1. American Taxpayer Relief Act
`
Michael L. Minotti, CPA
February 21, 2013

2. SKODA MINOTTI TEAM
Michael Minotti, CPA Steven Hartstein, CPA, JD Mike Trabert,
Partner Partner CPA, CVA, CMAP, CEPA
Partner
Jim Forbes, CPA Jenna Staton, EA Matt Soful Anna Marie Ricciardi
Principal Manager Business Development Marketing Specialist

3. THE FISCAL CLIFF
Expired tax breaks = revenue
$
TIME

4. THE FISCAL CLIFF
$ Mandatory spending cuts
= savings
TIME

5. THE FISCAL CLIFF
LEADS TO
$
TIME

6. THE FISCAL CLIFF
Balanced Budget

7. The American Taxpayer Relief Act of 2012
• Senate vote 89-8, House 257-167
• Signed into law on January 2, 2013
• Retains ―Bush Tax Cuts‖ for all but higher income taxpayers
• Increased tax on Qualified dividend and capital gains for most
taxpayers
• Many extensions for expiring provisions
• Delay in sequester

8. TODAY’S AGENDA
• Business Tax Changes
• Personal Tax Changes
• Medicare Tax Changes

9. BUSINESS TAX CHANGES
Permanent Extensions
Various temporary tax provisions enacted as part of Economic
Growth and Tax Relief Reconciliation Act of 2001 were made
permanent:
• The exclusion for employer-provided educational assistance
(Sec. 127);
• The employer-provided child care credit (Sec. 45F);
• Repeal of the collapsible corporation rules (Sec. 341);
• Special rates for accumulated earnings tax and personal
holding company tax (Secs. 531 and 541); and
• Modified tax treatment for electing Alaska Native Settlement
Trusts (Sec. 646)

10. BUSINESS TAX CHANGES
Temporary Extensions
Also extended are many business tax credits and other provisions:
• Temporary minimum low-income tax credit rate for non-federally
subsidized new buildings (Sec. 42);
• Housing allowance exclusion for determining area median gross
TODAY’S AGENDA
income for qualified residential rental project exempt facility bonds
(Section 3005 of the Housing Assistance Tax Act of 2008);
• Indian employment tax credit (Sec. 45A);
• New markets tax credit (Sec. 45D);
• Railroad track maintenance credit (Sec. 45G);
• Mine rescue team training credit (Sec. 45N);

11. BUSINESS TAX CHANGES
Temporary Extensions
• Employer wage credit for employees who are active duty members of
the uniformed services (Sec. 45P);
• Work opportunity tax credit (Sec. 51);
• Qualified zone academy bonds (Sec. 54E);
• Fifteen-year straight-line cost recovery for qualified leasehold
TODAY’S AGENDA
improvements, qualified restaurant buildings and improvements, and
qualified retail improvements (Sec. 168(e));
• Accelerated depreciation for business property on an Indian
reservation (Sec. 168(j));
• Enhanced charitable deduction for contributions of food inventory
(Sec. 170(e));
• Election to expense mine safety equipment (Sec. 179E);

12. BUSINESS TAX CHANGES
Temporary Extensions
• Special expensing rules for certain film and television
productions (Sec. 181);
• Deduction allowable with respect to income attributable to
domestic production activities in Puerto Rico (Sec. 199(d));
• Modification of tax treatment of certain payments to controlling
exempt organizations (Sec. 512(b));
• Treatment of certain dividends of regulated investment
companies (Sec. 871(k));
• Regulated investment company qualified investment entity
treatment under the Foreign Investment in Real Property Act
(Sec. 897(h));
• Extension of subpart F exception for active financing income
(Sec. 953(e));

13. BUSINESS TAX CHANGES
Temporary Extensions
• Look through treatment of payments between related
controlled foreign corporations under foreign personal holding
company rules (Sec. 954); Temporary exclusion of 100% of
gain on certain small business stock (Sec. 1202);
• Basis adjustment to stock of S corporations making charitable
contributions of property (Sec. 1367);
• Reduction in S corporation recognition period for built-in gains
tax (Sec. 1374(d));
• Empowerment Zone tax incentives (Sec. 1391);
• Tax-exempt financing for New York Liberty Zone (Sec. 1400L);

14. BUSINESS TAX CHANGES
Temporary Extensions
• Temporary increase in limit on cover-over of rum excise taxes to
Puerto Rico and the Virgin Islands (Sec. 7652(f)); and
• American Samoa economic development credit (Section 119 of the
Tax Relief and Health Care Act of 2006, P.L. 109-432, as
modified).

