Dear Valued Client,
This month's edition includes an important article that discusses some of the automatic tax changes that could impact just about everyone
if Congress does not take action. This will help you determine which tax laws have expired or will be expiring so that you can take advantage of them before it's too late. Election's Day is near.
I implore all of you to cast your votes for candidates who reflect your morals, ethics and policy views. We have the power to change our leaders to reflect the people's wishes. If only the takers and spenders vote, than that is what we'll have to live with.
Please schedule a consultation with this office for 2010 fall and 2011 tax planning. This office is here to help you with all your tax needs.
Mueller & Company , LLC
2010 AMT Tax Increase Will Affect Most
I wanted to empasize the importance to
contact your Senators and Congressmen to extend some expiring tax laws. The one that will affect most of us is the non-adjustment of the AMT tax exemption. In 2009 it was $70,950 (MFJ) it is now $45,000. This
WILL COST the average middle income family thousands of dollors in 2010. Example: Family of three with AGI of $104,000 and taxable income of $70,000. Without action by Congress will pay $1,958 in AMT tax for 2010. That means many of us will be asked to write balance due checks on April 15, 2011.
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Medicare surtax
If you plan on selling your primary home at a substantial gain, take note: High profit sales after 2012 can trigger the special 3.8% Medicare surtax. Starting in 2013, the new health care law imposes a 3.8% levy on investment income of singles with adjusted incomes over $200,000 and marrieds above $250,000. The surtax is levied on the smaller of the filer’s net investment income or the excess of AGI over the thresholds. Capital gains are treated as investment income. Thus, if the surtax will hit you after 2012 and you expect the gain on the sale of your home to exceed $250,000 if you’re single or $500,000 if married, gain over these thresholds will be hit by the surtax. So it may pay handsomely to sell before the end of 2012. The surtax can bite even harder on sales of second homes after 2012. The home-sale exclusion doesn’t apply to them, so the surtax can hit the entire gain.
Tax Increases Are Coming Unless Congress Takes Action
Normally, one would think that Congress would have to take some action to increase taxes. However, it is quite the opposite for 2011. If Congress fails to take action, there will be a tax increase affecting just about everyone in every tax category. In order to skirt a Senate rule that requires 60 votes to pass a bill that increases the deficit beyond a ten-year window, Congress passed the Bush tax cuts in 2001 and 2003 with most provisions designed to sunset this year.
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Does the IRS Owe You Money?
If you have not filed a prior year tax return and are due a refund, you should consider filing the return to claim that refund. If you are missing a refund for a previously filed tax return, you should check the status of your refund and confirm your current address.
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Tax Tips for Military Personnel
Because military personnel have obligations that can impact their tax situation, they are entitled to special tax breaks. Here are a number of benefits that apply.
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Tax Tips for New Business Owners
If you are planning to open a new business, there are a number of tax and accounting issues you need to be aware of. The following are some of the more commonly encountered issues a new business owner needs to cope with.
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What is a Charitable Organization?
Money or property that you donate to “qualified” charitable organizations can be included in your itemized deductions as a charitable contribution. But what is a “qualified” charity?
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Go Back to School With the Educational Tools of QuickBooks
We know. When you first cracked your copy of QuickBooks, you wanted to dive in and start generating invoices. Fortunately, QuickBooks is intuitive enough that you were able to do just that. And its help system is so robust that you were able to get procedural questions answered quickly and easily.
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