This document provides a summary and overview of new tax legislation under the American Taxpayer Relief Act of 2012 and the Patient Protection and Affordable Care Act. It outlines changes to the top marginal tax rates, capital gains rates, deductions, exclusions, and new Medicare taxes on wages and investment income for high-income taxpayers.

1. Presented by
Roy Vargis CPA CMA CFM CITA EA ACMA CGMA
Nexus Management Group, Ltd.
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2. Disclaimer
This publication contains general information only, and none of Nexus Management
Group, Ltd. and their affiliates are by means of this publication, rendering accounting,
business, financial, investment, legal, tax, or other professional advice or services. This
publication is not a substitute for such professional advice or services, nor should it be
used as a basis for any decision or action that may affect your finances or your business.
Before making any decision or taking any action that may affect your finances or your
business, you should consult a qualified professional adviser. None of Nexus
Management Group, Ltd., and their respective affiliates shall be responsible for any loss
whatsoever sustained by any person who relies on this publication.
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS,
we inform you that any U.S. federal tax advice contained in this communication
(including any attachments) is not intended or written to be used, and cannot be used,
for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii)
promoting, marketing or recommending to another party any transaction or matter
addressed herein.
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3. Agenda
New Legislation
Quick Snapshot of the changes
Marginal Tax Bracket
Medicare and net investment income tax
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4. New Legislation
American Taxpayer Relief Act 2012
Effective January 1, 2013
Patient Protection and Affordable Care Act
Obama Care.
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5. A Quick Snapshot
Key Tax Changes
2012
2013
35%
39.6%
Long term capital gains
rate and qualified
dividend tax rates
0%
(for 10% and 15% tax
brackets)
15%
(for 25%-35% tax
brackets)
0%
(for 10% and 15% tax
brackets)
15%
(for 25%-35% tax
brackets)
20%
(for 39.6% tax bracket)
Itemized deduction and
personal exemption
phase out
NO
YES
For incomes $200,000 –
single and $300,000 married
Medicare tax on
wages/net investment
income
NO
Yes
For incomes $200,000 –
single and $250,000 married
Top income tax rates
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6. Quick Snapshot cont..
Key Tax Changes
2012
2013
Medical expense
itemized deduction
7.5% of AGI
10% of AGI
Estate, gift and GST
exclusion
5.12 Million
$5.25 Million
Top Estate Tax rate
35%
40%
$13,000
$14,000
Annual gift tax
exclusion
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7. Marginal Tax Bracket
Single
Percentage
Married
$0-$8,925
10%
$0-$17,850
$8,925 -$36,250
15%
$17,850-72,500
$36,250-$87,850
25%
$72,500-$146,400
$87,850-$183,250
28%
$146,400-$223,050
$183,250-$398,350
33%
$223,050-$398,450
$398,350-400,000
35%
$398,450-$450,000
$400,000 +
39.6%
$450,000 +
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8. Medicare tax and Investment income
• 0.9% increase for wages or self-employment
income over the threshold
• 3.8% new tax rate on investment income
when MAGI exceeds threshold
Applies to “high income taxpayers”
Single – MAGI is greater than $200,000
Joint - MAGI is greater than $250,000
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9. Net investment income includes
• Taxable interest
• Dividends
• Capital gains
• Annuity income
• Income from passive activities
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10. Thank You
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