As part of its initiative to reduce complexity in accounting standards, FASB issued ASU No. 2019-12 in late 2019 for the purpose of simplifying accounting for income taxes.
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Tax Accounting
Automobile depreciation limits adjusted for 2021
The IRS issued its annual inflation-adjusted update of depreciation limitations for passenger automobiles (including passenger vans and trucks) placed in service in 2021.
Naked credits and the interest expense limitation
New regulations providing guidance on the application of the Sec. 163(j) interest expense limitation may change how some companies calculate their naked credit.
Final regs. issued on qualified improvement property under FDII, GILTI
Final regulations clarify the treatment of qualified improvement property in FDII and GILTI, and foreign tax credit transition rules address post-2017 NOL carrybacks to pre-2018 tax years.
Qualified improvement property and bonus depreciation
The CARES Act corrected an error that had made qualified improvement property ineligible for bonus depreciation; IRS regulations and guidance explain how to take advantage of the change.
Interruption of LIFO inventories due to COVID-19 and Sec. 473 relief
Global supply chain problems caused by the COVID-19 pandemic have made it difficult for US companies to replace inventories, potentially subjecting them to additional taxable income. The AICPA has requested relief under Sec. 473.
Automatic accounting method change procedures updated
The IRS updated the list of accounting method changes to which automatic change procedures apply.
IRS updates car and truck depreciation limits
The IRS issued its annual inflation-adjusted update of depreciation limitations for passenger automobiles (including passenger vans and trucks) placed in service in 2021.
Commercial real estate: Landlords can turn to Sec. 467
This item explores commercial property holders’ use of Sec. 467, which governs the timing of rental income and expense in certain circumstances.
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.
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.
Accounting method planning to decrease taxable income
This item provides examples of accounting method changes or elections that may decrease taxable income.
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.
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.
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.
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.
Guide to expensing HVAC costs
This guide provides tax preparers an outline of questions to ask clients when evaluating HVAC repair costs.
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.
The rules on interest for loans between related parties
This article discusses self-charged interest requirements.
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.
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.
