2017 Mileage Rates

The IRS has reduced mileage rates for 2017

Fuel prices are down SO IRS mileage rates have been reduced

Business Rate

For taxpayers using their personal vehicle for business purposes, the mileage rate in 2016 was 54 cents a mile.

For 2017 primarily as a result of lower fuel costs the rate is reduced to 53.5 cents per mile.

Medical/Moving

The rate relating to medical or moving was 23.5 cents per mile in 2014, 23.0 cents per in 2015, 19 cents per mile in 2016.  The rate for 2016 is 17 cents per mile.

Charitable Rate

The rate for mileage related to Charitable Contributions is set by Congress, rather than the IRS, and remains at 14 cents per mile.

 

Rental Property Reqistration

If you own rental real estate  – many communities require you to register the property.

Kansas City, MO, Kansas City, KS, Independence, MO, Lenexa, KS, Overland Park, KS, and Leavenworth, KS, all have regulations which require rental property to be registered with the city.

Kansas City, MO

  • Property must be registered each year between December 1 through January 31.
  • There is no cost to register.
  • There is a $50 late filing penalty for late filing.
  • If the city determines that a property is not registered there is a penalty of $100 or more.
  • Registration must done be online at:  KCMO Rental

Kansas City, KS

  • Property must be registered annually by May 1.
  • Fees are charged of least $55.00 per rental house with additional charges for duplexes and multi-unit locations.
  • To Register:  KCK Rental

Lenexa, KS

  • Rental licences renew annually during the licensing period.
  • The licensing period runs from January 1 to December 31.
  • There is a required licensing fee.
  • Biennial exterior inspections are required.
  • To Register:  Lenexa Rental

Independence, MO

  • The form “Business License Application – Landlord”  is required
  • The license fee is based upon gross rental receipts (minimum of $50).
  • Beginning 6/1/17 inspections will be required every two years.
  • To Register:  Register Independence
  • Landlord & Tenant Guide

Leavenworth, KS

  • Each property must be registered with  a total fee of $20.
  • There is no renewal.
  • To Register:  Register Leavenworth

Overland Park, KS

  • Licensing and inspection will be phased in over a two year period – beginning 1/1/17
  • Owners will be required to obtain and maintain a valid rental license and pass an exterior inspection of each rental property.
  • Rental licenses are good for two years with a cost of $60 per property
  • For Information:  Rental OP

Tax Season Starts!

Tuesday January 19, 2015, is the official start of Tax Season.

That is when the IRS starts accepting electronically filed returns.

This year tax season lasts longer than any ever.

Why – First – this a leap year so there are 29 days in February.

Friday – April 15 is a Holiday – Emancipation Day – taxes are never due on a Holiday, so that would make the due date – the next Monday – thus making taxes due:

Monday April 18, 2016

Happy Tax Season!

Congress Passes PATH – President Signs

 

Before Christmas of 2015 Congress passed and the President signed the Protecting Americans from Tax Hikes Act of 2015 (PATH)

This bill not only extended many tax laws that had actually expired at the end of 2014, some of the items were made permanent.

The biggest business clause in the bill is to make permanent the maximum that small business can expense in capital equipment.  The amount is back to $500,000.  This amount would have fallen to $25,000 had the bill not passed.

For individuals there were many smaller provisions, many which were made permanent.

The Teacher deduction credit was renewed and actually has an inflation adjustment, in case inflation should ever become excessive.

For taxpayers itemizing deductions they can again choose they greater on State & Local Income Tax – or sales tax – whichever is greater.

Individuals may make direct transfers to charity.

The American Opportunity Credit was renewed

Some items were renewed – but only thru the end tax year 2016.

These include the mortgage insurance deduction, the residential mortgage credit, and the tuition deduction.

All together there are over 50 clauses in the bill.  For details of how this bill affects you, please discuss the provisions with your tax preparer.

 

2016 Mileage Rates

The IRS has reduced mileage rates for 2016.

Business Rate

For taxpayers using their personal vehicle for business purposes, the mileage rate in 2014 was 56 cents a mile, in 2015 the rate increased to 57.5 per mile.

For 2016 primarily as a result of lower fuel costs the rate is reduced to 54 cents per mile.

Medical/Moving

The rate relating to medical or moving was 23.5 cents per mile in 2014 and 23.0 cents per in 2015.  The rate for 2016 is 19 cents per mile.

Charitable Rate

The rate for mileage related to Charitable Contributions is set by Congress, rather than the IRS, and remains at 14 cents per mile.

 

Live in Kansas – Work in Kansas City? Amend Kansas Tax Return for a Refund

During 2012, 2013, or 2014 did you live in Kansas?

