January 7, 2015
RE: 2014 filing season
Congress was pretty quiet this past year in passing tax laws that would impact a whole bunch of taxpayers in a major way in 2014. So there is just not that much new. The most important change is the health care law changes. The IRS did win a case that now limits taxpayers to only one IRA rollover per account per year.
Beginning with 2014 taxpayers will have to declare if they have health insurance on their returns due 4/15/15. We will be required to sign off on this so please bring your documentation proving you had health insurance during 2014 as we will require proof before signing the return. Taxpayers who are part of a mutual aid sharing plan are exempt. Those who have Medicare do not need to bring proof.
The standard mileage rates for 2014 on business mileage are 56.5¢. The rate for medical and moving mileage is 24¢. Congress sets the charitable mileage and it remains at 14¢ a mile. Parking and tolls are in addition to mileage.
The standard mileage rates for 2015 on business mileage are 57.5¢. The rate for medical and moving mileage is 23¢. Congress sets the charitable mileage and it remains at 14¢ a mile. Parking and tolls are in addition to mileage.
Congress adjusted the Section 179 expensing election of fixed asset purchases for farmers and businesses back to the limit of $500,000. Also passed again is bonus depreciation on selected new asset purchased up to 50% of cost.
We look forward to visiting with you and preparing the best possible return for you in 2015! Please call if you have questions or want further clarification.
Lawrence R. Yoder, CPA