Webinar Slides: Second Quarter 2016 Accounting Update

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CBIZ & MHM Executive Education Series

Second Quarter Accounting and Financial Reporting Update Mike Loritz, Mark Winiarski, Stephen Henley July 7 & July 20, 2016

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About Us

Together, CBIZ & MHM are a Top Ten accounting provider Offices in most major markets Tax, audit and attest* and advisory services Over 2,900 professionals nationwide

A member of Kreston International A global network of independent accounting firms

*MHM is an independent CPA firm providing audit, review and attest services, and works closely with CBIZ, a business consulting, tax and financial services provider.

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Before We Get Started

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CPE Credit

This webinar is eligible for CPE credit. To receive credit, you will need to answer periodic participation markers throughout the webinar. External participants will receive their CPE certificate via email immediately following the webinar.

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Disclaimer

The information in this Executive Education Series course is a brief summary and may not include all

the details relevant to your situation.

Please contact your service provider to further discuss the impact on your business.

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Presenters

Mike has 18 years of experience in public accounting with diversified

financial companies and other service based companies, including

banking, broker/dealer, investment companies, and other diversified

companies ranging from audits of public entities in the Fortune 100 to

small private entities.

He is the Director of the Audit Resource Group and a member of MHM's

Professional Standards Group, providing accounting knowledge

leadership in the areas of derivative financial instruments, complex

financial instruments, share-based compensation, fair value, debt/equity

and others.

913.234.1226 [email protected]

MIKE LORITZ, CPA MHM Shareholder

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Presenters

Mark is a member of our Professional Standards Group (PSG). Mark's

role includes instructing in the national training programs, serving as a

subject matter expert at webinars and conferences, and preparing MHM

publications on accounting and auditing issues.

As a PSG member , Mark consults with clients and engagement teams

across the country in many areas of accounting and auditing. Mark has

served clients as an auditor, consultant and advisor in numerous

industries including manufacturing, distribution, mining, retail sales,

services and software.

913.234.1656 [email protected] @KCWini

MARK WINIARSKI, CPA MHM Shareholder

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Presenters

Steve Henley is the National Tax Practice Leader for CBIZ. Steve's

responsibilities include developing and implementing strategies for the

successful operation of the tax practice, including national support for

the CBIZ MHM's local tax practices through the National Tax Office.

770.858.4500 [email protected]

STEPHEN HENLEY National Tax Practice Leader

CBIZ

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Agenda

Final Accounting Standards Updates

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Other Financial Reporting Updates

Federal Tax Update

Questions

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Final Accounting Standards Updates

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FASB - Overall Themes

Finalizing major projects Revenue recognition Financial instruments Credit losses

Exposure documents on several smaller projects

Expect the active board to continue

Eight scheduled exposure documents Three scheduled final standards

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Revenue Recognition Timeline

* First applicable reporting date for calendar year entity

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Revenue (Topic 606): Identifying Performance Obligations and Licensing (ASU 2016-10)

Issues Addressed Identifying performance obligations

Materiality Shipping and handling Separation

Licensing Method of recognition Scope Separation

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Revenue (Topic 606): Narrow-Scope Improvements and Practical Expedients (ASU 2016-12)

Issues Addressed Collectability Sales taxes Noncash consideration Transition guidance

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Topic 606: Identifying Performance Obligations and Licensing

1 Identify the contract(s) with a customer.

2 Identify the performance obligations in the contract.

3 Determine the transaction price.

4 Allocate the transaction price to the performance obligations in

the contract.

5 Recognize revenue when (or as) the entity satisfied a

performance obligation.

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Revenue (Topic 606): Assessing Materiality

Do you have to assess all goods and services in a contract? Exclude goods or services that are immaterial in

the context of the contract

2

What is immaterial?

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Assume a customer walks into a store and purchases a light fixture for $150 from an entity. The following are included with the fixture:

Light fixture Free light bulb Instruction manual Standard warranty 1-800 support number

2

What goods and services in the contract?

