In addition to extending bonus depreciation and phasing out the bonus rate, the PATH Act made several changes to the types of eligible property
under Sec. 168(k)(2).
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Tax Accounting
New Audit Techniques Guide for Capitalization of Tangible Property
The IRS’s LB&I division released its latest Audit Techniques Guide.
IRS Amends Form Instructions for AMT Depreciation Changes
The IRS announced that it has updated various 2016 form instructions to reflect changes to AMT adjustments made by the PATH Act.
Ninth Circuit Upholds Homebuilder’s Use of Completed-Contract Method
A homebuilder could apply the percentage-of-completion method for income deferred under the completed-contract accounting method, based on completion of the development rather than on the sale of individual homes.
Change to Accrual Accounting Will Not Delay Taxes on Certain Deferred Compensation Beyond 2017
The IRS clarified that a taxpayer may not delay the income inclusion of the grandfathered deferred compensation amounts beyond 2017 by requesting a change in method of accounting.
Eligibility Rule Waiver Extended for Taxpayers Adopting Repair Regs.
The IRS extended for one year its waiver of the eligibility rule that generally prevents taxpayers from using the automatic accounting method change procedures to change the treatment of the same item more than once within a five-year period.
Common Income Tax Accounting Pitfalls
This article highlights a few ASC Topic 740, Income Taxes, tax matters companies have missed or overlooked in tax provisions.
Unexpected Change of Accounting Method
In some situations, an accounting method must be changed by operation of law.
Avoiding Conversion to the Accrual Accounting Method by Electing S Status
A corporation may have to use the accrual
method if it is required to maintain inventory records.
Acquired Taxpayer Is Not Eligible for Success-Based Fee Safe Harbor of Rev. Proc. 2011-29
An S corporation was not eligible to elect the safe harbor since it was the target of the acquisition, and it must capitalize the success-based fees that it claimed as an expense.
FASB Simplifies Financial Reporting for Income Taxes
FASB issued an accounting standard that is designed to simplify the financial reporting for the income tax consequences of intra-entity transfers other than inventory.
Final Regulations Govern Money-Market Funds
The IRS finalized regulations that implement new SEC rules that change how gains and losses in money market funds are calculated.
Application of Partial Asset Dispositions and the De Minimis Safe Harbor
The initial adoption of the tangible property regulations has passed, but practitioners should continue to monitor partial asset dispositions and de minimis
safe-harbor elections.
Benefiting From New Tangible Property Regulations and Disposal Provisions
This item discusses how a taxpayer could have benefits of both the MACRS disposition regulations and tangible property regulations limited or lost entirely by failing to perform required compliance in a timely manner.
Avoiding Cost Segregation Recapture Tax
Tax professionals should consider a number of worthwhile opportunities to reduce or avoid recapture tax that is realized upon sale of property.
Taxpayer Wins Big in Transfer-Pricing Dispute
The Tax Court held that the IRS had abused its discretion in reallocating income related to intercompany licenses for the intangible property to manufacture medical devices from a Puerto Rican company to its U.S. parent company.
FASB Proposes Changing Income Tax Disclosure Requirements
FASB issued a proposal Tuesday that would modify disclosures about income taxes that organizations are required to report on their financial statements.
IRS Issues Rules for Money Market Fund Accounting Methods
The IRS finalized regulations that implement new SEC rules that change how gains and losses in money market funds are calculated.
IRS Updates Automatic Accounting Change Procedures
Unless otherwise provided, a taxpayer must secure the IRS’s consent before changing its accounting method.
Potential Expiration Is Not an Event
A grocery store/gasoline retailer could take a deduction for discounts on gasoline purchases that the store’s customers had accrued but not yet taken at the end of the year.
INDIVIDUALS
Current Developments in Taxation of Individuals: Part 1
This update surveys recent federal tax developments involving individuals, including court cases, rulings, and guidance issued during the six months ending October 2025.
