Kevin Hines CPA

AICPA urges Congress to reconsider S corp payroll tax

The U.S. Senate is considering legislation to extend numerous expiring tax provisions, and one of the revenue sources for the legislation is a provision that would subject S corporations to self-employment tax. On Wednesday, the AICPA sent a letter to the leadership of the Senate Finance and House Ways and Means committees urging them to reconsider the S corporation payroll-tax proposal, providing suggested modifications should Congress move it forward. Intense advocacy efforts continue. The House passed a version of extenders legislation last month that contains the S corporation provision — the American Jobs and Closing Tax Loopholes Act of 2010.

I will keep you posted as the topic develops

Tax Season may be behind us for 2009 but as this article states it is always important to deal with tax issues throughout the year Its Always Tax Season – Entrepreneur.com.

Business Valuation in the Divorce Arena. Just reviewing the Bernier case (MA SJC-09836, Sept 14, 2007) regarding discounts against fair market value. Bernier cited favorably the New Jersey case Brown v. Brown (Superior Court of NJ, A-985-00T5) regarding discounts for lack of marketability and key person. Thinking about other discounts such as non-controlling interest discounts.

Brown, in addition to not allowing discounts for lack of marketability, did not allow for non-controlling discount (minority shareholder/less than 51% voting shares). How should this case be viewed by MA family courts? Considering that Brown was cited by Bernier, should the non-controlling discount not be allowed by MA? I believe that if the situation calls for it, MA should not allow the discount.

What do you think?
keh

Interesting Summer Reading List from Wharton School. Take a look.
http://knowledge.wharton.upenn.edu/special_section.cfm?specialID=100

Family Businesses can struggle during a recession when decisions have to be made that are in the best interest of the business rather than the family.As a family business owner it can be a very difficult position to be in within the family.An article in the Wall Street Journal talks about the challenge. CONSUMER FINANCE- Recession Brings Tough Love To Family Firms – WSJ.com”

The economic recovery is moving more slowly than after other recessions despite a corporate earnings rebound and factory surge. Consumers continue to rein in spending so the trend is expected to continue, drawing out the recovery process even further. The Wall Street Journal provides more insight Preview of “Recovery Looks to Be Long Slog as Consumers Cut Debt – WSJ.com”

The late John Wooden was more than just a great basketball coach — he was a superb example of leadership in action.  The following article in Psychology Today highlights his insights. The Leadership of John Wooden | Psychology Today.

The Capital Gain preferred tax rate of 15% will be changing back to the 2003 level of 20% should congress not extend. Tax law change made in 2003 will sunset in December 2010. As well, the preferred rate for qualifying dividends will also lose the preferred tax status and return to 2003 tax levels.

Consider accelerating taxable gains into 2010 to take advantage of lower preferred tax rates. Also, consider electing out of any installment gain transactions to tax the entire gain under lower tax rates in 2010.

What Chief Executives Really Want – BusinessWeek

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