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What if? Assume the light bulb is immaterial.

Costs $4

Retails for $5

The customer receives the light fixture in the store and the light bulb is out of stock and to be shipped in a month

2

How much revenue does the selling entity recognize when the customer leaves the store?

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Material rights cannot be assessed as immaterial in the context of a contract

Assume as a marketing incentive, the customer also receives a card which entitles them to a free light fixture when the purchase four additional light fixtures

2

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Revenue (Topic 606): Shipping and Handling

New accounting policy election Treat shipping and handling as a fulfillment

activity

Only applies to shipping that occurs after the customer obtains control of the good

Related costs are accrued if revenue is recognized before shipping costs are incurred

Shipping and handling services provided before the customer obtains control of a good are fulfillment activities.

2

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Revenue (Topic 606): Distinct Goods and Services

A good or service is distinct if: The customer can benefit from the good or

service on its own

The promise is separately identifiable i.e. the promise to transfer the good or service is distinct in the context of the contract

2

Is the nature of the promise to transfer each good or service individually or to transfer a

combined item?

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Factors that indicate a good or service is not distinct in the context of a contract: The entity provides significant integration

service

May include multiple phases, elements, or units

One good or service modifies or customizes another

The goods or services are highly interdependent or interrelated

2

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An entity sells a conveyor belt to a customer and contracts to install the equipment Installation is not complex The entity could contract with alternative vendors

to install the conveyor belt

2

How many performance obligations does the entity identify?

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What if the contract requires the customer to obtain installation services from the entity?

What if the contract calls for engineering a unique conveyor system to create an efficient manufacturing process and build the customized conveyor system?

2

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Revenue (Topic 606): Licensing Intellectual Property

Functional IP Right to use Stand alone

functionality Examples:

Most software Music Drug formulas

5 Symbolic IP Right to access Utility is derived from

past or ongoing activities

Examples Brands Trademark Franchise

Satisfied at a point in time Satisfied over time

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Functional IP Right to use the IP as it exists at a point in time,

except when: Functionality is expected to substantially change in a

way that does not result in an additional promised good or service, and

The customer is contractually or practically required to update the IP

5

Functional IP has significant stand alone value, support and maintenance are separate performance obligations.

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Symbolic IP Customers benefit depends on continuing

support or maintenance from the selling entity

Support/maintenance involves: Continuing activities that the IP derives its utility

from, or

Refraining from activities that would degrade the IPs utility

5

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Identifying a Licenses Attributes An entity sells the right to broadcast a movie once a year during Thanksgiving for each of the next five years.

5

2

How does the restriction on when the movie can air impact the number of performance obligations and when

revenue should be recognized?

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Revenue (Topic 606): Royalty

Sales and usage based royalties are recognized over time When the royalty is only related to intellectual

property, or Predominantly relates to intellectual property

Otherwise sales and usage based royalties are

subject to the guidance on variable consideration

3

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Revenue (Topic 606): Collectability

Criteria for the existence of a contract in the scope of the 5-step method: Approved and committed to Identifiable rights Identifiable payment terms Commercial substance Probable of collection of substantially all of the

consideration that will be transferred to the customer

1

Assessment is performed at contract inception and continually updated until all of the criteria are met.

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Revenue (Topic 606): Collectability

Evaluating probability of collection Payment terms Ability to stop the transfer of goods or services Repossession

Revenue for contracts that do not meet the

criteria may only be recognized when one of three scenarios occur

Revenue is not recognized using the cash method.

