NEWS

  

Firm Peer Review Successfully Completed

Pursuant to professional and state guidelines our firm participated in a review of selected accounting engagements. We successfully completed this review by an independent reviewer. It is important that the general public understands the importance of this review as new guidelines command strict adherence by CPA Firms.


IRS Releases 2011 Automobile Depreciation Limits

 

For passenger automobiles (other than trucks or vans) placed in service during calendar 2011 to which bonus depreciation applies, the depreciation is $11,060 for the first tax year. Trucks and vans to which bonus depreciation applies have a higher limit: $11,260 for the first tax year.

 

For passenger automobiles (other than trucks or vans) placed in service during calendar 2011 to which bonus depreciation does not apply, the depreciation limit is $3,060 for the first tax year. For trucks and vans to which bonus depreciation does not apply, the limit is $3,260 for the first tax year.

 

Bonus depreciation does not affect the limits after the first year. For passenger automobiles the limits are $4,900 for the second tax year, $2,950 for the third tax year, and $1,775 for each successive tax year. For trucks and vans the limits are $5,200 for the second tax year, $3,150 for the third tax year, and $1,875 for each successive tax year.

 


Planning for the Unearned Income Medicare Contribution Tax

 

As a means to raise revenue for health care reform, Congress passed the Health Care and Education Reconciliation Act. A feature of this Plan is the Medicare add-on tax. Beginning 2013 this tax is assessed on unearned (investment) income for individuals whose modified adjusted gross income (MAGI) exceeds certain thresholds (see table below). For most taxpayers MAGI is equal to adjusted gross income.

 Filing Status

 Modified Adjusted Gross Income (MAGI) Threshold

 Single              Greater than $200,000
 Married Filing Joint  Greater than $250,000
 Married Filing Separate  Greater than $125,000


The tax is computed on the lesser of 3.8% of net investment income or 3.8% of the income exceeding the MAGI threshold. This tax will be added to your regular tax computation including any adjustments for alternative minimum tax.

 

Net investment income includes interest, dividend, annuity, royalty and rental income other than such income derived from a trade or a business (Tax-exempt bond interest is excluded from net investment income). Also included in investment income are capital gains from investments and passive activity income via Sub S corps, partnerships and LLC’s.

 

Considering this new law and the expiration of The Bush Tax cuts by the end of 2012, both you and your investment advisor will be able to focus on potential investment/tax strategies for 2012. Specifically, qualified dividends and long term capital gains that have been availed a special tax rate of 15% will expire in 2013. Please call us with any questions.

    


Roth-IRA Conversions

    Have you considered a full or partial conversion of your retirement account to a Roth-IRA? Certain individuals may find that their retirement account(s) has been decimated by the latest market turmoil. In certain situations it may be the time to take advantage of low valuations. Call us to see if this can fit into your financial plan.
 

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Fiscal-Year Taxpayers Dates

Date

Event
01/01/15 - 04/15/15  
Tax Season
03/16/15     
Corporations - File Form 1120 and pay any tax due by 03/16/15. If you want an automatic 6-month extension, file Form 7004 and pay any balance due.
03/16/15         
S Corporations - File Form 1120S and pay any tax due by 03/16/15. If you want an automatic 6-month extension, file Form 7004 and pay any balance due.
04/15/15
Individuals - File Form 1040 and pay any tax due by 04/15/15. If you want an automatic 6-month extension, file Form 4868 and pay any balance due.
04/15/15
Partnerships - File Form 1065 by 04/15/15. If you want an automatic 5-month extension, file Form 7004 and pay any balance due. Then file Form 1065 by 09/15/15.
04/15/15
Trusts- File Form 1041 by 04/15/15. If you want an automatic 5-month extension, file Form 7004 and pay any balance due. Then file Form 1041 by 09/15/15.
09/15/15
Corporations - 2014 calendar year return is due if you filed for an 6-month extension. 
09/15/15
S Corporations - 2014 calendar year return is due if you filed for an 6-month extension. 
09/15/15
Partnerships - 2014 calendar year return is due if you filed for an 5-month extension.
09/15/15 Trusts- 2014 calendar year return is due if you filed for an 5-month extension. 
10/15/15 Individuals - 2014 tax return is due if you filed for an 6-month extension. 

 
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