15. BUSINESS TAX CHANGES
• Bonus Depreciation
• Section 179 – Expensing Election

16. BUSINESS TAX CHANGES
Bonus Depreciation
• 50% first-year bonus depreciation
• Qualified property is tangible property depreciated under MACRS
with a recovery period of 20 years or less
• Must meet original use, timely acquisition, and timely placed in
service requirements
• Extended retroactively for property placed in service before
January 1, 2014
• Applies automatically; must opt-out by asset class
• Can create a loss

17. BUSINESS TAX CHANGES
Section 179 – Expensing Election
• Dollar Limitations
− Was scheduled to go down to $139,000 for 2012 and $25,000 for 2013
− Increased to $500,000 retroactively for 2012 and for 2013
• Reduction in Limitations
− Was scheduled to go down to $560,000 for 2012 and $200,000 for 2013
− Increased to $2,000,000 retroactively for 2012 and for 2013
• Section 179 cannot create a loss
• Available for used property

18. BUSINESS TAX CHANGES
First Year Depreciation Cap for Autos & Trucks
• For 2012 the luxury auto limit was scheduled to be $3,160 for autos
and $3,360 for light trucks and vans
• The applicable first-year depreciation limit has been increased by
$8,000
− $11,160 for autos
− $11,360 for light trucks and vans

19. BUSINESS TAX CHANGES
Section 179 Example
2012 Deduction 2012 Deduction
Cap-Ex Old Law New Law
$50,000 $50,000 $50,000
$150,000 $139,000 $150,000
$500,000 $139,000 $500,000
$700,000 -0- $500,000

20. BUSINESS TAX CHANGES
Depreciation Example
• Purchase 50,000 computers in 2012 (Assume 5-year life.)
MACRS Bonus 179
2012 $10,000 $30,000 $50,000
TODAY’S AGENDA
2013 16,000 8,000 -
2014 9,600 4,800 -
2015 5,760 2,880 -
2016 5,760 2,880 -
2017 2,880 1,440 ___-___
$50,000 $50,000 $50,000

21. BUSINESS TAX CHANGES
Depreciation Example
• Purchase $750,000 Machine ( Assume 5-year life.)
MACRS Bonus 179
2012 $150,000 $450,000 $650,000
TODAY’S AGENDA
2013 240,000 120,000 40,000
2014 144,000 72,000 24,000
2015 86,400 43,200 14,400
2016 86,400 43,200 14,400
2017 43,200 21,600 7,200
$750,000 $750,000 $750,000
* $500,000 Section 179, $125,000 Bonus, $25,000 MACRS

22. Personal Tax Changes

23. PERSONAL TAX CHANGES
Highlights
• Bush tax cuts retained for most taxpayers
• Raises top rate for dividends and capital gains
• Expiration of payroll tax holiday
• Permanently ―patches‖ AMT
• Return of phase outs of itemized deductions and personal
exemptions

24. PERSONAL TAX CHANGES
Tax Rates
• Obama initially proposed $250K/$200K threshold for higher
rates
• Boehner proposed an increase on those making more that $1
million

25. NEW TAX RATES
2013 Taxable 2013 Taxable Taxpayer Capital Gains
Income Income
Single MFJ Tax Rate Tax Rate
$0-$8,925 $0-$17,850 10% 0%
$8,925-$36,250 $17,850- 15% 0%
$72,500
TODAY’S AGENDA
$36,251-$87,850 $72,501-$146,400 25% 15%
$87,851-$183,250 $142,401-$223,051 28% 15%
$183,251-$398,350 $223,051-$398,350 33% 15%
$388,351 -$400,000 $388,351 -$450,000 35% 15%
$400,000 + $450,001 + 39.6% 20%

26. PERSONAL TAX CHANGES
Payroll Taxes
• Started January 1, 2011
• Employee FICA rate reduced from 6.2% to 4.2%
• Extended for 2012
• Expired as of January 1, 2013

27. PERSONAL TAX CHANGES
AMT Permanent Patch
Alternative Minimum Tax (AMT) Relief
• Increased exemption for 2012
• $50,600 Single, $78,750 MFJ
TODAY’S AGENDA
• Without fix - $33,750 Single, $45,000 MFJ
• Indexed for inflation

