Alternative Minimum Tax

Most of us have heard of the term Alternative Minimum Tax, Alt Min Tax, or AMT.  But what is it?  Alternative Minimum Tax is a tax system that parallels the standard tax systems and adds an additional level of taxation to baseline income tax for certain individuals, corporations, estates and trust.  Traditional tax is adjusted for certain items and computed differently for AMT.  Some of these items are depreciation, medical expenses, state taxes, certain mortgage interest, real estate and personal property taxes.  AMT was first introduced in 1969 when Congressed determined that a portion of the population with high incomes, roughly one-hundred-fifty-five million taxpayers, were able to utilize tax deductions and other tax breaks to the point where they were paying almost nothing in taxes.  The Reagan Administration created what we currently know as Alternative Minimum Tax that included more widespread exemptions and deductions while eliminating some of the investment deductions that only applied to the very wealthy.

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Higher Education – What It Really Costs

While alternative education paths are on the rise, a traditional education track is still the most readily available to most high school graduating classes.  However, college, professional, and graduate schools are more costly than ever.  The cost of higher education surged more than five hundred percent since 1985.  In fact, higher education costs more than four times the amount it did thirty years ago.  Financial challenges are one of the largest qualifiers for non-completion of higher education.  Those lacking a financial cushion and even those with financial assistance, can easily find themselves underwater with the growing requirements and unexpected costs of higher education.  Many of these students find themselves caught between rising costs of completing their education and the jobs available to them if they do not.

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Foreign Accounts – Changes in Reporting

When most people think of foreign accounts, they think of ex-pat living overseas and utilizing banks for the accumulation of their payments.  However, many taxpayers may also be subject to the federal Foreign Bank and Financial Accounts or FBAR reporting without realizing it.  The United States Treasury Department’s Financial Crimes Enforcement Network (FinCEN) 114 form is filed alongside taxpayers’ federal tax return and reports information for those that have a financial interest or signature authority over a foreign financial account.  Financial interest is defined as: directly owning an account; directly owning or indirectly owning more than fifty percent of a corporation’s voting power and/or shares when that corporation owns an account; directly owning or indirectly owning more than fifty percent of a partnership’s profits or capital when that partnership owns an account, or directly owning or indirectly owning more than fifty percent of the voting power, total value or the equity interest or assets, or interest in profits of any entity that owns an account.  It is important to note that disregarded entities that have no other filing requirements may still have an FBAR requirement.  Signature authority is more broadly defined as:  the authority of an individual (alone or in conjunction with another) to control the disposition of money, funds, or other assets held in a financial account by direct communication (whether in writing or otherwise) to the person with whom the financial account in maintained.  Here it is important to note that officers and employees may delegate the filing of Form 114 under this definition to another, but they still remain personally liable for any delinquent filing.  It is important to know what accounts your company has stakes in if you have signature authority over any company accounts.

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BYOD Policies: Are They Right For Your Company?

As technologies advance and real estate costs increase, more and more companies are moving towards allowing workers to telecommute.  With the advantages of having remote employees, comes the question of how these employees interact with the company resources.  While many companies choose to provide workers with computers and cellular phones, technology allowances have also become a method by which companies request that the employee provide his or her own technology.  Additionally, many workers prefer to utilize their own devices for work, even if the company does not provide reimbursement.  Many companies have welcomed this drive in their employees as it lowers their own costs, as well as provides an increase in productivity.  With any remote system accessing company data, security and legal compliance become risk factors that must be analyzed.

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