Author Archives: Rodney K. Fujita
About Rodney K. FujitaRod Fujita is a principal in Bader Martin's tax practice and is a member of its high net worth and family business practice groups. He serves as the firm's Director of Tax Services.
James has worked with a young technology company almost from its inception. Initially the company was one of many clients.
Gradually, James spent more and more time working there and less on projects for other clients. Eventually, he was on-site pretty much every day and only rarely accepted small consulting jobs he could complete evenings and weekends.
Is James still a self-employed consultant? Or, from the perspective of the IRS, has he actually become an employee of the company?
The distinction between an employee (continue reading…)
Retroactive changes to the tax rules for 2012—enacted as part of the American Taxpayer Relief Act—will delay the start of this year’s tax filing season while the IRS updates its tax forms and software.
The IRS announced plans to begin processing paper and electronic individual income tax returns on January 30—including those returns affected by the new Alternative Minimum Tax (AMT) patch and those that claim a deduction for state and local sales taxes, higher education tuition and fees, and educator (continue reading…)
Uncertainty ends, at least when it comes to federal taxes. And it was a real cliff-hanger, if you’ll pardon the pun.
As of December 31, 2012, U.S. taxpayers faced significant increases in federal income, estate and gift taxes for 2013 as a result of Congressional inaction.
Then, on January 1, 2013, Congress passed the American Taxpayer Relief Act of 2012 (the Act) which President Obama signed into law on January 2.
The Act reduces income tax rates for the majority of Americans, as (continue reading…)
Delays have dangerous ends, according to Shakespeare. And he was right, especially when it comes to year-end tax planning.
In what’s been referred to as a fiscal cliff, even Taxmageddon, we face increased income, estate and gift tax rates for 2013 and decreased exemptions and deductions—barring action by Congress. No one anticipates Congressional action before the November election, when it may be too late to fully develop the strategies critical to reducing your taxes for 2012 and 2013.
If you start the (continue reading…)
It’s always tempting to save time and money, not to mention the planet, by reducing the use of paper documents and going electronic.
But it isn’t always simple.
If you’re thinking of going electronic with your Schedules K-1 this year—perhaps as email attachments or downloads from a portal or website—you should know about new IRS requirements for obtaining your partners’ consents and for required disclosures and processes.
The new requirements were issued by the IRS in Revenue Procedure 2012-17, effective February 13, 2012. They (continue reading…)
Losing Out on the Federal Research Tax Credit? IRS Releases Final Regulations for the Alternative Simplified Credit Method
If cats can claim nine lives, this has them beat. It’s the tax credit that wouldn’t, and arguably shouldn’t, die.
Initially created by the Economic Recovery Tax Act of 1981, the federal research credit was intended to expire after four years. And it did, but only temporarily.
Since 1981, the credit has expired and been revived, often retroactively, more than a dozen times.
Introduction to the Federal Research CreditDesigned to encourage investments in U.S.-based research and experimentation, the federal research credit can be claimed (continue reading…)
[April 14, 2011 update: President Obama signs the Comprehensive Taxpayer Protection and Repayment of Exchange Subsidey Overpayments Act of 2011, repealing expanded Form 1099 reporting.]
[January 12, 2011: The following post is updated from the original post Receiving Rental Income from a Residential or Commercial Property?published December 14, 2010.]
It’s been all over the news: Congress, as a revenue raiser in its health care legislation, dramatically expanded Form 1099 reporting requirements beginning in 2012, for 1099s filed in 2013.
Now, after a wave (continue reading…)
As late as December, it appeared that 2011 would usher in big changes to the federal income, estate and gift tax rules.
Then Congress passed, and President Obama signed, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (Tax Relief Act).
The Tax Relief Act extended a number of expired and expiring federal tax benefits and credits, reducing the number of federal tax changes for 2011. Most, but not all, of the federal inflation-adjusted tax amounts for this year are also unchanged.
Quick Reference (continue reading…)
It’s been all over the news: Congress, as a revenue raiser in its health care legislation, dramatically expanded Form 1099 reporting requirements beginning in 2012.
Now, after a wave of negative comments, they’re having second thoughts and may very well change or rescind the expanded rules.
Lost in the discussion is a much smaller change to the 1099 reporting requirements, enacted as part of this year’s Small Business Jobs Act. Real property owners―businesses and individuals―who receive rental income will be required to file (continue reading…)
Have a Pre-Existing Condition? Need Help Researching Health Insurance Options? Have Questions About Health Care Reform?
HealthCare.gov launched this week.
The web-based portal provides a centralized, online resource for information on provisions of this year’s Affordable Care Act, as well as tools to help you research your health insurance options, learn more about preventive care, and even compare the quality of care provided by participating hospitals.
Next month, Washington State’s Pre-Existing Condition Insurance Plan will offer coverage to eligible Washington residents. You can find information on the plan’s eligibility requirements, benefits and costs on HealthCare.gov.
The portal also provides information on a (continue reading…)