Marketplace until 2015 Beginning in 2010, the federal government offered small employers a tax credit as an incentive to provide health insurance to their employees. This credit was up to 35% of the employer’s contribution toward the cost of the employees’ health insurance for 2010 through 2013, with...

Read More

Last Minute Tax Moves

Article Highlights: Year-end Tax Strategies Prepay Taxes if Not Subject to the AMT Pay Off Medical Installment Payments Advance Charitable Deductions Be Cautious of Overall Itemized Deductions Phase Out Prepay Tuition Expenses Fast Write-Offs For Business Purchases Year’s end is rapidly approaching, but there are still some tax-advantaged moves you can make before the New Year. If you itemize deductions, you might...

Read More

December Due Dates

December 2013 Individual Due Dates December 1 - Time for Year-End Tax Planning  December is the month to take final actions that can affect your tax result for 2013. Taxpayers with substantial increases or decreases in income, changes in marital status or dependent status, and those who sold property during 2013 should call for a tax planning consultation appointment.  December 10 - Report Tips to Employer  If you are...

Read More

Your 2013 Tax Bill May Give You A Shocker

Article Highlights Regular and capital gains tax rates increase for higher income taxpayers New 3.8% net investment income tax Additional 0.9% health insurance payroll and self-employment tax Phase-out of exemption deduction Phase-out of itemized deductions Many higher-income taxpayers are in for a shock when their 2013 income tax returns are prepared. In 2013, a significant number of tax increases, and new limitations on deductions,...

Read More

You and the New Medicare Tax

Article Highlights: New additional 0.9% Medicare tax for higher-income taxpayers. Threshold for paying the tax is combined wages and net self-employment income of over $250,000 for married individuals and $200,000 for others. Certain combinations of income and marital status could result in unexpected tax liabilities and penalties. There is a new additional Medicare tax in effect for 2013...

Read More

Fine Tuning Capital Gains and Losses

Article Highlights          Long-term capital gains rates are zero to the extent that the taxpayer is in the 10 or 15% regular tax bracket.          Long-term capital rates are 15% to the extent that the taxpayer is in the 25% through the 35% regular tax bracket.          Long-term capital rates are 20% to the extent that the taxpayer is in the 39.6% regular tax bracket.  ...

Read More

Avoid Home Cancellation of Debt Income

Article Highlights • Forgiven debt is taxable. • Forgiven home mortgage acquisition debt is excludable. • Without a last-minute congressional extension, the home mortgage acquisition debt exclusion expires at the end of 2013. When a taxpayer settles a debt for less than its full amount, the forgiven amount of the debt is taxable, unless the taxpayer qualifies for one of two currently available exclusions. With the downturn in the economy...

Read More