Master Accounting and Tax Service, LLC William Mease, MA, MBA, RTRP 2111 E. Baseline Rd. Ste. F-10 Tempe, Arizona 85283 (480) 456-4999 (Office) (480) 839-5161 (Fax) [email protected] January 18, 2014 Dear Valued Client: It is time to prepare your 2013 tax return! My new, fillable 2013 Tax Organizer can be downloaded from my website at www.masteracct.com. It is located on the resources page. Please use the organizer to help gather the documents and other information needed to prepare your tax return. Please complete this organizer and bring it with you when you bring your tax documentation. Also, please bring your disk that was provided to you last year. Please be aware of the tax deadlines in 2014: Form 1120 Form 1120S Calendar Year Corporation Tax Return - Extension Deadline Sub Chapter S Corporation Tax Return - Extension Deadline Form 1040 Individual Tax Return - Extension Deadline Form 1041 Form 1065 Trust Tax Return Partnership Tax Return - Extension Deadline - Extension Deadline Please call for an appointment as soon as you are sure you have received all of your tax documents to have your taxes prepared. The IRS requires that taxpayers obtain all of their documentation before having their taxes prepared. All necessary documentation to support all amounts included on your tax return are required. Please do not request to have your tax return prepared until you are absolutely sure that you have received all of your tax information for 2013. The IRS now requires tax return preparers to E-file all tax returns. With e-file, your return is filed immediately with the IRS and the state tax authority . Clients typically receive refunds within 10 days directly deposited into a checking or savings account. Payment for tax return preparation is due, or must be arranged through a split tax refund, PRIOR to you receiving your tax return and PRIOR to transmission of your tax return to the IRS. I accept cash, check, debit, VISA and MasterCard for payment. Please remember my for EVERY relative, friend, neighbor or co-worker you refer for the preparation of their INDIVIDUAL TAX RETURNS for EVERY BUSINESS you refer for the preparation of their BUSINESS TAX RETURNS (partnership, C-corporation, S-corporation) for EVERY BUSINESS you refer for regular BOOKKEEPING SERVICES for EVERY BUSINESS you refer for regular PAYROLL SERVICES Here is a summary of the major tax changes for 2013. 1. Same-Sex Married Couples – The IRS now recognizes this marital status, so same-sex couples can now file their tax return as married filing joint rather than as two single individuals. 2. Changes for High Income Taxpayers: a. Medicare earned income tax increase – Medicare tax is increased from 1.45% to 2.35% for those earning over $200,000 (single) and $250,000 (MFJ). b. New Medicare investment income tax – A surcharge of 3.8% is assessed on investment income for those with MAGI exceeding $200,000 (single) and $250,000 (MFJ). c. Itemized deduction limitation – For those with an AGI exceeding $250,000 (single) and $300,000 (MFJ), itemized deductions are reduced by 3% of the amount by which AGI exceeds the threshold amounts with some limitations. d. Personal exemption phase out – The personal exemption is reduced by 2% for each $2,500 in excess of AGI threshold amounts of $250,000 (single) and $300,000 (MFJ). e. Income tax bracket increase – Individuals with taxable income of $400,000 (single) or $450,000 (MFJ) will see an increase in their tax from 35% to 39.6%. f. Long-term capital gains and qualified dividends tax rate increase – The tax rate has increased on those items from 15% to 20% for individuals with taxable income exceeding $400,000(single) and $450,000 (MFJ). 3. New Property Regulations for Businesses - Generally, amounts paid to acquire, produce or improve tangible property must be capitalized, but amounts for incidental repairs and maintenance of property can be deducted, potentially saving owners more in the current year. 4. Easier Calculation for Home Office Deduction - The IRS only requires that a person claiming a home office deduction (having fulfilled the regular and extensive use and principal place of your business requirements) multiply the square-footage of their home office by $5 – the maximum deduction is $1,500. I encourage you to contact us and schedule an appointment to drop off your tax information as early as possible. Please do not wait until the last minute to have your taxes prepared. If you have any questions, or if we can be of assistance in any way, please do not hesitate to contact us. I look forward to seeing you again this year! Very Truly Yours, William Mease