Tax and financial advice from the Silicon Valley expert.

Health Care Act includes big Medicare Taxes for high income taxpayers

The most significant tax increase for high-income taxpayers, for Medicare taxes, will become effective in 2013. There will be an additional 0.9% Medicare tax on earned income exceeding $200,000 for single persons and $250,000 for married persons filing joint returns. In addition, at 3.8% Medicare tax will apply to certain UNEARNED income.

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Basic features of employee stock options

This week's interview on Financial Insider Weekly to be broadcast in San Jose and Campbell this Wednesday, March 31, is with John Olagues, owner of Truth In Options. We discuss basic features of employee stock options, including incentive stock options (ISOs), non-qualified stock options (NQOs) and employee stock purchase plans (ESPPs).

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Permitted investments for Roths and IRAs

It's easier to say what can't be held than what can be held in a Roth or IRA. You can't hold collectibles or life insurance contracts in a Roth or IRA. Roths and IRAs aren't permitted shareholders of S corporations, except for bank stock held on October 22, 2004, so S corporation stock generally is not a permitted investment for a Roth or IRA.

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Does your Roth or IRA owe an income tax?

Many people aren’t aware that “tax exempt” entities, including charities and retirement plans, are subject to income taxes on certain types of income, called “unrelated business income.” How to apply the tax rules for unrelated business income is one of the more complex sections of the income tax laws.

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Tax and financial advice from the Silicon Valley expert.