Finance & Enjoyment Blog

December 17, 2015Crowe GHP Horwath Announces Acquisition of KKB‘s Tax Consulting and Compliance Practice Areas
Category: Rules and Regulations

DENVER, Colorado (December 8, 2015) – Nadine Pietrowski, CEO and Senior Principal of Crowe GHP Horwath, announced today that Crowe GHP Horwath has acquired the tax consulting and compliance practice areas of Denver-based KKB. Joining the Crowe GHP Horwath team are Bruce Kirkpatrick and Greg Pfantstiel, who have long had a primary focus in healthcare, specifically working with physicians’ practices handling tax planning and preparation, wealth management and general practice consulting. “Bruce Kirkpatrick and Greg Pfantstiel have years of experience in this specialty niche practice area. …

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October 01, 20152015 Tax Planning Special Announcements
Category: Rules and Regulations

Deadline Approaching for Undoing a 2014 Roth IRA Conversion If you converted a traditional IRA to a Roth IRA in 2014 and your Roth IRA has sustained losses, you may want to consider whether it makes sense to undo (recharacterize) your conversion. You have until October 15, 2015, to undo your 2014 conversion. (If you've already filed your federal income tax return for 2014, you need to file an amended return by the tax filing deadline if you recharacterize.) A recharacterization can help you avoid paying income tax on IRA assets that have lost value since the conversion. When you recharacter …

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June 26, 2015Supreme Court Upholds Health Insurance Subsidies
Category: Rules and Regulations

Supreme Court Upholds Health Insurance Subsidies In the case of King v. Burwell (Case Number 14-114), petitioners argued that the language of the Affordable Care Act (ACA) specifically provides that health insurance subsidies can only be issued through state-based exchanges (also referred to as marketplaces) and not through the federal exchange. In a 6-3 decision issued June 25, the U.S. Supreme Court upheld the ACA by confirming that health insurance subsidies may also be offered through the federal exchange. What is the Issue? A goal of the Affordable Care Act (ACA) is to provide more Americans with access to affordable health care. On …

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February 11, 20152015 Tax Planning and Preparation: Know Key Changes to the Tax Code
Category: Rules and Regulations

2015 Tax Planning and Preparation: Know Key Changes to the Tax Code Even though we are all in the 2014 tax season shuffle—compiling 1099s, W-2s, interest statements—it’s important that we pay attention to changes in the 2015 tax code because it’s never too early for 2015 tax planning and preparation. Rather than scramble at the last-minute to scrounge out 2015 tax savings before the filing deadline this time next year, a better strategy is to set things in motion now. Here are a few things to pay attention to. Higher Flexible Spending and 401(k), 403b and 457 Retirement Account Limits Although the deadline has passed for enrollment into most employer’s fle …

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December 19, 2014Denver CPA with 2014 Tax Extenders and 2015 Mileage Rate Deductions
Category: Rules and Regulations

Denver CPA with 2014 Tax Extenders and 2015 Mileage Rate Deductions In the recently enacted "Tax Increase Prevention Act of 2014," Congress has once again extended a package of expired or expiring individual, business, and energy provisions known as "extenders." The extenders are a varied assortment of more than 50 individual and business tax deductions, tax credits, and other tax-saving laws which have been on the books for years but which technically are temporary because they have a specific end date. Congress has repeatedly temporarily extended the tax breaks for short periods of time (e.g., one or two years), which is why they are referred to as "extender …

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December 11, 2014CPA Colorado: The Impact of Recent Rulings on Obamacare
Category: Rules and Regulations

CPA Colorado: The Impact of Recent Rulings on Obamacare When the Affordable Care Act—better known as Obamacare—was signed into law in 2010, CPA Colorado firms like KKB knew that their work was about to change dramatically. But we didn’t expect things to still be changing. In July, two contradictory federal court rulings cast uncertainty on Obamacare’s future, and KKB outlines what might possibly happen in terms of tax planning and practice management. The Affordable Care Act has faced many challenges since its inception, from a Supreme Court case questioning its constitutionality, to repeated votes to repeal it by the House of Representative …

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November 13, 2014Denver CPA Offers 2015 Social Security and Medicare Figures
Category: Rules and Regulations

Denver CPA Offers 2015 Social Security and Medicare Figures New Figures Announced The Social Security Administration (SSA) has announced that Social Security and SSI beneficiaries will receive a 1.7% cost-of-living adjustment (COLA) for 2015. According to the SSA's announcement, after the COLA, the estimated average monthly retirement benefit payable in January 2015 will be $1,328. The Centers for Medicare & Medicaid Services (CMS) has also announced next year's Medicare costs. The standard monthly Medicare Part B premium will be $104.90 in 2015, the same as in 2014. However, beneficiaries with higher incomes (individuals with taxable income …

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August 12, 2014CPA Denver Reviews The Basics of FATCA
Category: Rules and Regulations

CPA Denver Reviews The Basics of FATCA KKB, a Denver CPA firm, wants you to be aware of the changing economic and tax issues that our clients face on a daily basis. The Foreign Account Tax Compliance Act (FATCA) is a federal law that requires US persons, including individuals who live outside the US to report their financial accounts held outside the United States, and requires foreign financial institutions to report to the IRS about their US clients. This includes withholding on payments to those foreign financial institutions that fail to comply with FATCA. As final implementation of this 2010 legislation begins, withholding on …

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March 03, 2014Denver CPA: An Update on the Affordable Care Act
Category: Rules and Regulations

Denver CPA: An Update on the Affordable Care Act The Affordable Care Act (ACA) has been in full swing since early 2014; however, that doesn’t mean that there may be some changes that may affect your small business. Employers with fewer than 100 employees now have until 2016 to provide health insurance per a delay of the health law. Larger businesses will have to cover at least 70% of the workforce starting in 2015 the IRS stated in a rule in early February. This deal was made under pressure from business groups since the Affordable Care Act was implemented earlier this year. Because it was such a large undertaking for businesses, it took …

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March 01, 2014CPA Denver: A Growing Trend in Hospital Construction
Category: Rules and Regulations

CPA Denver: A Growing Trend in Hospital Construction You may have noticed a trend, or heard of an upcoming trend in hospital construction. KKB will examine the reasons why this trend is happening and why you may see it continue for the next couple of years. Since the Affordable Care Act (ACA) came into law, hospitals and health systems primarily have been focused on how to respond to the quality, clinical and economic issues associated with the legislation. Many facilities need to answer the question of”Are our existing facilities ready to manage the transition from volume-based care to value-based care?” Many hospitals around the cou …

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February 05, 2014Denver Accountants: 2014 Brings New Billing Changes
Category: Rules and Regulations

Denver Accountants: 2014 Brings New Billing Changes 2014 is going to be a big year for the healthcare industry; the new Affordable Care Act is probably the one change that is getting the most attention. However, one of the changes that could impact your practice from a tax perspective is the changes to billing and coding protocols. And while these changes are here to stay, your tax accountant Denver wants you to be aware of these so you can maximize your reimbursements in the coming year. Here are the three of the most important billing modifications physicians will have to make in 2014 and a few ways to help maintain a healthy revenue strea …

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January 10, 2014IRS Announces Changes to Health Flexible Spending Arrangements (FSAs)
Category: Rules and Regulations

IRS Announces Changes to Health Flexible Spending Arrangements (FSAs) The Internal Revenue Services (IRS) has modified the rules that apply to health flexible spending arrangements (FSAs?). Plan sponsors now have the option of allowing participants to carry over $500 of unused funds in health FSA to the following plan year. This now eliminates the “use-it-or-lose-it” rule that has affected FSAs in the past. The structure of FSAs will stay the same; prior to the start of a plan year, employees can decide how much they wish to contribute to a health FSA plan that is part of a cafeteria plan. The maximum amount for 2014 is $2,500. Here are all of the new rules: …

