This morning (2.18.21), we received word that the Governor signed House Bill 58 , bringing Idaho tax law into conformance with IRS Code as of January 1, 2021.
2021 Idaho Conformity Addresses:
- Temporary waiver of the minimum distribution and contribution rules for individual retirement arrangements.
- Changes to the charitable contribution rules.
- Relaxation of the deduction limit on business operating interest.
- A break for nonprescription medical products.
- A lower threshold for claiming medical expenses on Schedule A.
- Extension of the law allowing employers to deduct payments for employees’ student loans.
- A shorter depreciable life for nonresidential real estate.
- The deduction for business meals has been expanded from 50% to 100%.
- Deductions for energy efficient buildings were relaxed.
- Allows taxpayers to remove from income any debt relief from a default on a principal residence.
- Extra depreciation expense allowed for motor sports facilities.
- Allows some additional costs for live theater and movie production.
- Expanded the deductions available to investors in “Empowerment Zones.”
- Relaxed depreciation rules for businesses that are located on Indian reservations.
NOTE:
Idaho did NOT conform to the 461(l) loss limitation changes or bonus depreciation.
You can find this and other legislation that may impact the profession on our 2021 Idaho Legislative Watch page.
If you have any questions regarding this (or other legislation) feel free to contact Laura Lantz, Executive Director at 344-6261 or 800-388-3635.