IRS released guidance related to the tangible property regulations regarding depreciation and dispositions.
Advertisement
TOPICS
C Corporation Income Taxation
Sampling to Efficiently Implement the New Tangible Property Regulations: The Clock Is Ticking
New tangible property regulations apply to all current and certain prior-year tangible assets, creating compliance efforts and opportunities for immediate and long-term tax savings.
When Payments on Debt Are Considered a Deemed Dividend
Recently, the IRS applied Sec. 305 to determine that certain convertible debt provided its holders with a deemed distribution under Sec. 301.
Depreciation Guidelines for Vehicles and When to Report Them as Listed Property
If business vehicles are passenger automobiles, they are listed property and are subject to limits on the amount that can be deducted for regular depreciation, as a bonus depreciation allowance, and as a Sec. 179 expense.
Final Regulations Issued on Relief From Failure to File Gain Recognition Agreements
The IRS finalized proposed regulations to update the rules that apply to U.S. taxpayers that fail to file gain recognition agreements (GRAs) when they transfer certain property to foreign corporations in nonrecognition transactions (T.D. 9704). The rules change the standards under which transferors are required to recognize gain on the transfer of stock or securities.
Tax Court Releases Decisions Favorable for Captive Insurance Risk Distribution Qualification
This item focuses specifically on the implications for satisfying the “risk distribution” requirement for having a valid captive insurance arrangement.
IRS Clarifies Ordering Rules for Alternative Tax NOLs
IRS clarified that the amendment to Sec. 56(d) made by the WHBAA did not create new ordering rules for absorbing ATNOLs.
Buyer Beware of Zenz Transactions
IRS ruling applies where a plan involves a redemption and an issuance or sale of stock that results in a termination of the old shareholder’s interest in the corporation.
License vs. Royalty: The Constant Question for Pharmaceuticals
Pharmaceutical companies confront several tax differences when determining whether a transaction is a license or sale.
Congress Enacts Last-Minute Extenders for 2014
The Senate passed a bill to retroactively extend more than 50 expired tax provisions through 2014, by a vote of 76-16 on the evening of Dec. 16. The extender bill passed the House of Representatives on Dec. 3, and was signed by President Barack Obama on Dec. 19.
Proposed Rules Would Govern Sec. 41 Credit for Software
The IRS issued long-awaited proposed rules on what type of internal-use software qualifies for the Sec. 41 research credit.
IRS Disagrees With Tax Court on Ability to Designate Employment Tax Payments as Income Tax Withholding
The IRS announced in that it will not follow a Tax Court holding that an employer may designate payments of its employment taxes to the income taxes of specific employees.
IRS Issues Final Regulations on Sec. 162(m)(6) Deduction Disallowance
The IRS issued final regulations under Sec. 162(m)(6), which imposes a $500,000 federal income tax deduction limitation for compensation paid by a covered health insurance provider.
Using Loans to Extract Cash From a Closely Held Corporation
Lending corporate cash to shareholders can be an effective way to give the shareholders use of the funds without the double-tax consequences of dividends.
Basis Allocation to Nonshareholders in All-Cash D Reorganizations Prohibited
The IRS finalized temporary regulations regarding the determination of the basis of stock or securities in all-cash D reorganizations where no stock or securities of the issuing corporation are issued and distributed in the transaction.
IRS Issues Final Regulations on Allocation of Earnings and Profits
Final regulations under Sec. 381 will change which corporation succeeds to the tax attributes, including the E&P, of the transferor or distributor corporation in certain acquisitions.
Regulations Tightening Form 5472 Filing Requirements Are Finalized
Final regulations remove the provision allowing Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business, to be timely filed separately from the corporation’s tax return if that return is filed late.
Transfers of Installment Obligations Would Trigger Gain or Loss Under Proposed Rules
The IRS issued proposed regulations relating to the nonrecognition of gain or loss on certain dispositions of an installment obligation.
Update on the Medical Device Excise Tax
The medical device excise tax with its complex regulations and reporting requirements essentially amounts to a sales tax on members of a targeted industry group regardless of whether they have profits.
Consolidated Income of Affiliated Group Subject to Graduated Rates
The Tax Court held that all the consolidated income of an affiliated group that consisted of a corporation that was a qualified personal service corporation and another corporation that was not a qualified personal service corporation should be taxed using the graduated tax rates of Sec. 11(b)(1).
TAX PRACTICE MANAGEMENT
2025 tax software survey
AICPA members in tax practice assess how their return preparation software performed during tax season and offer insights into their procedures.
