business - Linkenheimer LLP CPAs & Advisors

New PATH Act Provides Major Benefits to Businesses in 2015

With only two weeks remaining until the end of the year, Congress passed the Protecting Americans from Tax Hike (PATH) Act of 2015, which reinstates a large number of tax provisions that had expired in 2014, many of which were not just renewed, but made permanent, while some of the other provisions are extended through 2016, and in some cases, 2019. This gift from Congress comes just in time for the holidays and will have a significant impact on tax payers and businesses. Below are some of the major provisions worth noting. And because California does not conform to some of these tax breaks, please contact us so we can help with your individual and year-end tax planning.

Highlights of the PATH Act:

$622 Billion Tax Break Package
Over 100 Separate Provisions
Permanent Research Tax Credit, Code Sec. 179 Expensing and AOTC (American Opportunity Tax Credit)
Five-Year Extension for Bonus Depreciation
Delay of Excise Tax on “Cadillac” Plans
Moratorium on Medical Device Excise Tax
Overall Major IRS Reform

Permanent Extensions for Individuals

Earned income tax credit
American Opportunity Tax Credit
Child tax credit
Option to to deduct state and local sales and use taxes instead of state and local income taxes
Teachers classroom expense deductions
Charitable distributions for IRAs
Qualified […]

By Linkenheimer LLP|2020-09-03T20:05:18+00:00December 29th, 2015|congress, extension, extensions, irs|0 Comments

State Taxes

States are more and more aggressive about taxing businesses that sell to their citizens. So, even though your business is not physically present in a particular state, any sales in that state may create income, sales or property tax responsibilities. Carefully consider the business you conduct in other states. For example, resident employees, renting real estate, warehousing inventory, salespeople travelling, etc., may create a filing requirement in that particular state. You should consult with your Linkenheimer LLP tax advisor.

By Linkenheimer LLP|2015-11-23T20:22:07+00:00November 23rd, 2015|business|0 Comments

Impacts of the Affordable Care Act on Employer/ Business Owner

Beginning in 2015, if you employ at least 100 full-time employees or full-time equivalents (and after 2015, at least 50 full-time employees or equivalents), you may become subject to the employer mandate that was enacted as part of the Affordable Care Act (ACA), and if you fail to meet its requirements, you may owe a nondeductible excise tax.

You could potentially be subject to the excise tax, if any of your full-time employees are certified, as described below, as having received “health care assistance,” and you either: (1) do not offer health care coverage for all of your full-time employees; or (2) offer “minimum essential” coverage under your group health care plan that either is not “affordable,” or does not provide “minimum value” to your employees.

If you do not offer health care coverage to your full-time employees, the excise tax will be $166.67 for any month, i.e., 1/12 of $2,000 for 2015, times the number of your full-time employees during any month, reduced by a 80-person threshold (30 in 2016).

If you do offer health care coverage to your employees, but it is not affordable or does not provide minimum value, the excise tax will be […]

By Linkenheimer LLP|2020-09-03T20:05:32+00:00February 10th, 2015|affordable care act|1 Comment

Mileage Rate Change for 2015

Optional standard mileage rates for use of a vehicle will change a little for 2015, the IRS announced on Wednesday, with the business use rate going up and the medical and moving rate going down (Notice 2014-79). Taxpayers can use the optional standard mileage rates to calculate the deductible costs of operating an automobile.

For business use of a car, van, pickup truck, or panel truck, the 2015 rate will be 57.5 cents per mile, slightly higher than the 56 cents per mile rate that applies for 2014. Driving for medical or moving purposes may be deducted at 23 cents per mile, which is one-half cent lower than for 2014.

The rate for service to a charitable organization is unchanged, set by statute (Sec. 170(i)) at 14 cents a mile.

The portion of the business standard mileage rate that is treated as depreciation will be 24 cents per mile for 2015, up two cents from the 22-cent rate in effect for 2014.

For purposes of computing the allowance under a fixed and variable rate (FAVR) plan, the maximum standard automobile cost for 2015 is $28,200 for automobiles (not including trucks and vans) and $30,800 […]

By Linkenheimer LLP|2020-09-03T20:05:37+00:00December 11th, 2014|irs, mileage|0 Comments