With me in the studio is Michael Gray, CPA, author of Michael Gray, CPA’s Real Estate Tax Letter, the Real Estate Tax Handbook and How To Use Roth and IRA Accounts To Build a Secure Retirement.  Today we will be discussing the Real Estate Tax Developments for 2013.Have a pad and pen handy, because you’ll want to take a lot of notes!!Here are some highlights of what we’ll cover:

  • Tax law changes for real estate investors in the “fiscal cliff” tax legislation (American Taxpayer Relief Act of 2012) enacted on January 2, 2013.
  • Summary of California tax increases for high income taxpayers adopted in the November, 2012 election.
  • How the 3.8% tax on net investment income will affect real estate investors, including a discussion of “real estate professional” status.
  • New final IRS regulations about what repairs are currently deductible and what improvements must be capitalized, including a written accounting policy you’ll want to adopt by December 31, 2013 and an election you’ll want to make for each of your properties for 2014!
  • When can Roth and IRAs be required to file income tax returns and pay income taxes?
  • How can you disqualify your Roth or IRA account, resulting in all of the accumulated income being currently taxable?

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Michael Gray Profile

Michael Gray PhotoMichael C. Gray founded his CPA firm, Michael Gray, CPA October 1, 1996. He has continuously worked in public accounting since June, 1974. Mike was a co-founder and partner in charge of tax services of Hubler, Gray and Associates from June, 1986 through September, 1996 and a tax manager at KMG Main Hurdman, subsequently acquired by KPMG Peat Marwick, from February, 1978 to June, 1986.

The areas of practice that Mike has focused on include tax planning for individuals, estate and trust planning and administration, tax planning for businesses, tax examinations, and tax procedure. He also assists other tax practitioners in dealing with complex tax issues.

He currently writes three free email newsletters – Michael Gray, CPAs Tax and Business Insight, Michael Gray, CPAs Option Alert and Michael Gray, CPA’s Real Estate Tax Letter. You can subscribe to them at www.taxtrimmers.com, www.stockoptionadvisors.com and www.realestatetaxletter.com.

Mike is also the host of a weekly television show, called Financial Insider Weekly. It is broadcast on Fridays at 8 p.m. on Comcast channel 15 in San Jose and Campbell. Past episodes of the show are posted at www.financialinsiderweekly.com.
Mike has given many presentations and written many articles on tax subjects, including for the California Society of CPAs, Silicon Valley Bar Association and Santa Clara County Bar Association.

Mike has been a CPA in California since March, 1977. He received his BS in accounting and MBA at San Jose State University in June, 1974 and June, 1978, respectively. He is a past president of the Silicon Valley San Jose CPAs, past chairman of the tax committee for the Silicon Valley San Jose CPAs and past member of the state tax committee for the California CPAs. He is also a member of the Santa Clara County Estate Planning Council, and has been involved with the Executive Planning Committee of the Tax Section for the Santa Clara County Bar Association.

An article about the Web Site for Michael Gray, CPA appeared in the October, 1997 Journal of Accountancy. KNTV News also featured a story on his Web Site in the Technology section of the Six O’Clock News, and he as been profiled in The San Jose Mercury News. Mike has been quoted in The San Jose Mercury News, The San Francisco Chronicle, The Wall Street Journal, and The New York Times.

He is the author of How to use Roth and IRA accounts to provide a secure retirement, the Real Estate Tax Handbook, Secrets of Tax Planning for Employee Stock Options, Employee Stock Options – Executive Tax Planning, and Employee Stock Options – Executive Tax Planning.
Mike’s personal interests include the study of martial arts. He received his black belt from West Coast Tae Kwon Do in May, 1996. He has also studied American Kenpo and Aikido.

Mike has appeared as a member of the cast of South Pacific with the West Valley Light Opera, which was performed during November and early December, 1997. He received a director’s award, called the Captain’s Cape, as the outstanding chorus member. He also appeared in the West Valley Light Opera production of Carousel during October and November, 1998 and was the voice of Florenz Ziegfeld in Will Rogers Follies during June and July, 2000.

Currently, Mike and his wife Janet devote their Saturdays to caring for their grandsons, Kyan and Clive Baker, while their parents, Holly and Dan Baker, work in the family restaurant, Marché Aux Fleurs, in Ross, California