Posts Tagged ‘Tax rate’
Posted by William Byrnes on September 4, 2013
The tax break provided for net unrealized appreciation (NUA) on 401(k) account distributions once provided a powerful tax savings strategy for clients with large 401(k) balances — allowing some clients to reduce their taxes on these retirement funds by as much as 20 percent.
Today, as high-net-worth clients are increasingly seeking strategies to help minimize their tax burdens in light of higher 2013 tax rates, the NUA strategy may have become more complicated than ever. Read the full analysis of William Byrnes & Robert Bloink at > Life Health Pro <
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Posted in Retirement Planning, Taxation | Tagged: 401(k), accounting, net unrealized appreciation, Obama Care tax, tax, Tax break, Tax deduction, Tax rate, Taxation | Leave a Comment »
Posted by William Byrnes on January 2, 2013
In the first moments of 2013, Congress eased the fiscal cliff tax increases for taxpayers earning less than $450,000 by enacting the American Taxpayer Relief Act (Act), permanently extending the Bush-era income tax cuts for this group. … While the legislation extends the current income tax rates for taxpayers earning less than $450,000 ($400,000 for single filers) per year, it allowed the Bush-era tax cuts to expire for all higher-income taxpayers. Similarly, taxes on capital gains, dividends, and estates were increased for the wealthiest taxpayers.
How Were Income Taxes Increased by the Fiscal Cliff Compromise?
How Does the Act Impact the Current System for Tax Deductions and Exemptions?
Were Capital Gains and Dividend Rates Impacted by the Act?
How Are Estate and Gift Tax Rates Affected?
What Other Changes Were Made?
Beyond the Act: What is the “Investment Income Tax”?
Planning Under the Act: How Should Clients Plan for Higher Taxes in 2013?
Read the analysis at National Underwriters’ Advanced Markets – http://nationalunderwriteradvancedmarkets.com/articles/fc010113-a.aspx?action=16
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Posted in Estate Tax, Retirement Planning, Tax Policy, Taxation, Wealth Management | Tagged: Bush Tax Cuts, Capital gain, fiscal cliff, Fiscal conservatism, income tax, tax, Tax rate, United States, United States Congress | Leave a Comment »
Posted by William Byrnes on November 23, 2012
… While most compromise legislation has focused on allowing some of these rates to rise while maintaining current rates for lower-income groups, Congress may beable to leave most tax rates in place if they focus on capping deductions and reducing spending for all taxpayers. Of course,
US Tax Rates (Taxes on riches/wealth) (Photo credit: mSeattle)
Read the entire article at National Underwriters’ –> Life Health Pro <–
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Posted in Estate Tax, Tax Policy, Taxation | Tagged: Bush Tax Cuts, tax, Tax rate | Leave a Comment »
Posted by William Byrnes on March 23, 2011
Why is this Topic Important to Wealth Managers? A producer should be able to present a perspective of the potential impact of current budget proposals upon investments that will be realized in the future. Thus, Advanced Market Intelligence discusses certain features to the proposed federal budget that impact fiscal year 2012.
The President’s new budget proposal included many revenue raising measures. However, below are two areas affecting the tax code that will actually increase the deficit, and also have a strong likelihood to have an impact on clients’ decisions made today.
Currently, the maximum rate of tax on the qualified dividends and net long-term capital gains of an individual is 15 percent. [1] In addition, any qualified dividends and capital gains that would otherwise be taxed at a 10- or 15-percent ordinary income tax rate are taxed at a zero percent rate.
The zero- and 15-percent rates for qualified dividends and capital gains are scheduled to expire for taxable years beginning after December 31, 2012. [2] In 2013, the maximum income tax rate on capital gains would increase to 20 percent (18 percent for assets purchased after December 31, 2000 and held longer than five years), while all dividends would be taxed at ordinary tax rates of up to 39.6 percent.
Taxing qualified dividends at the same low rate as capital gains for all taxpayers is said to reduce the tax bias against equity investment and promote a more efficient allocation of capital. Eliminating the special 18-percent rate on gains from assets held for more than five years is thought to further simplify the tax code. Read the analysis at AdvisorFYI
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Posted in Tax Policy | Tagged: Alternative Minimum Tax, Capital gain, Dividend, Fiscal year, Qualified dividend, Rate schedule (federal income tax), tax, Tax rate | Leave a Comment »
Posted by William Byrnes on January 14, 2011
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In 2001, the Economic Growth and Tax Relief Reconciliation Act first created a new 10-percent regular income tax bracket for a portion of taxable income that was previously taxed at 15 percent. That law also reduced the other regular income tax rates. The otherwise applicable regular income tax rates of 28 percent, 31 percent, 36 percent and 39.6 percent were reduced to 25 percent, 28 percent, 33 percent, and 35 percent, respectively.
