Capitalization policy requires action now! Plus year-end tax strategies, charitable contributions, mileage rates and more!

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SKR+Co Alert: Capitalization policy requires action NOW! Plus year-end tax strategies, charitable giving, and new mileage rates!

Take action now! Final tangible property ("repair") regulations require written policy by January 1, 2014

As we shared in an October Tax Alert and in our recent tax seminar, the IRS has issued final regulations which govern the capitalization of materials and supplies, amounts paid to acquire or produce tangible property, and expenditures relating to the betterment, adaptation, and restoration of tangible property. One part of the regulations  – the De Minimus Expensing Rulerequires taxpayers to have a written policy in place at the beginning of the taxable year to be able to expense amounts paid for:

  • Property costing less than $5,000 per item/invoice, if there is an audited financial statement, or
  • Property costing less than $500 per item/invoice and with a useful life of 12 months or less, if there is not an audited financial statement. 

To help you take advantage of the new rules, we recommend you prepare a written policy before January 1, 2014. A sample written policy from the AICPA can be accessed HERE.

Note: We recommend you use this policy in place of the one handed out at the tax seminar as more information has become available.

To read the full article sent October 23, 2013 on the final regulations, Click Here.



High income taxpayers: Plan now to avoid 2013 tax surprises

Year-end calculations uncover some unpleasant surprises for many high income earners. Many are realizing they may owe much more by April 15 because they have been paying quarterly estimated taxes based on their liability for 2012 (based on the IRS safe-harbor rule). Some of these taxpayers are now finding themselves facing tax rates in excess of 50 percent because of the higher tax rates passed by Congress this year. 

This article discusses why taxpayers may want to implement strategies before Dec. 31 to limit the tax bite on earnings, market gains and stakes in businesses. Read the full article here.


Well-planned charitable giving can lessen the blow of higher taxes this year

It’s that time of year – time to consider donations to charity.  As a result of a healthy stock market and a harsher tax environment for many individuals, many taxpayers have more incentive to make or increase charitable donations this year.

This article explains how you can lessen the blow of higher taxes with proper planning. Read the full article here.

Next Tax Seminar:

Tuesday, January 21st
 3:00 – 4:30 p.m.


Implications of the Final 3.8% Net Investment Income Tax – 
Understand how this tax will affect your real estate investments


This seminar is for Real Estate Professionals, who are individuals working in a designated real estate activity, as well as Investors with real estate holdings, and Businesses renting property from the owners of the business. The seminar will focus on strategies to minimize the additional tax effective for 2013 tax returns.


Judy Kaltenbacher, CPA, Tax Partner in Charge

Jordan Empey, CPA, Tax Manager


New mileage rates for 2014

Beginning on January 1, 2014, the standard mileage rates for the use of a vehicle such as a car, van, SUV or pickup will go down by one-half cent. The rate for service to a charitable organization is unchanged.

The 2014 rates are:

  • 56 cents per mile for business miles driven
  • 23.5 cents per mile driven for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

For more information, please Click Here.

Have questions? Contact us: (719) 630-1186 or Click Here
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