Tax Accounting (Methods & Periods)
Not all computer software development and implementation costs are deductible when paid or incurred and certain software-related costs
must be capitalized and recovered through amortization for federal income tax purposes.
Congress made a notable change to the definition of qualifying property for bonus depreciation purposes.
Taxpayers apparently have been under the impression that the tax treatment of computer software costs was changed.
The IRS issued guidance providing the depreciation limits for automobiles for 2016 and revised limits for 2015 reflecting the retroactive increase in the amount of bonus depreciation permitted under recent legislation.
This column focuses on what the revenue procedure provides to taxpayers that was not previously available.
The IRS alerted the public that a new Form 3115, Application for Change in Accounting Method, has been issued with a revision date of December 2015, the first revision since 2009.
The IRS is permitting some taxpayers to use a
safe-harbor method of accounting for determining whether expenditures paid or
incurred to remodel are deductible or must be capitalized.
A new safe harbor allows retail and
restaurant taxpayers to deduct 75% of qualifying expenditures for remodeling qualified buildings and capitalize just 25%.
Determining whether an expense is deductible
as related to the sale of inventory or capitalizable under Sec. 263A appears to be less favorable to taxpayers following two recent court decisions.
This item discusses best practices to consider when planning a tangible property regulations sample.
Companies should get a jump on analyzing the effects of implementing the standard and evaluating tax methods.
The IRS announced it will raise the deductible amount for purchases of tangible property by taxpayers without applicable financial statements to $2,500 per item.
The regulations were meant to address a perceived abuse of taxpayers claiming a foreign currency loss by partially legging out of an integrated transaction.
This article looks at the timing and characterization rules that apply to payments under a notional principal contract.
Practitioners must carefully consider several tests under Sec. 461 to determine the deductibility of accrued warranty expense for tax purposes.
The partial asset disposition election might be one of the most beneficial tools for many clients in year-end tax planning.
Final regulations affect all for-profit taxpayers that have expenditures that are classified as either materials and supplies, repairs and maintenance, asset acquisitions, production of assets, or improvements of tangible assets.
The IRS announced that is raising the current de minimis limit for deducting expenses for purchases of items of tangible property from $500 to $2,500 for taxpayers without applicable financial statements.
The IRS announced a safe-harbor method that allows qualifying taxpayers to deduct 75% of these expenses.
Taxpayers using the accrual-basis method of accounting were given a safeharbor to treat economic performance as occurring on a ratable basis for certain