Posts Tagged ‘tax news’

Go Green for the Planet and Pocket the Savings

Monday, January 11th, 2016
Think Green To Save Money | Rea & Associates | Ohio CPA Firm

Bright Idea:
Start saving in 2016. If you haven’t already, replace discontinued incandescent light bulbs with LED and other energy-efficient bulb options and save on your electric bill. Read on for more great tips!

It’s always a good time to talk about ways to realize some significant savings, and sometimes all you have to do is go green to save some green. Even though some green initiatives may seem to have a higher upfront cost, the IRS continues to offer a variety of tax saving incentives to help balance the burden as well as to reward you for making a few pro-planet upgrades to your home and/or business property.

Since it’s the beginning of the year and we are already open to the idea of making a few changes, we have another one for you to consider. Because Jan. 10 was national cut your engine cost day, we wanted to give you some ideas to help you celebrate the occasion while investing in the long-term sustainability of both your planet and finances.

For Individuals:

Planning to install a residential fuel cell and micro turbine system in the near future? Through the end of 2016 you may qualify for a tax credit of 30 percent of the cost of the project, up to $500 per 0.5 kilowatt of power capacity.

Looking to purchase a new car soon? Tax credits are available for all electrical cars. You can visit the DOE’s Fuel Economy website to search what cars are eligible. Based on the vehicle’s battery capacity the credit can be between $2,500 to $7,500.

For Business Owners:

If your business has installed solar panels at company properties, then you may be eligible for up to a 30 percent tax credit for installation and project costs. This credit is available until Dec. 31, 2016.

An energy-efficient commercial building tax deduction allows businesses to deduct certain costs related to making a building energy-efficient rather than capitalize those costs over 39 years. Some improvements that might apply include:

  • interior lighting systems
  • HVAC systems
  • hot water systems
  • insulation and exterior windows and doors

But there’s a catch – you have to get a certified licensed engineer to review the project and verify that it meets the IRS’s requirements for a tax deduction. The maximum deduction that can be taken is calculated at $1.80 times the building square footage for property placed into service in 2016.

Finally, if you plan to install a geothermal system, your business may qualify for a 10 percent tax credit.

With rising electric costs, implementing some of these green initiatives can garner you tax savings now and energy cost savings in the future.

Looking to more ways to go green and cut expenses? Email Rea & Associates and ask for more tips.

By Brian Kempf, CPA (Millersburg)

Looking for more ways to improve your business in the new year? Check out these posts:

16 Resolutions For Business Growth In 2016

Easy Year-End Tax Tips For Business Owners

It’s OK To ‘Think Small’

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Egg Nog & Tax Tips: Top 5 Posts In December

Wednesday, January 6th, 2016

December is such an exciting time. Shopping, baking, decorating and spending time with family and friends celebrating keeps a frog busy. But, in-between the office parties and family gatherings, the team and I were still able to address some of your end-of-the-year questions and concerns.

From the updates we received from our pals over on Capital Hill to year-end tax tips, there was certainly a lot to write about this month. These were the top-read posts in December

  1. Easy Year-End Tax Tips For Business Owners: There’s no doubt about it, this time of year is busy! I’m willing to be that sitting down at the computer to research tax deductions is the last thing on your mind. You’re in luck! We’ve done the work for you. Click here for some great tips, deductions and insight that will help you keep more of your hard-earned money in your bank account.
  2. Employers: Are You Ready To Change The Way You Withhold Municipal Tax Payments?:  Ready or not, all Ohio municipalities will be welcoming a slew of new provisions designed to bring about a unified system of income tax reporting. House Bill 5 was signed into law by Gov. Kasich on Dec. 19, 2014. The bill, which was championed by the Ohio Society of CPAs and supporters, helped streamline several key measures that help establish meaningful municipal tax reform. Per the legislation, many key provisions are scheduled went into effect Jan. 1 of this year. Read on for Four facts about the changes you need to know.
  3. Congress Gives Taxpayers An Early Christmas Present: Year after year, Congress promises to address the future of many expired tax provisions, and year after year they fail to make a definitive decision – opting only to pass legislation that extends the provisions for another year. In the meantime, taxpayers are expected to take on the impossible task of navigating the terrain amidst legislative uncertainty. Happily, things are about to change. Read on to learn why.
  4. How Far Back Can The IRS Go For Tax Auditing? – As a CPA I’m frequently asked, “How far back can the IRS look to audit my tax return?” That’s a great question. Can the IRS go back and audit your tax return from five years ago? 10 years ago? 25 years ago? Before you start to panic, rest assured that the IRS has a statute of limitations in place that generally puts a limit on the time allowed to audit you and assess additional tax. Keep reading to find out how far back they can go.
  5. Cyber Crime: It Can Happen To You: Fraudsters don’t take holidays. In fact, they tend to be more active this time of year because they believe we are more likely to let our guards down. I don’t intend on falling for any of their traps, and I encourage you to do the same. Check out what you can do to protect yourself.

Now that December is history, let’s look forward to a great 2016. Stay tuned as we provide you with the latest and greatest news in the business and financial world. While you’re at it, don’t forget subscribe to our blog to receive email reminders when new stories are posted.

You can also ask your own question by filling out the simple form at the top, right side of this page.

Finally, remember that the team at Rea is always available to discuss your specific business issues in more depth. All you have to do is email Rea & Associates and we would be happy to set up a time to talk more.

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