Effective Dates of Provisions in Health Care Law Postponed Until 2015
The IRS recently announced that certain provisions of the health care law, namely the large-employer health care penalty and information reporting aspects of IRC’s 6055 and 6056, are postponed from their original 2014 effective dates to 2015. The postponed items impose penalties on qualified employers that do not offer minimum medical insurance coverage to their employees. The Treasury advises companies that will be subject to the law when effective in 2015 to begin implementing the rules regardless of the postponed effective date so they are prepared when it is time. Read more here.
2013 Home Office Deduction YouTube Update
Julianne at the IRS recently posted this new YouTube video explaining the new Home Office deduction option.
Significant Changes Coming With Ohio’s Biennial FYE 2015 Budget
The state’s biennial budget, effective July 1, 2013, plans to cut $2.7 billion in taxes to individuals and businesses over the coming three years. Key highlights include:
- The state’s sales tax rate increases .25% to 5.75% on Sept. 1, 2013. Also, products delivered digitally (music, books, etc) and magazine subscriptions will now be subject to sales tax.
- Individual income tax rates will decrease by 10% over the three-year budget period
- Investors in Ohio pass-through entities will be entitled to a deduction of up to $125,000 (if married filing separate, $62,500 each) or 50% of the first $250,000 of Ohio small business income passed through to them.
- The annual minimum Commercial Activity Tax will be modified to a teired structure based on taxable gross reciepts (TGR). Taxpayers with TGR between $1 million and $2 million will pay a minimum tax of $800 plus the usual .26% on TGR over $1 million. Taxpayers with TGR between $2 million and $4 million pay a minimum of $2,100 plus the usual .26% on TGR over $1 million. Taxpayer with more than $4 million in TGR will pay a minimum tax of $2,600 plus the .26% on TGR over $1 million. For example, a taxpayer that usually has $1.5 million in TGR per year will see an increase of $650 per year in CAT over the previous law’s calculation.
- The Homestead exemption for Real Property Tax will revert to being means-tested, limiting the exemption for many Ohioans. Currently eligible participants are not impacted. Also, the 10% and 2.5% “roll backs” (reductions) will be eliminated for levies passed in Nov. 2013 and beyond.
Ohio’s news release on the above can be read here, and a summary of the evolution and enacted version of the bill prepared by Ohio’s Legislative Service Commission can be found here.
