Trump Victory Expected to Bring Changes to Tax Law

After months of waiting, America has a new president-elect, Donald Trump. One of Trump's main campaign objectives was tax reform—including getting rid of the Affordable Care Act, lowering and consolidating individual income tax rates, and expanding tax breaks for families. More immediately, the results of the November 8 election may impact year-end 2016 tax planning. The tax update below explains in depth implications of Trump’s win regarding taxes.

Highlights:

  • New Administration Takes Office in January
  • Possible Revisions to Tax Code for Individuals
  • Possible Revisions to Tax Code for Businesses
  • Remaining Extenders Could Be Decided
  • Year-End Legislation May Include New Tax Incentive

 

 

 

Expanded Tax Relief given by IRS to Victims of Hurricane Matthew

Hurricane Matthew was the worst storm North Florida has seen in over 10 years. With millions of dollars in damages, many are wondering how their taxes will be affected.

Peter Reynolds, The Griggs Group Managing Partner, was interviewed for an article with the Florida Times Union regarding Hurricane Matthew insurance claims. His suggestion: File with your insurance company even if the amount is less than your deductible and you don’t think you’re going to get any of it back. “And here’s what I think is interesting,” Reynolds said. “If the president declares it a disaster area (which President Obama did on October 8), you can have a choice on what year you want the deduction. You can pick this year or the preceding one.”

The IRS is also offering expanded relief to Hurricane Matthew victims in much of North Carolina, South Carolina, Georgia and Florida. Those affected by the storm have until March 15, 2017 to file certain individual and business tax returns and make certain tax payments. This expanded relief applies to any area designated by the Federal Emergency Management Agency (FEMA), as qualifying for either individual assistance or public assistance. 

Read the Florida Times Union article here
Read the IRS press release here

Department of Labor Announces Changes to Overtime Pay Regulations

On May 18, 2016, the Department of Labor’s final rule updating the overtime regulations for the "White Collar" exemptions of the Fair Labor Standards Act "FLSA".  The final rule will go into effect December 1, 2016.

Key Provisions of the Final Rule include:

  1. Increase the salary requirements from $455 to $913 per week for an employee to be exempt from overtime;
  2. Increase  the Highly Compensated Employee total annual compensation requirement from $100,000 to $134,000.
  3. To automatically review these figures and requirements every three years and adjust as needed.

Employers may use nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10 percent of the new standard salary requirements.

Visit the Department of Labor's announcement page for additional information below.