The IRS has issued regulations that change accounting rules for 2014 for certain categories of expenses, including repairs, spare parts, and materials & supplies.  For instance, any item that generally costs less than $200 is a material and supplies item, whereas the previous rules set this limit at $100.  If you own a building, or have materials and supplies, your preparer may have to prepare an additional form called a Form 3115.  This form is separate from your tax return and requires its own signature.  The form is then mailed to

Business owners and their companies can apply a vast array of strategies.  Many of the elections made at the entity level will have a significant impact not only on the company’s tax burden, but also on the tax burden of individual shareholders and partners.  An example is using a strategy such as Section 179 which expenses the cost of some assets, as opposed to depreciating them over time.

For high net-worth individuals, tax planning requires a proactive approach to obtain the best results.  Economic and legislative changes are uncertain as it pertains to the tax code and any expiring benefits.  There is no certainty 2015 will see the same extenders 2014 did and there are many steps you can take now to protect you and your businesses assets.  In taking this approach, the decisions you make now should be instrumental in preserving your wealth – not just for your own future, but for that of the next generation as well.

Tax season officially kicked off January 20, 2015, as scheduled, even with late tax extender law passage on December 19, and cuts in IRS funding.  Those filing paper returns this year, however, will have their refunds delayed an additional week or longer due to the cuts in funding.  We are also told the wait times if you call the IRS are expected to be much longer this tax season.  This is the lowest level of funding since 2008, and the lowest since 1998 when inflation is considered, according to IRS Commissioner John Koskinen. 

For those that may have missed it, the President signed into law a “tax extender” bill in December that extended a number of existing tax benefits and credits that would have otherwise expired as of 12/31/13.  The law extended them only through the 2014 tax year.  For the 2015 filing year most of these extenders will probably be eliminated.

Some of the extensions that were restored which may benefit you include: