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The Biggest Little Law Firm(R) in Kansas City, Van Osdol & Magruder, P.C., Announces New Kansas Tax Law Changes

KANSAS CITY, MO -- (Marketwire) -- 02/06/13 -- The Biggest Little Law Firm in Kansas City, Van Osdol & Magruder, P.C., recently reviewed the new Kansas tax provisions that Governor Sam Brownback signed into law that reduced income tax rates, increased the standard deduction, eliminated many income tax credits and exempted nonwage income from pass-through entities. Overall, business entities such as a sole proprietorship, partnership, limited liability company or Subchapter S Corporation, will not be taxed in Kansas on nonwage income.

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According to Elizabeth Patterson, attorney at Van Osdol & Magruder, personal Kansas income tax rates will decline for most taxpayers and may vanish altogether for others. "As part of the individual income tax law changes, the new laws change the way pass-through entities, including businesses, are taxed. Of course, there never has been a tax on income of these businesses at the entity level, but now an individual owner of a flow-through business entities such as a sole proprietorship, a partnership, a limited liability company or a Subchapter S Corporation will not be taxed in Kansas on nonwage income," said Patterson.

Patterson added, "Standard deductions for married filers have increased from $6,000 to $9,000. If those income tax changes are not enough, the state sales tax is reduced from 6.3 percent to 5.7 percent, starting July 1, 2013. The tax reductions are estimated to be around $800 million annually beginning in 2014, or $4.5 billion over six years," said Patterson.

Van Osdol & Magruder, P.C. is located in Downtown Kansas City, Mo. Trademarked as The Biggest Little Law Firm® in Kansas City, the firm focuses on maximizing value for its clients while remaining mindful of legal expenses (www.vomer.com).

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