Recent News
Brady Ware Welcomes State and Local Tax Director
Brady Ware is pleased to announce that Geoffrey A. Frazier, CPA joined the firm as a State and Local Tax Director.
Geoff joined Brady Ware in July 2010 and serves as the firm's State & Local Tax Practice Leader. Formerly a director with a national firm, Geoff's 20 years of experience in taxation has included a wide range of industries such as Consumer Business, Manufacturing and Transportation.
Geoff helps large and midsize multistate organizations manage their state and local tax liabilities. He has broad experience in the areas of state income and franchise tax, municipal income tax, personal and real property tax, sales and use tax, payroll taxes including unemployment tax, procuring tax credits and incentives, gross receipts and other miscellaneous taxes.
Geoff is a member of the Ohio Society of Certified Public Accountants and the American Institute of Certified Public Accountants. He also participates in various roles with several charitable organizations in southwestern Ohio.
2010 Tax Figures
| Social Security/ Medicare | |
| Social Security Tax Wage Base | $106,800 |
| Medicare Tax Wage Base | No limit |
| Individual Retirement Accounts | |
| Roth IRA Individual, up to 100% of earned income | $5,000 |
| Traditional IRA Individual, up to 100% of earned Income | $5,000 |
| Roth and traditional IRA additional annual "catch-up" contributions for account owners age 50 and older | $1,000 |
| Qualified Plan Limits | |
| Defined Contribution Plan Dollar limit on additions on Sections 415(c)(1)(A) | $49,000 |
| Defined Benefit Plan limit on benefits (Section 415(b)(1)(A)) | $195,000 |
| Maximum compensation used to determine contributions | $245,000 |
| 401(k), SARSEP, 403(b) Deferrals (Section 402(g)), & 457 deferrals (Section 457(b)(2)) | $16,500 |
| 401(k), 403(b), 457 & SARSEP additional "catch-up" contributions for employees age 50 and older | $5,500 |
| SIMPLE deferrals (Section 408(p)(2)(A)) | $11,500 |
| SIMPLE additional "catch-up" contributions for employees age 50 and older | $2,500 |
| Compensation defining highly compensated employee (Section 414(q)(1)(B)) | $110,000 |
| Compensation defining key employee (officer) | $160,000 |
| Compensation triggering Simplified Employee Pension contribution requirement (Section 408(k)(2)(c)) | $550 |
| Driving Deductions | |
| Business mileage, per mile | 50 cents |
| Charitable mileage, per mile | 14 cents |
| Medical and moving, per mile | 16.5 cents |
| Business Equipment | |
| Maximum Section 179 deduction * A stimulus law provided much larger Section 179 depreciation deductions for 2009. For 2010, however, the maximum deduction will revert back to a lower amount unless Congress takes further action. |
$134,000 * |
| Phaseout for Section 179 | $530,000 |
| Transportation Fringe Benefit Exclusion | |
| Monthly commuter highway vehicle and transit pass | $230 |
| Monthly qualified parking | $230 |
| Domestic Production Activities Deduction | |
| Percent of qualifying business net income (6% for oil and gas companies) | 9 percent |
| Standard Deduction | |
| Married filing jointly | $11,400 |
| Single (and married filing separately) | $5,700 |
| Heads of Household | $8,400 |
| Personal Exemption | |
| Amount | $3,650 |
| Domestic Employees | |
| Threshold when a domestic employer must withhold and pay FICA for babysitters, house cleaners, etc. | $1,700 |
| Kiddie Tax | |
| Net unearned income not subject to the "Kiddie Tax" | $1,900 |
| Estate Tax | |
| Federal Estate Tax Exemption ** Under a 2001 law, the estate tax exemption was gradually increased and the tax rate levied on estates decreased. For one year only in 2010, the estate tax is repealed. However, several members of Congress have said they will work to put the estate tax back in place, retroactive to January 1, at 2009 rates ($3.5 million exemption/45 percent tax rate). |
repealed ** |
| Annual Gift Exclusion | |
| Amount you can give each recipient | $13,000 |
| IRS Interest Rates | 2010 (1st Quarter) |
| Tax overpayments (3% for corporations; 1.5% for the part of corporate overpayments exceeding $10,000) |
4 percent |
| Tax underpayments (6% for large corporate underpayments) |
4 percent |