There are several changes to entity filing dates for the 2016 tax year.
Partnership/LLC income tax returns. The new due date for partnerships with tax years ending on December 31 to file federal income tax returns is March 15.
Corporation income tax returns. The new deadline for C corporations to file income tax returns is April 15. However, S corporations must continue to file returns on March 15.
FinCEN Form 114. The deadline for Form 114, “Report of Foreign Bank and Financial Accounts,” changes from June 30 to April 15, with a maximum six-month extension.
Form 3520. The deadline for Form 3520, “Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts,” changes from June 30 to April 15 for taxpayers with a calendar year end, with a maximum six-month extension ending on October 15.
Form 1041. A maximum extension of 5 ½ months (until September 30) is available for calendar year taxpayers that file Form 1041, “U.S. Income Tax Return for Estates and Trusts.” Under prior law, the form had a due date of April 15, with a five-month extension to September 15.
Other items of interest are:
Bonus Depreciation for Qualified Property
- 50% in 2016 and 2017
- 40% in 2018
- 30% in 2019
IRC 179. For 2016, the maximum expenses amount remains at $500,000. The phase-out threshold is $2,010,000. For 2017, the expense amount increases to $510,000 and the threshold to $2,030,000.
Solar Tax Credit (Investment Tax Credit)
Thanks to the spending bill that Congress passed in late December 2015, the tax credit is now available to homeowners in some form through 2021. Here are the specifics:
- 2016 – 2019: The tax credit remains at 30 percent of the cost of the system. This means that in 2017, you can still get a major discounted price for your solar panel system.
- 2020: Owners of new residential and commercial solar can deduct 26 percent of the cost of the system from their taxes.
- 2021: Owners of new residential and commercial solar can deduct 22 percent of the cost of the system from their taxes.
- 2022 onwards: Owners of new commercial solar energy systems can deduct 10 percent of the cost of the system from their taxes. There is no federal credit for residential solar energy systems.
For additional assistance feel free to contact the professionals at Hutchinson and Bloodgood LLP.