The greatest glory in living lies not in never falling, but in rising every time we fall. -Ralph Waldo Emerson
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The Cadillac tax is a 40 percent excise tax on “high cost” health plans set in place by the Affordable Care Act. However, despite the familiarity tax professionals have with its name, the details surrounding the Cadillac tax can be complicated and confusing, according to Brad Knox, vice president of federal relations at Aflac.
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Is Life Insurance Taxable?
Life insurance proceeds are usually not taxable if they are paid to a specifically named beneficiary, such as your spouse or children. The life insurance proceeds may become taxable, however, if you name your estate as the beneficiary. At that point, the proceeds become a part of your estate, and can be subject to estate taxes.
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The dictionary is the only place that success comes before work. Hard work is the price we must pay for success. I think you can accomplish anything if you’re willing to pay the price. -Vince Lombardi
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What is a capital gain? It’s the amount you get from selling property, like stock or a house. For example, if you buy stock for $1,000 and sell it for $1,250, you have capital gain of $250. You don’t need to include a capital gain if it’s from the sale of your main home you owned for at least 5 years (and the profit is less than $250,000). For more information see IRS Pub 17, ch. 14, pg. 104 or IRS Pub 544.
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Leaders from the IRS and state tax agencies along with executives from the private-sector tax industry marked the first year of their ground-breaking Security Summit partnership to combat identity theft tax fraud by recapping 2016 accomplishments and turning toward 2017 efforts. Click here to read more: http://ift.tt/29GQiiy
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Just started an LLC – Make sure to get a business license. Many people start a business without realizing they need a business license. Unfortunately, some find out when they receive a fine for operating without a license. Make sure that doesn’t happen to you. Contact your local city hall or county office to find out what sort of license is needed for your business. Most business licenses are relatively inexpensive or free and getting one now can save you money and hassle down the road.
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Fast Fact: The first income tax was assessed in 1862 to raise funds for the American Civil War, with a rate of 3%. Today the IRS collects over $2.4 trillion each tax year. It processes around 234 million tax returns annually.
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Men succeed when they realize that their failures are the preparation for their victories. -Ralph Waldo Emerson
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Vitality shows in not only the ability to persist but the ability to start over. -F. Scott Fitzgerald
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What Do They Mean By Accrual Accounting?
The attempt to record the financial effects of transactions and other events in the periods in which those transactions or events occur rather than only in the periods in which cash is received or paid by the business, using all the techniques developed by accountants to apply the MATCHING PRINCIPLE.
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Beware Orlando-Related Scams: IRS
The IRS has issued a consumer alert about possible fake charity scams in the wake of last weekend’s mass shooting in Orlando, Fla.
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Happy Fathers Day!
The woods are lovely, dark and deep. But I have promises to keep, and miles to go before I sleep. -Robert Frost
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Quick Tip: Need to Update Your Address?
Use Form 8822 to notify us of a change to your home mailing address.
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What Do They Mean By Safe Harbor Rule?
Concept in statutes and regulations whereby a person who meets listed requirements will be preserved from adverse legal action. Frequently, safe harbors are used where a legal requirement is somewhat ambiguous and carries a risk of punishment for an unintended violation.
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When you apply for assistance to help pay the premiums for health coverage through the Marketplace, the Marketplace will estimate the amount of the premium tax credit that you may be able to claim for the tax year using information you provide about your family composition, your projected household income, whether those that you are enrolling are eligible for other non-Marketplace coverage, and certain other information. Click here to learn more http://ift.tt/25Wd0Lv
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