28. PERSONAL TAX CHANGES
Future of AMT
• Could be abolished in the future
• Obama proposed to replace part of the AMT with the so-called ―Buffet
Rule
• Buffet Rule would ensure taxpayer making over $1 million would pay
TODAY’S AGENDA
an effective rate of at least 30 percent.
• 2012 – Senate rejected the ―Paying a Fair Share Act‖

29. PERSONAL TAX CHANGES
Return of Phase Outs
Itemized Deduction Phase Out
• Reduces itemized deductions by 3% of the amount by which AGI
exceeds threshold, not to exceed 80%
TODAY’S AGENDA
• Single $250,000 MFJ $300,000
Personal Exemption Phase Out
• Reduces exemption by 2% for each $2,500 (or portion thereof) by
which AGI exceeds threshold
• Single $250,000, MFJ $300,000

30. PERSONAL TAX CHANGES
Individual Tax Credits Available in 2012
Adoption Credit – Available if you adopted a child and paid-out-of-pocket
expenses relating to the adoption
• Amount of credit is directly related to the amount of money spent on
TODAY’S AGENDA
the adoption
• Adoption of special needs child allows for the full amount of the credit
even If out-of-pocket expenses are less than the credit amount
• The maximum value of the credit is $12,650 per eligible and it is non-
refundable
• Phase-out is between $189,710 - $229,710
• Need to file FORM 8839 to claim

31. PERSONAL TAX CHANGES
Individual Tax Credits Available in 2012
• Child and Dependent Care Credit – Available if child is under 12
years of age, or a dependent of any age who cannot care for
themselves. To qualify, you must have earned income and the care
must enable you to work or look for work
TODAY’S AGENDA
− Must reduce deduction by any amount provided by employer through
a dependent care benefits plan
− The value of the credit depends on AGI and is between 20% - 35% of
qualified expense
− The maximum amount of qualified expenses that can be claimed is
$3,000 for one child and $6,000 for two or more children
− Must file Form 2441 to receive credit
• Planning Opportunity – Flex spending Account
− Can set aside a portion of paycheck, up to $5,000 tax free to pay for
dependent care expense

32. PERSONAL TAX CHANGES
Individual Tax Credits Available in 2012
• Retirement Savings Credit – Credit available for low to moderate
income workers who contribute to a qualified plan. AGI must be less
than:
− $57,500 Married filing jointly
TODAY’S AGENDA
− $43,125 Head of Household
− $28,750 Single
o Amount of credit varies depending on AGI and amount of contribution
made
• Work Opportunity Credit – Rewards employers that hire individuals
from targeted groups. The value of the credit can be as high as $9,600
for qualified veterans. This credit is a general business credit.
− Examples of these target groups:
o Veterans
o Felons

33. PERSONAL TAX CHANGES
Energy Credits
• For taxpayers who have not utilized their energy credit for energy
saving biomass stoves, heating, ventilating, and air conditioner unit,
insulation, roofs, water heaters (non solar), and windows and doors, a
tax credit of 10% of up to $500 (for all tax years after 2005 and only
TODAY’S AGENDA
$200 can be used for windows) is still available.
− Qualifying improvements must be placed into service to the taxpayer’s
personal residence located in the United States
− Claim of Form 8695
• The 30% (with no upper limit) credit for geothermal heat pumps, small
wind turbines, and solar energy systems does not expire until
December 31, 2016

34. Medicare Tax Changes

35. MEDICARE TAX CHANGES
Patient Protection and Affordable Care Act
• Two Parts
− 0.9% increased Medicare tax due on wages and self-employment
earnings
TODAY’S AGENDA
− 3.8% surtax on at least a portion of investment income such as capital
gains, dividends and net rental income

36. MEDICARE TAX CHANGES
Tax Earnings
An additional 0.9% surtax on higher Thresholds
income households
Single Taxpayer
The tax applies to wages and $200,000
self-employment income in TODAY’S AGENDA
excess of threshold
Married Taxpayers
There is no employer match on Filing Jointly $250,000
the 0.9 percent tax

37. MEDICARE TAX CHANGES
Tax Earnings
Ron .9% Surtax
• Single Taxpayer Would
• Employee
• $500,000 Earnings APPLY
Single $300,000
to ax Payer
Excess of Earning Threshold $200,000
=
$500,000 Married$2,700
taxpayers
- 200,000 filingjointly Tax
Additional
$300,000 $250,000

38. MEDICARE TAX CHANGES
A Bit of a Hidden Increase
2012 2013
FICA Withholding $4,624 $7,049
Medicare Withholding 7,250 7,250
Medicare Surtax - 2,700
TODAY’S AGENDA
Ron‟s Cost $11,874 $16,999
FICA Withholding $6,826 $7,049
Medicare Withholding 7,250 7,250
Employer‟s Cost $14,076 $14,299
Funds for Social $25,950 $31,298
Security System

