Devereaux, Kuhner & Chin LLP

Main > News & Views

Archive for the ‘Uncategorized’ Category

Tax Changes

December 9th, 2012
–>
Now that the elections are completed, we wanted to share with you where the tax laws currently stand:
Proposition 30
The passing of California Proposition 30 will result in an increased tax rate from the previous 9.3% for many California taxpayers. The law is effective January 1, 2012 and is scheduled to be in effect for 7 years. In addition, California sales tax will increase by .25% for four years (scheduled to be in place January 1, 2013), bringing the state sales tax rate to 7.50% (currently 7.25%).
A summary of the effects of Proposition 30 is as follows:
Proposition 30 Tax Rate Schedule
Single/Married Filing Separately
10.3% (1% increase) on income of:
$250,001-$300,000
11.3% (2% increase) on income of:
$300,001-$500,000
12.3% (3% increase)
on income of:
Greater than $500,000
Head of Household
10.3% (1% increase) on income of:
$340,001-$408,000
11.3% (2% increase) on income of:
$408,001-$680,000
12.3% (3% increase) on income of:
Greater than $680,000
Married Filing Jointly
10.3% (1% increase) on income of:
$500,001-$600,000
11.3% (2% increase) on income of:
$600,001-$1,000,000
12.3% (3% increase) on income of:
Greater than $1,000,000
(Note: Income in excess of $1 million remains subject to the California 1% mental health surcharge making the true effective tax rate for taxable income over $1 million 13.3%.)
The Fiscal Cliff (Expiration of Bush Tax Cuts)
Federal Tax Rates – The re-nomination of President Barrack Obama allowed for some clarity regarding the direction of the Federal Tax Plan; however Congress has not yet come to a decision on whether to let the Bush tax cuts expire or to implement new tax law. The following rates will be enacted if Congress does not come to a decision and the Bush tax cuts expire:
·
Marginal Tax Rates
o
Married Couple Filing Jointly
§ Tax rate of 15% for income from $0-$63,500
§ Tax rate of 28% for income from $63,501-146,400
§ Tax rate of 31% for income from $146,401-$223,050
§ Tax rate of 36% for income from $223,051-$398,350
§ Tax rate of 39.6% for income from $398,351+
o
Single
§ Tax rate of 15% for income from $0-$36,250
§ Tax rate of 28% for income from $36,251-$87,850
§ Tax rate of 31% for income from $87,851-$183,250
§ Tax rate of 36% for income from $183,251-$398,350
§ Tax rate of 39.6% for income from $398,351+
Please note that itemized deduction phase outs will apply, making the true effective tax rate higher than listed above.
Additionally, please see link below to our previous newsletter regarding additional taxes that may apply to earned income.
Long Term Capital Gain and Dividends Rates - If the Bush tax cuts are not extended, capital gains will be taxed as follows:
·
10% for taxpayers in the 15% bracket
·
20% for those above the 15% bracket
Lastly, as a result of the Affordable Care Act, as of January 1, 2013, higher income taxpayers will be subject to an additional 3.8% health care tax on passive income. Higher income taxpayers are individuals – above $200,000; married filing jointly – above $250,000; married filing separately – above $125,000. See link below to our previous newsletter for definition of income subject to this 3.8% additional tax.
AMT
The current AMT “Patch” expires on December 31, 2011. It is unknown if the Patch will be retroactively applied throughDecember 31, 2012. If the current AMT Patch is not extended, the exemptionamounts effective January 1, 2012 will be as follows:
·
Effective January 1, 2012
o
Single – $33,750
o
Married Filing Jointly (and surviving spouse) – $45,000
o
Married Filing Separately – $22,500
For information on tax implications related to Obama Care, as well as the Estate and Gift Income Tax changes, please refer to the link below for our previous newsletter.
Please contact us if you have any questions.

Welcome James Devereaux

September 7th, 2012

We are pleased to introduce our newest associate accountant, James Devereaux. He comes to Devereaux, Kuhner & Chin after working as a staff auditor at Mohler, Nixon & Williams. He earned his Bachelor of Science in Accounting from Santa Clara University.

As a self-declared “Bay Area for Life” man, it’s no surprise he loves all things Bay Area. He is a huge local sports fan. His favorite teams are The San Francisco Giants and San Jose Sharks. He recently became a season ticket holder of The San Francisco Bulls, Northern California’s newest hockey team. James has such a passion for hockey that he joined a hockey league in Oakland and plays all year long. He enjoys attending sporting events, exploring San Francisco neighborhoods (especially the restaurants), hiking Mt. Tamalpais, relaxing at Stinson Beach and reading a good book. He is looking forward to getting to know the DKC staff and clients. Next time you are in the office, stop by and say hello to James!

Integrated Advisory Group International Fall Assembly

February 6th, 2012

In October 2011 DKC had the privilege of co-hosting  Integrated Advisory Group International’s Fall Assembly.  IAG is a global association of accounting professionals and attorneys who provide expertise in facilitating foreign counsel and cross-border transactions.  The group holds meetings three times a year in different counties, which allows members to develop strong bonds and trust.  Delegates from Europe, South America, Australia, Canada and the US came to San Francisco to network and explore the city.  After an all day business meeting on Friday, highlights of the weekend included dinner at the St. Francis Yacht Club, a walk across the Golden Gate Bridge followed by an afternoon in Sausalito, and dinner at Villa Taverna.  It was a great opportunity for the partners to reconnect with colleagues and for the staff to create relationships with accounting professionals throughout the world.  Being a member of IAG has been invaluable in allowing us to assist clients with international tax matters.

Facebook LinkedIn Subscribe
-->