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Tax Updates: Important Highlights for 2024

Are you up-to-date with the latest tax regulations affecting your business and personal finances? Here’s a concise overview of key updates you need to know, along with insightful cross-references for deeper understanding.

Vehicle Depreciation Limits
Taxpayers utilizing the actual expense method for vehicle deductions must adhere to specific depreciation limits outlined in Rev. Proc. 2024-13 and IRC §280F. Under this method, the cost of the vehicle depreciates over a 5-year recovery period, with allowances for Section 179 deductions. However, deductions are capped at statutory amounts, with special considerations for IRC section 280F property, where limits are increased by $8,000 for the first year.

Tax Treatment of Certain Energy Rebate Programs
Announcement 2024-19 introduces DOE programs incentivizing energy-efficient home improvements. For individual taxpayers, rebates received under these programs are treated as purchase price adjustments, not taxable income. However, business taxpayers receiving rebates directly are subject to taxation, potentially requiring information reporting under IRC section 6041.

High-Income Non-Filers
In an effort to enhance tax compliance, the IRS is targeting high-income taxpayers who have failed to file federal income tax returns. With over 125,000 instances since 2017, the IRS is initiating compliance letters to address this issue. This initiative, funded by the Inflation Reduction Act, aims to ensure fairness and adherence to tax regulations.

Stay informed and compliant with these updates to navigate the evolving tax landscape effectively. For further details and comprehensive guidance, download the attached PDF containing additional insights and references.

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