Yesterday, the IRS announced that it will begin processing 2014 tax returns on January 20, 2015. This applies to returns filed electronically or on paper. If you are one of the few who has their information and really want to file before that date, you can submit a paper return but they won’t begin processing them until January 20th, the same day they begin accepting electronic returns.
Can a construction company owner deduct the costs of his sons motocross racing? In one instance, the tax court says yes. Expenses must be ordinary and necessary for a business to deduct them. Click here to see how the judge ruled on the Evans case.
Late Tuesday, the Senate passed the Tax Extenders Bill which retroactively reinstates over 50 tax provisions that expired at the end of 2013. Unfortunately, all of those provisions are only good through the end of 2014, so they will all re-expire in two weeks. Doesn’t congress make tax planning interesting?
Every taxpayer who owns rental property or a business with depreciable property has some important new changes and choices to make for their 2014 tax returns. Some of this is discussed in Rev Proc 2014-16. If you haven’t discussed this with your local Enrolled Agent or other competent professional, I would advise you to have that discussion as soon as possible. If you ask your tax preparer about this and they don’t know what you are talking about, it’s time to change tax preparers.
To follow up on what I posted last week, there are certain hardship exemptions which can be applied for on the 2014 return without advance approval from the Marketplace. A list of those hardship exemptions can be found on IRS Notice 2014-76