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October 09, 2013Small Business and The New Health Care Exchange in Colorado and What it Means to Your Business
Category: Rules and Regulations

Small Business and The New Health Care Exchange in Colorado and What it Means to Your Business Small Business and The New Health Care Exchange in Colorado and What it Means to Your Business October 1, 2013, is a big day for small businesses and the health care reform. Small business employers can now offer their employees quality health insurance through the Connect for Health Colorado, or the new health care exchange. Depending on the size of your company, you can now offer your employees health care through the exchange that will make insurance easier, reduce costs for your business and a dedicated personal shopper to help you navigate the new law. The new law, which was passed in …

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October 08, 2013Health Care Exchanges Start on October 1, 2013, in Colorado and Around The Nation
Category: Rules and Regulations

Health Care Exchanges Start on October 1, 2013, in Colorado and Around The Nation Health Care Exchanges Start on October 1, 2013, in Colorado and Around The Nation On October 1, 2013, health care exchanges officially started in Colorado. Connect for Health Colorado, as its marketplace is being called in Colorado, has been in the planning stages for two years. Health care exchanges are in place for the un-insured or under-insured. People who have previously struggled to get insurance because of a pre-existing condition or because of financial restraints can now get coverage by a number of leading health care companies. Open enrollment starts on October 1, 2013, but covera …

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September 30, 2013Affordable Care Act Tax: Individual Tax Changes
Category: Rules and Regulations

Affordable Care Act Tax: Individual Tax Changes Affordable Care Act Tax: Individual Tax Changes in Colorado The tax landscape is going to change for all Americans beginning in 2014. Starting January 1, 2014, individuals, families and businesses will be affected by the new Affordable Care Act. As a new set of rules takes place, KKB is here to answer any questions you may have regarding changes to your individual taxes. Below is a summary of the outlined tax changes that may affect your individual tax status. You can read the full document, which details the tax changes affecting individuals and families from the government here. Individu …

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September 30, 2013Affordable Care Act Tax: Small Business Tax Changes
Category: Rules and Regulations

Affordable Care Act Tax: Small Business Tax Changes Affordable Care Act Tax: Small Business Tax Changes in Colorado The tax landscape is going to change for all Americans beginning in 2014. Starting January 1, 2014, individuals, families and businesses will be affected by the new Affordable Care Act. As a new set of rules takes place, KKB is here to answer any questions you may have regarding changes to your Colorado small business taxes. Below is a summary of the outlined tax changes that may affect your small business tax status. Read the full document from the government outlining those changes full document from the government outlining …

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September 26, 2013Tax Services and Same Sex Marriages: What You Need to Know.
Category: Rules and Regulations

Tax Services and Same Sex Marriages: What You Need to Know. Tax Services and Same Sex Marriages: What You Need to Know Major tax changes are coming to Colorado in 2014, including health care changes for individuals, families and small businesses. Another change is tax filing for same-sex marriages. Colorado does not recognize same-sex marriages, but the IRS and Treasury Department don’t see it that way. Recently, the IRS and Treasury Department issued guidance in response to the recent Supreme Court case striking down Section 3 of the Defense of Marriage Act of 1996 (DOMA), which defined marriage as the union of a man and a woman. If you are legally …

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January 17, 2013Summary of American Taxpayer Relief Act of 2012
Category: Rules and Regulations

Summary of American Taxpayer Relief Act of 2012 Everyone at KKB hopes your 2013 is off to a great start. We wanted to write a brief summary of the American Taxpayer Relief Act of 2012 that was recently passed by Congress. The legislation allows tax rates to rise on the nation's highest earners while also extending dozens of tax cuts for individuals and businesses. Specifically, the bill: Raises the top tax rate to 39.6% for married couples earning $450,000; single taxpayers earning $400,000. These amounts will be indexed for inflation. Raises long-term capital gains and qualifying d …

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December 17, 2012Tax Tips: Medicare Surcharge on Wages in 2013
Category: Your Financial House, Rules and Regulations

