Facing a December 11 expiration of the current federal spending authorization, lawmakers this week passed a five-day continuing resolution to keep the federal government open through December 16 while they continue to seek agreement on agency funding for the rest of the fiscal year. Although a bill to extend 50-plus expired and expiring tax provisions might move through Congress separately, the fate of that package now is tied to the so-called omnibus spending bill. Leadership and the senior mem...
December 18, 2015 12:00 am
Businesses should buy machinery and equipment before year end and, under the generally applicable “half-year convention,” thereby secure a half-year's worth of depreciation deductions in 2015 (if the cost of the machinery and equipment placed in service in the fourth quarter doesn't exceed 40% of the cost of the machinery and equipment placed in service during the year). Although the machinery and equipment expensing option is greatly reduced in 2015 (unless retroactively changed by legislation)...
December 18, 2015 12:00 am
Realize losses on stock while substantially preserving your investment position. There are several ways this can be done. For example, you can sell the original holding, then buy back the same securities at least 31 days later.
December 18, 2015 12:00 am
As the end of the year approaches, it is a good time to think of planning moves that will help lower your tax bill for this year and possibly the next. Factors that compound the challenge include turbulence in the stock market, overall economic uncertainty, and Congress's failure to act on a number of important tax breaks that expired at the end of 2014. Some of these tax breaks ultimately may be retroactively reinstated and extended, as they were last year, but Congress may not decide the fate ...
December 18, 2015 12:00 am
Effective March 23, 2015 new law changes Ohio’s residence requirements for Ohio income tax purposes. The new law impacts the so-called “snowbird rules,” which determine whether or not part-time residents of Ohio are required to pay Ohio income tax. For tax purposes the change impacts all tax years from 2015 onward.
November 19, 2015 1:20 pm
Now that we're in the final quarter of the year, older taxpayers need to keep a careful eye on their required minimum distributions (RMDs) for the year, as a stiff penalty applies to those who don't withdraw enough from their retirement accounts. Take the RMD or pay a big penalty. Taxpayers must start taking annual RMDs from their traditional IRAs by April 1 following the year in which they attain age 70 1/2.
November 19, 2015 1:20 pm
Some individuals with substantial income in addition to salaries may find that the amount of tax withheld from their salaries isn't enough to cover their required estimated tax payments. This may be the result of, for example, miscalculations or unusual sources of income—for example, a windfall on the sale of a capital asset earlier in the year, or unexpected exposure to the 3.8% surtax An individual subject to the estimated tax must pay, on each of four installment dates (April 15, June 15, and...
November 19, 2015 1:20 pm
Bonus first-year depreciation generally isn't available for purchases of qualifying assets in 2015 unless Congress extends it, but year-end purchases of depreciable property still can achieve significant tax savings even if bonus depreciation isn't revived. One key for savings is the half-year convention that generally applies in the computation of cost recovery deductions for the year that property (other than real property) is first placed into service. Is bonus depreciation gone for good?
November 19, 2015 1:20 pm
Year-end tax planning typically involves reviewing legislation passed by Congress or regulations issued by the Treasury and determining the impact. In what is becoming an unfortunate theme, no significant tax legislation has yet been enacted in 2015, and taxpayers are again faced with uncertainty. However, just because Congress has not provided taxpayers a roadmap for the 2015 tax year does not mean that taxpayers cannot begin planning.
November 19, 2015 1:20 pm
