Tax and Business Alert - January 2014



Welcome to this month's edition of the Tax and Business Alert. Our goal is to provide you with current articles on various tax and business topics. The articles are intended to keep you up to date on trends and issues that may impact your business and personal financial affairs. Please contact us if you have questions about any of the issues discussed.

Life Insurance as a Source of Funds for the Terminally Ill
An individual who is terminally or chronically ill and lacks funds to cover significant medical (e.g., experimental treatments) and other family expenses may find the solution through his or her life insurance policies. Although insurance policies have historically been held for the death benefits, some policies now include an accelerated death benefit (or living benefit) rider. Read more...

Tax Calendar
Important upcoming tax dates. Read more...

2014 Social Security Wage Base
The Social Security Administration announced the wage base for computing social security tax for 2014 will increase. Read more...

IRS Modifies FSA Use-it-or-lose-it Rule
Health Flexible Spending Account (FSA) contributions left over at the end of a plan year are forfeited to the employer under the "use-it-or-lose-it rule," ... However, the IRS will allow employers, for the first time, to amend their Section 125 cafeteria plan. Read more...

Additional 0.9% Medicare Tax
Individuals must pay an additional 0.9% Medicare tax on earned income above certain thresholds. Read more...

Structuring a Tax-free Incorporation
When forming a corporate entity, one method of capitalization is through a tax-free (actually, taxdeferred) exchange. Properly transferring property to a corporation delays the recognition of any gain on that property until a taxable event occurs (e.g., sale of the property or stock of the corporation, or liquidation of the corporation). Read more...

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This publication is distributed with the understanding that the author, publisher and distributor are not rendering legal, accounting or other professional advice or opinions on specific facts or matters, and, accordingly, assume no liability whatsoever in connection with its use. The information contained in this newsletter was not intended or written to be used and cannot be used for the purpose of (1) avoiding tax-related penalties prescribed by the Internal Revenue Code or (2) promoting or marketing any tax-related matter addressed herein. © 2014