Tag: Orange County Tax News
For more than a decade, Tim Quinn, CPA, CGMA, negotiated the tedious, back-and-forth magic of building the annual budget for Northern Quest Resort & Casino.
Every year, it was the same time-consuming endeavor: Quinn, the company’s vice president of finance, would send out budget worksheets to 45 department heads. The department heads would return them with inflated spending projections, or low-balled revenue projections, for the coming fiscal year. Quinn would question the validity of those projections. Pushback would ensue, but Quinn and his staff would prevail, often by adjusting the projections to something that more realistically reflected historical trends.
After several rounds of wrangling, voilà: The budget was born.
The 2012 Income Tax Act contains several provisions that affect individual tax payers.
In this segment, Gregory W. Beck, CPA explores the changes affecting individual tax rates, the new 39.6% rate, the new limitation on itemized deductions and personal exemptions as well as other provisions.
Right now, the only thing that congress and the executive branch can agree on is to disagree. Based on that, 2012 and 2013 will have a lot of uncertainty. Here are some highlights about the tax law that we know now or expect for 2012 and 2013:
Expiring (as in gone) provisions after December 31, 2012:
The 2% Social Security payroll tax cut – expect net checks in 20132 to decrease as Social Security increases back up to 6.2% of wages up to $113,700 (yes the dollar limit is up too!).
The tuition deduction expired after 2011 (not available for 2012) but the education credit is still available for 2012 and beyond.
Mortgage insurance (PMI) is not deductible in 2012.
The 50% bonus depreciation on business assets expires after 12/31/2012.
The estate tax exemption of $5.12 million will decrease to the $1 million level. The default
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