INCOME TAX PLANNING FOR COMPLIANCE WITH ATRA

August 22, 2013

BNA INCOME TAX™

PLANNER

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SOFTWARE AT A GLANCE

EXPERT SOFTWARE

�Software for tax and accounting professionals designed by tax and accounting professionals

�Top-rated technical support

�More than 70,000 customers, including the IRS

• 92 of the Top 100 Accounting Firms

• 30% of the Fortune 1000

�BNA Income Tax™ Planner and BNA Fixed Assets™ earned the coveted 5-Star Rating by CPA Practice Advisor

FOR ALL YOUR TAX PLANNING NEEDS

Income Tax

Planner

Sales & Use

Tax Rates and

Forms

Estate & Gift

Tax Planning

Fixed Assets

Management

Corporate Tax

& Audit

Planning

Tax Forms

Software

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AMERICAN TAXPAYER RELIEF ACT OF 2012

2012 PROVIDED UNCERTAINTY FOR YOU AND YOUR CLIENTS.

� Tax Relief Act of 2010 tax extensions and AMT patch set to expire.

� The American Taxpayer Relief Act of 2012 solved this.

� The question then became, how do we best use what has been passed to our clients benefit.

BNA INCOME TAX™ PLANNER WEB

� Provides the most rapidly deployed, up-to-date calculations to ensure you are working with the current tax law.

� Focused exclusively on planning and not on preparation or compliance.

� BNA Income Tax Planner released an ATRA compliant version within a few weeks of the signed legislation.

USING BNA TO SOLVE ATRAQUESTIONS

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SELLING STOCK AND DONATING PROCEEDS VS. DONATING STOCK

CASE 1:� Set-up basics:

• Joint with 2 exemptions

• Resident: CA

� Ordinary Income• Wages

> Taxpayer: $115,000

> Spouse: $115,000

• Interest

> $4,000

> $9,000

� Itemized Deductions• State Income Taxes

> Resident - Auto

• Property Taxes

> Residential - $5,000

• Qualified Residence Interest

> Housing Interest - $16,000

CASE 2: � Scenario 1

• Sell Stock and Donate Cash

IMPACT• $5,434 in Medicare Investment Income

Tax due

• Higher regular tax rate

• AMT kicks in� Donating the cash proceeds has no impact

on Medicare investment income tax.

CASE 3: � Scenario 2:

• Donate Stock

IMPACT• Lower overall regular tax rate

• No additional taxes

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SELF-EMPLOYED

BEFORE ADJUSTMENT:

� Set-up basics: • Single with 1 exemption

• Resident: VA

� Ordinary Income• Self-employment income

> Taxpayer: $200,000

• Interest

> $720

• Dividends

> $2,400

� Capital Gain• $3,600

� Itemized Deductions• State Income Taxes

> Resident - Auto

• Property Taxes

> Residential - $4,000

• Qualified Residence Interest

> Housing Interest - $12,000

ADJUSTMENT 1:

� IRA to Roth Conversion

• $80,000

ADJUSTMENT 2:

� Additional self-employed income

• $40,000

IMPACT

� Almost doubles regular tax

� Triggers

• High-income Hospital tax

• Medicare Investment Income Tax

• AMT

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BNA INCOME TAX™ PLANNER

• The Most Trusted, Widely-Used Tax Planning Software

• Makes Tax Planning Effective, Accurate & Efficient

• Available with Secure, Anywhere, Anytime Web Access: BNA Income Tax Planner Web

• Ensure Data Security and Audit Compliance

• Makes Tax Planning Effective, Accurate & Efficient

LEARN MORE:

http://www.bnasoftware.com/IT