39. MEDICARE TAX CHANGES
A Bit of a Hidden Increase
• Ron’s increased cost $5,125 and 43%
• Increased funds to Social Security System $5,348 and 21%
Single ax Payer
$200,000
Married taxpayers
filingjointly
$250,000

40. MEDICARE TAX CHANGES
3.8% Medicare „Surtax‟ Overview
Investment Income
• Beginning with the 2013 tax year, a new 3.8% Medicare
―surtax‖ will apply to all taxpayers whose income exceeds a
certain ―threshold amount‖ Single ax Payer
$200,000
• This new ―surtax‖ will, in essence, raise the marginal income
tax rate for affected taxpayers Married taxpayers
filingjointly
• Thus, a taxpayer in the 39.6% tax bracket (i.e. the highest
$250,000
marginal income tax rate in 2013) would have a marginal rate
of 43.4%!

41. MEDICARE TAX CHANGES
3.8% Medicare „Surtax‟ Overview
Current Tax Rate Tax Rate in 2013 Tax Rate in 2013
+ (with surtax)
10% 15% 15%
15% 15% 15%
25% 28% 28%
Single ax Payer
28% 31% 34.8%
$200,000
33% 36% 39.8%
35% 39.6% 43.4%
Married taxpayers
NOTE: The chart above assumes that the 3.8% Medicare surtax would not begin to apply
filingjointly
until a person’s taxable income reaches the 31% tax bracket (based on certain net
$250,000
investment income and itemized deduction assumptions). However, there are times when
the 3.8% could apply to a person in a lower tax bracket (i.e. 15%, 28%) or may not apply
to a person in higher tax brackets (31%, 36%, 39.6%).

42. MEDICARE TAX CHANGES
3.8% Medicare „Surtax‟ Overview – Individuals
1. Net Investment Income
OR Single ax Payer
3.8% X $200,000
2. The Excess (if any) of –
the lesser of • ―Modified Adjustable Gross
Income (MAGI)
Married taxpayers
• ―Threshold Amount
filingjointly
$250,000

43. MEDICARE TAX CHANGES
3.8% Medicare „Surtax‟ Overview – Critical Terms
Three critical terms associated with the 3.8% Medicare surtax
• ―Net investment income‖ (NII)
• ―Threshold amount‖ (TA)
• ―Modified adjusted gross income‖ (MAGI)
Married taxpayers
filingjointly
$250,000

44. 3.8% MEDICARE ‘SURTAX’
OVERVIEW – NII
Exempt from Surtax:
Subject to Surtax:
• Wages
• Taxable Interest
• Exempt Interest
• Dividends
• Active Royalties
• Annuity Income
• IRA Distributions
• Passive Royalties
• 401(k) Distributions
• Rents
• Pension Income
• RMDs
• Social Security Income
Married taxpayers
filingjointly
$250,000

45. MEDICARE TAX CHANGES
3.8% Medicare „Surtax‟ Overview – Threshold Amount
“Threshold Amount”
• Is the key factor in determining the ―lesser of‖ formula for purposes
of calculating the surtax
Threshold Amounts
• Single taxpayers — $200,000 Married taxpayers
• Married taxpayers — $250,000 filingjointly
$250,000

46. MEDICARE TAX CHANGES
3.8% Medicare „Surtax‟ Overview – MAGI
“Modified Adjusted Gross Income”
• Is the amount that is compared to the ―threshold amount‖ to
determine the ―net investment income‖ that is subject to the surtax
MAGI Equals
• Adjusted gross income
− i.e., Form 1040, Line 37
• PLUS Net foreign earned income exclusion
Married taxpayers
− i.e., gross income excluded under the foreign earned income
filingjointly
exclusion less certain deductions or exclusions that were
$250,000
disallowed due to the foreign earned income exclusion

47. MEDICARE TAX CHANGES
Married taxpayers
filingjointly
$250,000

48. MEDICARE TAX CHANGES
3.8% Medicare „Surtax‟ Example
John 3.8% Surtax
Would NOT
• Single Taxpayer
Apply
• $100,000 of Salary
MAGI is Less
• $50,000 Net Investment Income Than
Threshold
Married taxpayers
MAGI is $150,000 filingjointly
$250,000
Threshold is $200,000

