Comparing The 2016 Presidential Tax Reform Proposals

tax2016Tax has emerged as one of the hottest issues on the 2016 campaign trail. While not every candidate has a full-developed tax plan, they all have stated positions on several tax issues. To help you navigate the field, we’ve gathered their current stances on the issues of income taxes, corporate taxes, estate tax, tax credits & deductions, and repatriation below.  We will update information as candidates continue to build out their tax plans.

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Upcoming Deadline Reminder: March 15, 2016

deadlineDeadline for corporate tax returns (Forms 1120, 1120A, and 1120S) for the year 2015, or to request automatic 6-month extension of time to file (Form 7004) for corporations who use the calendar year as their tax year.

 

Final deadline to file an amended corporate tax return (Form 1120X) for tax year 2012 and still claim a tax refund. (Refunds expire three years from the original due date of the return.)

LLC Basics

11LLC Basics: A Limited Liability Company (LLC) is a business structure allowed by state statute. Each state may use different regulations, and you should check with your state if you are interested in starting a Limited Liability Company.

Owners of an LLC are called members. Most states do not restrict ownership, and so members may include individuals, corporations, other LLCs and foreign entities. There is no maximum number of members. Most states also permit “single-member” LLCs, those having only one owner.

What Do They Mean By Adjusted Basis?

taxplanningAfter a taxpayer’s basis in property is determined, it must be adjusted upward to include any additions of capital to the property and reduced by any returns of capital to the taxpayer. Additions might include improvements to the property and subtractions may include depreciation or depletion. A taxpayer’s adjusted basis in property is deducted from the amount realized to find the gain or loss on sale or disposition.

Considering an S Corporation

download[1]If you’re considering an S corporation election for this year, keep in mind you have a deadline to meet. Corporations with a calendar year-end have until March 15, 2016, to file an election for the current tax year. If you’re just starting your business, your new corporation has until the 15th day of the third month after incorporation to make the election.