1

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Revenue Recognition for Contracts with Customers Not in Scope

1. No remaining obligations to transfer goods or services, and

Substantially all of the consideration has been received and is nonrefundable, or

2. The contract has been terminated, and Consideration received is nonrefundable, or 3. Consideration has been received for the goods or

services transferred and Ceased transferring goods or services, and Consideration received is nonrefundable

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Revenue (Topic 606): Sales Taxes

Taxes collected on behalf of third parties are required to be presented net Evaluate whether the entity or the customer is primarily

obligated for the sales tax

Added an accounting election to exclude all government imposed taxes on specific revenue producing transactions from the transaction price Sales taxes Use taxes Value added taxes Some excise taxes

3

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Revenue (Topic 606): Noncash Consideration

On May 15, an entity contracts to sell to a customer transaction advisory services in exchange for 10,000 shares of stock if the transaction is completed by November 15, or 7,500 shares of stock if the transaction is completed by December 31. The transaction is completed October 31. The shares value is: May 15: $10 per share October 31: $12 per share November 15: $11 per share

3

What amount of revenue should ultimately be recognized?

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Revenue (Topic 606): Transition

Additional practical expedient Aggregate all modifications prior to the earliest

period presented under Topic 606 for determining

Performance obligations (Step 2) Transaction price (Step 3) Allocation of the transaction price (Step 4)

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Revenue (Topic 606): Transition

Definition of a completed contract Contracts in which substantially all revenue was

recognized under legacy GAAP (Topic 605) before initial application of Topic 606

Do not consider accounting for contract elements that were not relevant to the legacy GAAP

Modified retrospective transition may be applied to all contracts or only those contracts that are not completed contracts

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Revenue (Topic 606): Technical Corrections

Under retrospective transition an entity is not required to present the effect of the accounting change on the year of adoption

Retains the requirement to present the effect of the accounting change on prior periods

Proposal to provide practical expedient to not disclose aggregate transaction price information for variable consideration when variable consideration is:

A sales or usage based royalty for IP Allocated to a wholly unsatisfied performance obligation or

distinct good or service in a performance obligation

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Rescission of Previous SEC Staff Guidance (ASU 2016-11)

Upon adoption of Topic 606 the following guidance is rescinded: Revenue an expense recognition for freight services in

process Accounting for shipping and handling fees and costs Accounting for consideration given by a vendor to a

customer Accounting for gas-balancing arrangements

(entitlements method)

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Current Expected Credit Loss (ASU 2016-13)

Changes accounting from incurred loss model to an expected loss model affecting financial assets measured at amortized cost Trade receivables Loans Held-to-maturity debt securities Loan commitments Financial guarantees Net investments in leases Reinsurance

Under existing US GAAP losses are generally recognized when they are probable to have occurred.

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Expected losses over the life of the are based on factors including: Historical information Current information Forecasts Estimates of prepayments

Expected losses are the current estimate of all expected credit losses eliminating the probable threshold.

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Available-for-Sale Debt Securities (ASU 2016-13)

Measurement of expected credit losses is similar to the existing impairment model, however The concept of other-than-temporary impairment is

eliminated Expected losses cannot exceed the fair value of the

debt security Expected losses are recognized as an allowance Allowance may be reversed into current earnings

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Purchased Credit Impaired Financial Assets (ASU 2016-13)

Financial assets purchased with existing more than insignificant credit deterioration will also follow the expected credit loss model Except the initial allowance is added to the purchase

price rather than reported as a credit loss

The purchased credit impaired asset is initially recorded at a gross amount with an allowance account.

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Effective date Public companies calendar year ended December 31,

2020, including interim periods within All other entities calendar year ended December 31,

2021 Early adoption permitted in calendar year ended

December 31, 2019 Modified retrospective approach (cumulative catch-

up) Prospective accounting for debt securities with prior

other-than-temporary impairments

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Other Financial Reporting Updates

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Exposure Drafts

Statement of cash flows: Restricted Cash Require the inclusion of restricted cash in the beginning

and ending balance of cash on the cash flow statement Disclosure of the location of restricted cash in the

balance sheet

Simplifying the accounting for goodwill impairment Eliminate Step 2 of the goodwill impairment test

