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News: What's New for 2015, as reported in Publ. 334:
What's New for 2015
The following items highlight a number of administrative and tax law
changes for 2015. They are discussed in more detail throughout the
The Agricultural Act of 2014. The Agricultural Act of 2014 repealed
direct and countercyclical payments and Average Crop Revenue
Election. The Act created price loss coverage payments and
agricultural risk coverage payments. For more information, see
Standard mileage rate. For 2015, the standard mileage rate for the
cost of operating your car, van, pickup, or panel truck for each mile
of business use is 57.5 cents. See chapter 4.
Qualified Principal Residence Indebtedness. The exclusion for the
discharge of qualified principal residence indebtedness has expired.
For 2014, the amount of discharge of indebtedness from a qualified
principal residence has to be included in gross income.
Decreased section 179 expense deduction dollar limits. The
maximum amount you can elect to deduct for most section 179
property you placed in service in 2014 is $25,000. This limit is
reduced by the amount by which the cost of the property placed in
service during the tax year exceeds $200,000. See chapter 7.
Maximum net earnings. The maximum net selfemployment earnings
subject to the social security part (12.4%) of the selfemployment tax
increased to $118,500 for 2015. There is no maximum limit on
earnings subject to the CAUTION ! Medicare part (2.9%) or, if
applicable, the Additional Medicare Tax (0.9%). See chapter 12.
Social Security and Medicare Tax for 2015. The social security tax
rate is 6.2% each for the employee and employer, unchanged from
2013. The social security wage base limit is $118,500.
The Medicare tax rate is 1.45% each for the employee and employer,
unchanged from 2013. There is no wage base limit for Medicare tax.
B. JOE ROSA, JR., CPA
INCOME TAX NEWS:
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