The opening day of filing season for 2015. Even though we are filing our 2014 taxes, we call it season 2015.
First the good news—many of the tax laws which were set to expire at the end of 2014 have been extended.
Now for the changes.
1. The Affordable Care Act is in full swing and ready to take a bite out of the refunds (or create liabilities) for those who did not have health insurance in 2014. I will be asking you several questions.
• Did you (and your family) have insurance for the entire year?
• Did you purchase your insurance on the Health Care Exchange?
• If you didn’t have insurance, how many months were you uninsured?
• Did you receive a subsidy? (you should receive a form 1095A from the Health Care Exchange).
2. If you had privately purchased insurance, were on Medicaid or had insurance through your employer, you are likely unaffected. My job as your accountant will end with a simple check mark in a box. This will not affect your fees. If, you have purchased insurance from the exchange and received a subsidy or did not have insurance for part of the year, several calculations and forms will be generated. You may have a tax called “Health Care Individual Responsibility” or “Health Care Credit Recovery” if you had no insurance or received too much of a subsidy for your health care.
3. BIG NEWS—There are new regulations in affect which directly impact those with Rental Property, although all returns with depreciation are affected to some degree. Without a lengthy tax law class, all those who depreciate assets on their personal or business returns will be required to file forms electing new (and in most cases) more favorable depreciation rules. I am currently being advised, that those that do not file these forms will be granted “extra attention” from the IRS along with possible line audits involving asset depreciation and repair expenses.
4. GOOD NEWS—Many of you with rental property will be afforded larger depreciation deductions under the new regulations.
So there you have, it—-the Good, the Bad and the Ugly…for 2015 tax season.
Please feel free to quote me, use whatever information I post or e-mail me with questions. All I ask is that my words receive proper credit.
Rhonda A. Mannes,