Governor Reynolds Has Signed Bill Allowing $70,000 Section 179 Deduction in 2018 for All

 As expected, Governor Reynolds signed SF 220 into law today. Effective for tax years beginning on or after January 1, 2018, but before January 1, 2019, the law allows corporations and financial institutions the same Section 179 deduction as everyone else ($70,000 deduction / $280,000 investment limitation).

The bill only applies to the 2018 tax year because all entities and individuals are subject to a $100,000 Section 179 deduction limit with a $400,000 reduction limitation for 2019. In 2020, Iowa law is scheduled to fully couple with federal law for the Section 179 deduction. For more information on this issue, read this blogpost.

Better late than never! Hope you're wrapping up those entity returns and extensions!

No Iowa Form 2210-F is Needed if Farmers File and Pay by April 30

 We've had a number of you ask what farmers must do to take advantage of the Iowa e xtension and waiver announced February 28 . As you know, the Iowa Department of Revenue announced that it would go along with the IRS decision to grant an extension to farmers who had not paid estimated taxes by January 15. Those Iowa farmers now have until April 30, instead of March 1, to file their Iowa 1040s and pay their taxes without being subject to an underpayment of estimated tax penalty.

We have verified with IDOR that, unlike the federal requirement, Iowa is not requiring farmers to file an Iowa Form 2210-F to take advantage of the extension. Farmers who were subject to the March 1 deadline to avoid the penalty are now automatically subject to the April 30, 2019, deadline to file and pay. The underpayment of estimated tax penalty is automatically waived for these farmers. Relief need not be requested.

Remember, however, that IRS has a different rule. The federal Form 2210-F is required to take advantage of the federal extension.