There has been much talk about the 3.8% Medicare surcharge on investment income that will occur in 2013, but another tax increase many tax experts have glossed over is the .9% Medicare surcharge on wages and self-employment income above certain thresholds. For individuals, this threshold is $200,000 while couples will meet the threshold at $250,000. This extra medicare charge is only assessed on the employee's share of the Medicare payment, and the employer does not owe anything extra except the already existing 1.45%.   The IRS has instructed the employer to withhold the extra per …

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December 03, 2012Retirement: Medicare Premium Changes In 2013
Category: Your Financial House, Retirement and Exit Strategies, Rules and Regulations

In 2013, the basic Medicare Part B premium will rise $5 to $104.90 a month. This monthly rate will be higher for seniors with modified income above $170,000 for married and $85,000 for singles. Modified income means regular income plus tax-exempt interest, education bonds, and excluded foreign earned income. Higher income seniors will also owe a surcharge on premiums for Medicare Part D. This surcharge ranges from $11.60 to $66.60 depending on how much those seniors modified income is above $170,000 for married and $85,000 for singles. Marrieds filing separately will be hit especially hard if …

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November 20, 2012Tax Tips: W2 Reporting Requirement Changes For 2012
Category: Successful Practice Management, Rules and Regulations

  Starting in the calendar year 2012, employers will be required to report the health insurance cost on their employees’ W2s. In other words, the W2s that employees will receive at the beginning of 2013 will need to show the cost of coverage inside box 12 on the W2 under the DD code. This amount should include both the portion paid by the employer as well as the employee. The purpose for this reporting requirement is for informational use only and is in no way taxable to the employee. Its intention is to inform the employees the cost of their coverage and allow for comparisons to o …

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November 19, 2012Tax Tips: Rate changes and other items for 2013
Category: Successful Practice Management, Your Financial House, Rules and Regulations

  See below for a guide to all tax changes taking effect in 2013. Please note that some things such as the tax rates may be subject to change depending on Congressional action.   The top tax brackets rising from 33–35% to 36–39.6% Long-term capital gains taxes rising from 0–15% to 10–20% Dividends taxed at ordinary income tax rates up to 39.6% and the expiration of the quali­fied dividend rate of 15%  The expiration of the FICA payroll-tax cuts from late 2010 will raise the rate from 4 …

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November 06, 2012Your Financial House: Should I start my Social Security Early?
Category: Your Financial House, Time Management and Organization, Retirement and Exit Strategies, Rules and Regulations

Should I start my Social Security Early?   A good friend of mine just turned 62. He announced to me he was going to start his Social Security. I have analyzed this several times and knew this would not be the best economic answer. The reduction they impose for starting early is significant. So I asked him to wait, and send me the amounts he would receive now, and the amounts he would receive if he waited until his normal retirement age at 66. He has a pension from his career employer that is decent, so I knew he would have respectable income without Social Sec …

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November 02, 2012The Fiscal Cliff: Sequestration
Category: Successful Practice Management, Your Financial House, Retirement and Exit Strategies, Rules and Regulations

The Fiscal Cliff: Sequestration   We discussed the big ticket item of the Bush Tax Cuts in the last blog.  The next biggest item is sequestration. Until the Budget Control Act was signed in August, 2011 most people had probably not heard of the word before. The Wikipedia definition of sequestration is “A U.S. legal procedure in which automatic spending cuts are triggered, notably implemented in the Budget Control Act of 2011.” This Act established the so called “Super Committee, which was tasked with putting together a bipartisan piece of legislatio …

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October 21, 2012Tax Tips: The Dangers of Tax Software
Category: Your Financial House, Time Management and Organization, Rules and Regulations

If you use programs such as Turbotax, ACTtax, or many of the other home tax preparation software, and there turns out to be an error in your return, your reliance on the software is not a valid excuse for relief from any penalties assessed by the IRS. Unlike using a CPA or third party preparer, the court's classify returns prepared through the use of tax software as self-prepared returns. Depending on the severity of the error, the IRS could impose significant penalties so it's crucial the return is properly reported when filed.

