Tax Rates on Capital Gains & Qualified Dividends
For tax rates on capital gains and qualified dividends, the 2012 Act largely left intact the existing tax rates applied to long term capital gains and qualified dividend income that existed through the end of 2012, with an increase for high income individuals. Old Law Prior to the 2012 Act, capital gains and…
Individual Tax Extender
Tax Extender: Prior to the enactment of the American Taxpayer Relief Act of 2012 (“ATRA”), the potential expiration of a variety of credits and deductions caused individual taxpayers and tax return preparers to face unprecedented uncertainty for the 2012 and 2013 tax years which helped to carve the so-called “fiscal…
Healthcare Taxes
Addressing Healthcare Taxes in 2013, new taxes included in the 2010 Patient Protection and Affordable Care Act will take effect, broadening the Medicare tax base for higher-income taxpayers by: Imposing an additional Hospital Insurance (HI) tax rate of 0.9 percent on earned income in excess of $200,000 for individuals and $250,000 for…
Permanent Estate Tax Relief
One of the major elements to ATRA 2012 is the fact that it has finally given the estate and gift tax a permanent law upon which taxpayers can rely. By way of background, the estate tax has been in a state of constant uncertainty since the 2001 tax law that sought to “repeal” the…
Social Security and Personal Income Taxes
The Social Security tax rate on wages and self-employment income will revert to its previous rate of 6.2% for employees and 12.4% for self-employed individuals beginning January 1, 2013. The Social Security tax rate for 2012 was 4.2% for employees and 10.4% for self-employed individuals. All wages and self-employment income up to the Social Security wage base in…
Limits on Deductions and Exemptions
PEP limitations (Deductions and Exemptions) to apply to “high earners”. Taxpayers claim exemptions for themselves, their spouses and their dependents. Last year, each exemption was worth $3,800. Under the new law, for tax years beginning after 2012, the Personal Exemption Phaseout (PEP), which had previously been suspended, is reinstated with a starting…
American Taxpayer Relief for Business
Enhanced small business expensing (Section 179 expensing) Generally, the cost of property placed in service in a trade or business cannot be deducted in the year it is placed into service if the property will be useful beyond the year. Instead, the cost is “capitalized” and depreciation deductions are allowed for most property (other…
Best Lawyers in America select K & D in 2012
Six from K&D selected for Best Lawyers in America® 2012 The firm overview for K& D is as follows: Six lawyers from Kulzer & DiPadova, P.A. were recently selected by their peers for inclusion in The Best Lawyers in America® 2012. Since its inception in 1983, Best Lawyers has become universally…
December 2010 Tax Law Makes Estate Tax Changes
On December 17, 2010 President Obama signed into law the “Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010.” The new law: Extends for two years the current income tax rates and other income tax rates commonly called the “Bush Tax Cuts.” Provides tax incentives to businesses Cuts…
2011 Offshore Voluntary Disclosure Deadline
In a news release, IR-2011-84, Aug. 8, the IRS reminds taxpayers that the August 31 Deadline is fast approaching for the second special voluntary disclosure deadline initiative of offshore accounts. U.S. taxpayers are running out of time to take advantage of a soon-to-expire opportunity to come forward and get their taxes current with the…