Category Archives: Uncategorized

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

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.

 

Health Insurance Notifications

photo credit: Images_of_Money via photopin cc

photo credit: Images_of_Money via photopin cc

Does your business have employees? If the answer is yes then you have a notification requirement!

With the Affordable Care Act (ACA) or “Obamacare” there is notification that should be provided to every employee and to all future new employees. These notices are required by the Department of Labor.

The Department of Labor has provided sample forms and they are different for companies that provide health insurance than companies that do not provide health insurance.

The notice provides the employee with the companies health insurance info as well as information on the Health Insurance “Marketplace”

The employer should complete the information concerning health insurance and provide it to each employee.

These notices should be provided to current employees by October 1, 2013 and to all new employees at the time they are hired.

We recommend employers have the employees acknowledge receipt of the form. An sample acknowledgement is attached.

If you have a company insurance plan, your carrier has provided forms or your company does not provide health insurance the Department of Labor has provided sample notifications: http://bdsaccounting.com/free-business-forms.htm

The current law does not require Employers with total revenues under $500,000 notify employees. However, we recommend that all businesses – even business where the only employee is the business owner – notify all employees.

photo credit: Bill Kramme via photopin cc

photo credit: Bill Kramme via photopin cc

Simplified Method for Home Office Deduction

photo credit: DJ Lein via photopin cc

photo credit: DJ Lein via photopin cc

If you have a business (Schedule C) and you claim the deduction for an office in the home, the IRS has made claiming the deduction easier (and probably better) starting with the 2013 tax year. With the new method the deduction is $5.00 per square foot – up to a max of 300 square feet.  Simply measure the office and calculate. If you itemize your deductions you get the full deduction for mortgage interest and taxes on the Schedule A. The best part is when you sell your home you would no longer be required to re-capture the prior depreciation taken and claim it as income. You have the option of using the traditional method are the new simplified method.

I-9 Employment Eligibility Verification

The Department of Homeland Security has recently undated the I-9, Employment Eligibility Verification.

photo credit: bridget_willard via photopin cc

photo credit: bridget_willard via photopin cc

This new form should be used immediately, and for all newly hired employees after 5/7/2013. This form is not required to be submitted – It should be maintained in your employee files.

I-9 forms must be retained by employers – either three years after the date of hire or for one year after employment is terminated, whichever is later. The form can be downloaded at http://bdsaccounting.com/free-business-forms.htm