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Energy Incentives


2015 Tax Extenders Summary

After months of uncertainty and speculation, it appears Congress has finally sufficiently collaborated to propose the “Tax Extenders” legislation in which a large number of expired tax provisions will be extended, some permanently.  Some tax credits that would be made permanent include the Child Tax Credit, the American Opportunity Tax Credit and the Earned Income Tax Credit

Of particular interest, it appears Section 179 will be permanently fixed at $500,000 of qualified assets for years in which taxpayers place in service up to $2,000,000 of assets.  For amounts above $2,000,000, the Section 179 deduction is reduced dollar for dollar until $2,500,000, at which time no asset additions are eligible.  Bonus depreciation is temporarily extended at 50% for 2015, 2016 and 2017, then stepped down to 40% in 2018 and 30% in 2019, after which time it is scheduled to be completely phased out.

To find out more information about the specifics of the legislation, here are some online resources:

If you have any questions about how these tax extenders may affect you or your business bottom line, please contact us at McRuer CPAs by calling 816.741.7882 or click here to connect with us online.


Last Minute Tax Act Passes New Details - Act Now!

McRuer CPAs closely monitors federal and state tax laws affecting our clients and friends using the CPA industry’s best research materials and services.

We recently learned from our Bloomberg/Bureau of National Affairs Tax Management Staff (Bloomberg/BNA) that President Obama had signed into law the Tax Increase Prevention Act of 2014.  We have monitored the slow progress of this Act since the summer.  The final version has a number of provisions that could affect your tax return.  We have put together a shortened summary with the information that we believe will specifically affect our individual and business tax clients highlighted in yellow.  Click on the link below to download the printable document for more information.

Please note that most of these provisions are only effective for ten days – through December 31, 2014.  Click here to: Download McRuer CPAs Tax Act Information December 2014

The summary uses part of the Bloomberg/BNA’s review of the Act.  Those topics of particular interest include:

  • Internal Revenue Code 179 expense elections restored to $500,000 with certain limitations
  • Bonus depreciation restored
  • Research and development credit restored
  • Deduction for educational expenditures extended
  • Tax-free retirement plan distributions for charitable donations extended

There is also a new provision increasing late payment and underpayment penalties to be indexed with inflation.

If you have questions about the opportunities this Act may provide you, please contact us at: 816.741.7882 or www.kccpa.com/contact_us.html.



Residential Energy Credit

It’s like a 30% discount on the price of energy efficient solutions for your home.

A tax credit offering 30 percent of the cost of qualified alternative energy equipment for a residence is being offered through 2016.

Qualifying equipment includes alternatives like:

  • energy efficient solar hot water heaters
  • solar electricity generators
  • geothermal heat pumps
  • wind turbines

Generally, you may include labor costs when figuring the credit and you can carry forward any unused portions of the credit.

Not all energy-efficient improvements qualify so be sure you have the manufacturer’s tax credit certification statement.

Reminder:  tax credits are not deductions.  Rather, they help reduce the total amount of tax you owe dollar-for-dollar.

For more information and forms explaining Residential Energy Credits go to: Residential Energy Tax Credit Information


One Last Time Deductions for 2011 Tax Returns

The country’s uncertain political climate makes long-term tax planning difficult especially regarding income tax laws.  For now, there are a few tax provisions that can be used on 2011 taxes, but they are expiring and you may not be able to deduct them in 2012.

The 2011 tax year is the last chance to use deductions for:

  • Private Mortgage Insurance
  • General State and Local Sales Tax
  • Expanded §179 Expense Election and Bonus Depreciation
  • Certain Energy Efficiency Deductions

For businesses, the Payroll Tax Cut was also set to expire, but now Congress has passed an extension which the President is expected to sign.  Find out more about the Payroll Tax Cut debate by watching our segment on McRuer Money Minutes at: http://www.kccpa.com/video/what-is-the-payroll-tax-cut-debate-about.html 

If you have any questions about this tax season's deductions or any other request regarding personal and business tax planning and preparation, please give us a call at:  816-741-7882.

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