Dickinson & Clark Updates

Iowa Inheritance Tax

Iowa is one of a number of states that assess a tax on the inheritance of property. The tax applies to Iowa residents and to nonresidents who own certain types of property (such as real estate) located in the state of Iowa at the time of death.

WARNING: New IRS Phone Scam

URGENT NOTICE: Taxpayer’s are receiving phone calls from various phone numbers posing as agents of the IRS.

Safe Harbors Provide Relief in Final Capitalization Regulations

The Final Capitalization Regulations included several safe harbors that provide some much needed relief from the originally proposed regulations. Three of the safe harbors are outlined below

Legal Gift Tax Avoidance

Most taxpayers know that the IRS requires you to file a gift tax return if you gift too much to an individual in a calendar year, but did you know that you can pay any amount of any individual’s educational expenses and/or medical expenses without any tax consequence?

Iowa Military Pension Exclusion

On May 26, 2014, Iowa Governor Branstad signed into law a provision for the exclusion of military retirement benefits from Iowa individual income tax. The change will be effective for the tax year beginning January 1, 2014.

Separation of Duties

Separation, also know as segregation, of duties is an accounting concept of having more than one person required to complete a task. It is an important step to improve the internal control of a business’s assets.

Grow tax benefits as you grow your herd

Farmers have big decisions to make when growing their operations. One of the decisions that can have a long lasting business and cash flow impact is the way you grow your breeding herd.

Bonus Depreciation Makes it out of Committee

A small victory for taxpayers this week as the House Ways and Means Committee passed a proposal to revive bonus depreciation and make it permanent. Although unlikely to become law, this move by Congress could be a sign that a temporary extension for bonus depreciation is possible.

Iowa Beginning Farmer Tax Credit and other Ag Program Tax Credits

On January 28 from 2-4pm, at the Dickinson & Clark CPAs, PC office, Steve Ferguson, Ag Program Specialist with the Iowa Finance Authority, will present an educational workshop on the credits and programs available to beginning farmers and those that work with beginning farmers in Iowa.

Small Businesses Need a Written Capitalization Policy

New repair regulations from the IRS require businesses to keep a written capitalization policy if they would like to utilize the safe harbor provisions of the regulations. Companies with audited financial statements can qualify for a safe harbor capitalization policy that allows them to deduct all assets under $5,000.