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October 19, 2012The Fiscal Cliff: The Bush Tax Cuts
Category: Your Financial House, Retirement and Exit Strategies, Rules and Regulations

  As of this writing, the tax cuts signed into law back in 2001 and 2003 are set to expire at the end of 2012. As there is not enough room in a blog to go through all of these expiring cuts in detail, we will highlight those that will have the biggest impact on our clients in 2013.   Income tax brackets will change.   Currently there are six tax brackets, with the lowest at 10% and the highest at 35%. In 2013, there will be five brackets, with the lowest at 15% and the highest at 39.6%. For a couple with $50,000 of taxable income, their taxes are expected …

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October 17, 2012The Fiscal Cliff: An Introduction
Category: Your Financial House, Retirement and Exit Strategies, Rules and Regulations

  We recently attended Colorado Medical Society’s annual meeting and Colorado Medical Group Management Association’s Fall conference. We enjoyed meeting many of their members and discussing a topic that is looming larger every day. That topic is the “Fiscal Cliff” that our nation is facing come January 1,, 2013.    The term “Fiscal Cliff” was coined by Ben Bernanke, the current Chairman of the Federal Reserve,. In February of 2012, he used this to term to describe “a massive fiscal cliff of large spending cuts and tax i …

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October 01, 2012Tax Tips: Education Savings Plans
Category: Your Financial House, Rules and Regulations

              Despite all the uncertainty with taxes for 2012, there are some tax planning items parents can do now to minimize their tax bill for the year. These tax planning items come in the form of 529 accounts and Coverdell education savings accounts.             529 accounts provide payouts for postsecondary education, and are completely tax free. These costs include tuition, room and board, books, and supplies. Many states cap this contribution at a certain amount, b …

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September 09, 2012Tax Tips: Medicare Surcharge On Investment Income
Category: Your Financial House, Retirement and Exit Strategies, Rules and Regulations

In 2013, a new tax will take effect that will apply to all upper-income earners on their investment income. The source of this new tax is a surcharge to provide an additional revenue stream for Medicare and will charge 3.8% on the lesser of taxpayer’s investment income or total adjusted gross income above $250,000 for married individuals and $200,000 for singles. In other words, if you’re married and have $50,000 in investment income (dividends, capital gains, etc) while your total income for the year is $270,000, then you’ll owe an extra $760 in taxes [(270,000-250,000) x 3.8%]. Howe …

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June 10, 2012Tax Credits for Health Insurance
Category: Your Financial House, Rules and Regulations

Starting in 2014, affordable insurance exchanges will provide a cost effective way for individuals who do not receive insurance through their employers the option to pick up coverage. This is just one of two ways the federal government plans to make insurance affordable. The other is by setting up tax credits to go along with these affordable insurance exchanges. These tax credits will be available to individuals and families with incomes between 100% and 400% of the federal poverty line. Some phase-out rules apply and things like Medicare, Medicaid, and employer-sponsored plans are not in …

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May 10, 2012Fresh Start Tax Relief
Category: Rules and Regulations

     Since the recession started in 2008, the IRS has implemented a “Fresh Start” program designed to allow those who owe taxes and penalties a bit of relief. They do this through an extension of the penalty period and also allows for installment payments for large balances.      Please note that “Fresh Start” relief is only available to those who have been unemployed for thirty consecutive days during the year or self-employed individuals who have seen a 25% decrease of their business income. Also singles can not have income ove …

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March 05, 2012Over $1 Billion in Refunds From 2008 Still Outstanding
Category: Your Financial House, Rules and Regulations

Over $1 Billion in Refunds From 2008 Still Outstanding Did you know the IRS has over one billion dollars in tax refunds from 2008 that are still waiting to be claimed? According to their records, over one million people have not yet filed a return for that year, and because of this, these refunds were never claimed. The estimated median refund is $637 which certainly should serve as an incentive for those delinquent filers to complete the process. Why is it important to file this year? There is only a three year window for recovering owed amounts from delinquent tax returns. After the three …

