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2017 KS Tax Law Changes

Senate Bill 30 was passed on June 5, 2017 and vetoed by Governor Brownback on June 6, 2017.  The veto was overridden with a vote of 27-12 in the Senate and 88-31 in the House on the same day.  A summary of some of the provisions of the bill follow.

100% repeal of non wage business income tax exemption effective January 1, 2017.  Reinstatement of the federal loss carry-forward.

For individuals, a three bracket taxing system will be implemented beginning in 2017.  The brackets for 2017 will be: 2.9%, 4.9% and 5.2%.

No penalties or interest will be charged that arise due to these tax rate changes that take effect as of July 1, 2017 as long as the underpayment is paid by April 17, 2018.

In 2018, the low income exclusion threshold will be reduced to $5,000 for married filing joint and $2,500 for filing single.  The three bracket tax rates will be: 3.1%, 5.25% and 5.7%.

In 2018, 50% of medical expenses, mortgage interest and property taxes will be deductible.  The amount increases to 75% in 2019 and 100% in 2020 and future years.

Kansas will allow 12.5% of the federal dependent care tax credit in 2018, 18.75% in 2019 and 25% in 2020 and future years.

The subtraction modification on Schedule S for net gains from certain livestock and Christmas tree sales is repealed in 2017.

The new law extends the sunset date for the STAR Bonds Financing Act to July 1, 2020.  Effective July 1, 2017 there will be a one year moratorium on the approval of new STAR Bond Districts.

Do I Really Need to File 1099s?

While there are several red flags that can lead to an audit, now is the time to be extra careful in avoiding Form 1099 missteps. Businesses have reported a noticeable rise in 1099 related audits, which can leave some of them on the hook to pay thousands of dollars. When is a Form 1099 required?… Continue Reading

Change in Filing Deadlines

For tax years ending December 31, 2016, some filing deadlines have changed. In past years, C Corporations returns (Form 1120) have been due on March 15. Starting with this filing season Form 1120 is due April 15. In past years, Partnership, including LLC’s, (Form 1065) have been due on April 15. Starting with this filing… Continue Reading

IRS lowers standard mileage rates for 2017

The IRS announced on December 13, 2016 that standard mileage rates for the business use of vehicles will be lowered for 2017 in Notice 2016-79. The new standard mileage rates for the business use of vehicles will change from $.54 in 2016 to $.535 in 2017. Medical and moving mileage deduction for 2017 will be… Continue Reading

We are hiring!

We are hiring!

Agler & Gaeddert, Chartered currently has career opportunities in Emporia, Kansas and Ottawa, Kansas. We are seeking motivated individuals to join our team in managerial accounting positions as well as staff accounting positions. Please see our Careers page for more information. Continue Reading

New Minimum Salary Threshold

New Minimum Threshold for Exempt Employee effective December 1, 2016 The US Department of Labor issued new regulations under the Fair Labor Standard Act. As a result of these regulations, on December 1, 2016 the minimum salary threshold for exempt employees will increase from $23,660 to $47,476 per year. Under the previous threshold, the minimum… Continue Reading

IRS lowers standard mileage rates for 2016

The IRS announced on December 17, 2015 that standard mileage rates for the business use of vehicles will be lowered for 2016 in Notice 2016-1. The new standard mileage rates for the business use of vehicles will change from $.575 in 2015 to $.54 in 2016. Medical and moving mileage deduction for 2016 will be… Continue Reading

IRS raises tangible property expensing threshold to $2,500

IRS raises tangible property expensing threshold to $2,500

The safe harbor threshold that was $500 was raised to $2,500 by the Internal Revenue Service in Notice 2015-82 on November 24, 2015. Due to comments received from organizations and taxpayers, the IRS Commissioner said the threshold was reconsidered. The IRS received over 150 letters from businesses and their representatives regarding this matter noting that… Continue Reading

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