2015 Tax Changes & Issues Conference Summary

Maner Costerisan Solutions Conference
November 18, 2015

www.manerscpa.com
2015 Tax Changes & Issues
A look at the business and individual tax changes for 2015
Matthew C Latham, CPA
(517) 886‐9587
mlatham@manercpa.com
Disclosure
• To ensure compliance with Treasury
Department regulations, we inform you that
any tax advice that may be contained in this
communication (including any attachments) is
not intended or written to be used, and cannot
be used, for the purpose of (i) avoiding tax‐
related penalties under the Internal Revenue
Code or applicable state or local tax law
provisions or (ii) promoting, marketing or
recommending to another party any tax‐
related matters addressed herein.
1
November 18, 2015
www.manerscpa.com
Here we go again – tax extenders
• Individual Extenders (Expired as of 12‐31‐14)
– Above the line teacher deduction
– Sales tax deduction (non‐income tax states)
– Above the line tuition deduction
– Deduction for mortgage Insurance Premiums
– IRA Charitable Rollover
Here we go again – tax extenders
• Business Extenders
– 179 and Bonus Depreciation
• 179 ‐ New & Used
• Bonus – New Only
– Research Tax Credit
• Credits
– Certain Energy Credits
– Home Improvement Energy Credits
2
November 18, 2015
www.manerscpa.com
2015 Depreciation
• For 2014:
– 500,000 179 Expense (on $2.0 million of purchases)
– 50% Bonus on new property (no purchase limit)
• For 2015:
– 25,000 179 expense (on $200k of purchases)
– 100% Phased‐out if purchases > $225k
– No 50% Bonus Depreciation
– Will Congress Extend?
2015 Depreciation
• What will the Federal Government do?
– General feeling is 179 will be extended
– General feeling is bonus will NOT be
– Note: same feeling existed a year ago, and
Congress extended both
– Senate or House committees have approved
various bills extending temporary or permanently
most extenders (2 years – through 2016)
– Nothing official yet
3
November 18, 2015
www.manerscpa.com
Affordable Care Act ‐ 2015
• Net Investment Income Tax (3.8%)
• Additional Medicare Tax (0.9%)
– Earned Income (SE or W‐2)
– Over 250k is taxed (MFJ)
– Over 125k (MFS)
– Over 200K (HoH or Single)
– Withholding on W‐2 of amounts over 200k
required
• These provisions were in place for 2013 & 2014
– no changes
Affordable Care Act ‐ 2015
• Reporting Requirements for 2015
– Individual Mandate In Place
– Penalties could apply if you don’t meet minimal
coverage
– Penalty is greater of:
• $325 per person (162.50 per child under 18) – max of
$975 (max in 2014 was $285)
• 2% of annual household income ‐ household income
greater than $28,500 not to exceed the cost of the
Bronze Plan
• 2016 – 2.5% or $695 per adult (347.50 per child)
4
November 18, 2015
www.manerscpa.com
Affordable Care Act
• Reporting Requirements for 2015 (report in 2016)
– need to report monthly wages
• Employer Mandate (50‐99 FTEs) – starts in 2016
• Employer Mandate (>99) – starts in 2015
• Penalties apply if minimal coverage is not offered
or if not affordable
Business Tax ‐ 2015
• Small Business Health Care Tax Credit
– 50% of premiums (for‐profits)
– 35% of premiums (non‐profits)
– Must pay premiums on behalf of employees
enrolled in a qualified health plan offered through
a SHOP Marketplace (2014)
– Credit is refundable
– Limits (start phase‐out at 10 FTEs or Avg. Wages
over 25,000)
5
November 18, 2015
www.manerscpa.com
Business Taxes
• Personal Property Tax Changes
– Assessable Value < 80,000 (taxable value < 40,000)
you are exempt (by taxing locality))
– File exemption certificate each year – by February
10th
– Industrial Property Exemption starts in 2016
• Code 300 on Assessments & Property related to
industrial process
• All items purchased prior to 2006 & after 2012 – exempt
• All property will be exempt 1‐1‐2022
Business Taxes
• Repair/Capitalization Regulations
– Have a written capitalization policy in place
– De Minimis items can be expensed
• Audited F/S < $5,000
• No Audit < $500
• Based on Unit of Property
6
November 18, 2015
www.manerscpa.com
Individual Taxes
• Affordable Care Act ‐ health insurance
premium tax credit
– Household Income 100% ‐ 400% of the federal
poverty line (family of 4 = $95,400)
– Income is basically AGI (some adjustments) – must
include income of dependents Buy through the
Marketplace
– Ineligible for coverage through an employer or
gov’t plan.
– Cannot be claimed as a dependent
New Filing Dates
• Congress has passed new filing dates starting
for the 2016 tax year (2017 filing season)
• So no changes for Tax Year 2015 (2016 Season)
• June Fiscal Year End C Corps will not see a
change until after 12‐31‐2025
7
November 18, 2015
www.manerscpa.com
New Filing Dates (2017 Season)
Current Due Dates New Due Dates
• Partnership • Partnership
– Original: April 15th – Original: March 15th
– Extended: September 15th – Extended: September 15th
• S Corp. • S Corp. (no changes)
– Original: March 15th – Original: March 15th
• Trust & Estates (1041) • Trust & Estates (1041)
– Original: April 15th – Original: April 15th
• Individual (1040) • Individual
– Original: April 15th – Original: April 15th
– Extended: October 15th – Extended: October 15th
8
November 18, 2015
www.manerscpa.com
• Calendar Year End – C Corps • Calendar Year End – C Corps
– Original Due Date: March 15th – Original Due Date: April 15th
– Extended Due Date: Sept. 15th – Extended Due Date: Oct. 15th
• June Year End – C Corps • June Year End – C Corps
– Original Due Date: Sept. 15th – Before 12‐31‐2015:
– Extended Due Date: March 15th – Original: September 15th
– Extended: April 15th
– After 12‐31‐15:
– Original: October 15th
– Extended: April 15th
• Exempt Organizations (990) • Exempt Organizations (990)
– Original Due Date: May 15th – Original Date: May 15th
– 1st Extension Due Date: Aug. 15th – Extension Date: Nov. 15th
– 2nd Extension Due Date: Nov. 15th
– 990‐T Extension: Nov. 15th
– 990‐T Extension: Nov. 15th
– 1 extension instead of 2 for 990
• Employee Benefits (5500)
– Original Due Date: July 31st • Employee Benefits (5500)
– Extended Due Date: Oct. 15th – Original Due Date: July 31st
– Extended Due Date: Nov. 15th
9
November 18, 2015
www.manerscpa.com
• Information Returns (W‐2, 1099s) – No
Changes
• Non‐June Year End C Corps
– Follow same method as Calendar Year
– New Original Date – 15th day of 4th month
– New Extended Date – 15th day of 10th month
• Foreign Trusts w/ US Owner – No Changes
• FinCen Report 114
– New Original Date: April 15th
– New Extension: Oct. 15th
New Filing Dates
• Remember – nothing changes until after
12‐31‐2016
• Penalties exist for late filing of partnership, S
corp. returns, 990, and 5500 as well as any late
return with tax due (they add up quickly!)
• Michigan Due Dates ‐ unchanged
10

2015 Tax Changes & Issues Conference Summary

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

2015 Tax Changes & Issues Conference Summary

Uploaded by

Copyright:

Available Formats

Maner Costerisan Solutions Conference

November 18, 2015

You might also like