Mortgages: Form 1098 (you receive this from the lender) will be different starting in 2016 ( tax filing year 2017). The 1098 will include the amount of mortgage principal at the start of the year, the mortgage origination date, and the address of the property securing the loan.
Estates and Trusts: Effective for Tax form 706 filed after July 31, 2015, heirs are now required to use the value of an inherited asset as shown on the Form 706 as the basis for the asset or the value as adjusted by IRS or court ruling. If you use a basis higher than reported, you may be hit with a 20% substantial understatement penalty.
FILING DUE DATES ARE CHANGING FOR BUSINESS RETURNS:
Beginning in 2016, partnerships are due 2 ½ months after the year end, March 15 for calendar year partnerships. That represents a month earlier than now. This makes partnerships and S Corporations due at the same time. This gives preparers time to transfer the data from the K1 to the 1040 in time for April 15. C Corporations will be due 3 ½ months after the year end., except for fiscal year corporations (June 30 as example). Partnerships can request a six month extension; Corporations 5 months.
Unmarried filers who jointly buy a home get a tax break on the mortgage interest. The $1 million loan cap on home mortgages applies on a PER-TAXPAYER basis and no longer on a PER-RESIDENCE basis. Also applies to the $100,000 home equity debt.
Firms that legally sell marijuana can now deduct the State excise Tax fees on the marijuana sales. They are still not allowed to deduct business expenses except the cost of the marijuana.
Sal Censoprano is a Certified Public Accountant (CPA) and tax practice owner for over 40 years. He was born and raised in Brooklyn, New York and earned his master’s degree in taxation.