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Taxes

Frequently Asked Questions – What is My Tax Bracket?

July 2, 2012
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Question: What is my tax bracket? Answer: Generally, a tax bracket is the income tax rate at which you are taxed for a certain range of income. The income ranges vary, depending on your filing status: single, married filing jointly (or qualifying widow(er)), married filing separately, or head of household. Brackets are expressed by their…

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Frequently Asked Questions – What is the Kiddie Tax?

June 25, 2012
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  Question: What is the Kiddie Tax? Answer: Special rules commonly referred to as the “kiddie tax” rules apply when a child has unearned income (for example, investment income). Children subject to the kiddie tax are generally taxed at their parents’ tax rate on any unearned income over a certain amount. Currently, this amount is…

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Medicare Tax on Investment Income

June 20, 2012
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  Beginning in 2013, high-income individuals may be subject to a new 3.8% Medicare contribution tax on some or all of their unearned income. For more information, click the link to the video below: Medicare Tax on Investment Income   *image used courtesy of stock.xchng

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High-Wage Individuals Face New Medicare Payroll Tax in 2013

June 13, 2012
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  Starting in 2013, high-wage individuals will be subject to an additional 0.9% hospital insurance (HI), or Medicare, payroll tax. This video explains the basics of the new payroll tax. 2013 – Additional Medicare Payroll Tax *image used courtesy of stock.xchng  

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Payroll Tax Cut Extended to End of 2012

May 14, 2012
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If you work in a job that’s covered by Social Security, your employer normally withholds 6.2% of your wages to pay for the Social Security portion of federal employment (Federal Insurance Contributions Act, or FICA) taxes (assessed on wages up to the taxable wage base of $110,100 in 2012). Your employer has to pay the…

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Keeping Track of Expiring and New Tax Provisions

May 7, 2012
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A number of significant federal income tax provisions expired at the end of 2011, a fact that might be easily overlooked with so much attention being focused on the “Bush tax cuts” that are still in effect, but scheduled to expire at the end of 2012. And new Medicare-related taxes, effective in 2013, have received…

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Speculating on the Future of the Federal Estate Tax

April 23, 2012
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What is the future of the federal estate tax? All we know for sure is that no one knows anything; it’s all speculation. So, let’s take a look at what could happen. A quick history lesson An alphabet soup of tax laws (EGTRRA, JGTRRA, TIPRA, and the others, 13 in total), enacted between 2001 and…

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Family Limited Partnership (FLP): Business Succession Planning

April 2, 2012
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A family limited partnership (FLP) is a limited liability business entity created and governed by state law, and it is generally composed of two or more family members. It can be a powerful estate planning tool that (1) may help reduce income and transfer taxes, (2) lets you distribute assets to your heirs while keeping…

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Gift- or Sale-Leaseback: Estate Freeze Technique

March 19, 2012
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A sale-leaseback is a transaction where one party sells property to another party and then immediately leases back the property. Similarly, a gift-leaseback is a transaction where one party gives property to another party and then leases the property back. A sale-leaseback is useful if a business owner needs to raise cash by selling assets,…

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Payroll Tax Cut Extended to End of 2012

March 5, 2012
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If you work in a job that’s covered by Social Security, your employer normally withholds 6.2% of your wages to pay for the Social Security portion of federal employment (Federal Insurance Contributions Act, or FICA) taxes (assessed on wages up to the taxable wage base of $110,100 in 2012). Your employer has to pay the…

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