Nov 172015

tax planning 2Also called the unearned income Medicare contribution tax or the net investment income tax; this tax impacts more taxpayers than you might think. This tax applies to individuals, estates and trusts. You should note that this tax is a surtax so it is a second level of taxation in addition to the regular taxes that Americans have been paying.

The surtax is calculated as 3.8% of the lesser of your net investment income or the excess of the modified adjusted income over a threshold of $250,000 for joint filers and surviving spouses. ($125,000 for married folks filing separate returns and $200,000 in all other cases.) The surtax also applies to a trade or business in certain instances such as where there is passive activity or where a business sells financial instruments or commodities.

As the tax year draws to a close, taxpayers with income subject to the 3.8% should be attempting to minimize, through deferral, their net investment income or modified adjusted income. If you would like assistance with your year end tax saving strategy, please contact one of our attorneys at Ourednik Law Offices.

Jul 232013
What to do if You Get a CP21B or CP21C Notice From the IRS

Whenever you get a notice from the IRS, the first thing to do is read it! And read it carefully. After doing so, if you agree with it, there is no action required for either of these notices. In either case, these notices indicate that you’ve requested changes to your tax return and the IRS has agreed to those changes. The difference in the two forms is whether or not you’ll be receiving a refund because of those changes. A CP21B is an indicator that you will receive a refund, and a CP21C shows that you will not receive a More…

Jul 152013
Have You Received a Notice From the IRS?

One of the scariest moments is going to the mailbox and finding a notice from the IRS. The worst thing to do is to throw it in a pile and ignore it, hoping it will go away. When you open it, you may find a notice in your favor. Perhaps you miscalculated your return and overpaid or if you asked for a change on your return they may have granted it. One the other hand, you may be receiving a notice that you’re up for an audit, or as they say, a notification of examination. Since 2001, the IRS has More…

Jan 222013
Breakfast with the Experts

Now that the Fiscal Cliff has come and gone, do you know what changes have occurred and how they will affect you and your business? What about Obamacare? How ill that impact your business? The Small Business Resource Network will host “Breakfast with the Experts,” February 5 from 8-11 a.m. at the UNF Herbert University Center (12000 Alumni Dr.). Accounting experts will talk about the latest concerns regarding healthcare laws and the new tax laws, which will take effect soon. Business owners who want to stay informed on the latest changes from Washington should not miss this informative workshop There More…

Dec 112012
Whatever you do, file your taxes!

The IRS, and for that matter any state government, doesn’t care how famous or popular you may be. They only care that you file and pay your fair share of taxes as outlined by law. Unfortunately for Stephen Baldwin, he was recently charged with failing to pay New York state taxes for three years that amounted to roughly $350,000 (click here to read his story). When it comes to the IRS, not filing your tax returns in one of the worse mistakes you can make. It is actually worse than filing yet not paying, which is reflected in the penalties More…

Dec 072012
What's all the noise about the "Fiscal Cliff?"

While politicians are wrestling with the details of new tax laws that will prevent America from going over the “fiscal cliff,” many are left wondering what this fiscal cliff is all about. Coined by Chairman of the Federal Reserve Ben Bernanke, the fiscal cliff is looming with big financial consequences on the American economy, if it goes unresolved. At midnight, December 31, 2012, laws are set to change concerning several areas including payroll taxes; business taxes, meaning the end of some breaks for businesses; increases in federal income tax, long-term capital gains and dividends; and the implementation of the health More…

Oct 082012

Last week, the Florida Supreme Court unanimously ruled that foreigners and out-of-state residents may qualify for the homestead exemption from property taxes found in the Florida Constitution when their home is the permanent residence of a dependent who is eligible for the homestead exemption. The case involved David and Ana Andonie, who migrated to Florida from Honduras on investment visas, and were denied a 2006 homestead exemption on their $1 million home despite the fact that their three minor children were born in Miami, were U.S. citizens, and had never resided outside the State of Florida.  The Miami-Dade Property Appraiser More…

Sep 252012
Overview Of The 5 Tax Amendments On The 2012 Florida Ballot

Included among the eleven measures which are set to appear on the November 6 ballot are five that will give Florida voters the opportunity to put more tax breaks into the Florida Constitution.    Here is a brief overview of each amendment: Amendment 2 – also known as the Florida Veterans Property Tax Amendment would amend Article VII Section 6 (Homestead exemptions) of the Florida Constitution to expand property tax discounts for disabled veterans.  As written now, the Constitution only provides a deduction if the disabled veteran was a resident of the state at the time of entering the military service.  More…

Sep 202012
IRS Treatment Of Forgiven Student Loan Debt Causing Concerns

In the wake of the housing market collapse, many people have become familiar with the concept of cancellation of debt (COD) income.  The basis for COD income is found in IRC § 61(a)(12) which states that gross income includes “income from the discharge of indebtedness.”  Understanding the logic of this provision can be tricky.  When a loan is given, neither the lender nor the borrower have any gain or loss.  The lender has no loss because it expects to be repaid and the borrower has no gain because it expects to have to repay loan.  Thus, at this point, there More…

Sep 142012
Amazon To Begin Collecting Sales Tax In California, When Will Florida Get Its Due?

Beginning this Saturday, September 15, 2012, online retailer will begin collecting sales tax for orders made in the State of California.  This will mark an end to a long fight between the internet sales giant and one of the largest states in the union. For years, Amazon relied on the 1992 U.S. Supreme Court decision of Quill Corp. v. North Dakota to justify not collecting and paying state sales tax.  In that case, the Quill Corporation sold office equipment and supplies by soliciting business through catalogs and flyers, advertisements in national periodicals, and telephone calls.  Its annual national sales More…