Under Section 101 of the new Tax Relief, Unemployment Insurance Reauthorization, And Job Creation Act of 2010, the law creates an extension of the taxable income brackets created almost a decade ago.
Generally, a taxpayer determines his or her tax liability by applying the tax rate schedules (or the tax tables) to his or her taxable income. The rate schedules are broken into several ranges of income, known as income brackets, and the marginal tax rate increases as a taxpayer’s income increases. Separate rate schedules apply based on an individual’s filing status.
Below are the new tax rate tables for those filing as single taxpayers, married filing jointly, as well as head of household.
To read this article excerpted above, please access http://www.advisorfyi.com/2010/12/new-tax-brackets-under-the-obama-tax-cuts/
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Posted in Taxation | Tagged: income tax, Inflation, Rate schedule (federal income tax), tax, Tax bracket, Tax rate, Taxable income, United States | Leave a Comment »
Posted by William Byrnes on December 30, 2010
Why is this Topic Important to Wealth Managers? Provides analysis for those wealth managers who may be considering a Roth IRA conversion for their clients. Discusses potential benefits and detriments as well as comparative analysis.
There is a lot of talk of Roth IRA roll-overs this year as 1) the AGI limit on conversions has been lifted, and 2) for conversions in 2010, the tax owed is required as income not in 2010, but rather half in 2011 and half in 2012. And the tax rates will remain stable and low for both these years – signed into law as part of the Obama Tax Cut Compromise (See rates for 2011 and 2012 here).
On its face, many wealth managers have good reason to consider the conversion for their clients this year. But the question becomes, does it make sense, economically?
The crux of the problem lies in the early withdrawal penalties on the IRA, which is 10% if the account owner takes a distribution before age 59 1/2 or past allowable annual distribution limits before age 70 1/2.
Let’s take a look at two examples of situations where conversions may be considered this year (thus one day left….) To read this article excerpted above, please access www.AdvisorFX.com
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Posted in Retirement Planning | Tagged: Adjusted Gross Income, AGI, Individual Retirement Account, Retirement, Roth IRA, tax, Tax rate, Traditional IRA | Leave a Comment »
Posted by William Byrnes on December 21, 2010
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This 10 week live video conference course on Brazil will be taught in English (but all attendants may use Portuguese to ask and respond to questions) by several renown Brazilian specialists who have extensive out-of-country experience, working as international counsel for large multinational companies, big 4 firms, and government, by concentrate on the Brazilian corporate structures, tax & financial systems, regulations and compliance, focusing on the practical aspects of doing business in Brazil. We will also discuss the impact of the recent changes in tax/corporate laws and regulations.
Please contact Associate Dean Prof. William Byrnes if you are interested in enrolling in this executive education course. wbyrnes@tjsl.edu (or my gmail williambyrnes@gmail.com) or skype: professorbyrnes or telephone + 1 619 374 6955
Tax System:
- Overview – Main taxes;
- Corporate Taxation: Corporate Income tax and Social Contribution;
- Simplified tax regime;
- Accounting Rules (IFRS and SPED);
- Investment incentives;
- Developing a Tax Strategy in Brazil;
- Tax avoidance versus Tax Evasion
General Overview of Brazilian Indirect Taxes
- VAT;
- Other Indirect Taxes;
Foreign Investments:
- Brazilian Central Bank (Regulations, Registrations and forms);
- Dividends, Royalties, Loans, etc;
- Capital Gains;
- Foreign Trade Rules (Import and Export transactions);
Mergers & Acquisitions;
- Corporate aspects;
- Tax implications;
Financial System:
- Organization,
- Newcomers,
- Competition,
Foreign Companies:
- Tax credit
- Withholding Tax;
- Financing issues;
- Permanent Establishment;
- Low-tax Jurisdictions (Tax Haven Countries);
- Tax treaties
Transfer Pricing
Industrial Property Rights
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Posted in Courses | Tagged: Brazil, Corporate tax, income tax, tax, Tax rate, Taxation, United States | 2 Comments »
Posted by William Byrnes on December 21, 2010
Why is this Topic Important to Wealth Managers? Yesterday we presented an overview of the Obama Tax Cut provisions that are relevant to wealth managers. Today we begin by taking a closer look at some of the details of those provisions and how they relate to wealth managers and their clients.
Section 102 of The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (HR. 4853)provides for an extension of the regular and minimum tax rates for qualified dividend income and capital gains as were in effect before 2011. The extension will continue for an additional two years.
To understand the impact of this provision of the new bill, it will serve the reader to understand what the regular and minimum tax rates in relation to qualified dividend income as well as capital gains means. Read this complete article at AdvisorFYI
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Posted in Taxation | Tagged: Alternative Minimum Tax, Capital gain, income tax, Qualified dividend, Social Security, tax, Tax cut, Tax rate | Leave a Comment »
William Byrnes' Tax, Wealth, and Risk Intelligence 