Net Investment Income Tax Planning Points

The Net Investment Income (NII) Tax became effective January 1, 2013.  It is a surtax on certain unearned income of taxpayers and is also known as the “unearned income Medicare contribution tax.”  Interestingly, though, the revenues collected from this tax go into the Federal Government’s general fund not the Medicare fund.

Tangible Property Regulations Update

On September 23, 2013, the IRS and Treasury Department released final regulations that affect the treatment of materials and supplies, capitalization of amounts paid to acquire or produce tangible property, and the capitalization and deduction of expenditures relating to the repair or improvement of tangible property.  As previously noted, these new regulations will impact virtually all taxpayers regardless of your industry.  As we get closer to the tax filing season, it is important to be aware of some changes you should look for on your 2014 tax returns.

Finding the Cure for R.A.I.D.S.

In family disputes, we’re often faced with a dilemma in which the supporting spouse’s income suddenly and/or dramatically decreases without valid support or explanation.  In the valuation industry, this disorder is commonly known as “R.A.I.D.S.”, or Recently Acquired Income Deficiency Syndrome.  Your client’s spouse may have recently been diagnosed with this terrible affliction as a spousal or child support payment obligation is about to be set.

Office Parties: How Much Can I Deduct?

As another year comes to a close, you may be planning an office party for your employees and maybe including their families as well.  These parties may provide value to your business by improving employee morale.  It may also provide some tax savings for your business.

De Minimis Fringe Benefits for the Holidays

With the holidays fast approaching, it is important to revisit the rules on de minimis fringe benefits and how they relate to gift giving.  What constitutes a taxable versus nontaxable gift to an employee?  Many employers want to show holiday spirit and participate in gift giving to employees; however, if that gift is considered taxable compensation to the employee, it may not be as well received.


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