We have good news for those of you who have capitalized on these benefits in the past and were concerned that they were going away for good. THEY'RE BACK! And they're retroactive so you may claim them for tax year 2017! These claims include: Exclusion from gross income of discharge of qualified principal residence indebtedness (often, foreclosure-related debt forgiveness), claimed on Form 982, Mortgage insurance premiums treated as qualified residence interest, generally claimed by low- and middle-income filers on Schedule A, and Deduction for qualified tuition and related expenses claimed on Form 8917. After expiring at the end of 2016, on February 9th, the Bipartisan Budget Act renewed for tax year 2017 for a wide range Read More...
Archives for February 2018
Preliminary Draft of LCFS Regulations to be Posted Today
Over the last two years we have been following CARB through draft regulation documents, webinars and workshops, and numerous phone calls to arrive at a draft rulemaking document that will drastically change the LCFS program. At 5pm today, February 20th, CARB will release a preliminary draft of the proposed rulemaking documents which they note will cover a number of topics including: Revising the LCFS program carbon intensity targets and extending the program Allowing additional fuels and vehicle categories to participate in the program Incorporating a carbon capture and sequestration protocol Promotion of zero emission vehicle infrastructure Addition of a third-party verification of CI values and fuel transactions Read More...
Another SCAM the IRS Wants You to be Aware of
Another SCAM the IRS Wants You to be Aware of Last week, the IRS put out a press release warning tax payers of yet another SCAM. Previously, we posted about the Form W-2 scam that urged payroll personnel to take extra precautions when it comes to protecting the information of their employees. This time, the target of these scammers is the money that is deposited into the taxpayers' account! This scam involves erroneous tax refunds being deposited into bank accounts. These criminals steal client data from tax professionals and file fraudulent tax returns. From here, they use the taxpayers' real bank accounts for the deposit. Once the funds are deposited, they are using various tactics to reclaim the refund from the taxpayers. What Read More...
What to Bring to Your Tax Appointment
Capitalizing on your Tax Return At Christianson, we want to ensure our clients are receiving the most from their tax return so we’ve compiled a list of the items you may want to consider toting along to your next visit with your CPA. This list may not entirely represent all of the items you will have to bring as some exclusions/inclusions may need to be considered under unique circumstances. If you are using a new CPA Meeting with a new CPA may be intimidating, and often times lead to a little discomfort in the sense that your other CPA already had the information they needed last year to complete your taxes. Fear not, making the switch only requires a couple of extra items: Your Social Security number Your spouse’s Read More...
10% Investment Tax Credit (ITC) for CHP Turbines
Congress Reinstates 10% Investment Tax Credit (ITC) for CHP Turbines Combined Heat and Power (CHP) technology allows electricity to be generated from steam used in industrial processes that may otherwise go underutilized. CHP processes utilize this steam to drive a turbine that generates electricity. The technology is becoming increasingly popular energy solution due to its cost effectiveness, efficiency, and environmental advantages. A number of ethanol plants have been adopting this technology. This may be because CHP often: reduces their energy costs improves their environmental footprint and enhances the reliability of their operations. Previously, there was a federal Investment Tax Credit (ITC) to facilitate the Read More...
The Expansion of the 45Q Tax Credit for CO2 Capture
The Expansion of the 45Q Tax Credit for CO2 Capture For years, the ethanol industry has been capturing carbon dioxide and selling it to manufacturers of carbonated beverages and other customers. As part of a government-spending bill, Congress just approved a large expansion of the 45Q tax credit for CO2 capture. The expansion of the 45Q credit could very well lead to innovations in what the ethanol industry does with its CO2 and changes in the dynamic of how it interacts with the oil industry. In fact, oil companies often purchase large volumes of CO2 for a practice known as “Enhanced Oil Recovery” (or “EoR”). As their thirst for CO2 continues to grow in proportion with its domestic production activities that utilize EoR methods, Read More...
Retroactive Extension of the Biodiesel Tax Credit
After this morning’s brief Government Shutdown, Congress passed a bill that includes a retroactive extension of the $1/gallon tax-credit for biodiesel blenders. The credit expired in December 2016 and will be the fifth time this bill has been extended since 2005. The bill has only been extended through 2017, but there is talk about extending it through 2018 and beyond. It's believed that plans are in the works to include a biodiesel tax credit extension in the new farm bill, which is anticipated to begin work this year. That extension will likely be voted on in 2019. It’s unsettling to not have a long-term solution for biodiesel producers, or to even be able to predict what will come for 2018, but we aim to keep you in the loop as Read More...
Last Minute Spending Bill Reinstates OSLT for 2018
Last Minute Spending Bill Reinstates OSLT for 2018 The Oil Spill Liability Tax (OSLT) is an excise tax on crude oil products, like natural gasoline used as denaturant for fuel ethanol. The tax had expired at the end of 2017. However, the spending bill passed on February 9 to end the temporary shutdown of the federal government included a provision to reinstate the oil spill tax. Section 40416 of HR 1892 reinstates the OSLT effective March 1, 2018. It sets a new expiration date of December 31, 2018. The OSLT is now in effect from 3/1/18-12/31/18. This bill did not include a change to the rate at which the excise tax is imposed. The rate had increased in 2017 to $0.09 per barrel, which is equivalent to $0.00214 per gallon of Read More...