2016 Year-End Tax Reminders

With the end of the year upon us, we at Sax want to remind you of some important tax changes and benefits that will impact your planning and preparation for the 2016 tax filing season.

The Protecting Americans from Tax Hikes (PATH) Act of 2015 changed several 2016 tax filing due dates.  While some states have not yet conformed to these new due dates, below is a recap of federal filing dates for calendar-year filers.

 

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*If the due date falls on a weekend or federal holiday, the returns are due on the next business day.

Other important changes to note for your 2016 filings are as follows:

Foreign Bank and Financial Accounts (FBAR) – Form FINCEN 114 is now due on April 15, 2017, and a six-month extension will be allowed through October 15, 2017.

Informational Returns – Due dates for filing Forms W-3, W-2 and 1099-MISC is now January 31, 2017. All other 1099s are due by February 28, 2017.

Also remember to take advantage of any applicable deductions before the end of the year, such as:

Depreciation Deductions

  • The Section 179 limit for 2016 is $500,000 with a $2.01 million overall investment limit before phase-out. Section 179 can be claimed on both new and used assets, subject to taxable income limitations.
  • Additional first-year bonus depreciation of 50% is allowed for property acquired and placed in service during 2016-2017. Bonus depreciation is only allowed on new assets placed in service.

Charitable IRA Distributions – The exclusion of qualified charitable distributions from gross income for individuals aged 70 ½ or older is now permanent. The exclusion is capped at $100,000 for each taxpayer.

Sax is pleased to offer a 2016-2017 Tax Guide to further assist you during the 2016 tax filing season. If you have any questions about these updates, please call (973) 472-6250 to speak with your Sax advisor or a member of our Tax team.



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