If you have $250,000 in Adjusted Gross Income in 2013 and are married ($200,000 if single), you qualify for the new Federal Government Investment Tax (the new ‘Robin Hood Tax’ ) which will add 3.8% to both the capital gains tax and the dividend tax. See the article on it in The Wall Street Journal by Laura Saunders:http://online.wsj.com/article/SB10001424052702304830704577496580986417316.htmlWell look at the bright side – you are helping lower income people afford health care. That should make you feel good, right?Remember, You can count on us to count for you!
Congressional Committee to Look at Capital Gains Tax Reform
Hope you had a great fourth of July.An article in Accounting Today by Michael Cohn discusses a Congressional Committee charged with looking at changing the Capital Gains Tax. Here is the link:http://www.accountingtoday.com/news/congress-hearing-capital-gains-tax-reform-taxprotoday-63100-1.htmlLet’s hope they come up with something that doesn’t hurt too many people.Remember, You can count on us to count for you!
Is Your Side Business a Hobby – It Better Not Be!
If you have a side business you generate revenue with, make sure you treat it as a business. Make sure you had a profit in three out of the last five years and operate the side business as a business. If the IRS decides it is a hobby, you can lose deductions and possibly be subject to the Alternative Minimum Tax on the gross income of the hobby. Here is a link to the IRS website discussing a hobby versus a buinsess:http://www.irs.gov/newsroom/article/0,,id=169490,00.htmlIf you have any questions, call me at 818-317-6035 or email me at bstonercpa@sbcglobal.net and we can talk about it.Remember, You can count on us to count for you!