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February 06, 2012What Brought On The Buffett Rule?
Category: Rules and Regulations

What Brought On The Buffet Rule? The Buffett rule has been the talk of congress for several months now, but many people don't understand what caused Warren Buffett to have a lower tax rate than his secretary. Many of the tax rules Warren Buffett utilizes are not understood by the most people. All they hear is he pays a lower rate than his secretary, but none of the reasons why are given. Almost all of Warren Buffett's income is derived from investments which are taxed at a flat 15% rate. His secretary, on the other hand, is taxed at normal income rates that pertain to all non-investment …

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February 06, 2012The CPA Exam: Financial Accounting And Reporting
Category: Rules and Regulations

The CPA Exam: Financial Accounting And Reporting The financial accounting and reporting section is widely regarded as the hardest of the four sections of the CPA test. There are several reasons for this, the most obvious being its massive size compared to the others. The amount of material is roughly the size of the other three sections and covers everything from the financial statements, profit sharing plans, time value of money, non-profit, and governmental accounting just to name a few. In addition to the AICPA expecting the participant to know all these topics, the exam also is used …

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January 09, 2012Advantages in HOA Tax Reporting
Category: Rules and Regulations

Advantages in HOA Tax Reporting Did you know a homeowner's association can retroactively change its tax status? By allowing this, an HOA can optimize their tax due to take advantage of certain rules. An 1120-H, which is exclusive to HOAs allows the organization to be taxed at a flat 30% on all regular and investment income. This can be advantageous under the right circumstances, while harmful in others. The alternative to this type of tax status is to file an 1120 as a corporation. The lowest tax rate under this type of status is 15%, but only up to $50,000 in income. Since this is a margi …

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January 04, 2012The 2% Payroll Tax Cut And You
Category: Your Financial House, Rules and Regulations

The 2% Payroll Tax Cut And You Much talk has been made lately of the 2% payroll tax cut that has been the holdup in Congress over the past month. At face value, the common employee would assume this will result in a straight 2% increase in their take-home pay, but there are many other factors involved that also affect this amount. Additionally, this does not extend to the employer, so that rate remains at 6.2%. First of all, this cut has been in effect since 2011 so what Congress was actually fighting over was whether or not to return to the rate to pre-2011 rates. This payroll tax is sole …

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June 07, 2011Rules for Your Car Tax Deduction
Category: Rules and Regulations

Rules for Your Car Tax Deduction - A vehicle that is used for both personal and business is tax deductible for business related purposes only. There is no minimum in regards to the percentage of business use for the automobile and whether the vehicle was financed, purchased outright or leased does not matter. Either a standard mileage rate or the actual costs can be used to calculate this deduction. There are, however, several rules one must follow when taking these deductions, and only one expense method may be used. Rule # 1: Adequate written records must be kept. These should provid …

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June 01, 2011Colorado Accounting: Depreciation Changes Likely
Category: Your Financial House, Rules and Regulations

Depreciation Changes Likely for Colorado Accounting - It is likely that this year will be the last year in which businesses can claim special depreciation on new asset purchases equal to 100% of the assets cost, if they are purchased new. This can add to significant tax savings in the 2011 tax year. With these tax savings unlikely to be extended into the future, businesses may wish to consider purchasing any new assets in the current year before this tax advantage is gone. Another depreciation change that may be coming is an increase in the tax lives for assets put in service in the fut …

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March 01, 2011Health Care Medical Deductions
Category: Your Financial House, Rules and Regulations

The Latest in Health Care Tax Deductions - Due to the health care act of 2010, in the near future it will become increasingly difficult to deduct health care expenses if you itemized on your tax return. With the current rate of medical expenses being deductible by the amount which exceeds 7.5% of your adjusted gross income, this rate will increase in 2013 to the amount that exceeds 10% of AGI and then in 2017 it will increase to 10% for individuals 65 and older. There are many expenses which the IRS deems qualifying medical expenses when itemizing, these include items such as health insuranc …

