Certified Public Accounting for Your World.
Our firm provides quality, personalized certified public accounting services to owners of new business startups and existing small businesses. We specialize in “plain talk” accounting!
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Dividend Tax Rates Set to Rise…
The 2001 Tax Act changed the way dividend income was taxed, taxing it at long-term capital gain rates rather than ordinary income rates. Thus, the maximum rate on dividend income was the 15% capital gain rate. But under the Act’s so-called Sunset Rule, the tax rate reduction and the special rule for taxing dividends expire at the end of 2010, meaning higher rates are in store beginning in 2011.
Beginning in 2011, dividend income will be taxed at ordinary income tax rates, just as it was prior to the 2001 Tax Act. The maximum ordinary income tax rate in 2011 is scheduled to be 39.6%. In addition, under the health care reform legislation, individuals with modified adjusted gross income (MAGI) over $200,000 ($250,000 if MFJ) will pay an additional 3.8% Medicare surtax on their investment income to the extent MAGI exceeds the $200,000/$250,000 threshold, beginning in 2013. Thus, taxpayers in this situation will have an additional 3.8% federal tax levied on all or part of their dividend income.
Effect of double taxation. Because dividend income is first taxed when the income is earned at the corporate level, computing the overall tax on such income must take into account tax at both the corporate and individual levels. The effective federal income tax rate on corporate income distributed as a dividend will rise from a maximum of 44.75% in 2010 to 63.21% in 2013. When state income taxes are factored in, the rate in 2013 could be as much as 67.6%, according to the Tax Foundation.
QuickFinder Tax Tips Newsletter, July 2010
Welcome to
Mark Borel & Associates, Inc.
Thank you for taking the time to find out more about our firm and the quality accounting & financial services we provide to our growing list of loyal clients worldwide. Call today to schedule your complimentary, no cost, no obligation, initial consultation and tell us about your business!
Our firm of Nevada accountants and professional staff provide a host of small business support services designed to increase your success, by reducing much of the administrative burden associated with running a business, allowing you to refocus and dedicate more of your time to what you do best. Whether you need us to provide back office support staff, allowing you to reduce overhead and stay mobile, or provide year end accounting and tax preparation services, we offer flexible support designed to meet your needs.
In addition to bookkeeping, accounting, tax planning and tax preparation, our Nevada CPA’s special areas of expertise include: choice of business entity, asset protection planning, custom business analysis, preparing financial statements, and multi-state corporate tax regulations... always explained using “plain talk” language you will find easy to understand.
About Our Clients
Our clients typically are shareholder/owners immersed in growing an existing business, or entrepreneurs involved in new business startups. Although most reside in the U.S., many reside in non-U.S. locales and require assistance similar to that received by chartered accountants. Some of the goals important to our clients include asset protection, privacy and minimization of overall taxes. We commonly confer with our clients’ other advisors to prioritize these objectives and design a strategy for success. Usually, they have plans to implement a multi-entity strategy, and may have already organized one or more Nevada or Wyoming corporations, LLC's, and LP's, possibly including a domestic or offshore trust. We provide the necessary how-to knowledge, and assistance, required to competently administer multiple entities, and ensure they coordinate well together, to achieve your goals.
Because our clients are located literally worldwide, we are available after hours (by appointment), and are very adept at communicating via telephone, email and internet linkup. We also provide our clients with a secure account on our website, used to store and transfer sensitive information... and, we have experience working with a wide range of industry types, including:
- Professional services and consulting firms
- Real estate investors
- Web-based businesses
- Securities investors
- Medical services organizations
- Property management companies
- Construction companies
- Retail operations
- Multi-level marketing firms
- Sales organizations
- Royalty management companies
- Nonprofit organizations
