Financial Education Seminar Series Presents: A Workshop on becoming “Fiscally Fit”. Tax Literacy and Education Kevin Lawson CPA Lawson & Company CPAs Since 1988 Preparation January – April Refund or Pay ? After the fact –You are stuck Planning PANIC !!! Proactive Reduce Taxes – Avoidance (Not Evasion) Year Round Strategic changes throughout the year Income Mis-Matching (1099, 1099K) Social Security Number Too Aggressive with Deductions Late Filing Payroll Filings New Tax Rates Capital Gains Rates 20% or 15 % or 0 % Capital Gains Rate (20% rate if over $450,000) High Income Rates 39.6% if over $457k MFJ or $406 Single New Tax Rates Net Investment Income Tax 3.8 % Investment Income (over $250k family Income) (over $200,000 Single) Any Unearned Income Passive Activities (Rental Properties) Annuities Retirement New Tax Rates Earned Income Tax 0.9 % Earned Income (over $250k family Income) (over $200,000 Single) Any earned Income W2 Income Schedule C Net Income NOT S – Corp income Don’t let the tax tail wag the dog Schedule C or F (Sole Proprietor) Mileage Cell Phone Business Meals and Entertainment Licensing Fees Travel Business Use of Home Legal and Professional Expenses Office supplies Love it !!! IRA: $5,500 ($6,500 over 50) (Must have earned Income) Roth IRA $5,500 ($6,500 over 50) (no deduction) SEP IRA 20% (25%) of net income Simple IRA $12,500 ($15,500 over 50) Corporation C – Corp S-Corp Partnership LLC (PLLC) Professional Association Sole Proprietorship Bonus Depreciation 0% 50% ??? Section 179 Depreciation $ 25,000 $ 500,000 ??? Patient Protection and Affordable Care Act Signed into law: March 23, 2010 Health Care and Education Reconciliation Act of 2010 Signed into law: March 30, 2010 Health Insurance Must I offer Health Insurance to employees? (Maybe) More than 50 FTE Employees (Now 2015) Small Business Tax Credit (2014-2015) 50% of premiums paid (qualified ACA Plan) Applies employers with 25 or fewer Full-Time Equivalent (FTE) Employees AND Average annual wages of $50,000. Must participate in Insurance Exchange FTE (Hours worked by ALL emps / 2,080 hrs) Health Insurance HSA Single: Family: $3,300 $6,550 Pay Children Be reasonable Inventory Write off Obsolete or Damaged Inventory New Tax Option Revenue less $1M New Tax Rate .0975% Apportionment Reduce Corporate Tax 39% to 25% Permanently Extend Section 179 ($500,000) Reduce and Cap like kind exchanges Limit Oil & Gas production benefits Depletion & IDC Limit Itemized Deductions Senate Finance Committee & House Ways & Means Committee Legislation already proposed Understand it before you pay it! Get Help! Types of Audits Letter Audits (CP 2000) Office Audit Field Audit Beware of Fishing Trips! Beware of Phone Calls Refund was delayed, give us your credit card Tax due, provide your bank account Agent will arrive at your home with an arrest warrent Plan Now … Or Pay Later Kevin Lawson CPA Lawson & Company CPAs LLC 2435 N. Central Expressway Suite 1010 Richardson, TX 75080 www.LawsonCPAs.com (972) 475-0644