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Exposure Drafts

Consolidation: Indirect interests held by related parties under common control in the variable interest entity model Modify the evaluation of whether a decision maker is the

primary beneficiary by only including a proportionate share of the obligation to absorb losses or right to receive benefits for interests held by all related parties

Gains and losses from derecognition of nonfinancial assets Defines insubstance nonfinancial assets Establishes a full fair value method for partial sales

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FEDERAL TAX UPDATE

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Candidates Tax Plans

Donald Trump Hillary Clinton Bernie Sanders

Corporate Tax Top rate of 15%

No change to rate structures. Provide tax credits for businesses that invest in community development and infrastructure. Provide tax credits for businesses that hire apprentices or share profits with employees.

No major changes.

Pass-Through Entities

No business income taxed at a rate higher than 15%.

No change.No provisions other than changes to individual rates.

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Donald TrumpTed CruzJohn KasichHillary ClintonBernie Sanders

Corporate TaxTop rate of 15%.16% flat tax on net business sales (gross sales minus expenses and capital expenditures).Maximum rate of 28% or less. Double the R&D credit for small business (under $20 million). All investment in plant and equipment expensed instead of depreciated.No change to rate structures. Provide tax credits for businesses that invest in community development and infrastructure. Provide tax credits for businesses that hire apprentices or share profits with employees.No major changes

Pass-Through EntitiesNo business income taxed at a rate higher than 15%.10% flat tax on individuals Pass-through income capped at 28% rate. All investment in plant and equipment expensed instead of depreciated.No changeNo provisions other than changes to individual rates.

Payroll TaxesNo provisionEliminateNo provisionNo provisionEnact a new 6.2 percent payroll tax paid by employers on the same tax base as the current Medicare hospital insurance (HI) payroll tax. Extend the Social Security payroll tax (combined employee and employer rate of 12.4 percent) to earnings over $250,000. Enact a new 0.2 percent payroll tax paid by both employees and employers on the same tax base as the current Social Security payroll tax.

Individual TaxSingle and earn less than $25,000, or married and jointly earn less than $50,000, no income tax. All others: four brackets 0%, 10%, 20% and 25%. No marriage penalty10% flat tax. Payroll tax eliminated. Family of four pays no tax on first $36,000 of income.Three brackets with top rate of 28%. Capital gains taxed at 15%. Increase EIC by 10%. Tax carried interests as ordinary income. Enact Buffet Rule 30% minimum tax on high income (>$1 million AGI) indviduals. Surcharge of 4% on AGI over $5 million. Extend the current college tuition tax credit. Sliding scale benefit of long term capital gains; must hold 6 years for full benefit.Maximum rate of 28%, plus 2.2% surtax on all income. Surtaxes on higher AGI: 9% between $200K-$500K (marginal rate: 37%); 15% between $500k - $2 million (marginal rate: 43%); 20% between $2 mllion - $10 million (marginal rate: 48%) and 24% over $10 million (marginal rate: 52%). Capital gains and qualified dividend preferred rates apply only to those in 28% bracket or below.

Exemptions, Deductions and CreditsThose within the 10% bracket will keep all or most of their current deductions. Those within the 20% bracket will keep more than half of their current deductions. Those within the 25% bracket will keep fewer deductions. Charitable giving and mortgage interest deductions will remain unchanged for all taxpayers. Increase the Personal Exemption Phaseout and the Pease Limitation on itemized deductions.$10,000 standard deduction and $4,000 personal exemption. Home mortgage deduction capped at $500,000. Expands Child Tax Credit and expands EITC.Keep mortage interest and charitable contributions at current levels. Repeal other deductions.Limit value of most deductions to 28%. Eliminate tax benefits for contributions to qualified plans once assets sufficent to fund specified annuity amount.Repeal PEP and Pease phaseouts of exemptions and itemized deductions.

