Dear Clients, Colleagues and Friends,
On September 29, President Trump signed into law P.L. 115-63, the “Disaster Tax Relief and Airport and Airway Extension Act of 2017.” The Act, which provides temporary tax relief to victims of Hurricanes Harvey, Irma, and Maria.
- Businesses that qualify for relief may claim a new “employee retention tax credit” of up to $2,400 for qualified wages paid per eligible employee.
- Relief for individuals includes, among other things:
- Personal casualty losses WILL NOT be subject to the phaseout of 10% of adjusted gross income
- tax-favored withdrawals from retirement plans
- the option of using current or prior year’s income for purposes of claiming the earned income and child tax credits.
Please contact our offices to schedule an appointment should you wish to discuss how any of these provisions may be of benefit to you or your business.
Dear Clients and Friends;
We hope you and your families are safe and sound after hurricane Irma. As our neighborhoods and communities recover, we’d like to remind you of a few income tax considerations related to some of the hardships and losses you may be facing because of the storm;
• Taxpayer’s affected by Hurricane Irma will have until January 31, 2018, to file their 2016 returns.
• Damage to your personal residence and personal property is deductible as an itemized.
deduction, subject to certain limits, to the extent it is not reimbursed by insurance.
• Damage to business assets is deductible to the extent it is not reimbursed by insurance AND taxpayer’s have two years to reinvest insurance proceeds to defer any gains realized because of insurance proceeds received in excess of the adjusted basis of the business property.
• Taxpayer’s may have the option of deducting the hurricane losses on their 2016 or 2017 tax returns which would allow for the deduction to be taken in the year in which the taxpayer would get the most benefit.
• Be careful of solicitations from organizations regarding charitable donations towards hurricane relief and/or companies offering to do repair work on your property. There will be a lot of imposters out there attempting to scam you out of your money.
Please don’t hesitate to contact us with any questions you may have regarding these or any other hurricane related issues.
Davidson and Nick, CPA’s
IRC Sec. 30D
Form 8936 (Qualified Plug-in Electric Drive Motor Vehicle Credit)
Internal Revenue Code Section 30D provides a credit for Qualified Plug-in Electric Drive Motor
Vehicles including passenger vehicles and light trucks.
• Maximum credit is $7,500
• Nonrefundable personal tax credit
• The credit begins to phase out after 200,000 vehicles are sold
• Golf carts do not qualify
• Can be used to offset both regular tax and AMT
• Not available to offset the 3.8% net investment income tax
• Not phased out for high income taxpayers
• No formal election is required if taxpayers choose not to claim it
• Purchasers may rely on the manufacturer’s certification of a vehicle and the amount of
the credit allowable with respect to that vehicle
• Credit is recaptured if the vehicle ceases to be eligible for the credit
– any vehicle which is manufactured primarily for use on public streets, roads, and
highways (not including a vehicle operated exclusively on a rail or rails) and which has at
least 4 wheels.
New qualified plug-in electric drive motor vehicle
– the original use of which commences with the taxpayer,
– which is acquired for use or lease to others by the taxpayer and not for resale,
– which is made by a manufacturer,
– which is treated as a motor vehicle for purposes of title II of the Clean Air Act,
– which has a gross vehicle weight rating of less than 14,000 pounds, and
– which is propelled to a significant extent by an electric motor which draws electricity from
a battery which—has a capacity of not less than 4 kilowatt hours, and
– is capable of being recharged from an external source of electricity.
– with respect to any battery, the quantity of electricity which the battery is capable of
storing, expressed in kilowatt hours, as measured from a 100 percent state of charge to
a 0 percent state of charge.
Written by: Rimma Tinel – Davidson & Nick CPA Accountant