How New Medicare Tax Could Affect Sale of a Business
A new unearned income Medicare contribution tax, with an effective date of Jan. 1, 2013, was enacted as part of the healthcare act. That date has come and gone, and the tax is now applicable. The new Medicare tax applies to net investment income of individuals whose modified adjusted gross income exceeds certain threshold amounts….
Roth or Traditional IRA: Which is Best for You?
If you begin putting away $5,000 per year in a traditional IRA at age 45 and don’t start taking withdrawals until you’re 67, you’ll have more than $178,000 when you retire. This assumes a 4 percent average return on your investment. And, don’t forget, your taxable income will be $5,000 less each year for 22…
Affordable Care Act: What to Expect in 2013 and 2014
In June 2012, the U.S. Supreme Court ruled in favor of the constitutionality of the Patient Protection and Affordable Care Act, often called Obamacare, clearing the way for the law’s implementation. The Affordable Care Act, along with the Healthcare and Education Reconciliation Act, represents the most significant regulatory overhaul of the U.S. healthcare system since…
What Social Media Strategies Work for Nonprofits?
Do you remember back in the good old days, maybe the nineties, when “social media” meant the local newspaper’s society column? Remember when only birds tweeted? Or, the days when high tech might mean blast faxing a press release? That was then, but the Web and other technology are now. New communication and development tools…
Star Power May Decide Royalties in Foreign Athletes’ Tax Cases
How much is a professional golfer’s image worth? A good bit, but not as much as one top golfer thought, according to a recent U.S. Tax Court decision against professional golfer Sergio Garcia. The Spanish golfer, who is a resident of Switzerland, said 85 percent of his income from an endorsement agreement with TaylorMade Golf…
Divorce: Financial Survival Skills
A divorce can take its toll on you financially, as well as mentally and physically. For emotional support, you might seek the help of family, friends and a professional counselor. To assist you with your legal rights and responsibilities, you would hire a divorce attorney. To ensure your financial well-being, you should seek the professional…
Chance of IRS Audit Increases With Income Level
If you’re like most taxpayers, on or before April 15 when you hit the button to confirm, drop the envelope in the mailbox or sign your form for the tax preparer, your first thought very well might be “I hope I don’t get audited!” But just what are your chances of having your income tax…
IRS Checking 1,300 ‘Self-Declared’ Tax-Exempt Groups
The Internal Revenue Service is currently conducting a compliance check on approximately 1,300 “self-declared” tax-exempt organizations. In addition, the IRS is seeking detailed information on the organization’s activities, revenues and expenses, and the compensation of the top six officers, directors or employees. The organizations have received a letter from the IRS requesting them to complete…
One in Five Employee Fraud Cases is Over $1 Million
The high cost of fraud may be even more staggering than you think. The typical business organization loses 5 percent of its revenues to employee fraud each year – a whopping $3.5 trillion worldwide, according to the latest biannual Report to the Nations of the Association of Certified Fraud Examiners. And, even sadder, half of…
Buy-Sell Agreements Protect Your Business
What would become of your business if something happened to you, your business partner or a fellow shareholder? If an owner dies, becomes disabled, divorces, declares bankruptcy or simply retires, your business could be thrown into turmoil. Not only would family members and employees be affected, but the value of the business could fall. There…