Effective beginning with 2016 taxable years, the de minimis tangible property safe harbor has increased to $2,500 per invoice or item. The change affects regulations issued in 2013 that clarified when your business could expense tangible real and personal business property. Previously, the de minimis safe harbor let you elect to deduct individual capital expenditures of $500 or less if your business did not have an “applicable financial statement.” (In general, an applicable financial statement is a financial statement based on a certified audit by an accounting firm.)
The extender legislation passed in December made changes to ABLE accounts. ABLE accounts – named for the Achieving a Better Life Experience Act that created them – are tax-beneficial savings accounts for qualified individuals with disabilities. The extender legislation eased the requirement that you had to open the account in the beneficiary’s state of residence. Now you are free to open an ABLE account with any state program you choose.
Three Section 179 expensing deduction changes may affect your 2016 tax planning. First, the $2,000,000 phase-out limit was adjusted for inflation and is $2,010,000 for 2016. (The $500,000 deduction amount did not change.) Second, you may be able to deduct more of qualified leasehold, retail, and restaurant property in 2016.
The $250,000 cap on the amount of Section 179 you could claim for this property was eliminated. Third, air conditioning and heating units are now eligible for Section 179 expensing.
You have new options for funding your myRA this year. In the past, you could fund your account from your paycheck by completing a direct deposit authorization form and giving it to your employer. That option is still available. In addition, now you can choose to make direct deposits from a checking or savings account or from your federal income tax refund. A myRA (my Retirement Account) is a simplified Roth IRA that costs nothing to open, has no fees, and lets you start saving with any amount that fits your budget. The maximum contribution for 2016 is $5,500 ($6,500 when you're age 50 or older at the end of the year).
Call us at (219) 769-3616 with your questions, or email them to tlynch@swartz-retson.com.
Wednesday, May 11, 2016
IRS Warns of Impersonation Telephone Scam
The Internal Revenue Service recently highlighted an aggressive and sophisticated phone scam targeting taxpayers, including recent immigrants, that has been making the rounds throughout the country. Callers claim to be employees of the IRS, but are not. These con artists can sound convincing when they call. They use fake names and bogus IRS identification badge numbers. They may know a lot about their targets, and they usually alter the caller ID to make it look like the IRS is calling.
Victims are told they owe money to the IRS and it must be paid promptly through a pre-loaded debit card or wire transfer. If the victim refuses to cooperate, they are then threatened with arrest, deportation or suspension of a business or driver's license. In many cases, the caller becomes hostile and insulting.
Or victims may be told they have a refund due to try to trick them into sharing private information. The latest variation being seen in the last few weeks tries to play off the current tax season. Scam artists call saying they have your tax return, and they just need to verify a few details to process your return. The scam tries to get you to give up personal information such as a Social Security number or personal financial information, such as bank numbers or credit cards.
If the phone isn't answered, the scammers often leave an "urgent" callback request.
"These schemes continue to adapt and evolve in an attempt to catch people off guard just as they are preparing their taxreturns," said IRS Commissioner John Koskinen. "Don't be fooled. The IRS won't be calling you out of the blue asking you to verify your personal tax information or aggressively threatening you to make an immediate payment."
Note that the IRS will never:
1. Call to demand immediate payment, nor will the agency call about taxes owed without first having mailed you a bill;
2. Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe;
3. Require you to use a specific payment method for your taxes, such as a prepaid debit card;
4. Ask for credit or debit card numbers over the phone; or
5. Threaten to bring in local police or other law-enforcement groups to have you arrested for not paying.
The IRS has information online (www.irs.gov) that provides additional details and can help protect taxpayers from phone
scams.
Call us at (219) 769-3616 with your questions, or email them to tlynch@swartz-retson.com.
Victims are told they owe money to the IRS and it must be paid promptly through a pre-loaded debit card or wire transfer. If the victim refuses to cooperate, they are then threatened with arrest, deportation or suspension of a business or driver's license. In many cases, the caller becomes hostile and insulting.
Or victims may be told they have a refund due to try to trick them into sharing private information. The latest variation being seen in the last few weeks tries to play off the current tax season. Scam artists call saying they have your tax return, and they just need to verify a few details to process your return. The scam tries to get you to give up personal information such as a Social Security number or personal financial information, such as bank numbers or credit cards.
If the phone isn't answered, the scammers often leave an "urgent" callback request.
"These schemes continue to adapt and evolve in an attempt to catch people off guard just as they are preparing their taxreturns," said IRS Commissioner John Koskinen. "Don't be fooled. The IRS won't be calling you out of the blue asking you to verify your personal tax information or aggressively threatening you to make an immediate payment."
Note that the IRS will never:
1. Call to demand immediate payment, nor will the agency call about taxes owed without first having mailed you a bill;
2. Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe;
3. Require you to use a specific payment method for your taxes, such as a prepaid debit card;
4. Ask for credit or debit card numbers over the phone; or
5. Threaten to bring in local police or other law-enforcement groups to have you arrested for not paying.
The IRS has information online (www.irs.gov) that provides additional details and can help protect taxpayers from phone
scams.
Call us at (219) 769-3616 with your questions, or email them to tlynch@swartz-retson.com.
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