This item discusses certain TCJA changes to domestic provisions relevant to tax accounting.
Expenses & Deductions
The allowance of depreciation and the energy credit both depend on a taxpayer’s having basis in the property.
Practitioners are more likely now than ever to be asked to consult with clients that may either be considering or are currently involved, directly or indirectly, in a state-legal cannabis business.
Numerous rules and restrictions govern the timing of deductibility of bonuses accrued in one year and paid in another.
The IRS has issued initial guidance on the new rules governing the deductibility of business interest in Sec. 163(j), as amended by the Tax Cuts and Jobs Act of 2017.
The IRS ruled that the inducement payments were otherwise deductible under Sec. 162 and were not capitalizable under Sec. 263(a).
This item focuses on how payroll tax accruals might be deducted in 2017 rather than 2018 without additional costs for the employer and no adverse tax consequences for the employees.
The IRS issued guidance on how taxpayers can take advantage of various provisions enacted by the PATH Act.
A new rule eliminates the need for companies to continue to track their windfall pools.
This column provides tax preparers an outline of questions to ask clients when evaluating roof repair costs.
The IRS issued guidance on how taxpayers can take advantage of various provisions enacted by last year’s PATH Act.
The IRS determined that the costs of acquiring domain names are to be capitalized as intangible assets and amortized over a 15-year period.
Taxpayers have had significant questions regarding the safe harbor.
IRS Affirms Deductibility of Some—but Not All—Computer Software Development and Implementation Costs
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.
Taxpayers apparently have been under the impression that the tax treatment of computer software costs was changed.
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.
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.
Practitioners must carefully consider several tests under Sec. 461 to determine the deductibility of accrued warranty expense for tax purposes.