Taxes on Stock, Stock Options, and Foreign Financial Assets

By Shanli Liu, CPA CMA2014 Tax Workshop

2014 updates New Health Care Law1/1/2014 201450 : 1% $95 ($47.50 18) 2015 2% $325 2016 2.5%$695

2

2014 - Health Care Law continued97% $22,000 social services, South Cove 617-482-7555 www.healthcare.gov

2014 Life-time Gift Tax Exemption

$14,000

20132014$5,250,000 $5,340,00040%39.6%

$,250,000,$2,000,000 $2,000,000*0.4=$160,000

2014 Child Tax Credit

$1000$$$

2014 American Opportunity Credit Life Time Learning Credit$K$K$2,500$2,500AOC$2,000$2,000LTLC

2013 updates tax rates10%10%$17,85015%15%$17,850$72,50025%25%$72,500-$146,40028%28%$146,400-$233,05033%33%$233,050-$398,35035%35%$398,350-$450,00039.6%>$450,000

2013 - New 3.8% Medicare surtax on investment income $200,000 $250,000 $125,000 for: , gains from passive business activities

2013 - New 0.9% Medicare Surtax on salaries & self-employment income $200,000$250,000$125,000

2013 - New personal & dependent exemption deduction phase-out rule, $250,000 $300,000$275,000$150,000

2013

2013 - New higher threshold for itemized medical expense deductions 10%()..

2013 - legally married same-sex Couples must file as MFJ or MFS

2013 New Capital Gains Rate & Qualified Dividend Tax Rate > $400,00020% >$450,00020%

0-$72,50020120%0%72,500-450,000201315%15%>450,000201420%20%

2014 DepreciationSection 17920122013500K, 2014$25K$2 Million2012-2014$2 Million$650M,$500M$75K(50%*(650-500))+$15K(20%*(650-500)),$590,$22K36%*$590K) (SUV)$25K

2014 Retirement Contribution Limits401(K)/403(B)SimpleIRA2013$17,500$12,000$5,5002014$17,500$12,000$5,500>50$23,000$14,500$6,500

2013/2014 Standard deduction & Exemption20132014$12,200 $12,400$6,100 $6,200$8,950 $9,100

$3,900 $3,950

Tips to avoid an audit S-corp round numbersEfile

Some Tax Saving Tips1031 exchange 401(K), IRA S-corporation IRA Roth

2013 Repair Vs. Capital Asset 27.5 5 $500 27.5

Massachusetts HighlightsSection 179$500,000, 5.3% 12%$1030 refundable(>65 paid R/E tax, S-$55K, H-$69K, M-$82K, < $700K) = 15% = $15005/16/2004 $1200Employer Wellness Program

EB-5 Tax $500K $11021

Foreign Bank Account TD F 90-22.1

$10K.

6-30

$10,000 ; $100,000 50%

Foreign Financial Assets

What are foreign financial assets

What are not FFA

EB-5 - Foreign income/loss NO? yes = yes, $3000 a year,