Monthly Archives: December 2015

For Small Businesses: IRS Raises Tangible Property Expensing Threshold to $2,500; Simplifies Filing and Recordkeeping

The Internal Revenue Service has simplified the paperwork and recordkeeping requirements for small businesses by raising from $500 to $2,500
the safe harbor threshold for deducting certain capital items.

The change affects businesses that do not maintain an applicable financial statement (audited financial statement). It applies to amounts spent to
acquire, produce or improve tangible property that would normally qualify as a capital item.

Tax Tips for Deducting Gifts to Charity This Holiday Season

The holiday season often prompts people to give money or property to charity. If you plan to give and want to claim a tax deduction, there are a few tips you should know before you give.

Rules for Charitable Contributions of Clothing and Household Items

Household items include furniture, furnishings, electronics, appliances and linens. Clothing and household items donated to charity generally must be in good used condition or better to be tax-deductible. A clothing or household item for which a taxpayer claims a deduction of over $500 does not have to meet this standard if the taxpayer includes a qualified appraisal of the item with the return.

Donors must get a written acknowledgement from the charity for all gifts worth $250 or more. It must include, among other things, a description of the items contributed.

Avoid Phishing and Malware to Protect Your Personal Data

“Update your account now.”  “You just won a cruise!” “The IRS has a refund waiting for you.”

In the cyber world of phishing, the sentences are “bait” – lures from emails, telephone calls and texts all designed to separate you from your cash, your passwords, your social security number or your very identity.

Phishing remains a problem because it works. Cybercriminals on a daily basis concoct new ways to trick people into turning over cash or sensitive data that can affect your taxes.

Three Tax Considerations during Marketplace Open Enrollment

When you apply for assistance to help pay the premiums for health coverage through the Health Insurance Marketplace, the Marketplace will estimate the amount of the premium tax credit that you may be able to claim.  The Marketplace will use information you provide about your family composition, your projected household income, whether those that you are enrolling are eligible for other non-Marketplace coverage, and certain other information to estimate your credit.

Upcoming Tax Deadlines

December 2015

Tu  15  Corporations: Deposit the fourth installment of your 2015 estimated tax.

January 2016

Th 15 Individuals: Pay the final installment of your 2015 estimated tax. Use Form 1040-ES.

Th 15 Farmers and fishermen: Pay your estimated tax for 2015. Use Form 1040-ES.