Archive for the ‘News’ Category

E-mails spread concern about a new “real estate transaction tax”

Thursday, August 9th, 2012

The impending 3.8% Medicare surtax has fueled a spate of chain e-mails regarding a federal “real estate transaction tax” on home sales, and practitioners are hearing from worried clients. This article separates fact from fiction to help practitioners educate clients about how the Medicare surtax works and how it won’t apply to most home sales.

Read More » {Journal of Accountancy}

IRA minimum distributions in the year of the owner’s death

Wednesday, July 25th, 2012

When an IRA owner dies after required distributions have begun, there is often a required minimum distribution for that year that hasn’t been paid yet. Any required minimum distribution that wasn’t paid to the owner must be paid to the beneficiary. Seymour Goldberg, CPA, discusses how beneficiaries are often unaware of this requirement and are unaware that the distribution cannot be rolled over. He cautions that practitioners need to help clients take timely corrective action to minimize the tax impact.

Read More » {cpa2biz.com}

What you’ll get in Social Security

Wednesday, July 25th, 2012

Despite what you’ve heard, Social Security isn’t going to disappear.
Many younger people, and even some older ones, are convinced the retirement system’s coffers will run dry before they get a chance to claim benefits. The reality is quite different. Even if Congress does nothing to fix the troubled system, and its trust fund is exhausted in about two decades, Social Security will still collect enough in payroll taxes to pay out 75% of promised benefits at that point.

Read More »{money.msn.com}

Maryland Increases Individual Income Tax Rates and Enacts Other Tax Changes

Thursday, July 19th, 2012

On May 22, 2012, Maryland Governor Martin O’Malley signed legislation enacting the “State and Local Revenue and Financing Act of 2012” that increases the individual income tax rates, establishes new individual income tax brackets, reduces and eliminates personal exemptions for certain taxpayers, increases the tax rate on other tobacco products and cigars, and provides other tax changes.

Read More» Downloadable Version ( PDF )

Interest on student loans will double in less than a month

Thursday, July 19th, 2012

Clients still paying off student loans will have a new financial calculation to take into account — the interest rate on federally subsidized college loans will double in less than a month unless Congress takes action. The rate will rise to 6.8% from 3.4%. The Congressional Budget Office estimates it will cost the U.S. $6 billion to extend the rate for a year.

Read More»{aicpa.org}

Supreme Court’s health care decision affects many tax provisions

Thursday, July 19th, 2012

The Supreme Court’s decision upholding the individual mandate in the health care law had a surprisingly large number of tax ramifications. Because much of the health care law was enacted through the Internal Revenue Code, the court’s decision to let the law stand means that numerous tax provisions will take effect over the next few years. Many of those provisions involve health care, but some, such as the 3.8% tax on net investment income and the codified economic substance doctrine, don’t, and may surprise taxpayers.

 Read More»{Journal of Accountancy}

U.S. housing market begins real recovery

Thursday, July 19th, 2012

The positive news just keeps coming in from the U.S. housing market, with data from the National Association of Realtors showing that pending home sales were up 5.9% in May. That’s the highest pending home sales level since 2010, and the upside is being felt in every U.S. region. This time, it looks like the rise in home sales contracts signed is a natural one too. In March 2010, the last time home contracts were this high, homebuyers were rushing to sign new home deals before the first time homebuyer tax credit expired.

Read More»{Banking My Way}

FASB moves toward reversing mark-to-market proposal

Wednesday, January 26th, 2011

The Financial Accounting Standards Board has started taking steps toward allowing banks to continue to use an amortized cost to value many of the loans on their balance sheets rather than shifting to a “fair value” accounting method. Last year, the accounting standards board had proposed expanding mark-to-market accounting on bank loans. The banking industry had argued that the fair-value rules would hinder lending.

Read more » [The Wall Street Journal]

Taxpayers who itemize have to wait until February to file

Wednesday, January 5th, 2011

IRS Kicks off 2011 Tax Season with certain Taypayers unable to start filing until mid-to-late February summary- Taxpayers who itemize on their federal tax returns will have to wait until at least mid-February to file, the IRS said Thursday. The delay is necessary because the IRS needs time to program its systems to accommodate tax breaks included in a compromise tax bill President Obama signed last week.

Read original article » [USA Today]

Rental Property Owners must issue 1099’s for certain 2011 expenses

Wednesday, January 5th, 2011

Update – President Signs Repeal of Expanded 1099 Requirements

Part of the recently passed Health Care Act contains a provision which will require rental property owners to start issuing 1099 forms for certain goods and services claimed as rental expenses. Starting in 2011, if an owner pays more than $ 600 per year to a single contractor or service provider the recipient (and the IRS) must be sent a properly completed 1099 form or the deduction may be disallowed.

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