2017

Tax Extenders Reinstated

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In the massive budget deal passed last week, Congress has bestowed surprise tax breaks on homeowners, students and the climate conscious. There are tax breaks for mortgage insurance premiums, higher-education expenses, energy-efficient home-improvement projects and more. These were tax breaks that expired at the end of 2016, but are now back on for 2017, now that Trump has signed them into law.

The immediate good news for taxpayers: You could see additional tax savings on the tax return you’re filing now—for the 2017 tax year. Below are some highlights. For a complete list, click here. 

Tax Relief for Families and Individuals

Extension and modification of exclusion from gross income of discharge of qualified principal residence indebtedness. The provision extends through 2017 the exclusion from gross income of a discharge of qualified principal residence indebtedness. The provision also modifies the exclusion to apply to qualified principal residence indebtedness that is discharged pursuant to a binding written agreement entered into in 2017.

Extension of mortgage insurance premiums treated as qualified residence interest. The provision extends through 2017 the treatment of qualified mortgage insurance premiums as interest for purposes of the […]

By |February 13th, 2018|deduction, deductions, New Tax Laws, tax, tax implications|0 Comments

New Health Saving Account Limits for 2018

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The Internal Revenue Service released the 2018 inflation-adjusted limitations for health savings accounts.

In Revenue Procedure 2017-37, the IRS said the annual contribution limitation on deductions for an individual with self-only coverage under a high deductible health plan is $3,450. For calendar year 2018, the annual limitation on deductions for an individual with family coverage under a high deductible health plan is $6,900. HSAs typically require high deductibles, but they allow people to set aside money from their paychecks on a pre-tax basis for medical expenses.

For calendar year 2018, according to the IRS, a “high deductible health plan” is defined as a health plan with an annual deductible that is not less than $1,350 for self-only coverage or $2,700 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,650 for self-only coverage or $13,300 for family coverage.

For 2017, the lower limit on the annual deductible under a high-deductible plan was $1,300 for self-only coverage and $2,600 for family coverage, the same as for 2016. The upper limit for out-of-pocket expenses was $6,550 for self-only coverage and $13,100 for family coverage

If you […]

By |May 24th, 2017|hsa|0 Comments

House Republicans Pass Amended AHCA

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On May 4, 2017, members of the U.S. House of Representatives voted along party lines to pass an amended version of the American Health Care Act – proposed legislation to repeal and replace the ACA. The AHCA will now move on to be considered by the Senate. This ACA Compliance Bulletin provides an overview of the proposed legislation and its potential impact going forward.

The AHCA needed 216 votes to pass in the House. Ultimately, it passed on a party-line vote, with 217 Republicans and no Democrats voting in favor of the legislation. The AHCA will only need a simple majority vote in the Senate to pass. If it passes both the House and the Senate, the AHCA would then go to President Donald Trump to be signed into law.

The attached bulletin provides helpful information on how this may affect employers and individuals. We will keep you updated on any new developments and in the meantime, feel free to reach out to your Linkenheimer CPA with any questions.

Download the ACA Compliance Bulletin Now

By |May 9th, 2017|affordable care act, Health care|0 Comments

Trump’s 2017 Tax Reform Unveiled

The White House  issued President Trump’s goals and key features for tax reform, including cut corporate tax rates, flattened individual marginal income tax brackets, and repeal of the estate and alternative minimum taxes. He outlined these proposals in a one page bulletin which you can see below. The individual and business tax reform highlights include the following:

Proposed individual tax provisions:

  • Down from the current seven tax rates to three- 10%, 25% and a top rate of 35% (down from 39.6%).
  • Elimination of the Estate Tax.
  • Elimination of itemized deductions outside of mortgage interest and charitable contributions.
  • Repeal of the Alternative Minimum Tax (AMT).
  • Repeal of the 3.8% tax on net investment income.
  • Doubling of the standard deduction for married couples and individuals.
  • Tax relief for families and dependent care expenses.