Alternative Minimum TaxRepealRepealNo provisionNo changeRepeal

Estate TaxRepealRepealRepealPermanently reduce the tax threshold for estates to $3.5 million ($7 million for married couples) with no adjustment for future inflation, increase the top tax rate to 45 percent, and set the lifetime gift tax exemption at $1 million.Permanently reduce the tax threshold for estates to $3.5 million ($7 million for married couples) with no adjustment for future inflation. Rates: 45% up to $10 million; 50% up to $50 million; 55% over $50 million, and 10% surtax over $500 million individuals/$1 billion couples.

Net Investment Income TaxRepealRepealRepealNo changeIncrease from 3.8% to 10%.

International TaxA one-time deemed repatriation of corporate cash held overseas at a 10% tax rate. End the deferral of taxes on corporate income earned abroad. Foreign tax credit will remain in place.A one-time deemed repatriation of corporate cash held overseas at a 10% tax rate. Only income earned in the United States will be taxed by the United States. Overseas deferred earnings will face a one time tax at a low rate.Levy an exit tax on unrepatriated earnings. Tax US controlled foreign entities as US corporations. End deferral of tax on controlled foreign subsidiaries. Impose a per country limitation on the foreign tax credit.

Affordable Care ActRepeal and replaceRepealNo provisionStrengthenRepeal most provisions, including employer and employee penalties; Cadillac tax; and excise tax on health insurers.

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Donald TrumpTed CruzJohn Kasich

Corporate TaxTop rate of 15%.16% flat tax on net business sales (gross sales minus expenses and capital expenditures).Maximum rate of 28% or less. Double the R&D credit for small business (under $20 million). All investment in plant and equipment expensed instead of depreciated.

Pass-Through EntitiesNo business income taxed at a rate higher than 15%.10% flat tax on individuals Pass-through income capped at 28% rate. All investment in plant and equipment expensed instead of depreciated.

Payroll TaxesNo provisionEliminateNo provision

Individual TaxSingle and earn less than $25,000, or married and jointly earn less than $50,000, no income tax. All others: four brackets 0%, 10%, 20% and 25%. No marriage penalty10% flat tax. Payroll tax eliminated. Family of four pays no tax on first $36,000 of income.Three brackets with top rate of 28%. Capital gains taxed at 15%. Increase EIC by 10%.

Exemptions, Deductions and Credits10% bracket: keep all deductions. 20% bracket: keep most deductions. 25% bracket: keep fewer deductions. Charitable giving and mortgage interest deductions will remain unchanged for all taxpayers. Increase the Personal Exemption Phaseout and the Pease Limitation on itemized deductions.$10,000 standard deduction and $4,000 personal exemption. Home mortgage deduction capped at $500,000. Expands Child Tax Credit and expands EITC.Keep mortage interest and charitable contributions at current levels. Repeal other deductions.

Alternative Minimum TaxRepealRepealNo provision

Estate TaxRepealRepealRepeal

Net Investment Income TaxRepealRepealRepeal

International TaxA one-time deemed repatriation of corporate cash held overseas at a 10% tax rate. End the deferral of taxes on corporate income earned abroad. Foreign tax credit will remain in place.A one-time deemed repatriation of corporate cash held overseas at a 10% tax rate. Only income earned in the United States will be taxed by the United States. Overseas deferred earnings will face a one time tax at a low rate.

Affordable Care ActRepeal and replaceRepealNo provision

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Hillary ClintonBernie Sanders

Corporate TaxNo change to rate structures. Provide tax credits for businesses that invest in community development and infrastructure. Provide tax credits for businesses that hire apprentices or share profits with employees.No major changes

Pass-Through EntitiesNo changeNo provisions other than changes to individual rates.

Payroll TaxesNo provisionEnact a new 6.2 percent payroll tax paid by employers on the same tax base as the current Medicare hospital insurance (HI) payroll tax. Extend the Social Security payroll tax (combined employee and employer rate of 12.4 percent) to earnings over $250,000. Enact a new 0.2 percent payroll tax paid by both employees and employers on the same tax base as the current Social Security payroll tax.

