Dear Friends, On May 5, 2018, the Iowa Tax Reform Bill was passed by the Iowa House and Senate and Governor Kim Reynolds signed the bill into law on May 30th. This bill contains tax law changes that begin to impact the 2018 tax year and continue to change the tax law up to 2023, depending on whether certain tax revenue triggers are met at the state level. Below is a summary of the changes: For Individuals: In 2019, the tax rates will be reduced with a top rate of 8.53%. (See Table 1) Iowa individual income tax laws generally conform to federal… Read More »
[By Michelle Thornburg, Koski Professional Group, P.C., 2014 | Keywords: Business, Tax] The IRS has issued new capitalization regulations for the tax treatment of amounts paid to acquire, produce, or improve tangible property. The regulations must be followed for tax years that begin after December 31, 2013. The regulations are lengthy and complex. The summary below is only intended to give an overview of how to treat items of deduction and capitalization. De Minimis Safe Harbor – The regulations allow a taxpayer to deduct certain limited amounts paid for tangible property that are expensed for financial accounting purposes. For most… Read More »
[Author: Michelle Thornburg, Koski Professional Group, P.C., 2014 | Keywords: Business, Operations, Tax] The IRS has issued new capitalization regulations for the tax treatment of amounts paid to acquire, produce, or improve tangible property. The regulations must be followed for tax years that begin after December 31, 2013. The regulations are lengthy and complex. The summary below is only intended to give an overview of how to treat items of deduction and capitalization. De Minimis Safe Harbor – The regulations allow a taxpayer to deduct certain limited amounts paid for tangible property that are expensed for financial accounting purposes. For most taxpayers,… Read More »
