Let’s see, we just had Thanksgiving, then Black Friday to spend our money at stores, Cyber Monday to spend online, and next comes Giving Tuesday if you still have any money left. Here’s a link from the IRS with some information about tax deductible donations. If you have any questions regarding what gifts are deductible, let us know.
Most of the energy credits existing under current federal law expire at the end of 2016. Solar energy credits have been extended but a variety of credits for energy efficient windows, doors, A/C systems etc expire on December 31st. For anyone still wishing to take advantage of these credits, the items need to be installed and in use by December 31st. As a caveat, these credits have expired before and then been reinstated by congress. Will these credits be extended by the lame duck congress or reinstated in the future? Well, my crystal ball isn’t working this morning so we will have to stay tuned to see what happens.
Good news for CA taxpayers! A temporary increase to sales tax approved by voters expires on 12/31/2016. In 2017 the rate drops by .25%. So for all of those looking to purchase your newly approved recreational marijuana, you will pay slightly less in sales tax. However, there are cultivation taxes, a 15% statewide excise tax and local governments can also add local taxes to your cannabis purchases.
Many people who couldn’t afford health insurance chose to instead pay the penalty for not having insurance. That penalty increased dramatically in 2015 and again in 2016. The “somewhat” good news is that for 2017 and beyond the penalty increases are much smaller since they are simply adjusted for inflation. Here’s a link on the subject.