49. MEDICARE TAX CHANGES
3.8% Medicare „Surtax‟ Example
Linda
• Single Taxpayer 3.8% Surtax
Would Apply
• $0 Employment Income to $25,000
• $225,000 Net Investment Income
Tax = $950
Excess of MAGI Over Threshold Married taxpayers
filingjointly
$225,000 $250,000
- 200,000
$ 25,000

50. MEDICARE TAX CHANGES
3.8% Medicare „Surtax‟ Example
Tina & Terry 3.8% Surtax
Would
• Married, Filing Jointly
NOT
• $300,000 Combined Salary Apply
• $0 net Investment Income Wages
Exempt
Married taxpayers
MAGI is $300,000 filingjointly
Threshold is $250,000 $250,000
Excess is $50,000

51. MEDICARE TAX CHANGES
3.8% Medicare „Surtax‟ Example
Peter & Paula
3.8% Surtax
• Married, Filing Jointly
Would Apply
• $400,000 Salary Income to
$50,000
• $50,000 Net Investment Income
Tax = $1,900
Excess of MAGI Over Threshold Married taxpayers
filingjointly
$450,000 $250,000
- 250,000
$200,000 But $50,000 < $200,000

52. MEDICARE TAX CHANGES
3.8% Medicare „Surtax‟ Example
Sarah & Scott
• Married, filing jointly 3.8% Surtax
would apply
• $200,000 salary income
to $100,000
• $150,000 net investment income
Tax = $3,800
Excess of MAGI Over Threshold Married taxpayers
filingjointly
$350,000 $250,000
- 250,000
$100,000

53. MEDICARE TAX CHANGES
PLEASE NOTE
• A taxpayer should never pay both the 0.9%
tax on earned income and the 3.8% surtax
on net investment income on the same
item of income!
Married taxpayers
filingjointly
$250,000

54. MEDICARE TAX CHANGES
What Else is Exempt?
• S Corp distributions to owners who materially participate
• Rents received by ―real estate professionals‖ who materially
participate in underlying rental activity
• Grouping of rental activities with businesses in which owners
materially participate
• Re-characterized rents received from businesses intaxpayers
Married which
filingjointly
owner materially participates (whether or not PAL grouping
$250,000
election has been made)

55. MEDICARE TAX CHANGES
Applications to S Corp Earnings
• K-1 profits for S Corp owners who materially participate are not
subject to either the 0.9% tax on earned income OR the 3.8%
surtax on net investment income
• Distinguish portfolio income which is separately stated
• Passive owners would still be subject to the 3.8% surtax
Married taxpayers
filingjointly
$250,000

56. MEDICARE TAX CHANGES
Applications to S Corp Interest
• For material participants, only net gain or loss attributable to
property held by the entity which is not ―property attributable to
an active trade or business‖ is taken into account (e.g. stocks,
bonds, other investment property) for the 3.8% surtax
• For passive investors, any and all gain or loss will be included
in calculating net investment income
Married taxpayers
filingjointly
$250,000

57. MEDICARE TAX CHANGES
Applications to Partnership Earnings
• Earnings for partners who materially participate are not subject
to the 3.8% tax on net investment income BUT will be subject
to the 0.9% tax on earned income
• Passive owners are just the opposite
− They would be subject to the 3.8% surtax on NII, but not
the 0.9% tax on earned income Married taxpayers
filingjointly
$250,000

58. MEDICARE TAX CHANGES
Applications to Partnership Interest
• For material participants, only net gain or loss attributable to
property held by the entity which is not ―property attributable to
an active trade or business‖ is taken into account (e.g. stocks,
bonds, other investment property) for the 3.8% surtax
• For passive investors, any and all gain or loss will be included
in calculating Net Investment Income
Married taxpayers
filingjointly
$250,000

59. MEDICARE TAX CHANGES
Understanding the „Surtax‟ Code 469 PAL Rules
Trade or Business
Activity
Entity Materially 3.8% Tax .9% Tax
Participate
S-Corp Yes No No
S-Corp No Yes No
Partnership Yes No Yes
Partnership No Yes No

60. SINGLE TAXPAYER
2012 2013 Change
Wages $200,000 $200,000
Itemized Deductions (8,900) (8,900)
Exemptions (3,800) (3,900)
Taxable Income $187,300 $187,200
Federal Income Tax $ 46,337 $ 45,907 ($430)
Married taxpayers
filingjointly
$250,000

61. SINGLE TAXPAYER
2012 2013 Change
Wages $250,000 $250,000
Itemized Deductions (11,814) (11,814)
Exemptions (3,800) (3,900)
Taxable Income $234,386 $234,286
Federal Income Tax $ 61,957 $ 61,445 ($512)
Surtax - 450Married taxpayers
450
filingjointly
Total $ 61,957 $ 61,895 $250,000($ 62)
Surtax is .9% on excess wage of $250,000 - $200,000 threshold.

