Coolidge Wall Co., L.P.A.
Phone : 937-608-9464 | Toll Free : 877-422-0702

November 2013 Archives

IRS Finalizes Regulations Governing De Minimis Safe Harbor Expensing

The IRS has released final regulations governing when taxpayers must capitalize expenditures and when they can deduct expenditures related to the acquisition of tangible property. These regulations are effective for taxable years beginning on or after January 1, 2014. Importantly, the final regulations provide for a de minimis safe harbor election that allows taxpayers to immediately deduct the cost of acquiring certain items of tangible property, provided that specific requirements are satisfied. The election is made annually by attaching a statement to a timely filed income tax return.

Asset Protection: Sometimes, being attached to your spouse means that your creditors cannot attach your assets

HISTORY LESSON: Back in days of yore (2/9/72 - 4/4/85) in Ohio, a form of property ownership known as Tenancy By the Entirety (TBE) was recognized. The TBE form of property ownership harkens back to times when women had much less control over their affairs and needed to be protected from their husband's debts. It is useful now to protect assets from creditors.

IRS Announces 2014 Pension Plan Limitations

On October 31, 2013, the IRS announced cost-of-living adjustments for 2014 retirement plan contributions. For 2014, the amounts that individuals will be able to contribute to retirement plans will remain the same as 2013. Highlights of the IRS announcement include:

IRS Modifies the Health Flexible Spending Account "Use It or Lose It" Rule to Allow a Limited Carry Over of Unused FSA Funds

On Halloween, the IRS treated employers and health flexible spending account participants to a change in the longstanding "use it or lose it" rule. Beginning immediately, employers may amend their cafeteria plans to allow participants to carry over up to $500 of unused FSA funds at the end of the plan year so that the carryover can be used to reimburse qualified medical expenses incurred in the following plan year. In addition, the amount carried over will not count against the permitted $2,500 salary reduction limit applicable to the next plan year.