Individual TaxTax carried interests as ordinary income. Enact Buffet Rule 30% minimum tax on high income (>$1 million AGI) indviduals. Surcharge of 4% on AGI over $5 million. Extend the current college tuition tax credit. Sliding scale benefit of long term capital gains; must hold 6 years for full benefit.Maximum rate of 28%, plus 2.2% surtax on all income. Surtaxes on higher AGI: 9% between $200K-$500K (marginal rate: 37%); 15% between $500k - $2 million (marginal rate: 43%); 20% between $2 mllion - $10 million (marginal rate: 48%) and 24% over $10 million (marginal rate: 52%). Capital gains and qualified dividend preferred rates apply only to those in 28% bracket or below.

Exemptions, Deductions and CreditsLimit value of most deductions to 28%. Eliminate tax benefits for contributions to qualified plans once assets sufficent to fund specified annuity amount.Repeal PEP and Pease phaseouts of exemptions and itemized deductions.

Alternative Minimum TaxNo changeRepeal

Estate TaxPermanently reduce the tax threshold for estates to $3.5 million ($7 million for married couples) with no adjustment for future inflation, increase the top tax rate to 45 percent, and set the lifetime gift tax exemption at $1 million.Permanently reduce the tax threshold for estates to $3.5 million ($7 million for married couples) with no adjustment for future inflation. Rates: 45% up to $10 million; 50% up to $50 million; 55% over $50 million, and 10% surtax over $500 million individuals/$1 billion couples.

Net Investment Income TaxNo changeIncrease from 3.8% to 10%.

International TaxLevy an exit tax on unrepatriated earnings. Tax US controlled foreign entities as US corporations. End deferral of tax on controlled foreign subsidiaries. Impose a per country limitation on the foreign tax credit.

Affordable Care ActStrengthenRepeal most provisions, including employer and employee penalties; Cadillac tax; and excise tax on health insurers.

Sheet4

Donald TrumpHillary ClintonBernie Sanders

Corporate TaxTop rate of 15%.No change to rate structures. Provide tax credits for businesses that invest in community development and infrastructure. Provide tax credits for businesses that hire apprentices or share profits with employees.No major changes

Pass-Through EntitiesNo business income taxed at a rate higher than 15%.No changeNo provisions other than changes to individual rates.

Payroll TaxesNo provisionNo provisionEnact a new 6.2 percent payroll tax paid by employers on the same tax base as the current Medicare hospital insurance (HI) payroll tax. Extend the Social Security payroll tax (combined employee and employer rate of 12.4 percent) to earnings over $250,000. Enact a new 0.2 percent payroll tax paid by both employees and employers on the same tax base as the current Social Security payroll tax.

Individual TaxSingle and earn less than $25,000, or married and jointly earn less than $50,000, no income tax. All others: four brackets 0%, 10%, 20% and 25%. No marriage penaltyTax carried interests as ordinary income. Enact Buffet Rule 30% minimum tax on high income (>$1 million AGI) indviduals. Surcharge of 4% on AGI over $5 million. Extend the current college tuition tax credit. Sliding scale benefit of long term capital gains; must hold 6 years for full benefit.Maximum rate of 28%, plus 2.2% surtax on all income. Surtaxes on higher AGI: 9% between $200K-$500K (marginal rate: 37%); 15% between $500k - $2 million (marginal rate: 43%); 20% between $2 mllion - $10 million (marginal rate: 48%) and 24% over $10 million (marginal rate: 52%). Capital gains and qualified dividend preferred rates apply only to those in 28% bracket or below.

