Monthly Archives: November 2012

2013 Kiddie Tax

The amount used to reduce the net unearned income reported on a child’s tax return subject to the “kiddie tax,” is $1,000, up from $950 for 2012. The so-called kiddie tax is a tax rule that is levied on unearned income (interest, dividends and capital gains) earned by children under the age of 19 and college students under the age… (more…)

Impending 2013 Tax Rate Increases

Provided that Congress fails to extend the Bush tax cuts, many significant rate changes and other substantive changes will take effect in 2013.  This will definitely impact both the tax planning and tax preparation considerations for many Americans. If Congress allows the Bush tax cuts to expire, ordinary income tax rates will increase for most individual taxpayers beginning in 2013.… (more…)

Planning on Converting to a Roth? Do it in 2012

If you’re thinking about converting your traditional IRA to a Roth IRA, you could cut your tax bill by doing the conversion in 2012 rather than waiting until 2013. Why the hurry? For one thing, income tax rates are scheduled to go up in 2013, so the amount you convert could be taxed at a maximum rate of 39.6%, rather… (more…)

IRS Warns Consumers of Possible Scams Relating to Hurricane Sandy Relief

It is natural for us to want to help those individuals that have suffered.  We see time and time again, how folks in New Jersey ND New York band together to give during tumultuous tragedies.  But unfortunately there are those ruthless and malicious people who seek to take advantage of this. The Internal Revenue Service issued a consumer alert about… (more…)

Tax Relief for Victims of Hurricane Sandy in New Jersey

Victims of Hurricane Sandy that began on Oct. 26, 2012 in parts of New Jersey may qualify for tax relief from the Internal Revenue Service. The President has declared Atlantic, Bergen, Burlington, Camden, Cape May, Cumberland, Essex, Gloucester, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Salem, Somerset, Sussex, Union and Warren counties a federal disaster area. Individuals who reside… (more…)

IRS Expedites Charity Applications, Urges Use of Existing Charities

As part of the administration’s efforts to bring all available resources to bear to support state and local partners impacted by Hurricane Sandy, the Treasury Department and the Internal Revenue Service today announced an expedited review and approval process will be offered for organizations seeking tax-exempt status in order to provide relief for victims of Hurricane Sandy.  The IRS also… (more…)

IRS Temporarily Suspends Income Limitation for Qualified Housing for Hurricane Sandy Victims

As part of the administration’s continued support for states and local partners impacted by Hurricane Sandy, the Treasury Department and the Internal Revenue Service today announced that they will waive low-income housing tax credit rules that prohibit owners of low-income housing from providing housing to victims of Hurricane Sandy who do not qualify as low-income. The action will expand the… (more…)

Capital Gains and Losses: New Twists for 2012

The end of the year is the traditional time for securities investors to “harvest” capital losses for federal income tax purposes. But there’s an added wrinkle in 2012: Due to pending tax law changes, you might try to reap more capital gains than losses. Thus, the usual strategy of harvesting losses could be turned upside down. Here’s a recap of… (more…)

Tax Planning for the 3.8 Percent Medicare Tax: Tax Tip Number Seven

Our final tax tip is here for strategizing against the 3.8% Medicare tax to fund Obamacare. As we indicated in our previous blogs, the additional 3.8% tax on investment income, commencing in 2013, affects individuals with modified adjusted gross income (MAGI) of $200,000 or more and married couples with a MAGI of at least $250,000. If you fall into one… (more…)

Extended NJ Tax Deadlines for Businesses

Governor Christie has extended certain tax filing and payment deadlines for businesses whose operations were disrupted by Hurricane Sandy. Taxpayers who qualify will include businesses located in New Jersey, out-of-state businesses with operations in the state, and those whose tax records are located here. Taxpayers who cannot meet normal filing and payment deadlines because of the storm now have until… (more…)