Aug 15

Affordable Care Act surtax will have immediate effect on Trust or Estate income

Another tax from the Affordable Care Act (Obamacare) will go into effect on January 1, 2013 and it may have an impact on the middle class and those grieving a loss of a loved one. As part of the funding mechanism for benefits, Congress imposed a 3.8% Medicare surtax on passive income if an individual makes more than $200,000 or $250,000 for a couple, or what will be the highest marginal tax bracket for the taxpayer. The surtax is imposed on passive income, when previously, Medicare and Social Security were only imposed on earned wages.

How does this affect trusts? Well, since a trust or estate cannot income, prior to January 1, 2013, the entity was exempt from any of these “payroll taxes”. Under the law, though, the passive income (investments, interest, etc.) will be subject to the additional surtax when the trust or estate reaches the highest marginal rate at $12,000.
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It is fairly easy to plan around paying income taxes through a trust or estate, but those without proper planning may find that the legacy left to them by their loved ones subject to up to nearly 50% in taxes when Oklahoma taxation is included. This is after estate taxes of up to 55% are taken out. If you want to plan for these taxes, then call my office to set up an appointment.

Aug 13

Tax preparation for next year

I am still in the process of taking clients for tax return preparation next year. If you have questions or would like to set up an appointment to discuss your tax needs, please do not hesitate to contact me.

As with estate planning, the best way to ensure you are prepared for next year’s taxes is with proper planning now while you still have time to make deductions, or accelerate income or expenses.

Reason for if you are 65 or older, you at the times cheap cialis soft forget the names of people you have met. There are several drugs currently available to online viagra mastercard manage the symptoms. During erectile dysfunction counseling, the therapist would suggest couples to reestablish their intimacy with online pharmacies viagra each other. It buying tadalafil tablets is the best solution for your sexual problems. You can reach me by phone at 580-318-8829 or by email at swokestateplanner@gmail.com.

 

Aug 11

Latest tax outrage: IRS issued $6.8 Billion in tax refunds to individuals without valid SSNs

In what may be a case of fraud or may just reflect the amount of people here working under Individual Taxpayer Identification Numbers (ITIN), the IRS issued the largest amount of refunds to individuals who do not report under Social Security numbers this past year.

For individuals who are citizens, all tax reporting is required under his or her individual SSN. If the individual is unable to qualify for a SSN, he or she can apply for a ITIN. The case for fraud arises because, according to a report by the Treasury Inspector General for Tax Administration, there are not enough safeguards in place to ensure these numbers are correct. In fact, in a recent report, it was stated that IRS supervisors were urging agents to ignore potential fraud in a program that reviews and verifies applications for ITINs.
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Just another case to show that our tax system is broken and you need to ensure you have proper planning to prevent unnecessary payments into a system that isn’t tracking payments as it should.

Aug 09

Selection for Oklahoma Agricultural Leadership Program

I am pleased to announce that I was selected for the Oklahoma Agricultural Leadership Program (OALP) 2012 – 2014 class. The OALP is a program ran through Oklahoma State University that seeks to gather future leaders for the state’s agricultural and related businesses. I am glad to accept this honor and will represent southwest Oklahoma well as the first estate planning and tax attorney from Altus (and possibly the whole state) to try to tie in knowledge of tax planning and lawyer skills with shaping the future of agriculture.

Our class will be taking regional trips throughout Oklahoma to learn of agricultural production in different parts of the state as well as an international trip. The location of the international trip has not yet been announced, so stay tuned for updates on where it will be.
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Other notable alumni from the Altus area are: Sen. Mike Schulz, Matt Muller, Keeff Felty, Rodger Kerr, Kyle Dorton, Monty Thornbrough, and Mark Holder.

Aug 01

We’ve got the Olympic fever (about taxes)

The Olympics are upon us, and as of this writing, we, as Americans, are still doing pretty well as we are tied with China for the most medals. (China has the lead in gold, though.) The spirit of the Olympics enchants us all as we get to share in the pride of our nation and the success of the athletes who compete for our nations. You can say that when an American wins, we all win. The problem is that, in addition to the burden of constant training to become a world-class athlete, American athletes also must bear the burden of paying taxes on their winnings, regardless of it being won overseas.

I received a short article from Americans for Tax Reform (ATR) about the worth of the different medals and the assumed taxation on each. Under Internal Revenue Code section 74, the value of prizes and awards are included in gross income. According to the ATR article, the value of the gold medal, based purely on the metal values, is about $675. The silver is worth about $385 and the bronze is worth only about $5. Assuming top tax rates of 35% apply, then the taxes for earing a gold equal about $236; for a silver the taxes would be about $135; and for the bronze the taxes would be about $2.
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But, in addition to the medal, the winning athletes also receive cash prizes. For winning gold the cas prize is $25,000, for silver it is $15,000, and for bronze it is $10,000. Assuming top tax rates on these, a gold medalist would have to pay an additional $8,750 in taxes. A silver medalist would have to pay an additional $5,250. And the bronze medalist would bear an additional $3,500 in taxes.