Author Archives for Mark
May 7, 2014 12:00 am
Published by Mark
Employers in 15 states (and the Virgin Islands) may not be eligible to claim the maximum amount of state unemployment tax credits on their 2014 federal unemployment (FUTA) tax return because their state has had an outstanding federal unemployment insurance (UI) loan for at least two years. Employers pay FUTA tax at a rate of 6.0% on the first $7,000 of covered wages paid to each employee during a calendar year, regardless of when those wages were earned. This tax may be offset by credits of up t...
May 7, 2014 12:00 am
Published by Mark
HSAs allow eligible individuals to make deductible contributions that can later be withdrawn tax-free to reimburse the individual for eligible medical expenses. For 2015, the limitation on HSA deductions is $3,350 for an individual with self-only coverage under a High Deductible Health Plan (HDHP) or $6,650 for an individual with family coverage. An HDHP is defined under IRC Sec.
May 7, 2014 12:00 am
Published by Mark
The following is a summary of the most important tax developments that have occurred in the past three months that may affect you, your family, your investments, and your livelihood. Please call us for more information about any of these developments and what steps you should implement to take advantage of favorable developments and to minimize the impact of those that are unfavorable. IRA rollovers to be limited. A law limits the number of IRA rollovers that can be made in any 1-year peri...
January 29, 2014 12:00 am
Published by Mark
Materials and Supplies The 2014 repair and capitalization regulations expand the definition of the term "materials and supplies" to include items costing $200 or less, as well as emergency spare parts. As a result, materials and supplies now include tangible property that is used or consumed in the taxpayer's operations, that is not inventory held for sale, and that— Is a component acquired to maintain, repair or improve a “unit of tangible property” (UOP) owned, leased or serviced by the taxpay...
January 29, 2014 12:00 am
Published by Mark
De Minimis Safe Harbor A beneficial de minimis safe harbor election allows taxpayers to elect to currently deduct their outlays for “lower-cost” business assets that they expense for book purposes under a written policy. To be eligible for this “book tax conformity election,” a unit of property (UOP) can’t cost more than $5,000 if a business has an Applicable Financial Statement (AFS), which is an audited financial statement. All other taxpayers without an AFS, the de minimis threshold for...
January 29, 2014 12:00 am
Published by Mark
Small Business Safe Harbor Election A significant change was made by the final regulations through the addition of a safe harbor to allow certain taxpayers to refrain from treating as improvement costs any costs paid or incurred for the repair, maintenance or improvement of building property. Pursuant to Reg. section 1.263(a)-3(h), a qualifying small taxpayer may elect to not apply the improvement rules to an eligible building if the total amount paid during the taxable year for repairs, mainten...
January 29, 2014 12:00 am
Published by Mark
Capitalization Requirements Overall, the new final regulations restate in a comprehensive way long-established concepts about which costs must be capitalized in connection with the acquisition or production of real or personal property. Under the new regulations, as a general rule, all costs that facilitate the acquisition or production of such property must be capitalized, with exceptions for employee compensation and overhead costs. Investigatory expenses related to the acquisition of realty g...
January 29, 2014 12:00 am
Published by Mark
Routine Maintenance Safe Harbor The final regulations continue to allow for a routine maintenance safe harbor for non-building property. However, the final regulations favorably expand the safe harbor to building property, with certain modifications to the general safe harbor rules. Under the final regulations, a taxpayer may apply the routine maintenance safe harbor to recurring activities undertaken to keep a building “Unit of Property” (UOP) in ordinarily efficient operating condition if the ...
January 14, 2014 12:00 am
Published by Mark
There are many important tax changes taking effect in 2014. They are the result of tax legislation enacted in prior years, or are triggered by effective dates in regulations, rulings and other guidance. Also, a number of important final regulations go into effect in 2014.
January 14, 2014 12:00 am
Published by Mark
The following is a summary of the most important tax developments that have occurred in the past three months that may affect you, your family, your investments, and your livelihood. Please call us for more information about any of these developments and what steps you should implement to take advantage of favorable developments and to minimize the impact of those that are unfavorable. Delayed start date for 2014 tax filing season.
