Here are a few tax reminders for 2014 tax returns, if you haven’t already filed yours. This tax filing season brings new items that all accountants are dealing with. There are health care regulations that we have all been discussing for the past couple of years, but there are also tangible property regulations that went into effect that is a high priority for accountants this year.
With that in mind I thought I would give you a few tax reminders for 2014 tax returns to help with questions to ask or have answers to when taking your information to your accountant.
First, regarding health care, make sure to let your tax preparer know if you had health insurance all year and if not what months you did have it. The preparer will also need to know this for your spouse and dependents. If you were eligible to use the Marketplace make sure to log in to the system to make sure you have the latest 1095 issued to you. Around 20% of the 1095s issued from the Marketplace were incorrect and new ones have been or are being issued.
Second the Tangible Property Regulations – while I don’t want to go into a ton of detail here and put you to sleep, I wanted to give you a few items to address for your business or rental properties. I would recommend each business write up a company policy stating how it is going to determine what items are to be capitalized and depreciated versus items that will be written off as an expense. Speak with your accountant on the limits for your business and a sample policy. Keep in mind this policy needs to be elected the first day of the company tax year. In addition, if you have items on your depreciation schedule that include remodels or improvements make sure your accountant knows exactly what work was completed so they can determine if the items are being depreciated correctly or if the items should have even been set up to be depreciated based on the current regulations.
Unfortunately, because of these two issues some taxpayers will likely see an increase in billings for their return preparation, I would recommend discussing with your preparer what to expect for these extra calculations.
Another item I’ve run across in the past couple of weeks are related to charity and the valuing of goods donated. One solution I’ve found for this is to use the Salvation Army’s website to help as a guideline for those values. In any case, you should provide the preparer with the value of your charitable donations, because the preparer does not know what you donated nor what shape it was in when it was donated. Large value items (vehicles, stock, etc.) will need additional documentation and you should speak to your preparer regarding what is needed to claim those.
The Wassman CPA Services website and blog is meant to offer general information to our readers. The information provided is not intended to replace or serve as a substitute for any accounting, tax or other professional advice, consultation or service. You should contact Wassman CPA Services for advice concerning specific matters prior to making any decisions.
