Corporations - Deductions

TOPICS / CORPORATIONS

June 1, 2007

Taxpayer-Favorable Letter Ruling on Consolidated Worthless Stock Deduction

Editor: Mary Van Leuven, J.D., LL.M. IRS Letter Ruling 200710004 breaks new ground in determining the character of a worthless stock deduction in a consolidated group. Due to the lack of direct authorities on point and the absence of clear statutory support for the ruling’s favorable conclusions, taxpayers might consider

May 1, 2007

Tax Incentives for Businesses in Distressed Communities

Executive Summary Businesses in designated EZs and RCs may be eligible for an employment credit, increased Sec. 179 expensing, tax-exempt bond financing and other tax incentives. A capital gain deferral applies to purchased EZ assets; a 60% exclusion applies to small business EZ stock. Enterprise zone facility bonds may be

May 1, 2007

Providing Meals and Lodging to Employees

Editor: Albert B. Ellentuck, Esq. Under Sec. 119(a), meals provided by an employer—including a C corporation employer—can be excluded from an employee’s gross income if they are furnished on the business premises and for the employer’s convenience. The employer can deduct the full cost of these meals (the normal 50%

May 1, 2007

Tax Court Capitalizes Model Home Display Costs

The issue is whether the costs of placing model manufactured homes on retail sales lots to assist local independent salespersons may be currently deducted or should be included in inventory under Sec. 263A. Facts A and its related corporations buy and sell manufactured homes, constructed at a factory location and

April 1, 2007

Rethinking Sec. 199 Based on New Developments

Co-Editors: Michael Metz, CPA; Nick Gruidl, CPA, MBT Beginning in 2006, there is a new deduction available for updating or constructing commercial building property to be more energy efficient. The Energy Tax Incentives Act of 2005 (ETIA), which took four years to pass, added new Sec. 179D. With so many

April 1, 2007

Energy-Efficient Commercial Buildings Deduction (April 2006)

Beginning in 2006, there is a new deduction available for updating or constructing commercial building property to be more energy efficient. The Energy Tax Incentives Act of 2005 (ETIA), which took four years to pass, added new Sec. 179D. With so many commercial buildings exceeding 15 years in age, many

April 1, 2007

Energy-Efficient Commercial Buildings Deduction Revisited

Co-Editors: Michael Metz, CPA; Nick Gruidl, CPA, MBT The deduction available for updating or constructing more energy-efficient commercial building property has been previously discussed; see Schuerman, Tax Clinic, “Energy-Efficient Commercial Buildings Deduction,” TTA, April 2006. At that time, little guidance was available on how to take the deduction under new