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Over the past several months there have been a number of tax developments that might affect PK Law readers:

  • As widely reported, there is no “health reform” pending. The repeal of the Affordable Care Act (“Obamacare”) would have widely impacted a number of tax issues.
  • Due to taxpayer confusion about making an expensing election for tax years that begin after 2014, the IRS announced that, for any tax year that begins after 2014, a taxpayer may make an expensing election for any expensing-eligible property without the IRS’s consent on an amended Federal tax return for the tax year in which the taxpayer places in service the expensing-eligible property.
  • The IRS has released the annual inflation-adjusted contribution, deductible, and out-of-pocket expense limits for 2018 for Health Savings Accounts (“HSA”). For calendar year 2018:
    • The limitation on deductions is $3,450 (up from $3,400 for 2017) for an individual with self-only coverage.
    • The limitation on deductions is $6,900 (up from $6,750 for 2017) for an individual with family coverage under a High Deductible Health Plan (“HDHP”).
    • Each of the above amounts is increased by $1,000 if the eligible individual is age 55 or older.
    • For calendar year 2018, a HDHP is a health plan with an annual deductible that is not less than $1,350 (up from $1,300 for 2017) for self-only coverage or $2,700 (up from $2,600 for 2017) for family coverage, and with respect to which the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,650 (up from $6,550 for 2017) for self-only coverage or $13,300 for family coverage (up from $13,100 for 2017).
  • The IRS’ private debt collection program is scheduled to be underway, targeting only a somewhat small population of those who owe taxes, know that they owe them and have been contacted by the IRS about them. The IRS warns that no funds are to be paid to the private debt collectors, only to the IRS, and that the public needs to be vigilant against “scammers” posing as collectors.
  • The IRS new partnership audit rules will go into effect in 2018 and partners and partnerships should begin preparing for them now.

For more information on the new audit rules and planning for a partnership, please contact a PK Law Corporate and Real Estate Attorney or Tax Attorney.

This information is provided for general information only. None of the information provided herein should be construed as providing legal advice or a separate attorney client relationship. Applicability of the legal principles discussed may differ substantially in individual situations. You should not act upon the information presented herein without consulting an attorney of your choice about your particular situation. While PK Law has taken reasonable efforts to insure the accuracy of this material, the accuracy cannot be guaranteed and PK Law makes no warranties or representations as to its accuracy.