Exemptions, Deductions and Credits10% bracket: keep all deductions. 20% bracket: keep most deductions. 25% bracket: keep fewer deductions. Charitable giving and mortgage interest deductions will remain unchanged for all taxpayers. Increase the Personal Exemption Phaseout and the Pease Limitation on itemized deductions.Limit value of most deductions to 28%. Eliminate tax benefits for contributions to qualified plans once assets sufficent to fund specified annuity amount.Repeal PEP and Pease phaseouts of exemptions and itemized deductions.

Alternative Minimum TaxRepealNo changeRepeal

Estate TaxRepealPermanently reduce the tax threshold for estates to $3.5 million ($7 million for married couples) with no adjustment for future inflation, increase the top tax rate to 45 percent, and set the lifetime gift tax exemption at $1 million.Permanently reduce the tax threshold for estates to $3.5 million ($7 million for married couples) with no adjustment for future inflation. Rates: 45% up to $10 million; 50% up to $50 million; 55% over $50 million, and 10% surtax over $500 million individuals/$1 billion couples.

Net Investment Income TaxRepealNo changeIncrease from 3.8% to 10%.

International TaxA one-time deemed repatriation of corporate cash held overseas at a 10% tax rate. End the deferral of taxes on corporate income earned abroad. Foreign tax credit will remain in place.Levy an exit tax on unrepatriated earnings. Tax US controlled foreign entities as US corporations. End deferral of tax on controlled foreign subsidiaries. Impose a per country limitation on the foreign tax credit.

Affordable Care ActRepeal and replaceStrengthenRepeal most provisions, including employer and employee penalties; Cadillac tax; and excise tax on health insurers.

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Corporate TaxTop rate of 15%No change to rate structures. Provide tax credits for businesses that invest in community development and infrastructure. Provide tax credits for businesses that hire apprentices or share profits with employees.No major changes.

Pass-Through EntitiesNo business income taxed at a rate higher than 15%.No change.No provisions other than changes to individual rates.









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Payroll Taxes No provision No provision

Enact a new 6.2 percent payroll tax paid by employers on the same tax base as the current Medicare hospital insurance (HI) payroll tax. Extend the Social Security payroll tax (combined employee and employer rate of 12.4 percent) to earnings over $250,000. Enact a new 0.2 percent payroll tax paid by both employees and employers on the same tax base as the current Social S it ll t

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Pass-Through EntitiesNo business income taxed at a rate higher than 15%No changeNo provisions other than changes to individual rates.









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Individual Tax

Single and earn less than $25,000, or married and jointly earn less than $50,000, no income tax. All others: four brackets 0%, 10%, 20% and 25%. No marriage penalty

Tax carried interests as ordinary income. Enact Buffet Rule 30% minimum tax on high income (>$1 million AGI) indviduals. Surcharge of 4% on AGI over $5 million. Extend the current college tuition tax credit. Sliding scale benefit of long term capital gains; must hold 6 years for full benefit.

Maximum rate of 28%, plus 2.2% surtax on all income. Surtaxes on higher AGI: 9% between $200K-$500K (marginal rate: 37%); 15% between $500k - $2 million (marginal rate: 43%); 20% between $2 mllion - $10 million (marginal rate: 48%) and 24% over $10 million (marginal rate: 52%). Capital gains and qualified dividend preferred rates apply only to those in 28% bracket or below.

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Individual TaxSingle and earn less than $25,000, or married and jointly earn less than $50,000, no income tax. All others: four brackets 0%, 10%, 20% and 25%. No marriage penalty10% flat tax. Payroll tax eliminated. Family of four pays no tax on first $36,000 of income.Three brackets with top rate of 28%. Capital gains taxed at 15%. Increase EIC by 10%. Tax carried interests as ordinary income. Enact Buffet Rule 30% minimum tax on high income (>$1 million AGI) indviduals. Surcharge of 4% on AGI over $5 million. Extend the current college tuition tax cre

Webinar Slides: Second Quarter 2016 Accounting Update

Economy & Finance

Transcript of Webinar Slides: Second Quarter 2016 Accounting Update