WithumSmith+Brown, PC | Certified Public Accountants and Consultants | BE IN A POSITION OF STRENGTH

BE IN A POSITION OF STRENGTHBE IN A POSITION OF STRENGTHBE IN A POSITION OF STRENGTHBE IN A POSITION OF STRENGTH SMSMSMSM

Presidential Tax Package & Healthcare Tax Update

Presented by:Presented by:Presented by:Presented by:

John Smith, Jr. & Hayley Shulman, CPAJohn Smith, Jr. & Hayley Shulman, CPAJohn Smith, Jr. & Hayley Shulman, CPAJohn Smith, Jr. & Hayley Shulman, CPA

NJ HFMA Finance Accounting Capital and Tax CommitteeNJ HFMA Finance Accounting Capital and Tax CommitteeNJ HFMA Finance Accounting Capital and Tax CommitteeNJ HFMA Finance Accounting Capital and Tax Committee

Tuesday, November 8, 2016Tuesday, November 8, 2016Tuesday, November 8, 2016Tuesday, November 8, 2016

APA Hotel WoodbridgeAPA Hotel WoodbridgeAPA Hotel WoodbridgeAPA Hotel Woodbridge

WithumSmith+Brown, PC | Certified Public Accountants and Consultants | BE IN A POSITION OF STRENGTH

BE IN A POSITION OF STRENGTHBE IN A POSITION OF STRENGTHBE IN A POSITION OF STRENGTHBE IN A POSITION OF STRENGTH SMSMSMSM1111

Today’s Presenters

Hayley L. Shulman, CPAHayley L. Shulman, CPAHayley L. Shulman, CPAHayley L. Shulman, CPASupervisor

Healthcare Services Group

hshulman@withum.com

973.532.8885

John A. Smith, Jr.John A. Smith, Jr.John A. Smith, Jr.John A. Smith, Jr.Supervisor

Healthcare Services Group

jsmith@withum.com

973.532.8875

WithumSmith+Brown, PC | Certified Public Accountants and Consultants | BE IN A POSITION OF STRENGTH

BE IN A POSITION OF STRENGTHBE IN A POSITION OF STRENGTHBE IN A POSITION OF STRENGTHBE IN A POSITION OF STRENGTH SMSMSMSM2222

Agenda

Presidential Candidates’ Tax PlansPresidential Candidates’ Tax PlansPresidential Candidates’ Tax PlansPresidential Candidates’ Tax Plans

2016 Tax Return Due Date Changes2016 Tax Return Due Date Changes2016 Tax Return Due Date Changes2016 Tax Return Due Date Changes

IRS Compliance Checks regarding IRC IRS Compliance Checks regarding IRC IRS Compliance Checks regarding IRC IRS Compliance Checks regarding IRC §§§§501(r)501(r)501(r)501(r)

Public Charity Status & Supporting OrganizationsPublic Charity Status & Supporting OrganizationsPublic Charity Status & Supporting OrganizationsPublic Charity Status & Supporting Organizations

Current Healthcare Industry “Hot Topics”Current Healthcare Industry “Hot Topics”Current Healthcare Industry “Hot Topics”Current Healthcare Industry “Hot Topics”

WithumSmith+Brown, PC | Certified Public Accountants and Consultants | BE IN A POSITION OF STRENGTH

BE IN A POSITION OF STRENGTHBE IN A POSITION OF STRENGTHBE IN A POSITION OF STRENGTHBE IN A POSITION OF STRENGTH SMSMSMSM

withum.comwithum.comwithum.comwithum.com

PART ONE

Presidential

Candidates’ Tax Plans

PART ONE

Presidential

Candidates’ Tax Plans

WithumSmith+Brown, PC | Certified Public Accountants and Consultants | BE IN A POSITION OF STRENGTH

BE IN A POSITION OF STRENGTHBE IN A POSITION OF STRENGTHBE IN A POSITION OF STRENGTHBE IN A POSITION OF STRENGTH SMSMSMSM4444

Presidential Candidates

WithumSmith+Brown, PC | Certified Public Accountants and Consultants | BE IN A POSITION OF STRENGTH

BE IN A POSITION OF STRENGTHBE IN A POSITION OF STRENGTHBE IN A POSITION OF STRENGTHBE IN A POSITION OF STRENGTH SMSMSMSM5555

What’s at Stake?

TrumpTrumpTrumpTrump would cut taxes by $5.9T over the next ten years.

ClintonClintonClintonClinton would raise taxes by $1.5T over the next ten years.

Thus, there is as much as a $7.5T swing in tax revenue at

stake in this election!

WithumSmith+Brown, PC | Certified Public Accountants and Consultants | BE IN A POSITION OF STRENGTH

BE IN A POSITION OF STRENGTHBE IN A POSITION OF STRENGTHBE IN A POSITION OF STRENGTHBE IN A POSITION OF STRENGTH SMSMSMSM6666

Ordinary Income Tax Rates

Current LawCurrent LawCurrent LawCurrent Law

• Under current law, there are seven tax brackets:

10%, 15%, 25%, 28%, 33%, 35%, 39.6%

Clinton’s PlanClinton’s PlanClinton’s PlanClinton’s Plan

• Retains these seven brackets

• Fair Share Surcharge - adds a 4% surcharge on income in excess of $5M

• Top rate would become 43.6%.

Trump’s PlanTrump’s PlanTrump’s PlanTrump’s Plan

• Reduces the seven brackets to three rates of: 12%, 25% and 33%.

• The top rate of 33% would apply to income more than $225K for MFJ and $112.5K for single filers.

Wages, interest income and income from self-employment are taxed at “ordinary

income rates.” These rates are progressive; increasing as income rises.

WithumSmith+Brown, PC | Certified Public Accountants and Consultants | BE IN A POSITION OF STRENGTH

BE IN A POSITION OF STRENGTHBE IN A POSITION OF STRENGTHBE IN A POSITION OF STRENGTHBE IN A POSITION OF STRENGTH SMSMSMSM7777

Top Rate on Capital Gains

Current LawCurrent LawCurrent LawCurrent Law

• If held longer than one year -taxed at preferential rates.

• Under current law, these preferential rates reach a high of 20%.

Clinton’s PlanClinton’s PlanClinton’s PlanClinton’s Plan

• Top rate on capital gains at 24% for taxpayers with income in excess of $5M.

• High income taxpayers must hold a capital asset for 6 years before being entitled to the 24% rate.

Trump’s PlanTrump’s PlanTrump’s PlanTrump’s Plan

• Retains the current top rate on capital gains of 20%.

Gain from the sale of certain capital assets (i.e. corporate stock or your principal

residence).