Kenney & MacDonald, Inc. Welcomes You
Kenney & MacDonald, Inc. has been in business for over 25 years. Situated in Sharon Center we are easily accesible to both Providence and Boston area clients. Kenney & MacDonald offers a wide range of accounting and taxation services, including tax preparation for individuals and corporations, non-profit tax returns, estate tax returns, as well as bookkeeping, payroll, and other tax planning services. We offer carefully researched, relevant advice to meet your financial and accounting needs.
Our philosophy: Quality, experience, commitment and the clients' trust form the foundation of our success.
To Our Valued Clients:
Clearly, the number 13, as in 2013, was not a good omen. Speaking for myself, I am glad to close the book on the year 2013. We had to live through the tragedy of the Boston Marathon but somehow we did survive and we came out stronger as a community. BOSTON STRONG says it all! Even “Whitey” wants to have his ill begotten gains distributed to the families of his victims. Doesn’t he realize it wasn’t his money anyway? He should have followed his brother into politics because he surely could have been instrumental in reaching across party lines and avoiding the boondoggle that our elected officials seem to crave. How long do you think that filibuster Senator Ted Cruz from Texas would have continued reading “green eggs & ham” if “Whitey” was in attendance? You do realize that not one member of congress or any of our senators missed a paycheck during the government shutdown. And they say they feel our pain! Now we have the Patient Protection and Affordable Care Act (PPACA), better known as “ObamaCare”. It is referred to as “ObamaCare” due to the many glitches it has encountered, both on a technical and GOP front. If somewhere down the road this act actually works and benefits millions of Americans, do you think it will be called “ObamaCare”? I don’t think so. If the ultimate goals of this far reaching legislation are met they will have to come up with another acronym aside from PPACA. How about WTYS (We Told You So). But we need to keep an eye on the lines forming in Colorado purchasing legalized pot. We may see a sharp decline in the number of people purchasing prescriptions and seeking medical assistance. A joint a day may in fact keep the doctor away! We’ve moved on from the “greatest generation” to “baby boomers” and heading towards to the next wunderkind generation of “space cadets”.
Now who better to administer the related penalties for not having health care and the related tax credits that may be available to taxpayers than the IRS. Think there may be some concerns? Are they equipped and staffed to handle this? We shall see, but be careful folks because there are already widespread concerns regarding privacy, identity theft and fraud. Who pays for all of this…we do. Many of you will be shocked at your added tax burden when your 2013 returns are prepared. If your earnings and/or net investment income are greater than the threshold amounts you will be paying “medicare tax surcharges”. And you thought the AMT (Alternative Minimum Tax) was a beast. Itemized deductions for medical expenses are now tied to 10% of your adjusted gross income, not 7 ½%, unless you’re 65 or older. Other areas of change deal with capital gains, phaseouts of itemized deductions and personal exemptions. There will be many of you that will not be happy campers. But truly the biggest change for 2013 is the Supreme Court ruling making Section 3 of DOMA (Defense of Marriage Act) unconstitutional. The Supreme Court has “affirmed that all loving and committed couples who marry deserve equal legal respect and treatment”. So what this means is that same sex married couples may now file a joint tax return. The IRS is also allowing affected individuals to amend their returns from 2010, 2011 and 2012. For some, this will mean refunds for those earlier years. For 2013, the choice you now have is to either file a “joint return” or a “married filing separate” return. It may sound wonderful to many but it may be costly to others. Tax treatment of various investments are limited under the passive activity rules, in particular is rental property. My wife says that marriage is not a word, it is a sentence! What does she mean by that!
On the local front, Governor Patrick is officially a “lame duck” and we get to have ourselves battered again by political ads. Scott Brown has packed up his truck and is headed north to NH. Boston’s long time Mayor Tom Menino has packed it in and taken a position at BU…english as a second language? He did a fine job for the City of Boston and was instrumental in the healing process after the Boston Marathon. He had a good run and leaves office in better shape than many of our local pols who left under indictment. And of course the surprise to many of us was that wacky group of “Bearded Brothers” that brought us another World Series Championship. What a year!
We hope that this letter finds all of you in good health and ready to face the challenges the New Year brings. As always, we are extremely thankful for your continued patronage and we owe our success to you. We look forward to our continuing relationship and wish all of you the very best for 2014! Be safe, stay healthy and above all take care of family and please be kind to others. Thank you!
Kenney & MacDonald, Inc.
"The avoidance of taxes is the only intellectual pursuit that still carries any reward."
-John Maynard Keynes