Take a look at the new 2016 mileage rates in the article below.
Click Here to read the article
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You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.
Mark Vitek, CPA/PFS, CFP®
…until next week.
A new temporary highway funding bill recently became law. Buried within this temporary bill are several tax law changes that have nothing to do with highway funding. Most of the tax law changes are effective after December 31, 2015 or for the 2016 tax year.
Tax Return Due Date Changes
For partnership returns, the new due date is March 15 (for calendar-year partnerships) and the 15th day of the third month following the close of the fiscal year (for fiscal-year partnerships). Currently, these returns are due on April 15, for calendar-year partnerships. The act directs the IRS to allow a maximum extension of six months (formerly five months) for Forms 1065, U.S. Return of Partnership Income.
For C corporations, the new due date is the 15th day of the fourth month following the close of the corporation’s year. Currently, these returns are due on the 15th day of the third month following the close of the corporation’s year.
Corporations will be allowed a six-month extension, except calendar-year corporations would get a five-month extension until 2026 and corporations with a June 30 year end would get a seven-month extension until 2026.
The new due dates will apply to returns for tax years beginning after Dec. 31, 2015. However, for C corporations with fiscal years ending on June 30, the new due dates will not apply until tax years beginning after Dec. 31, 2025.
FinCEN 114 Reporting
This form is required if you have over $10,000 in a foreign account. Previously, this form was required to be filed by June 15th and did not allow for any extension of time to file.
This new law is effective for returns beginning after December 31, 2015. This means FBAR reports for 2016 will now be due April 15, 2017 (the same day as your tax return). This new law also allows for the same six month extension available for your tax return (an October 15th due date).
The new law also provides that for any taxpayer required to file the FinCEN 114 for the first time, any penalty for failure to timely request or file an extension may be waived by the IRS.
Questions or Comments?
You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.
Mark Vitek, CPA/PFS, CFP®
…until next week.
Good Advice from the State of NC on how to protect yourself from identity theft.
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Questions or Comments?
You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.
Mark Vitek, CPA/PFS, CFP®
…until next week.
Click here to read the article on Section 179 by Business Fleet
Questions or Comments?
You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.
Mark Vitek, CPA/PFS, CFP®
…until next week.
See below for the artcle on Section 179 by: Business Management Daily
Take Section 179 to the max.
For property placed in service in 2015, the maximum Section 179 deduction for qualified business property is currently only $25,000, down from $500,000 in 2014. The deduction in reduced dollar-for-dollar for purchases above $200,000 reduced from a $2 million threshold in 2014. Absent and quick-strike law change by Congress, maximize the Section 179 allowance. Then wait to see whether you’ll have more flexibility along with bonus depreciation.
Tip: In any event, your Sectional 179 deduction can’t exceed the income from your business activities.
Will bonus depreciation be revived?
Along with the fate on generous Section 179 deduction rules that have been in place in recent previous years, the fate of first-year “bonus depreciation” has yet to be decided.
Alert: The bonus depreciation tax break for qualified property, which has been approved and extended several times in the past, expired at the end of 2014. However, it could be reinstated retroactive to Jan. 1, 2015, if Congress takes action, as we expect it will.
In its last reincarnation, the deduction was equal to 50% of the cost of qualified new (not used) assets, including tangible property with a cost-recovery period of 20 years or less, most software, and certain leasehold improvements and water utility property.
Tip: Under current law, 50% bonus depreciation can still be claimed in 2015 for certain assets with longer production periods that are placed in service by year-end.
Questions or Comments?
You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.
Mark Vitek, CPA/PFS, CFP®
…until next week.
For the last several years, taxpayers have faced great uncertainty determining whether they can depend on tax incentives to help them lower taxes. These have become known as the “51 Tax Extenders”. Last December, Congress extended most of these provisions for one year retroactively to the beginning of 2014, but not going forward, so they expired again at the end of 2014.
Unlike many previous years, Congress did not spend much time or effort this summer working to fix the extenders situation. So, as we enter the last quarter of 2015, with most of the tax incentives expired, it’s a good time to review which provisions might get a last minute reprieve.
We will look at the major pending extenders for individuals, businesses and energy-related provisions:
Individuals
– Educator’s $250 above-the-line deduction for classroom supplies
– Exclusion from income for discharge of debt on a primary residence
– Deduction for mortgage insurance premiums (PMI)
– Deduction of sales taxes in lieu of state/local taxes
– Special rules for capital gain treatment of conservation easements
– Option to use above-the-line deduction for tuition expenses
– Option for those over age 70.5 to make tax-free contributions in lieu of taking taxable RMDs.
Businesses
– Research & Development credit
– Employee wage credit for active duty and reserve military employees
– 15-year straight line cost recovery for leasehold improvements
– Section 179 and Section 168 accelerated depreciation options on capital purchases
Energy-related tax incentives
– Several credits for renewable and energy-efficient fuels
– Several credits for energy-efficient building construction
If history is any guide, and Congress finally acts, it will be at the last minute. This makes tax planning on many issues nearly impossible. With the election nearing, the situation this year may be worse than normal.
Questions or Comments?
You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.
Mark Vitek, CPA/PFS, CFP®
…until next week.
Source: Broadridge Advisor Solutions
Many IRA and retirement plan limits are indexed for inflation each year. On October 21, 2015, the IRS issued the inflation-adjusted numbers for 2016, and most remain unchanged from 2015.
The maximum IRA contribution for 2016 is $5,500, unchanged from 2015 (the catch-up limit also remains unchanged at $1,000). However, certain phaseout ranges for determining the deductibility of traditional IRA contributions, and for determining whether an individual can contribute to a Roth IRA, have increased for 2016.
Employer retirement plan limits remain generally unchanged from 2016. For example, the elective deferral limit for 401(k), 403(b), and 457(b) plans remains at $18,000, and the catch-up limit remains at $6,000. Similarly, the maximum amount that can be contributed to a defined contribution plan in 2016 is $53,000, unchanged from 2015.
Questions or Comments?
You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.
Mark Vitek, CPA/PFS, CFP®
…until next week.
Mark Vitek, CPA/PFS, CFP®
…until next week.
Hope you and your family have a wonderful Thanksgiving
Questions or Comments?
You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.
Mark Vitek, CPA/PFS, CFP®
…until next week.
Mark Vitek, CPA/PFS, CFP®
…until next week.
This is the time of year in our CPA practice that I work with small business owners and individuals to perform tax checkups to help them project their tax liabilities for 2015 and make tax saving recommendations of moves they can make between now and year-end. Frequently, just defining the amount of taxes they owe via these planning services helps manage their cash flow so the businesses and individuals don’t have a big amount due and/or surprise each Spring when we prepare their tax returns.
For the business owner and individuals, one of the largest expenses can be taxes. For this reason alone, this expenditure requires planning and monitoring as any other major expense. A year end planning meeting with your CPA should include a discussion of:
This planning meeting should prepare the business owner or individuals to anticipate the amount of taxes that will be owed on March 15th (or April 15th if the tax burden flows through to the personal return). To be effective, tax planning needs to be done prior to New Year’s Eve.
Use our experience in year-end tax planning to enhance your bottom line. Give us a call if you would like to discuss your personal tax situation and see how we can save you taxes.
Questions or Comments?
You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.
Mark Vitek, CPA/PFS, CFP®
…until next week.
Mark Vitek, CPA/PFS, CFP®
…until next week.
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