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Wednesday, February 28, 2018

Livestock & Personal Property (Business Equipment) Reporting Deadline


Just a reminder that the Montana Department of Revenue deadlines for Livestock and Personal Property (Business Equipment) Reporting are March 1st.  Reporting forms for Personal Property were not mailed out this year and filing must be done online via TAP to avoid a 20% penalty on the tax due.  

We are happy to assist you with filing or with any questions you may have. 

Thursday, February 22, 2018

MT DOR Personal, Business & Commercial Property Reporting

The Montana Department of Revenue has mailed several notices in recent weeks related to property reporting.  Many taxpayers have found these notices confusing.  It's important to know which of these reporting types apply to you and what your requirements are in order to avoid either unnecessary reporting or penalties for failure to report.  

PERSONAL PROPERTY (BUSINESS EQUIPMENT)
If you received a letter that indicates you need to "report your personal property (business equipment)" then this is mandatory reporting and must be submitted online by March 1st to avoid a 20% penalty on the tax due.  Personal property taxes (separate from real estate property tax) are billed and collected by the country treasurer.  This tax essentially replaces sales tax on items such as business equipment, machinery, agricultural implements and equipment, furniture, fixtures and all other personal property.  

In the past, this reporting has been mailed to taxpayers including a list of equipment previously reported.  The MT Dept of Revenue is no longer mailing these forms and reporting must be submitted online via TAP (TransAction Portal) .  If you have not previously used TAP, select the sign up now button.  You will need your personal property reporting account ID (found at the top right of your letter) and your EIN or SSN to set up your account.  Select either Business or Individual and then Personal Property Reporting (PPR) from the drop down list.  More information and tutorial videos can be found at https://mtrevenue.gov/property/property-types/personal-property/

COMMERCIAL PROPERTY INCOME & EXPENSE DATA 
If you received a notice that "commercial property owners will need to report their income and expense data"  then this is voluntary reporting. MT DOR requests commercial property owners to report their rental income and expense information in order to collect data and develop typical rent ranges, expense percentages and capitalization rates for use in income models.  They DO NOT use this information to value your property individually, therefore you are not required to submit this reporting.  However, if you choose to submit this data, I could benefit your ability to appeal property tax values in the future.  More information and instructions for submitting this report online can be found at https://mtrevenue.gov/property/property-types/commercial-property/

Gardner & Billing CPAs are happy to be of assistance if you have questions related to these reporting requirements or if you need help with the online submission. 

Wednesday, February 14, 2018

"A Visit to Ireland"
An experience of Irish history and culture 
will be presented by Jessica Malone at the 
Broadus Senior Center at 1pm 
on Wednesday, February 21st.
All are welcome to attend.

Thursday, February 1, 2018

News from the Montana Dept of Revenue on Tax Reform Changes


The Montana Department of Revenue and the Office of Budget and Policy Planning are reviewing the federal tax reform bill (HR1) and its potential impacts on Montana’s tax system. With HR1 being the most significant federal tax reform in 30 years it will take additional time to sort through the bill.
One key provision of HR1 establishes a 20 percent deduction of “qualified business income (QBI)” from certain pass-through businesses. The department has determined that the QBI deduction is not an eligible deduction for Montana individual income tax purposes.
Individual Income Tax Return Changes

We have made changes to our Form 2 for the new Federal Tax Reform. 


The following changes were made to the 2017 Montana Individual Income Tax Return (Form 2) due to the recently passed federal tax reform bill (HR 1):

  • The department voided and reserved for future use:
    • line 35 on Form 2 (Tuition and Fees)
    • line 14 (Qualified Mortgage Insurance Premiums) on Schedule III (Itemized Deductions) because these two federal provisions expired at the end of 2016.
  • Line 3 of Schedule III (Itemized Deductions) was updated to reflect the new limitation used to calculate allowable medical and dental expenses. Medical and dental expenses are allowed for tax year 2017 to the extent if they exceed 7.5% of the taxpayer adjusted gross income.