RECENT TAX UPDATES

Tax Updates to look out for this year!

The Foreign Bank Account Reporting Form (FBAR) deadline is due June 30th this year! For the 2016 tax year and later, it will be due April 15th with optional extension. If you think you might have a foreign account of any kind, but you are unsure of the reporting requirements, let us know immediately!

Section 179 for business assets was extended and made permanent! Maximum expensing of $500,000 per year, with phase-out starting at $2 Million. HVAC units now qualify starting with tax year 2016!

Energy Credit:  Energy Star requirements are constantly updating! Make sure when claiming that energy credit for non-business energy property, you provide your CPA with the correct documentation!

Per Diem rates are rising this year! Go to www.gsa.gov for the mobile app to track per diem rates when you’re on the go!

Under the new De Minimus Safe Harbor Rules, you can now expense up to $2,500 even without applicable financial statements!

Penalties are increasing in 2016! Make sure to get your information in early to give your CPA enough time to prepare your tax returns and get them transmitted as soon as possible!

Don’t forget when choosing to paper file your return, use FedEx, UPS, USPS, or DHL. (Ground shipping is not included as an IRS approved method.)

Tax breaks for individuals expiring at the end of 2016 include:

  • The deduction for qualified tuition and fees
  • The mortgage debt exclusion
  • The deduction for mortgage insurance premiums
  • The Code Sec. 25C credit for residential energy-efficient improvements

 

For businesses, tax breaks expiring at the end of 2016 include:

  • The Indian employment credit
  • The railroad track maintenance credit
  • Empowerment zone incentives
  • Film, television and live theatrical production expensing
  • Mine rescue team training credit
  • Election to expense mine safety equipment
  • Qualified zone academy bonds
  • Three-year recovery period for certain race horses
  • Seven-year recovery for motorsports entertainment complexes
  • Code Sec. 199 deduction for Puerto Rico
  • Cover over of rum excise taxes to Puerto Rico and the Virgin Islands
  • Economic development credit for American Samoa
  • Energy-efficient commercial buildings deduction
  • Production credit for Indian coal facilities
  • Credit for alternative fuel vehicle refueling property
  • Credit for two-wheeled plug-in electric vehicles
  • Credit for new qualified fuel cell motor vehicles
  • Second generation biofuel producer credit
  • Biodiesel and renewable diesel incentives
  • Credit with respect to facilities producing energy from certain renewable resources
  • Credit for energy-efficient new homes
  • Special allowance for second generation biofuel plant property
  • Special rules for sales/dispositions to implement Federal Energy Regulatory Commission (FERC) rules
  • The excise tax credit for alternative fuels

If you have any questions about these updates, please do not hesitate to contact our office. Our professionals would be happy to go over any concerns you might have.  Call 407-291-6400 to schedule your appointment today.

 

Updated 6/17/16