Tax News – Notable 2016 Changes

Each year the Internal Revenue Service makes adjustment to the tax codes.   Here is a look at some key changes:

  • Effective beginning with 2016 taxable years, the de minimis tangible property safe harbor has increased to $2,500 per invoice or item. The change affects regulations issued in 2013 that clarified when your business could expense tangible real and personal business property. Previously, the de minimis safe harbor let you elect to deduct individual capital expenditures of $500 or less if your business did not have an “applicable financial statement.” (In general, an applicable financial statement is a financial statement based on a certified audit by an accounting firm.)
  • The extender legislation passed in December made changes to ABLE accounts. ABLE accounts – named for the Achieving a Better Life Experience Act that created them – are tax-beneficial savings accounts for qualified individuals with disabilities. The extender legislation eased the requirement that you had to open the account in the beneficiary’s state of residence. Now you are free to open an ABLE account with any state program you choose.
  • Three Section 179 expensing deduction changes may affect your 2016 tax planning. First, the $2,000,000 phase-out limit was adjusted for inflation and is $2,010,000 for 2016. (The $500,000 deduction amount did not change.) Second, you may be able to deduct more of qualified leasehold, retail, and restaurant property in 2016. The $250,000 cap on the amount of Section 179 you could claim for this property was eliminated. Third, air conditioning and heating units are now eligible for Section 179 expensing.
  •  You have new options for funding your myRA this year. In the past, you could fund your account from your paycheck by completing a direct deposit authorization form and giving it to your employer. That option is still available. In addition, now you can choose to make direct deposits from a checking or savings account or from your federal income tax refund.  A myRA (my Retirement Account) is a simplified Roth IRA that costs nothing to open, has no fees, and lets you start saving with any amount that fits your budget. The maximum contribution for 2016 is $5,500 ($6,500 when you're age 50 or older at the end of the year).

Contact us for details or to find out if these tax changes apply in your situation.  You can reach our office at 848-467-3990.    We are conveniently located at 67 Walnut Avenue, Suite 203 in Clark, NJ.  Visit us on the web at www.khacpas.com

                          

Kleespies, Horwitz & Associates, LLC is a full-service accounting firm serving clients throughout the United States dedicated to providing our clients with professional, personalized services and guidance in a wide range of business, financial and tax needs. Kleespies, Horwitz & Associates, LLC also serves our international clients with a United States presence.

Whether you are an individual or business,Kleespies, Horwitz & Associates, LLC has years of valuable experience assisting professionals with their accounting, financial and tax needs. 

The opinions expressed herein are the writer's alone, and do not reflect the opinions of TAPinto.net or anyone who works for TAPinto.net. TAPinto.net is not responsible for the accuracy of any of the information supplied by the writer.

TAP Into Another Town's News:

You May Also Be Interested In

Sign Up for E-News

Summit

Upcoming Events

Carousel_image_92eaadab4fea5d764092_edc2dcd4802a1c409d7c_screen_shot_2018-04-03_at_1.15.57_pm

Sun, May 27, 8:00 AM

Summit Summer Farmers Market, Summit

Summit Farmers Market

Community Calendar Food & Drink Green Health & Wellness

Carousel_image_0c63dc6a6331d69b33d0_1d29717c7da85f620ea1_17903707_159818264543586_8956059855279803140_n

Thu, May 31, 11:30 AM

Canoe Brook Country Club, Summit

Fortnightly Club Scholarship Luncheon

Food & Drink Giving Back

Carousel_image_118c5e0cd5e374752d3b_4781cf968b524bd38b2e_cm1-300x285

Thu, May 31, 1:30 PM

Coppola Ristorante, New Providence

Lunch and Learn: Dental Implants and the ...

Health & Wellness

Summit Police Blotter

May 17, 2018

4/24 - At 0728 hours a report was taken for a theft of two (2) sandwiches from a business on Morris Avenue. The manager reported that at approximately 0330 hours a male entered the business and removed two sandwiches from a refrigerated case. After doing so, he exited the store without paying for them. The male suspect was described as Hispanic, approximately 6’0”wearing a blue/gray ...

Lightbridge Academy Grand Opening Set for June 9

May 27, 2018

Mark your calendars and come join us at our Grand Opening on Saturday, June 9, from 10 a.m. - 2 p.m.

The 'Bubble Party' will include tours of the Center, games, crafts, music, DJ, a petting zoo and even a visit from the Millburn Fire Department.

Enroll at the event and receive up to a $600 tuition credit.

We are excited to bring our pioneering early education and ...

Video: Point View's Petrides Looks at Trade Truce Sector Beneficiaries, Opportunities

Point View Wealth Management's Managing Director and Portfolio Manager, John Petrides, on CNBC's Nightly Business Report (interview starts at 5:05 mark) discussing stocks to buy based on easing trade tensions with China.

ptview.com/medias/tv-radio

For more than 25 years, Point View Wealth Management, Inc. has been working with families in Summit and beyond, ...

Stocks Can Rise in a Rising Interest Rate Environment

Investors remain concerned about the potential impact of higher interest rates on stocks. In their most recently released minutes, the Federal Reserve Open Markets Committee indicated the US economy is on solid footing and the economic conditions warrant continued gradual increasing of interest rates. This set off a sale in the stock and bond markets as investors began pricing in a fourth ...

AtlantiCast

AtlantiCast: Episode 15

On this week’s AtlantiCast, learn some important tips for controlling and avoiding diabetes from an Atlantic Health System expert, see how Atlantic Health is advancing cutting-edge research, hear what’s being done to keep health care environmentally friendly and much more!

 

A Royal Pain

I went to a big wedding over the weekend.  It was in England.

I like to think I was invited, but according to the Royal Guards and the Thames Valley Police I was not.  But more about that later.

You see, not too long ago I received an evite addressed to me from H&M@royalwedbot.co.uk.  Curiously, it was in my spam folder with a warning message. For an evite it was pretty ...