Taxpayers in the construction industry may want to consider the Sec. 41 research credit.
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TOPICS
C Corporation Income Taxation
Controlled Groups and Deductibility of Patronage Dividends
CCA 201228035 addresses specifically the tax treatment of patronage dividends among related parties and/or controlled groups.
IRS to Allow Automatic Accounting Method Changes in Corporate Reorganizations
The IRS announced a change in its policy on automatic accounting method changes in corporate reorganizations.
IRS Announces Inflation Adjustments for 2013
The IRS released its annual revenue procedure making inflation adjustments to the gift tax annual exclusion and other items for tax years beginning in 2013.
Depreciation and Changes in Use of Real Property
This item discusses the distinction between residential and nonresidential property, depreciation, and the application of the change-in-use regulations if a rental property changes from residential use to nonresidential or vice versa.
Payments to Related Entities Are Dividends, Fail Independent-Investor Test
The Seventh Circuit held that a C corporation’s payments to entities owned by its shareholders for consulting services were disguised dividends.
Schedule UTP: IRS Findings
Recent data show what the IRS has found regarding Schedule UTP filings by corporations with $100 million or more of total assets on their tax return balance sheets, and what the IRS is doing with that information.
How Changes in Corporate Tax Rate Can Affect Choice of C vs. S Corp.
This item examines the effect of the proposed lower corporate tax rates in an analysis of the tax results of converting an S corporation to a C corporation.
Final Regs. Issued on Entertainment Use of Business Aircraft
The IRS issued final regulations relating to the disallowance under Sec. 274 of deductions for the use of business aircraft for entertainment (T.D. 9597).
Tax Court Defines Gross Receipts for the Research Credit
The Tax Court clarified that nonsales income is included in gross receipts for purposes of the Sec. 41 research credit.
Corporate Equity Reduction Transaction Guidance Issued
The IRS issued proposed regulations governing the availability of NOL deductions that are attributable to corporate equity reduction transactions.
Automatic Accounting Method Changes to Be Allowed in Corporate Reorganizations
The IRS announced a change in its policy on automatic accounting method changes in corporate reorganizations.
Deductibility of LEED Certification Costs
Tax professionals may be in the best position to support their clients or company in identifying LEED certification costs and determining the appropriate tax treatment as either a current-period expense or a capital expenditure.
Deducting Losses on Worthless Investment Securities
Understanding the rules for deducting losses on worthless securities is necessary to determine the correct timing of the loss deduction.
Corporate Financing Companies: Treatment of Losses
Financial blocker entities are used as a mechanism to prevent funds from potentially being engaged in a U.S. trade or business.
What’s New With the New Markets Tax Credit?
The IRS published final regulations relating to how an entity serving targeted populations can meet the requirements to be a qualified active low-income community business under the provisions of the new markets tax credit program.
A Cautious Approach to Sec. 163(l) in Common Private-Equity Lending
Fund financing can carry with it the potential for unintended tax consequences under Sec. 163(l)’s “disqualified debt” rules.
Determining Tax Consequences of Corporate Liquidation to the Shareholders
Under Sec. 331, a liquidating distribution is considered to be full payment in exchange for the shareholder’s stock, rather than a dividend distribution, to the extent of the corporation’s earnings and profits.
Investors’ Dilemma on Purchasing Distressed Obligations
This article discusses the purchaser’s perspective of an investment in distressed obligations that are secured by leases on tangible property.
Corporation Cannot Deduct California Business Privilege Tax in Year Paid
An accrual-basis taxpayer could not deduct the California business privilege tax in the year it was paid, even though California treated the tax as being incurred in that year.
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.
