BTR's News to Use

Last year's tax season may seem like it is just behind us, but the 2017 tax year is already halfway over! Did you know a mid-year assessment can influence your tax outcome? If you’d like to minimize your tax liability and the effort involved with tax filing, let out knowledgeable accountants conduct a review today.

For 2014, the IRS issued a whole new set of regulations governing the tax treatment of tangible property (buildings, equipment, computers, etc.) placed in service by a business, rental property owner, or farm.  Among these regulations was a new “de minimis safe harbor” (DMSH) for small capital expenditures.  This safe harbor, if elected on a tax return, stated that the IRS would not challenge the immediate deduction of any capital expenditures of under $500 per unit, provided that the taxpayer had in place, as of January 1, 2014, accounting procedures for tangible property (generally called a “capitalization policy”) that specified a DMSH amount.  For most taxpayers, this policy did not have to be written.  In addition, the taxpayer’s accounting procedures could specify a higher safe harbor amount if that was more applicable to their business.  However, this higher amount could be challenged by the IRS under audit

This time of year, many companies are arranging the renewal of their health plans.  As your company prepares to do the same, please keep one thing in mind: the Affordable Care Act (“ACA”).   

Below are a few of the topics discussed in our ACA seminar with Bernstein Shur Attorney, Steve Gerlach.

• Beginning in 2015, employers with 100 or more full time employees (part-time employees are counted proportionally) are subject to ACA penalties if they fail to offer to their full time employees health coverage that meets ACA standards. These penalties run $2,080-3,120 per year per employee. 

As of 7/31/15, President Obama signed the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 (Highway Act), which includes some significant changes to longstanding tax provisions. Please note, these changes will only take effect for tax years beginning AFTER December 31, 2015 and therefore do not affect the upcoming tax season. Important changes are as follows:

• Partnership returns (Form 1065) are due March 15 instead of April 15 following the close of the calendar year (or 15^th day of the third month following the close of the fiscal year)
• S Corporation returns will remain having a due date of March 15.
• Corporate returns (Form 1120) are due April 15 instead of March 15 following the close of the calendar year (or 15^th day of the fourth month following the close of the fiscal year)
• Extension periods for 1065s and 1120s will both stay at September 15, even though the original due dates have changed.
• The extension period for Trusts and Estates (Form 1041) has been changed to September 30 rather than September 15.
• The FBAR return (FINCEN 114) will be due April 15 instead of June 30. It can also now be extended to October 15, whereas previously no extension was allowed.