Proposed business tax provisions:

  • Decreasing the top corporate tax rate to 15% (current top tax rate is 35%).
  • The 15% tax rate would apply to business income of pass-through entities such as partnerships, S corporations and limited liability companies.
  • A one time tax on business profits (at an unspecified tax rate) in foreign countries repatriated to the United States.
  • Introduction of a territorial tax system in place of the current worldwide tax regime.

Below is the one page bulletin released from the White House. […]

By |May 4th, 2017|tax, tax planning|0 Comments

More Info on ACA Repeal and Replacement

House Republicans have unveiled a repeal and replacement plan for the Affordable Care Act (ACA). The GOP’s American Health Care Act (ACHA) would eliminate most of the ACA’s taxes, including penalties connected with individual and employer mandates, the net investment income (NII) tax and the Additional Medicare tax. Left in place, although delayed, would be the excise tax on high dollar health plans. Also left in place, would be a number of non-tax provisions related to scope of coverage, benefits and children- including allowing dependents to continue to stay on their parents’ plan until the age of 26, prohibiting health insurers from denying coverage or raising rates to patients based on pre-existing conditions, and forbidding life-time limits on insurance coverage.

The House GOP plan has been rejected by Democrats. Some Republicans have said the plan does not go far enough in repealing all of the ACA. As March moves forward, a vote on the house floor is eventually expected.

To read the impact of the ACA changes, new age-based credits, repeal of NII tax, expanded HSA and other topics, click the link for a detailed read from CCH and Wolters Kluwer. CCH Tax Briefing – ACA Repeal […]

By |March 14th, 2017|affordable care act, Health care|0 Comments

What the ACA May Look Like Under Trump

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President Donald Trump has made dismantling the Affordable Care Act (ACA) one of the cornerstones of his administration. Steps have already been taken to begin the process. The initial steps, including an executive order issued by Trump, have no immediate impact on the ACA. No ACA provisions or requirements have been eliminated or delayed at this time. However, employers should be aware that the following plan requirements would change if the ACA is repealed:

  • Prohibition on lifetime and annual limits
  • Out-of-pocket maximum limit
  • Waiting period limit
  • Prohibition on pre-existing condition exclusions
  • Dependent coverage to age 26
  • Preventive care coverage requirement
  • Prohibition on rescissions
  • Patient protections

To view more information on the ACA and potential changes, click here.

By |March 9th, 2017|Health care|0 Comments

Deadline for Receiving First 2016 IRA Required Minimum Distribution (RMD) Is April 1

Individuals who turned 70 1/2 in 2016, but opted to wait until 2017 to begin taking their RMD for 2016 must receive their 2016 RMD by 4/1/17, even though that date falls on a Saturday. IRS Pub. 590-B, Distributions from Individual Retirement Arrangements (IRAs), does not offer an alternative date, such as the following Monday, 4/3/17, to receive the distribution, so please keep that in mind. If you have any questions, please contact your Linkenheimer CPA.

By |March 3rd, 2017|ira, irs|0 Comments

Linkenheimer Team’s 2017 Eye Care Trip to Nicaragua a Success

January 1, 2017 found 11 Linkenheimer staff and partners on their way to Nicaragua for the firm’s third eye care mission into the remote villages of the Rio San Juan region. Travelers included Matt Melchiori, Anne Glanville, Judy Deniz, Kerri Berry, Andy Vedder, Nina Shaposhnikov, Rudy Malmanis, Kari Bruner, Carli Ortiz, Mike Musson and John Jones.

The morning of January 2nd we boarded the 12 seat Cessna Caravan for San Carlos and our beloved dirt runway. Lunch and a two hour boat ride found us at the Sabalos Lodge www.sabaloslodge.com which became our home base. Mosquito repellent in hand, along with instructions on tucking in the mosquito netting under your mattress (while you are on the mattress) got us prepared for the next five nights.

Days 2 and 3 found us traveling to and from and working in the village of Las Maravillas. This is a very remote village and difficult to get to from Sabalos (or anywhere for that matter) and rarely receives medical services. The region had 30 days of straight rain prior to our arrival, so the roads were nothing but mud and slop with our 4WD convoy frequently stopping to assess the driving strategies and get fellow […]

By |February 21st, 2017|Community|0 Comments