The optional standard mileage rates have changed for 2016. The new rate for business miles is 54 cents per mile. The new rate for medical or moving miles is 19 cents per mile. The rate for charitable miles will stay at 14 cents per mile. These rates go into effect January 1, 2016 and will be used to calculate deductions on 2016 tax returns. Actual costs of using a vehicle can be used instead of the standard mileage deduction. More details can be found here.
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Congress passed the Protecting Americans From Tax Hikes Act of 2015 last week and the Act was signed into law by the President on Friday, December 18th, 2015. The law makes some tax provisions permanent and extends other until 2016 or 2019. Individuals will benefit from the enhanced Child Tax Credit, the enhanced American Opportunity Tax Credit, and the enhanced Earned Income Tax Credit. Businesses will benefit from extended bonus depreciation and enhanced Section 179 deductions and enhanced Research and Development Credits. A detailed list of the tax provisions can be found here. Additional information about individual and business tax provisions can be found here.
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December 15: 4th Quarter 2015 estimated tax payments are due for calendar-year corporations November payroll and nonpayroll withholding taxes are due January 15: 4th Quarter 2015 estimated tax payments are due for individuals and calendar-year estates and trusts December payroll and nonpayroll withholding taxes are due February 1: W-2s and 1099s are due to employees and other payees Employer Form 941 (for 4th Quarter) and Form 944 (for 2015) are due Employer Form 940 is due for 2015 Form 945 to report income withheld for 2015 on all nonpayroll items. *If the appropriate taxes are paid in full, deposited on
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The IRS has posted information regarding IRAs and Deducting Charitable Donations. Please use the links below to visit the IRS website: Year End IRA Reminders Tips for Deducting Charitable Donations
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If you want to maximize your deductions before the end of the year, Julian Block has written an article with advice on how to make the most of your contributions. His tips include: If you are donating appreciated assets, be sure to do so early enough to allow the transfer to go through by December 31. If you are donating items from your home or business, be sure to make detailed lists of what you are donating to use with the receipt you receive from the charitable organization that is accepting your items. If you donate a non-cash item worth
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If you are a business owner, it’s important to understand the difference the between revenue and profit. This article by David Ingram of Demand Media gives the meaning and value of revenue and profit and how to increase both. Click here to read the full article.
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Business owners who are looking to reduce their tax bill should consider the following tips to increase deductions and decrease their current year income before the end of the year: Defer Income Until Next Year Maximize Deductions Before the End of the Year Understand the Benefits and Burdens of the Affordable Care Act Watch for Last Minute Tax Extenders from Congress Click here for more information found in an article written by Sally P. Schreiber, J.D.
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Here’s a slideshow with 10 Year-End Tax Planning Tips: Top 10 Year-End Tax-Planning Tips Your Clients Shouldn’t Ignore »
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