A bevy of new tax and related changes has been enacted as part of the 2010 Health Care Act (PL 111-148, 3/23/2010 ) and the 2010 Reconciliation Act. Here’s a couple: ■ Currently, wages are subject to a 2.9% Medicare payroll tax. Workers and employers each pay ½, or 1.45%. If you’re self-employed you…
■ Another LLC Myth: Conventional wisdom may be “conventional” but not always sound. January Practical Planner evaluated the myth that using an S corporation in contrast to an LLC will save you payroll taxes and avoid IRS audits. Another LLC myth is that a one member LLCs, which is treated as a disregarded entity for…
■ S Corp 2nd Class of Stock: Although LLCs are the entity of choice, 2 million+ S corporations still exist. One of the many requirement to qualify and maintain tax favored S corporation status is that the corporation can only have one class of stock. Economic turmoil has forced many S corporations to restructure debt….
■ “Live long and prosper” is said after a Vulcan salute, but all you Tax Trekkies knew that! But did Spock or Mrs. Spock actually first stay it? Estate planners typically represent the family so that coordinated and better results can be achieved. But if women outlive men on average by six years who should…
♪ Type of Trust: Understand the nature or type of trust involved. This will help you identify many other issues you will have to address to properly operate your trust: tax filing requirements (grantor trust, split-dollar loan statement, gift tax return, etc.). The tune of your trust can be classified in a myriad of ways:…
√Change in Venue: So your income oriented stocks were snug in your personal account where the Taxman only could tag them at a 15% rate. Bam Zap Zowie (think old Batman Shows) — the Bush 15% tax siesta for dividends may end in 2013 and dividends may be nailed at a 39.6% rate. So dividend…
Summary: Every year in May CPAs from all over the country flock to Las Vegas to attend a tax conference (what did you expect they’d do in Vegas, we’re talking about CPAs). The program, “Tax Strategies for the High Income Individual” is one of the best programs of the year and attendees can glean great…
Summary: Few events can be more emotionally traumatic than funeral and related arrangements. It behooves everyone to plan ahead and endeavor to make their wishes known. Just letting your loved ones know what you want will often be inadequate. They may not remember, others may have different understandings of your wishes and worse. √ Service…