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<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0><tr> <td valign="top" height=90 BGCOLOR="#BF00BF" TEXT="#080000"> <div> <FONT SIZE="5" COLOR="#FFFFFF" FACE="Arial" ><B>Pro Training llc</B></FONT><B>  </B><B>   |    </B><FONT SIZE="4" COLOR="#FFFBF0" FACE="Arial" ><B>Arcived News You Can Use.</B></FONT></div> <div> back to                                                     </div> <div> </div> </td> </tr><tr> <td valign="top" height=390 BGCOLOR="#FFFFFF" TEXT="#080000"> <div> <B>Arcived News You Can Use.</B></div> <div> <I><B><U> <A NAME="new_tax_laws"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="1" ALIGN="bottom" WIDTH="1" HSPACE="0" VSPACE="0" ></A></U></B></I><I><B><U>New Tax Laws</U></B></I></div> <div> Don't forget to get the vote out in November and get some of these career<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>folks out of Washington.</div> <div> To verify the following<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>new tax information,<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>scroll down to the end and</div> <div> check it out...<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>this is not a political slam, just facts!</div> <bR> <div> In just six months, the<FONT SIZE="3" COLOR="#000080" FACE="Arial" > </FONT>largest tax hikes in the history of America<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>will take effect. They will hit families and small businesses in three great waves on<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>January 1, 2011:</div> <bR> <div> <B><U>Medical Deductions</U></B></div> <div> I do not want you to be surprised, 2011 we will be losing a lot of our deductions and credits. If you are use to collecting your medical recipes well next year you will have to have spent more then 10% of your adjusted gross income (AGI). This year and in the past it was 7.5% of your AGI</div> <bR> <div> <B>Tax Rate Change</B></div> <div> In 2001 and 2003, the GOP Congress enacted several tax cuts for investors, small business owners, and families.<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>These will all expire on January 1, 2011:</div> <div>  </div> <div> Personal income tax rates will rise.<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>The top<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>income tax rate will rise from 35 to 39.6 percent (this is also the<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>rate<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>at which two-thirds of small business profits are taxed).<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>The<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>lowest rate will rise from 10 to 15 percent.<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>All the rates in<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>between will also rise.<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>Itemized deductions and personal exemptions<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>will again phase out, which has the same mathematical effect as higher marginal tax rates.<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>The full list of marginal rate hikes is below:</div> <div>  </div> <div>  <FONT SIZE="3" COLOR="#000000" FACE="Arial" >- The 10% bracket rises to an expanded 15%</FONT></div> <bR> <div>  <FONT SIZE="3" COLOR="#000000" FACE="Arial" >- The 25% bracket rises to 28%</FONT></div> <bR> <div>  <FONT SIZE="3" COLOR="#000000" FACE="Arial" >- The 28% bracket rises to 31%</FONT></div> <bR> <div>  <FONT SIZE="3" COLOR="#000000" FACE="Arial" >- The 33% bracket rises to 36%</FONT></div> <bR> <div>  <FONT SIZE="3" COLOR="#000000" FACE="Arial" >- The 35% bracket rises to 39.6%</FONT></div> <bR> <div> <B><U>Higher taxes on marriage and family</U></B>:</div> <div> The<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>marriage penalty (narrower tax brackets for married<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>couples) will return from the first dollar of income.<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>The child tax<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>credit will be cut in half from $1000 to $500 per child.<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>The standard deduction will no longer be doubled for married couples<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>relative<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>to the single level. Dependent care and adoption tax credits<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>will be cut.</div> <bR> <div> <B>The return of the Death Tax</B></div> <div> This year, there is no death tax.<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>For those dying on or after January 1</div> <div> 2011, there is a 55 percent top death tax rate on estates over $1 million.<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>A person leaving behind two<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>homes and a<FONT SIZE="2" COLOR="#000000" FACE="Tahoma" > retirement</FONT><FONT SIZE="2" COLOR="#1F497D" FACE="Tahoma" > </FONT><FONT SIZE="2" COLOR="#000000" FACE="Tahoma" >account could easily pass along a death tax bill to their loved ones.</FONT></div> <bR> <div> <B><U>Higher tax rates on savers and investors:</U></B></div> <div> The capital gains tax will rise from 15 percent this year to 20 percent in</div> <div> 2011. The dividends tax will rise from 15 percent this year to 39.6 % in 2011. These rates will rise another 3.8 percent in 2013.</div> <bR> <div> <B>The Medicine Cabinet Tax</B></div> <div> Thanks to the healthcare bill, Americans will no longer be able to use health</div> <div> savings account (HSA), flexible spending account (FSA), or health</div> <div> reimbursement (HRA) pre-tax dollars to purchase non-prescription,</div> <div> over-the-counter medicines (except insulin).</div> <bR> <div> <B><U>The HSA Withdrawal Tax Hike</U></B></div> <div> This provision of the bill increases the additional tax on non-medical<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>early withdrawals from an HSA from 10 to 20 percent, disadvantaging them relative to<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>IRAs<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>and other tax-advantaged accounts, which remain at 10 percent.</div> <bR> <div> <B><U>The Alternative Minimum Tax</U></B><B> </B><B><U>&</U></B><B> </B><B><U>Employer Tax Hikes</U></B></div> <div> When Americans prepare to file their tax returns in January of 2011,</div> <div> they'll be in for a nasty surprise-the AMT won't be<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>held harmless, and many tax relief provisions will have expired.</div> <bR> <div> <B><U>The AMT</U></B><FONT SIZE="3" COLOR="#1F497D" FACE="Arial" ><B> </B></FONT><B><U>will ensnare over 28 million families, up from 4 million last</U></B><FONT SIZE="3" COLOR="#1F497D" FACE="Arial" ><B> </B></FONT><B><U>year</U></B></div> <div> According to the left-leaning Tax Policy Center, Congress<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" >'</FONT> failure to</div> <div> index the AMT will lead to<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>an explosion of AMT taxpaying families-rising from 4 million last year to 28.5 million.