28 Jan / Dividend Tax increase for 2013
The Dividend tax increase to 20% starting in 2013 for certain high income earners.The threshold for married taxpayers is $450,000 while the threshold for single filers is $400,00. The IRS deems dividends as distributions of property by a corporation to its shareholders. The distribution is in regards to stock and is made from current or previous earnings. The distribution is made in the normal course of business operation and can be an amount that would be deems non ordinary. Although the dividend tax increase does not affect most taxpayers, it is a 5% increase from the previous year. Individuals impacted by the new dividend tax should consult their financial advisers to determine if their portfolios need to be reallocated.
Tax advice contained in this communication, including attachments and enclosures, is not intended or written to be used, and may not be used for the purpose of (i) avoiding tax related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein.