The Fein Print - For Business Owners and their Advisors

The second issue of The Fein Print is being distributed today.  This issue is addressed at the needs of business owners and their advisers.  Topics covered include:

  • Q&A on Tax Cuts expiring in 2012 - With the Bush tax cuts set to expire at the end of 2012, what can I do in my business now to take advantage of these lucrative laws?  Read more here ....
  • Customers Dont' Pay? We can help.  This article talks about how a business can use the services of our Collection Department to turn accounts receivable into cash and what clients experience during the collection process.  Read more here ....
  • Employee Responsibility for Payroll Taxes.  While most business owners know that all owners and officers of a business are personally responsible for any failure to pay payroll taxes, not all are aware that the liability may extend to some of their employees.  Read more here ....

The Fein Print is issued to subscribers monthly and contains inforation on a variety of topics that reflects the questions that our clients are asking us.  

  • Thoughts for Families - Every other month The Fein Print will focus on personal planning questions surrounding real estate, tax planning, estate planning and administration, personal litigation and elder law.  
  • Thoughts for Businesses - The other half of the year The Fein Print will focus on questions important to business owners on topics such as business operations, employee issues, mergers and aquisitions, tax law, and financing.

To sign up for issues of The Fein Print, click here.

Did you miss the first issue?  You can see it here.  Topics included:

  • Real Estate Tax Appeals - good for next year as the April 1 filing date just passed.
  • Your New Year's "Will-Power" - a guide for reviewing your estate plan
  • What is Elder Law?  A primer to a holistic approach to this growing need
  • 2011-2012 Tax Sale Video - Gift taxes are on sale for this year only.  This is a video guide to how congress's largess can benefit your family.

Any ideas for future topics?  Post a comment or contact me

NJ Medicaid Key Figures - 2012

The key figures for Medicaid eligibility are updated frequently.  These figures will determine if a person qualifies for long term health care to be paid under Medicaid, as well as what assets a spouse can maintain if one spouse enters a nursing home.  These figures change frequently, some on an annual basis as a result of inflation, and other by administrative action.  Unfortunately, they are not broadcast by the Department of Human Resources as frequently.  Here is where they stand as of January 2012:

New Jersey Medicaid Reference – January, 2012

Minimum Community Spouse Resource Allowance

$  22,728

Maximum Community Spouse Resource Allowance

$113,640

Resource Allowance for an Individual

$    2,000

Resource Allowance for a Couple

(both husband and wife in a nursing home)

$    3,000

Minimum Monthly Maintenance Needs Allowance

$    1,839

Maximum Monthly Maintenance  Needs Allowance

$    2,841

Monthly Personal Needs Allowance

$         35

Standard Utility Allowance

$       435

Divestment Penalty Divisor

$    7,282

Income Cap Amount

$    2,094

Home Equity Limit

$786,000

   

If you have questions about New Jersey Medicaid eligibility you can contact Stacey C. Maiden, Esq. at smaiden@feinsuch.com.

 

This Will Impact Your Wallet - Tax Changes Proposed in Obama 2012 Budget

President Obama’s fiscal year 2013 budget has the potential to trim the deficit by Four Trillion ($4,000,000,000,000.00) Dollars through a combination of spending cuts and tax increases. These proposals will effect all taxpayers, but have particular impact to top earnings, business owners, and those with asset in excess of $5 million.  

President Obama unveiled his fiscal year 2013 budget on February 13, 2012 amidst a cloud of uncertainty relating to Bush era tax cuts and the more immediate the fate of the payroll tax cuts (which news channels advise are to be extended later today). President Obama’s fiscal year 2013 budget proposals incorporate initiatives from his “Blueprint for America” as described in his 2012 State of the Union address. While some of the President’s proposals were immediately rejected by the GOP, others could move along quite quickly. The expected extension of the Employee Side Payroll Tax Cut could serve as a vehicle to move some of the proposals, such as an extension to the 100% bonus depreciation.

What you will find striking in the summary outlining the budget proposal is the effect directly on individuals and businesses. The most significant issue are:

  • Reinstatement of the top individual income tax rates at the 36% and 36.9% tax brackets
  • Reinstatement of  the personal exemption phase out/limitation of itemized deductions for taxpayers earning more than $200,000 a year for individuals or joint returns with incomes over $250,000
  • Return of a $ 1million lifetime gift tax exemption
  • Capping the federal estate tax and generation skipping tax exemptions at $3.5 million per person (with portability between spouses)

Click here for a complete summary.

 

Transfer Taxes on Sale - Video Overview

First, we're trying something new here and have created a video overview the 2011-2012 Tax Sale on Gift Taxes, Estate Taxes, and Generation Skipping Taxes.  For wealthy individuals this is an unprecedented opportunity to transfer that wealth to other generations at little or no tax costs.  

While our video aims to educate you about why these tax law changes can have a real dollar impact on a family, take a quick look at the tax law changes:

Estate, Gift and Generation Skipping Tax
Transfer Tax 2009 2011-2012 2013+
Estate Tax

* $3.5 Million Exemption

* Max 55% Tax Rate

* $5 Million Exemption

* Max 35% Tax Rate

* $1 Million Exemption

* Max 55% Tax Rate

Gift Tax

* $1 Million Exemption

* Max 55% Tax Rate

* $5 Million Exemption

* Max 35% Tax Rate

* $1 Million Exemption

* Max 55% Tax Rate

GST Tax

* $3.5 Million Exemption

* Max 55% Tax Rate

* $5 Million Exemption

* Max 35% Tax Rate

* $1 Million Exemption

* Max 55% Tax Rate

In short, you can make a tax free gift of 5 times more assets in 2011-2012 than you could in 2009, or will be able to in 2013.  This is truly a limited opportunity for people to cut Uncle Sam out of their estate plan.

Is video a good medium to discuss these topics?  Does the PowerPoint add or take away from the information?  Does video make tax law more accessible?  Feedback is appreciated!