62. SINGLE TAXPAYER
2012 2013 Change
Wages $200,000 $200,000
Rents 50,000 50,000
Itemized Deductions (11,814) (11,814)
Exemptions (3,800) (3,900)
Taxable Income $234,386 $234,386
Federal Income Tax $ 61,957 $ 61,445 ($512)
Married taxpayers
Surtax -___ 1,900 1,900
filingjointly
Total $ 61,957 $ 63,345 $1,388
$250,000
Surtax of 3.8% on rents of $50,000
No surtax if married filing joint return.

63. SINGLE TAXPAYER
2012 2013 Change
Wages $450,000 $450,000
Capital Gains 100,000 100,000
Itemized Deductions (29,589) (20,589) (9,000)
Exemptions 3,800 -___ (3,800)
Taxable Income $516,611 $529,411 $12,800
Federal Income Tax $137,575 $147,811 $10,236
Surtax 3.8% -___ 3,800 3,800
$137,575 $151,611 $14,036
Surtax of 3.8% on capital gains of $100,000.
Additional $2,250 in the .9% surtax with held at source.

64. SINGLE TAXPAYER
2012 2013 Change
Retirement Income $150,000 $150,000
Social Security 17,000 17,000
Dividends 50,000 50,000
Itemized Deductions (8,900) (8,900)
Exemption (3,800) (3,900)
Taxable Income $204,300 $204,200
Federal Income Tax $ 44,557 $ 44,030 Married taxpayers
($527)
Surtax 3.8% -___ 646 filingjointly
646
Total $ 44,557 $ 44,676 $250,000 $119

65. MARRIED TAXPAYERS
2012 2013 Change
Wages $280,000 $280,000
Interest 10,000 10,000
Dividends 30,000 30,000
Business Income 90,000 90,000
Capital Gains 50,000 50,000
SE Tax Deduction (1,205) (1,205)
Itemized Deductions (24,065) (19,301) (4,764)
Exemptions (7,600) Married taxpayers
-____ (7,600)
filingjointly
$250,000
Taxable Income $427,130 $439,494 $12,364

66. MARRIED TAXPAYERS
2012 2013 Change
Federal Income Tax $103,459 $106,946 3,487
AMT 10,669 6,456 (4,213)
114,128 113,402 (726)
Self-Employment Tax 2,410 2,410 -
Surtax 3.8% - 3,420 3,420
Surtax .9% -____ 1,080 1,080
$116,538 $120,312 $3,774
Surtax of 3.8% on NII of $90,000 ($10,000 + $30,000 + $50,000)
Surtax of .9% on wages of $280,000 + profits of $90,000 less threshold

67. MARRIED TAXPAYERS
2012 2013 Change
Wages $280,000 $280,000
Interest & Dividends 40,000 40,000
Business Income 200,000 200,000
Capital Gains 50,000 50,000
Rental 200,000 200,000
SE Tax (2,678) 2,678
Itemized (42,345) (28,325) $14,020
Exemption (7,600) Married taxpayers 7,600
-____
filingjointly
Taxable Income $717,377 $250,000
$738,997 $21,620

68. MARRIED TAXPAYERS
2012 2013 Change
Federal Income Tax $204,221 $224,609 $20,388
SE Tax 5,356 5,356 -
Surtax 3.8% - 11,020 $11,020
Surtax .9% ___ -___ 2,070 2,070
$209,577 $243,055 $33,478
Married taxpayers
filingjointly
Surtax of 3.8% on NII of $40,000 + 50,000 + 200,000
$250,000
Surtax of.9% on $280,000 + 200,000 less threshold $250,000

69. QUESTIONS?
Contact Us:
Mayfield Village Office Akron Office
ph 440-449-6800 ph 330-668-1100
Michael Minotti, CPA Jim Forbes, CPA
mminotti@skodaminotti.com jforbes@skodaminotti.com
Steven Hartstein, CPA, JD Jenna Staton, EA
shartstein@skodaminotti.com jstaton@skodaminotti.com
Mike Trabert, CPA, CVA, CMAP, CEPA
mtrabert@skodaminotti.com

70. Thank You Very Much