October 2016

October 2016


ACA Open Enrollment Begins - A Few 2017 Considerations

Marketplace open enrollment for 2017 begins November 1, 2016. Consequently, beginning tomorrow, eligible Americans can go to healthcare.gov to enroll in a health care plan under the Affordable Care Act. Likewise, many open enrollment periods for employer-provided health care coverage are also underway. In light of these opportunities, many individuals and their advisers are faced with a number of questions. Following are several frequently asked questions regarding health insurance options and the tax implications of those choices in 2017.

Will I have to pay a penalty if I did not to have health insurance in 2016?

If you were not exempt from the individual mandate in 2016, you were required to have “minimum essential coverage” for yourself and your dependents or pay a shared responsibility payment. This payment will be due when you file your tax return for the 2016 tax year next April. The shared responsibility payment for 2016 is the higher of these two amounts:

  1. $695 per adult and $347.50 per child (under 18), up to a maximum of $2,085
  2. 2.5% of family income above the filing threshold

The Kaiser Family Foundation has estimated that families will face an average penalty of $738 per household if they remained uninsured in 2016.

Read more here.


Iowa Supreme Court Says 99-Year Lease Valid

The Iowa Supreme Court on Friday issued an opinion clarifying the reach of Iowa Const. art. I, § 24. The Court ruled that the provision does not apply to lands suitable for agricultural purposes if only an incidental portion of the land is used for farming purposes. Iowa Const. art. I, § 24 states:

No lease or grant of agricultural lands, reserving any rent, or service of any kind, shall be valid for a longer period than twenty years.

The land at issue was 300 acres (only a a portion of which was farmed) that was owned by the Iowa 4H Foundation. In 1969, the 4H Foundation entered into a Memorandum of Understanding with the Iowa Arboretum to develop a public arboretum on the property. In 1980, the parties executed a 99-year lease under which the 4-H Foundation leased “to the Arboretum for development as part of the Arboretum, the 300 acre tract of property” described in the Memorandum of Understanding.

Continue reading here.


Welcome Changes to Iowa Capital Gain Deduction Form on the Horizon

Last year, the Iowa Department of Revenue unveiled a new form for claiming the Iowa Capital Gain Deduction. IA 100 was designed to collect key information up-front, rather than after the fact, regarding transactions qualifying for the rather unique Iowa deduction. The change was met with some concern and confusion, particularly among taxpayers (and preparers) reporting transactions involving cattle, horses, or breeding livestock (by far the most common trigger for the deduction). But, rest assured, help is on the way. A new series of forms is in the works. Although there are not yet sample forms to share, it appears these changes will be very welcome. The Iowa Department of Revenue will discuss the updates (including sample forms) at our eight Iowa Federal Income Tax Schools in November and December. In the meantime, we'll review the basic rules of the deduction.

Continue reading here.

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CALT does not provide legal advice. Any information provided on this website is not intended to be a substitute for legal services from a competent professional. CALT's work is supported by fee-based seminars and generous private gifts. Any opinions, findings, conclusions or recommendations expressed in the material contained on this website do not necessarily reflect the views of Iowa State University.

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