By Paul Majors, CPA
Recently the Internal Revenue Service released the final instructions for the 3.8 percent Net Investment Income Tax, or NIIT, that was included as part of the Affordable Care Act. The tax took effect on January 1, 2013 and while it has lately been the topic of many discussions in the financial community, it can be very confusing.
What exactly is the Net Investment Income Tax and who is subject to it?
This provision in the Affordable Care Act imposes a 3.8 percent tax on unearned income. This includes interest, dividends, annuities, royalties and rents which are not derived in the ordinary course of trade or business, including passive income from S corporations or partnerships.view full article
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SB&F Recent News
Sanford, Baumeister & Frazier, LLP (SB&F) announced today that its partner, Allyson Baumeister, CPA, CGMA, has been elected as 2015-2016 chairman for the Texas Society of Certified Public Accountants (TSCPA).
“We are so excited for Allyson. She works tirelessly, always providing her clients with creative resolutions,” said Rick Baumeister, managing partner at SB&F. “She is an invaluable member of our team at SB&F. TSCPA members could not have elected a better choice for the next TSCPA chairman.” (Read More)
Specialty Parts and Electronic Components, Inc., as the name suggests, specializes in providing its customers with difficult to find, older items. It also sells commercial aircraft parts and electronic components. They are a family-owned and -operated business and because of that, Specialty Parts understands the importance of family.
In fact, two afternoons a week, one employees’ six-month old baby comes to the office with him.
“We would hate for her to go to a daycare center so soon,” said Julie Graham, Specialty Parts and Electronic Components owner. “Honestly, we all love her to death. She gets passed around the office so much that she barely affects anyone’s work!” (read more)