We are in very uncertain times as regards Federal taxation. While the highest probable outcome is little or no change in the current Federal tax code for Tax years 2012 and 2013, some change is possible. Because our tax code is riddled with special interest tax breaks, it is very resistant to significant change. We are far more likely to see major tax code changes in tax years 2014 and beyond, once the people have spoken in the upcoming presidential election.
CPA Accounting and Tax Solutions LLC, a public accounting firm , Naples, Fl will be monitoring the tax environment very closely, and we will publish articles on a weekly basis for our tax and accounting clients, and the general public. Maria L Pate, CPA, and Joe Daniele, Tax Specialist, and the rest of the staff will be analyzing, summarizing, and advising as the tax changes become clear.
The big item on everyone’s mind is the extension of the “BUSH TAX CUTS”, which without Congressional action expire with the 2012 Tax Year. Both parties wish to extend the cuts, but the Democrats wish to limit the cuts to families with Adjusted Gross Income (AGI) less than $250,000.
The Health Care legislation, commonly known as ObamaCare, includes a number of tax changes, two of which take effect in the 2013 Tax Year. Both tax changes apply only to higher income taxpayers; Single taxpayers with AGI greater than $200,000, and Married Filing Jointly taxpayers with AGI greater than $250,000. The first tax is a 3.8% tax on Investment Income, and the second is a .9% tax on all income above the AGI thresholds described previously. We will clarify these taxes with more detail in future articles and always remember to explain things like Adjusted Gross Income in greater detail.
There is no question that the federal Tax Code needs to be simplified. Unfortunately it will become more complex before it becomes simpler. It is a wise decision to entrust your tax issues to a Public Accounting CPA firm, as opposed to your neighborhood store front tax preparer. CPA Accounting and Tax Solutions brings extensive background, experience, and knowledge to bear on your business and personal tax strategy and preparation.
Please visit us at WWW.CPAACCTAX.COM to learn about our Firm’s story, focus, and staff.