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February 26, 2011Adoption Tax Credit Changes
Category: Your Financial House, Rules and Regulations

Changes to the Adoption Tax Credit - There have been several changes to the adoption tax credit this year. Many of these changes are new to this year due to the passage of the health care reform bill. Several new opportunities for tax savings in both 2010 and 2011 have been created, yet all these savings expire after 2011 unless Congress takes further action to extend them. This addition to the adoption credit allows for a maximum tax credit of up to $13,360 per eligible child, to cover processing fees and other costs directly attributable to the adoption process, with the credit extend …

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February 18, 2011Important Information on Residential Energy Tax Credits
Category: Your Financial House, Rules and Regulations

Energy Tax Credit - What You Should Know! As you are beginning to prepare your taxes there are a couple of federal tax credits that you may want to consider this year as they may save your money. One of which you should look at for money savings is the residential energy tax credit. This tax credit can be up to $1,500 or 30% of the purchase price of items such as central air conditioning, energy efficient windows and doors.  If you have purchased any of these items during the year of 2010 be sure to take this into consideration while preparing your tax information. One unfort …

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January 26, 2011Tax Planning Basics
Category: Successful Practice Management, Your Financial House, Rules and Regulations

What You Should Know About Tax Planning - For the most part, significant tax issues may be avoided by careful planning and attention to your financial situation. The goal of any tax payer should be to pay the least amount of tax, but this philosophy may lead to errors or even create more of a tax liability than what was originally saved.  Tax returns filed by medical practices can be complicated, and leaving it up to Turbotax or H&R Block can have disastrous results. Usually the cost associated with hiring a CPA is made up several times over by the dollars saved on the tax …

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January 01, 20112011 Tax Due Dates
Category: Your Financial House, Rules and Regulations

Due Dates for the 2011 Tax Season: January 15, 2011 Individuals Pay fourth installment of estimated income tax for 2010, accompanied by Form 1040-ES and for CO Form 104-ES. Corporations and S-corporations (years ending October 31, 2010) File U.S. Corporation Income Tax Return, Form 1120, or U.S. Income Tax Return for an S Corporation, Form 1120S, or an application for extension of time to file, and pay the balance of the income tax, if any. Colorado corporations are due the same day as federal. A worksheet, Form 1120-W, is availab …

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December 28, 2010New Healthcare Bill - Penalties Enforced for Employers
Category: Successful Practice Management, Rules and Regulations

New Healthcare Bill - Penalties Enforced for Employers Due to the recent Healthcare bill there will be new penalties enforced that may affect employers with over 50 full-time employees, or full-time employee equivalents. These new penalties have been enacted to encourage employers to provide employees with either health insurance or another health plan that pays for 60% of their employee’s health care costs. If an employer fails to do this they will incur a $2,000 penalty for each employee beginning in 2014, with 30 employees being exempted from the calculation of the penalty. The gove …

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September 29, 2010Imaging Services: Medicare Spending Reduced
Category: Rules and Regulations

Imaging Services: Medicare Spending Reduced Provider payments from Medicare as it pertains to medical imaging procedures have changed since the passing of the Health Care Reform Act of 2010. The reasoning behind this is to curb Medicare spending on imaging services, which rose sharply from $6.6 billion in to $13.7 billion in 2006. The new legislation resulted in three changes, two of which are payment related, while the third deals with disclosing information. Effective in 2011, there will be a rise in the utilization rate assumption for calculating the payment for advanced imaging equ …

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August 11, 2010Physician Quality Reporting Initiative - Need to Know!
Category: Rules and Regulations

The Healthcare Reform Act of 2010 will bring many changes to Medicare payments to physicians. Most of these changes will occur in years after 2010, with the exception of payment amounts being increased for practices with low costs in 2010.   Starting in 2011, Physician Quality Reporting Initiative (PQRI) incentive payments will be increased by .5% every year until 2014. Whereas, if physicians do not participate in PQRI programs, they may face penalties in 2015. The Department of Health and Human Services (HHS) will be developing a ‘physician compare’ website, as well as appl …