During 2012, 2013, or 2014 did you (or your spouse) work in Kansas City, Missouri?

If the answer to these questions is yes – the State of Kansas may owe you a tax refund.

If this applies to your friends, neighbors, or co-workers – let them know –  they may be due money from Kansas.

To receive refunds – you will need to complete amended Kansas tax returns for 2012, 2013 and or 2014.

Why?

In May 2015, The United States Supreme Court ruled on a Maryland case that state tax credits for taxes paid to another state should also recognize taxes paid to local governments.

In August 2015 Kansas admitted that they owed taxpayers the money and provided guidance for obtaining the funds.    Kansas Notice 15 – 15

What to do to get your money from Kansas?

To receive refunds, taxpayers must file an amended Kansas tax return for any applicable year.  Amended tax returns can be filed for 2012, 2013 and/or 2014.  The amended tax return for 2012 must be filed by April 15, 2016.

To complete the amended return you will need copies of your original returns (Federal, Missouri, Kansas – and Kansas City – if filed).  You will need copies of all W-2 forms.

If you need help, please contact BDS.

Liberty Memorial 2

State Tax Amnesty – Kansas – Missouri

Owe back taxes to Kansas or Missouri?

Want to pay your delinquent taxes – and want to avoid the penalties and interest?

The State Legislatures of Kansas and Missouri have both recently passed legislation establishing periods when delinquent taxes can be paid in full, with no interest and/or penalties.

The types of taxes eligible include:

  • Individual Income
  • Business Income
  • State and Local Sales Tax
  • State and Local Use Tax
  • Employers Withholding Tax
  • Corporation Franchise Tax

Taxes due prior to 12/31/14 are eligible for the amnesty.

To take advantage of the amnesty –  all taxes of a type must be paid during the amnesty period.

The amnesty period is:

  • Missouri – 9/1/15 thru 11/30/15
  • Kansas   – 9/1/15 thru 10/15/15

If you owe Missouri delinquent taxes that are eligible for the amnesty, Missouri will send a notice with the application for amnesty.

No word yet on the Kansas procedure to apply for the amnesty

 

 

 

Receiving IRS Transcripts – Fraud

In late 2014 the IRS announced that a new system allowed taxpayers to obtain transcripts of their tax information – immediately – online.

Now just a few months later, the IRS has announced that the system hacked for fraudulent. means.

The IRS says there were 23 million requests for transcript information between February and mid-May 2015.  Of these 200,000 are believed to be fraudulent, and 104,000 actually were able to obtain the personal information concerning individual tax filings.

The IRS says they will mail letters, this week, to the individuals affected.

The IRS has shut down the “Get Transcript” system, (May 21, 2015) until further notice.

If you need a transcript before the IRS reinstates the system you can:

If your professional is an Enrolled Agent, they can request a transcript, or

You can file form 4506-T with the IRS and have a transcript mailed to you.

 

 

 

New Years – Wages Increase

Missouri’s low paid workers are getting a raise.

Starting New Year’s Day the minimum wage in Missouri will increase to $7.65 an hour.  This an increase from the $7.50 rate in 2014.

The rate for tipped workers in Missouri will rise to $3.83, an increase of 9 cents.

A law passed in 2006 provides an annual cost-of-living adjustment to Missouri’s minimum wage.

 

 

Congress Passes Extenders

photo credit: JeepersMedia via photopin cc

photo credit: JeepersMedia via photopin cc

Congress will have the “dubious distinction” of starting next year with all of the provisions expired, said Senator Orrin Hatch, a Utah Republican who is poised to become chairman of the Senate Finance Committee in January.

“Never in the history of tax legislation have so many voted for so little and been so disappointed,” he said.

On December 16, 2014 Congress passed, and shortly thereafter President Obama signed the Tax extenders package – The Tax Increase Prevention Act of 2014.

The bill extended over 50 provisions – that had actually expired on December 31, 2013.  Now these provisions were extended for 2014 – but only until December 31, 2014.  Thus they all expire again in less than two weeks.

Items extended included:

The election to claim an itemized deduction for state & local sales tax (if greater than state & local sales tax)

The Higher education Deduction

Teachers Classroom Expense Deduction – still limited to $250

Exclusion of Cancellation of Mortgage Debt – from Income

Ability to deduct Mortgage Insurance Premiums as interest

Businesses can again Write-off Asset purchases up to $500,000 under section 179

Since all of these provisions now expire in just a few days, it will be up to the new Congress to take action on them sometime during 2015 – or not!

If you want more details on the other provisions, please contact BDS.

photo credit: peachsmack via photopin cc

photo credit: peachsmack via photopin cc