<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>These families will have to calculate their<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>tax burdens twice, and pay taxes at the higher level.<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>The AMT was<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>created in 1969 to ensnare a handful of taxpayers.</div> <bR> <div> <B><U>Small business expensing will be slashed and 50% expensing will</U></B></div> <div> <B><U>disappear.</U></B><B> </B></div> <div> Small businesses can normally expense (rather than slowly-deduct, or</div> <div> depreciate equipment purchases up to $250,000.<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>This<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>will be cut all the way down to $25,000.<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>Larger businesses can<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>expense half of their purchases of equipment.<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>In January of 2011,<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>all of it will have to be depreciated.</div> <div>  </div> <div> <B><U>Taxes will be raised on all types of businesses</U></B></div> <div> There are literally scores of tax hikes on business that will take</div> <div> place.<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>The biggest is the loss of the research and<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>experimentation tax credit, but there<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>are many, many<FONT SIZE="2" COLOR="#000000" FACE="Tahoma" > others.</FONT><FONT SIZE="2" COLOR="#1F497D" FACE="Tahoma" > </FONT><FONT SIZE="2" COLOR="#000000" FACE="Tahoma" >Combining high marginal tax rates with</FONT><FONT SIZE="2" COLOR="#1F497D" FACE="Tahoma" > </FONT><FONT SIZE="2" COLOR="#000000" FACE="Tahoma" >the loss of this tax relief will cost jobs.</FONT></div> <bR> <div> <B>Tax Benefits for Education and Teaching Reduced</B></div> <div> The deduction for tuition and fees will not be available.<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>Tax credits</div> <div> for education will be limited.<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>Teachers will no longer be able to</div> <div> deduct classroom expenses.<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>Coverdell Education Savings Accounts</div> <div> will be cut.<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>Employer-provided educational assistance is<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>curtailed.<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>The student loan interest deduction will be disallowed<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>for hundreds of thousands of families.</div> <bR> <div> Charitable Contributions from IRAs no longer allowed. Under current law, a retired person with an IRA can contribute up to<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>$100,000 per year directly to a charity from their IRA.<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>This contribution also counts toward an annual required minimum<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>distribution.<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>This ability will no longer be there!</div> <div>  </div> <div> PDF<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>Version<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>to read<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>more:<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" >  </FONT>http://www.atr.org/six-months-untilbr-largest-tax-hikes-a5171#%23ixzz0s</div> <bR> <div> <FONT SIZE="2" COLOR="#1F497D" FACE="Arial" > </FONT><B><U>Now your</U></B><B> </B><B><U>insurance is INCOME on your W2's!</U></B></div> <div>  </div> <div> One of the surprises<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>we'll find come next year, is what follows <FONT SIZE="3" COLOR="#1F497D" FACE="Arial" >- </FONT>a little</div> <div> "surprise" that 99% of us had no idea was included in the<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>"new and improved" healthcare legislation . . . those who backed this administration will be<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>astonished!</div> <div>  </div> <div> Starting in 2011, (next year folks), your W-2 tax form sent by<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>your employer will be increased to show the value of whatever<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>health insurance you are given by the company. It does not<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>matter if that's a private concern or governmental body of<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>some sort.<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>If you're retired,<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>so what; your gross<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>will go up by the amount of insurance you get!</div> <div>  </div> <div> You will be required to pay taxes on a large sum of money that<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>you<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>have never seen.<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>Take your tax form you just finished<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>and see what $15,000 or $20,000 additional gross does to your<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>tax debt.<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>That's what you'll pay next year.<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>For<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>many, it also puts you into a new higher bracket so it's even<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>worse.</div> <div>  </div> <div> This is how the government is going to buy insurance for the15%</div> <div> that don't<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>have insurance and its only part of the tax increases.</div> <bR> <div> Not believing this???<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>Here is a research of the<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>summaries...</div> <bR> <div> <B>On page 25 of 29: TITLE IX REVENUE</B><FONT SIZE="2" COLOR="#1F497D" FACE="Tahoma" ><B> </B></FONT><FONT SIZE="2" COLOR="#000000" FACE="Tahoma" ><B>PROVISIONS- SUBTITLE A: REVENUE OFFSET PROVISIONS.</B></FONT></div> <div> sec. 9001,<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>as modified by sec. 10901) Sec.9002<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>"requires employers</div> <div> to include in the W-2 form of each employee the aggregate cost<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>of<FONT SIZE="3" COLOR="#1F497D" FACE="Arial" > </FONT>applicable employer sponsored group health coverage that is</div> <div> excludable from the employees gross income."</div> <div>  </div> <bR> <div> Thank you for reading. Please stay in touch. I look forward to hearing from you. Please respond with comments and questions.</div> <bR> <div> If you wish to no longer hear from me please respond with “Cancel” in the subject line.</div> <bR> <div> Cindy Baucom</div> <div> <A HREF="mailto:cindybaucom@yahoo.com" TARGET="_top" TITLE="mailto:cindybaucom@yahoo.com"><U><U>cindybaucom@yahoo.com</U></U></A></div> <div> 704-249-2781</div> <bR> <bR> </td> </tr></table></body>