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August 02, 2010Medicaid Undergoing Changes
Category: Rules and Regulations

Medicaid, the health program for eligible individuals and families with low incomes and resources will undergo several changes resulting from the Health Care Reform Act of 2010. The majority of these changes will be seen by the provider and are: Providers are allowed to be recognized as Accountable Care Organizations and share in cost savings on both the federal and state levels. Payment rates to primary care physicians will equal 100% of the Medicare payment rate in 2013 and 2014, this will be funded solely by the federal government. One new rule resulting from the act is tha …

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July 16, 2010Health Information Technology Extension Program
Category: Rules and Regulations

The Health Information Technology for Economic and Clinical Health (HITECH Act), created by ARRA, creates a Health Information Technology Extension Program.  The extension program consists of Health Information Technology Regional Extension Centers (RECs) and a nationwide Health Information Technology Research Center (HITRC). The HITRC is tasked with gathering information on effective practices and facilitating the RECs in working with one another, and with germane stakeholders to identify and share best practices in EHR adoption, successful use, and provider support. The RECs will supp …

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October 20, 2009Computer Crime and Abuse
Category: Rules and Regulations

Popular business press, from the Wall Street Journal, various cable news networks, other business magazines and websites; frequently publish stories about newly discovered cases of financial fraud relating to or carried out by using computers. KKB would like to increase awareness of these problems and aid in devising controls to prevent them or reduce the damage they can cause to your company. A computer crime is the manipulation of a computer or computer-generated data to dishonestly obtain something of value for personal gain, or to cause loss. Statement on Auditing Standards No. 99: Cons …

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September 17, 2009Estate Tax Changes
Category: Rules and Regulations

Estate tax is defined by the Internal Revenue service as "A tax on your right to transfer property at your death.  It consists of an accounting of everything you own or have certain interests in at the date of death." In 2001, Congress enacted sweeping changes to the estate tax, gradually increasing the exemption amount from $675,000 to $3,500,000 today in 2009.  Because this legislation passed in the Senate with fewer than 60 votes, the changes could not be made permanent.  If Congress does not address estate tax in 2009, the tax will disappear as of January 1, 2010, …

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August 18, 2009KKB's Take on Proposed Healthcare Reform
Category: Rules and Regulations

Healthcare Reform, or Health Insurance Reform as it is currently being called, is the hottest topic on many people's minds right now.  The House has passed a complex bill that is over 1,000 pages long; there are many, many provisions in this bill, and I doubt anyone can say that they know what it all means.  Democratic senators and congressmen rely on advisors who are guided by Mr. Obama's team for a political script for their public communications.  I wonder if any one of them has read the entire bill. There are provisions within the bill that are highly questionable, such as …

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August 13, 2009Identity Theft and Red Flag Rules
Category: Rules and Regulations

The Red Flag Rules were developed to address identity theft issues through creditor handling of personal consumer information.  In theory, finding identity theft early in source transactions and taking proactive steps to stop the damage should lessen financial losses to organizations, and protect consumers from becoming victims.  The FACT Act, of which the Red Flags Rules are a part, is a significant piece of legislation that amended the Fair Credit Reporting Act (FCRA) and requires businesses to implement the law through a number of regulations. According to the Federal Trade Commi …

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July 18, 20092009 Potential Tax Changes
Category: Rules and Regulations

2009 is shaping up to be active and perhaps even baffling year. The following paragraphs outline some of the key activities that seem to support this forecast. Our team of tax professionals at KKB will be following these and other changes as they occur.         Recently Nancy Pelosi, Speaker of the House of Representatives, said the House would have its version of healthcare reform out by July 31, 2009, yet no mention was made about how it would be funded.  The most pressing tax issue for 2009 is the existing estate tax exemption. On Ja …

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