CalCPA BUZZ

The recently released CCH briefing, Analysis of Post-2012 Net Investment Income Tax and Additional Medicare Tax, provides coverage of the IRS proposed reliance regulations addressing two new surtaxes: the 0.9 percent Additional Medicare Tax on earned income and the 3.8 percent Medicare contribution tax on Net Investment Income.

The Tax Foundation points out the possibility of AMT problems for 2012 for lots of folks if Washington DC doesn't make changes.

Forbes writes:

The Internal Revenue Service has raised the standard mileage rates by 1 cent per mile for next year when calculating the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

WASHINGTON — The Internal Revenue Service today issued the 2013 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 56.5 cents per mile for business miles driven
• 24 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

Read the article here.

The 2010 health care legislation contain a 3.8% tax increase on investment income, which has an updated definition for the purposes of this legislation. Ed Zollars wrote up a great summary on the Arizona Society of CPA Blog. Here's a slice:

The provision, added by the 2010 health care legislation, imposes a 3.8% tax on the lesser of the following two items for most individuals:

• A taxpayer’s net investment income (as defined by this section) or
• The taxpayer’s modified adjusted gross income (again as computed under this section) over a threshold amount which is set at:
  • $250,000 for a married couple filing a joint return or a surviving spouse
  • $125,000 for a married individual filing a separate return
  • $200,000 for all other taxpayers (that is, single and head of household filing status) [IRC §7701(a)(1)]

For trusts and estates the tax will apply to...

Read the whole thing here.

Stopped to smell the flowers.