Passenger automobiles that are propelled solely or significantly by electric power have been in the news lately, thanks in part to the buzz surrounding the Tesla Model 3, an “economy” model set to be priced at $35,000 and available in late 2017 or early 2018. Given all the recent media attention, this seemed like a good time to remind you that federal tax credits of up to $7,500 are still available to help offset the purchase price of electric vehicles. The IRS has devoted a section of its website to explain how the credits work, and provide a list of all the manufacturers and models for which a credit is still available, including the current amount of the credit […]
Effective as of the 2nd calendar quarter beginning April 1, 2016, the Internal Revenue Service has increased the interest rates by 1% for all non-corporate and corporate taxpayers.
For taxpayers other than corporations (individuals, trusts, etc.), the overpayment and underpayment rates have increased from 3% to 4%.
The corporate underpayment penalty has increased from 2% to 3% and the interest rate on corporate overpayments exceeding $10,000 has increased from 0.5% to 1.5%. The underpayment penalty for large corporations has also increased, from 5% to 6%.
These rate increases are due to the increase in federal short-term rates that took effect February 1, 2016.
California rates will remain unchanged throughout the 2nd quarter (June 30, 2016).
More details regarding the rate increase can be found on the IRS […]
Using a §529 plan to pay for higher education costs can be a great tax savings tool in itself; although contributions are not tax deductible federally or for California, they are deductible in 34 other states. All withdrawals and earnings are tax-free if used to pay for qualified higher education expenses (“QHEE”) for a designated beneficiary. The plans can be transferred to any ‘qualified member’ of the beneficiary’s family (as defined by the IRS in Pub. 970), so the funds do not have to be lost if there is excess after the first beneficiary completes their higher education or decides not to use it at all.
For estate planning purposes, the §529 accounts do not count towards the owner’s gross estate for […]
San Francisco Partner Diana Sosa lent her expertise last week to a workshop hosted by United Policyholders for victims of last year’s Butte Fire whose homes were damaged or destroyed. Diana addressed concerns regarding this year’s income tax filing based on issues around insurance and whether or not fire survivors plan to rebuild on their property. Thank you for your dedication to the community, Diana!
See here for article by local publication Calaveras Enterprise covering the event.
The IRS has issued a Fact Sheet (2016-8) that highlights major tax changes for 2015, including the renewal of many key taxpayer-favorable benefits through the PATH Act, a new way to save for retirement through myRA accounts, changes resulting from the Affordable Care Act, etc. Click here for the complete IRS Fact Sheet.