News of Interest

May 4, 2017– 2017 First Quarter Federal Tax Developments

During the first quarter of 2017, there were many important federal tax developments: Tax reform, health care, vehicles, corporations and several more topics. Read more...

January 24, 2017– Important 2016 Fourth Quarter Federal Tax Developments

During the fourth quarter of 2016, there were many important federal tax developments: Tax legislation, mileage rates, per diems, inflation adjustments, repair regs, mediation, gaming, and several more topics. Read more...

December 19, 2016 – Standard Mileage Rates

The IRS has issued the 2017 standard mileage rates for business, charitable, medical or moving purposes. Beginning on January 1, 2017, the standard mileage rates for the use of a car (also a van, pickup, or panel truck) will be: - 53.5 cents per mile for business miles driven, down from 54 cents for 2016 - 17 cents per mile driven for medical or moving purposes, down from 19 cents for 2016, and - 14 cents per mile driven in service of charitable organizations. The charitable rate is set by statute and remains unchanged. California conforms to these amounts.

November 28, 2016 – Post Election Update

Any change in Presidential Administration brings the possibility, indeed the likelihood, of tax law changes and the election of Donald Trump as the 45th President of the United States is no exception. During the campaign, President-elect Trump outlined a number of tax proposals for individuals and businesses. This letter highlights some of the President-elect’s tax proposals. Keep in mind that a candidate’s proposals can, and often do, change over the course of a campaign and also after taking office. This letter is based on general tax proposals made by the President-elect during the campaign and is intended to give a broad-brush snapshot of those proposals.

At the same time, the end of the year may bring some tax law changes before President Obama leaves office. This letter also highlights some of those possible changes with an eye on how late tax legislation could impact your year-end tax planning. Read more...

November 3, 2016 – Year-End Tax Planning for 2016

As the tax law grows more complex, year-end becomes an increasingly important time to take inventory of your tax situation and, then, take action. Income and deductions for the entire year usually become more clear as we move ever closer to the end of the year. The final months of the year provide a valuable “last chance” to change the course of your tax year before it closes for good. Launching some traditional year-end techniques designed to accelerate deductions and delay income (or vice versa, depending upon prospects for next year) may help to maximize your tax savings and minimize your tax liability for 2016. Read more...

October 27, 2016 – Important 2016 Third Quarter Federal Tax Developments

During the third quarter of 2016, there were many important federal tax developments, including Tax legislation, Affordable Care Act, Partnerships, Foreign Account Tax Compliance Act (FATCA), and others. Read more...

September 22, 2016 – Fraudulent IRS CP2000 Notices

The IRS is warning the public of a new scam that uses fraudulent CP2000 notices to solicit money from taxpayers. The fraudulent forms look convincing, and show balances due that are small enough that taxpayers just might pay rather than arguing the point. Read more...

July 22, 2016 – Important 2016 Second Quarter Federal Tax Developments

During the latest quarter of 2016, there were many important federal tax developments. Topics include Tax Legislation, Partnerships, Business deductions, Retirement plans, Identity theft, and several others. Read more...

May 18, 2016 – Important 2016 First Quarter Federal Tax Developments

During the first quarter of 2016, there were many important federal tax developments. Topics include Tax Legislation, Affordable Care Act, Partnerships, Depreciation, Fair Market Value Amounts, and several others. Read more...

February 5, 2016 – IRA Investing in a Limited Partnership

If you have an IRA or other retirement account that is invested in one or more limited partnerships, there are special rules to be aware of. This income is not reportable on your Form 1040 because it is inside the IRA. However, the income in these investment vehicles is often considered under the Internal Revenue Code to be “unrelated business income,“ or UBI, to a qualified retirement plan. Read more...

January 21, 2016 – Important 2015 Fourth Quarter Federal Tax Developments

During the fourth quarter of 2015, there were many important federal tax developments concerning new tax legislation, the Affordable Care Act, 2016 mileage rates, inflation adjustments, employment taxes, and several other topics. Read more...

January 14, 2016 – Year-End Tax Legislation for 2015

In mid-December, Congress passed and President Obama signed two new laws: the Protecting Americans from Tax Hikes Act of 2015 (PATH Act) and the Consolidated Appropriations Act, 2015 (known as the fiscal year (FY) 2016 omnibus). The tax provisions in the new laws impact all types of taxpayers. This letter presents a high level overview of the tax provisions in the new law. Keep in mind that every taxpayer´s situation is unique. Some taxpayers may benefit more from certain changes in the new laws than others. That´s why it is important to carefully study the changes made to the tax laws by the PATH Act and the FY 2016 omnibus. Read more...

January 5, 2016 – IRS Increases de minimis Safe Harbor

On November 25, 2015, the IRS increased the de minimis safe harbor expense limitation under the repair regulations from $500 to $2,500 per item. Under the regulations, a taxpayer may elect to expense items of tangible personal property that the taxpayer acquires or produces during the taxable year if certain requirements are met. The change is effective for costs incurred during taxable years beginning on or after January 1, 2016. However, the IRS will not audit the issue of whether a taxpayer without an applicable financial statement can utilize the $2,500 limitation for taxable years beginning before January 1, 2016. (For taxpayers with an applicable financial statement, the limitation remains at $5,000).

On December 23, 2015 the Franchise Tax Board stated that California will follow the increase in the repair regulations for taxable years beginning on or after January 1, 2016. However, the FTB will not follow the “audit protection“ expressed by the IRS for pre-2016 taxable years.

See 2015 news items