Omnibus budget reconciliation act of 1993 - Glossary Real Estate Tags

Omnibus budget reconciliation act of 1993

Act designed to help reduce the federal deficit by approximately $496 bil­lion over five years through a restructuring of the tax code. The fol­lowing include some of the major provisions that will have an impact, on financial planning:

  1. Establishment of a new top tax rate on ordinary income (wages, interest, dividends, etc.) of 36% on taxable income alone: Applicable Filing Status ThresholdMarried individuals filing joint returns $ 140,000Heads of households 127,500Unmarried individuals 115,000Married individuals filing separate returns 70,000Estates and trusts 5,500
  2. Establishment of a new 10% surtax on individuals with taxable income in excess of $250,000; except for married individualsfiling separately the surtax applies to taxable income over $125,000.
  3. Establishment of a new 39.6% marginal tax rate, which includes the above 10% surtax, to be applied to taxable income in excess ofthe $250,000. Long-term capital gains are not subject to the higher rates, and will not be taxed at a rate higher than 28%. Since thepassage of this Act, the maximum long-term capital gains tax has been reduced to 20%.
  4. Establishment of a new two-tiered progressive Alternative Minimum Tax rate schedule for noncorporate taxpayers as follows: married individuals filing a joint return would pay a 26% rate on Alternative Minimum Taxable Income up to $175,000, and a 28% rate on Alternative Minimum Taxable Income in excess of $175,000; married individuals filing separate returns would pay a 28% rate on Alternative Minimum Taxable Income in excess of $87,500.
  5. Exemptions under the Alternative Minimum Tax increased as follows: to $45,000 from $40,000 for married individuals filing jointreturns; to $22,500 from $20,000 for married individuals filing separate returns, as well as estates and trusts; to $33,750 from $30,000 for single individuals.
  6. Elimination of the dollar limitation cap on self-employment income and wages subject to medicare hospital insurance.
  7. Establishment of new maximum estate and gift tax rates as follows: for transfers between $2.5 million and $3 million, a 53% rateis applied; for transfers in excess of $3 million, a 55% rate is applied.
  8. Deductible of allowable meals and entertainment to the extent of 50% of costs.
  9. No deduction for club dues permitted; however, particular business expenses such as meals and entertainment incurred at a clubare deductible to the extent of 50% of costs.
  10. For the publicly held corporation, no deduction permitted for compensation paid over $1 million for any one of its highest fiveexecutives.
  11. For qualified retirement plan contributions, a reduced compensation ceiling from $235,840 in 1993 to $150,000 beginning in1994. The $150,000 ceiling is to be indexed according to the inflation index each year beginning in 1996.
  12. For Social Security recipients, up to 85% of Social Security benefits taxable for married retirees with income in excess of $44,000and for single retirees income in excess of $34,000.
  13. For self-employed individuals, a deduction as a business expense up to 25% of the premiums paid for health insurance coverage forthat individual, spouse, and dependents.
  14. Repeal of the luxury excise tax of 10% on boats, aircraft, jewelry, and furs. The luxury excise tax of 10% indexed for inflationremains for automobiles in excess of $30,000.
  15. Maximum corporate tax rate increased to 35% on taxable income above $10 million. For the personal service corporation, the flatrate is increased to 35%.

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If you are interested to: Buy a Home in Hollywood, Sell a Home in Hollywood, Rent a Home in Hollywood, Commercial in Hollywood

(5) Real Estate Agents found in Hollywood city.

  • Irina Ivkina

    Keller Williams Realty

    Irina Ivkina

    Mobile: 1-305-316-5733    Office: 1-305-316-5733   

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    "I am new to real estate; however, I am very interested in this business and was attending many seminars and workshops, including investments, commercial real estate, creative financing techniques, and many others. I have experience working at the Title Company which pretty much covers my rea" ... view more

       Fair Housing and Equal Opportunity (FHEO)   REALTOR®   The Multiple Listing Service Mark
  • Yael Weizman

    The Keyes Company

    Yael Weizman

    Mobile: 1-954-410-9358   

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    " Whether a first-time buyer, seasoned homeowner, or multi-property investor, the team at The Keyes Company is your go-to resource for all things real estate. Family-owned and in business since 1926, The Keyes Company has grown across the state of Florida. We have captured accolades such as bein" ... view more

       Fair Housing and Equal Opportunity (FHEO)   REALTOR®   The Multiple Listing Service Mark
  • Doraine Matthews

    I Deal Real Estate inc

    Doraine Matthews

    Mobile: 954-444-5724    Office: 954-966-0611 ext 209   

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    "I have been in the real estate services business in the Hollywood real estate markets for many successful years and will be here for many more. This longevity and confidence comes from my real estate services to a great many buyers and sellers, and their recommendations to others that result" ... view more

       CRS®, Certified Residential Specialist®   Fair Housing and Equal Opportunity (FHEO)   REALTOR®   SRES®, Senior Real Estate Specialist   The Multiple Listing Service Mark
  • Ed  Rangel

    Keller Williams

    Ed Rangel

    Mobile: 786-763-5650   

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       Fair Housing and Equal Opportunity (FHEO)   REALTOR®   The Multiple Listing Service Mark
  • Elizabeth Castro

    L.M.G Realty INC.

    Elizabeth Castro

    Mobile: 305-962-8744    Office: 305-962-8744   

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    "Buy or sell real estate property.The purchase or sale of a home or investment property is one of the most complex and significant financial events in peoples' lives. People typically seek the help of real estate brokers and sales agents when buying or selling real estate because of the compl" ... view more

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