presidential tax package & healthcare tax update · public charity status & supporting...
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Presidential Tax Package & Healthcare Tax Update
Presented by:Presented by:Presented by:Presented by:
John Smith, Jr. & Hayley Shulman, CPAJohn Smith, Jr. & Hayley Shulman, CPAJohn Smith, Jr. & Hayley Shulman, CPAJohn Smith, Jr. & Hayley Shulman, CPA
NJ HFMA Finance Accounting Capital and Tax CommitteeNJ HFMA Finance Accounting Capital and Tax CommitteeNJ HFMA Finance Accounting Capital and Tax CommitteeNJ HFMA Finance Accounting Capital and Tax Committee
Tuesday, November 8, 2016Tuesday, November 8, 2016Tuesday, November 8, 2016Tuesday, November 8, 2016
APA Hotel WoodbridgeAPA Hotel WoodbridgeAPA Hotel WoodbridgeAPA Hotel Woodbridge
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Today’s Presenters
Hayley L. Shulman, CPAHayley L. Shulman, CPAHayley L. Shulman, CPAHayley L. Shulman, CPASupervisor
Healthcare Services Group
973.532.8885
John A. Smith, Jr.John A. Smith, Jr.John A. Smith, Jr.John A. Smith, Jr.Supervisor
Healthcare Services Group
973.532.8875
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Agenda
Presidential Candidates’ Tax PlansPresidential Candidates’ Tax PlansPresidential Candidates’ Tax PlansPresidential Candidates’ Tax Plans
2016 Tax Return Due Date Changes2016 Tax Return Due Date Changes2016 Tax Return Due Date Changes2016 Tax Return Due Date Changes
IRS Compliance Checks regarding IRC IRS Compliance Checks regarding IRC IRS Compliance Checks regarding IRC IRS Compliance Checks regarding IRC §§§§501(r)501(r)501(r)501(r)
Public Charity Status & Supporting OrganizationsPublic Charity Status & Supporting OrganizationsPublic Charity Status & Supporting OrganizationsPublic Charity Status & Supporting Organizations
Current Healthcare Industry “Hot Topics”Current Healthcare Industry “Hot Topics”Current Healthcare Industry “Hot Topics”Current Healthcare Industry “Hot Topics”
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PART ONE
Presidential
Candidates’ Tax Plans
PART ONE
Presidential
Candidates’ Tax Plans
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Presidential Candidates
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What’s at Stake?
TrumpTrumpTrumpTrump would cut taxes by $5.9T over the next ten years.
ClintonClintonClintonClinton would raise taxes by $1.5T over the next ten years.
Thus, there is as much as a $7.5T swing in tax revenue at
stake in this election!
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Ordinary Income Tax Rates
Current LawCurrent LawCurrent LawCurrent Law
• Under current law, there are seven tax brackets:
10%, 15%, 25%, 28%, 33%, 35%, 39.6%
Clinton’s PlanClinton’s PlanClinton’s PlanClinton’s Plan
• Retains these seven brackets
• Fair Share Surcharge - adds a 4% surcharge on income in excess of $5M
• Top rate would become 43.6%.
Trump’s PlanTrump’s PlanTrump’s PlanTrump’s Plan
• Reduces the seven brackets to three rates of: 12%, 25% and 33%.
• The top rate of 33% would apply to income more than $225K for MFJ and $112.5K for single filers.
Wages, interest income and income from self-employment are taxed at “ordinary
income rates.” These rates are progressive; increasing as income rises.
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Top Rate on Capital Gains
Current LawCurrent LawCurrent LawCurrent Law
• If held longer than one year -taxed at preferential rates.
• Under current law, these preferential rates reach a high of 20%.
Clinton’s PlanClinton’s PlanClinton’s PlanClinton’s Plan
• Top rate on capital gains at 24% for taxpayers with income in excess of $5M.
• High income taxpayers must hold a capital asset for 6 years before being entitled to the 24% rate.
Trump’s PlanTrump’s PlanTrump’s PlanTrump’s Plan
• Retains the current top rate on capital gains of 20%.
Gain from the sale of certain capital assets (i.e. corporate stock or your principal
residence).