2016 Tax Updates
A new tax bill was signed into law on December 18, 2015 retroactively reinstating several key tax provisions that had expired December 31, 2014. These include:
- Increase in the first year write off of certain assets – knows as section 179 – back up to $500,000. this provision is permanent and will be annually indexed
- Bonus Depreciation – 50% through 2017, then reduced – eliminated in 2019.
- Credit for increasing Research and Development Costs – otherwise known as the R & D Credit – this provision is permanent
- Railroad Track Maintenance Credit
- Work Opportunity Credit
- New Markets Tax Credit
There are a significant amount of additional items that were reinstated for 2015 and 2016 including various fuel and energy credits, child tax credit, education credits, mortgage forgiveness exclusions and many others.
As part of this tax bill, those employers that submit forms W-3 and W-2 on paper will now have to file those forms by January 31. The prior due date was February 28. The due date for electronically filed W-3/W-2 forms remains March 31.
According to the IRS – the standard business mileage rate for 2016 will drop to $.54 per mile – down from 2015's $.575 cents per mile.
If you have any questions regarding the 2016 tax updates, please call Chuck or Cristina in our Des Moines office at 515.270.1446.
