Tax Accounting

Topics

July 1, 2021

When does it make sense to elect out of the installment method?

Reporting gain in the year of a sale rather than with installments over time may become more attractive as proposals for higher capital gains tax rates gain traction. This article weighs the pros and cons.

July 1, 2021

Accounting method planning to increase taxable income

In certain circumstances, taxpayers may benefit from increasing taxable income; accounting method planning can help taxpayers achieve that objective.

July 1, 2021

Accounting method planning to decrease taxable income

This item provides examples of accounting method changes or elections that may decrease taxable income.

July 1, 2021

Acceleration of deferred revenue in M&As

Sec. 451(c) should be considered when structuring such M&A transactions — including special rules
relating to short tax years of 92 days or less.

May 1, 2021

Final Sec. 451 regs. provide relief and additional complexities

This item discusses highlights of the Sec. 451(b) regulations, which address the timing of income recognition for accrual-method taxpayers with an applicable financial statement.

May 1, 2021

Highlights of the final small business taxpayer regulations

These simplifying provisions, which apply to small business taxpayers, expand the use of the overall
cash method of accounting and grant
exemptions from inventory methods
under Sec. 471, UNICAP rules under Sec. 263A, and
the use of the percentage-of-completion method for certain long-term construction contracts under Sec. 460.

May 1, 2021

The partner-to-partner attribution trap and the anti-churning rules

Taxpayers dealing with tax basis step-up transactions involving related parties or rollover equity interests should consider the application of the anti-churning rules to avoid unforeseen results.

April 15, 2021

Guide to expensing HVAC costs

This guide provides tax preparers an outline of questions to ask clients when evaluating HVAC repair costs.

April 1, 2021

Sec. 451(b) regs. renew interest in Sec. 460

Taxpayers should consider all available facts and circumstances when determining the suitability and
permissibility of a Sec. 460 long-term contract method.

March 11, 2021

The rules on interest for loans between related parties

This article discusses self-charged interest requirements.

March 1, 2021

Sec. 451 rules are finalized

The IRS issued final regulations on Sec. 451 income inclusion rules and advance payments, as those rules were amended by the TCJA.

March 1, 2021

Planning for an IPO: Is your tax department prepared?

Depending on the IPO structure, the company may need to provide tax accruals for additional reporting periods or updates to existing financial statement disclosures.

March 1, 2021

Final rules for simplified accounting methods allow tax shelter annual election

The IRS finalized regulations for simplified accounting rules for small businesses.

February 4, 2021

Final Sec. 1031 regulations do not materially affect cost segregation studies

Compared to pre-TCJA rules, there is no material change in the tax treatment of a building involved in a like-kind exchange, where a cost segregation study has been performed.

February 1, 2021

IRS permits choice of bonus depreciation rules

The IRS issued final bonus depreciation regulations and withdrew proposed regulations.

February 1, 2021

Final regs. on bonus depreciation

Treasury and the IRS issued bonus depreciation final regulations that substantially modified the previous proposed regulations in four areas.

February 1, 2021

Small business exemption regs. provide surprises for large taxpayers

The TCJA expanded the number of taxpayers
eligible to use the cash method under Sec. 448, expanded the exception from the uniform capitalization rules under Sec. 263A, and more.

February 1, 2021

Using sampling to efficiently claim bonus depreciation for QIP

Statistical sampling and estimation can be an efficient solution to determine the amount of basis that can now be assigned a 15-year recovery period and to claim bonus depreciation.

January 4, 2021

Final rules govern income inclusion and advance payments

The IRS issued final regulations on Sec. 451 income inclusion rules and advance payments, as those rules were amended by the law known as the Tax Cuts and Jobs Act.

January 1, 2021