Tax Computation

Topics

October 1, 2011

Some Implications of 100% Bonus Depreciation

This item discusses optimization of the 100% bonus depreciation deduction, highlighting some of its implications and peculiarities.

August 1, 2011

Claiming Bonus Depreciation on Self-Constructed Long Production Period Assets

This item discusses the process of claiming bonus depreciation on self-constructed long production period assets, with a focus on how the taxpayer can determine how the binding contract rules and placed-in-service rules apply to particular projects.

June 1, 2011

100% Bonus Depreciation Guidance Issued

In Rev. Proc. 2011-26, the IRS has issued guidance on how taxpayers can deduct 100% of the cost of qualified business property placed in service in 2011 under rules enacted last year .

March 1, 2011

Sec. 168(k)(4)—Credit in Lieu of Bonus Depreciation

The election under Sec. 168(k)(4) to claim a refundable tax credit in lieu of bonus depreciation has been extended again for certain property placed in service during 2011 and 2012 as part of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.

November 1, 2009

Electing to Accelerate AMT and Research Credits in Lieu of Bonus Depreciation

The Housing Assistance Tax Act of 2008 allows corporations to make an election to forgo bonus depreciation and instead claim an accelerated pre-2006 research and/or AMT credit.

May 1, 2009

Depreciation Options for Avoiding Corporate AMT Adjustments and Preferences

An election of a particular depreciation system affects both taxable income and the taxpayer’s administrative burden.

April 1, 2009

Like-Kind Exchanges: Deferral Is Not Always the Best Option

Sec. 1031 gives taxpayers the opportunity to defer taxation on the gains they may have on their transactions. Anytime there is an opportunity to defer tax costs, tax practitioners and their clients automatically tend to assume that they should take advantage of the opportunity. However, in the case of like-kind exchanges, it is not always in the taxpayer’s best interest to elect to defer the recognition of gain on realty.

March 1, 2009

Sec. 168(k)(4) Credit in Lieu of Bonus Depreciation

As part of the Housing and Economic Recovery Act of 2008, Congress enacted a special tax benefit under Sec. 168(k)(4) that allows corporations to claim a refundable tax credit in lieu of 50% bonus depreciation for certain capital investments made during the period April 1–December 31, 2008

July 1, 2008

The Economic Stimulus Act of 2008

The tax benefits the Economic Stimulus Act provides affect both individuals and businesses. The legislation’s purpose is to increase consumer and business spending in an effort to stimulate the economy.

November 1, 2007

Hurricane GO Zones: An Update on Relevant Tax Provisions

The widespread devastation left in the wake of hurricanes has resulted in numerous tax provisions aimed at revitalizing and rebuilding the affected areas. Congress passed the Gulf Opportunity Zone Act of 2005, P.L. 109-135 (the GO Zone Act), in response to Hurricane Katrina and then revised it as Hurricanes Rita

April 1, 2007

Treatment of Capitalized Costs of Intangible Assets (Part I)

This two-part article examines cost recovery of intangible asset expenditures. Part I summarizes the applicable capitalization regulations, Sec. 197 cost recovery and general Sec. 167 amortization rules.