irs - Linkenheimer LLP CPAs & Advisors

Required Minimum Distribution Reminder

Taxpayers born before 7/1/1944 generally must receive the Required Minimum Distribution (RMD) payments from their Individual Retirement Arrangements (IRAs) and workplace retirement plans [including Section 401(k) , 403(b) , and 457(b) plans] by 12/31/14. A special rule allows those who reached age 70 1/2 during 2014 to wait until as late as 4/1/15 to receive their first RMD. The special April 1 deadline applies only to the RMD for the first year; the remaining RMDs must be received each year by December 31. Consequently, deferring the first-year payment into 2015 will result in the taxpayer having two taxable distributions in 2015. If you have questions, please contact your Linkenheimer LLP CPA.

By Linkenheimer LLP|2014-12-16T00:19:08+00:00December 16th, 2014|irs|0 Comments

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

Noncash Charitable Contributions: Documentation

To Our Clients and Friends:

As we approach the end of the year, a recent Tax Court case is a good reminder of what it takes to support a deduction for noncash charitable contributions that perhaps you’ve already given this year or plan to donate in the coming weeks.

The taxpayer in the case claimed a deduction of almost $28,000 for three separate noncash donations to a charitable organization. The donated items consisted of clothes, household goods and furniture, and various electronics, including computers and a printer. Because of the size of the donations, he was subject to several documentation requirements related to substantiating his donations. These included:

A need to obtain a written acknowledgment from the charity (required any time cash or noncash donations are $250 or more) describing what was donated and when, and stating either that no goods or services were rendered in return for the donation or describing and valuing what the charity provided in return. The acknowledgment must be obtained by the time the tax return for the year of the donation is filed or due, whichever comes first.
A requirement to maintain documentation for noncash donations of the same or similar items […]

By Linkenheimer LLP|2020-09-03T20:05:41+00:00December 2nd, 2014|charity, contributions|0 Comments

IRS Automatically Extends Filing for Certain Estates Electing Portability

In estate planning, the concept of “portability” of a deceased spouse’s unused exclusion (DSUE) amount is relatively new. For decedents dying after December 31, 2010, if a first-to-die spouse has not fully used the estate tax exclusion, the DSUE amount can be transferred to the surviving spouse. This was originally passed as a two-year temporary provision until it was made permanent in the American Taxpayer Relief Act of 2012. Estate tax returns are usually required to be filed within 9 months of death to make the deceased spousal unused exclusion election. The IRS released Revenue Procedure 2014-18, providing an automatic extension for certain estates of decedents dying in 2011, 2012 and 2013 to elect portability. The extension applies to estates that would otherwise not have had a filing requirement, and allows the estates to file a return to elect portability until December 31, 2014. It includes the estates of same-sex decedents who were not eligible to elect portability until after the Windsor decision (United States v. Windsor recognized same-sex marriages for purposes of determining marital status of taxpayers under the Internal Revenue Code, the IRS has issued Revenue Procedure 2014-18 to grant limited relief for late elections).

This revenue procedure applies only […]

By Linkenheimer LLP|2020-09-03T20:05:44+00:00October 28th, 2014|estate, extension, tax|0 Comments