Auto depreciation limitations make a big leap for second year in a row
The IRS issued sharply higher new depreciation limitations for passenger automobiles, including those for which bonus depreciation is applied.
Tax Accounting
All-events test for sales incentives — one perspective
A company’s mere promise to pay was not sufficient to consider the liability fixed since all of the events to establish the fact of the liability did not occur during the year the offer was made.
All-events test for sales incentives — another perspective
Before a liability is considered as incurred, the ‘last event’ necessary to establish the existence of the taxpayer’s liability must have happened, and the liability cannot be contingent.
Key tax provisions in the Senate reconciliation bill
The Inflation Reduction Act passed by the Senate on Sunday includes many tax items, some designed to raise revenue and others to promote various clean energy initiatives.
Permanent component of a temporary difference: ASC Topic 740 analysis
The process of accounting for stock options, a mainstay in the equity compensation portfolio, is unique within the category of book-tax differences.
Depreciation recapture in the partnership context
This item discusses how depreciation recapture applies in certain situations involving partnerships.
Senate passes CHIPS Act with semiconductor tax credit
The bill’s semiconductor production incentives would include a new 25% investment credit.
Sec. 451 regulations offer ways to reduce revenue acceleration
This item summarizes the TCJA’s changes to Sec. 451 and discusses the opportunities the December 2020 final regulations may provide to reduce income acceleration.
Early signs from Treasury on the scope of digital asset cost basis reporting
This item discusses issues Treasury will have to grapple with when it provides cost basis reporting guidance.
Foreign tax credit: Changing from cash to accrual basis
Regulations provide regulatory authority for Treasury’s long-held position that an individual taxpayer who elects on a timely filed return to claim the foreign tax credit on the cash basis may not change to the accrual basis on an amended return.
A strategy to raise a business’s interest limitation
This article discusses a strategy to allow more interest to be deducted under the limitation involving the strategic adoption of FASB Accounting Standards Codification Topic 606, Revenue From Contracts With Customers.
New accounting method change procedures issued for small business taxpayers
The IRS and Treasury released two revenue procedures on accounting method change procedures.
Letters from IRS to warn taxpayers about possible QOF actions needed
The IRS is sending letters to taxpayers who may need to take additional actions related to qualified opportunity funds.
Auto depreciation limits leap with inflation
The Internal Revenue Service issued its annual inflation-adjusted update of depreciation limitations for passenger automobiles, including passenger vans and trucks, placed in service in 2022.
LB&I provides insight into Sec. 263A computations for resellers
This item outlines the general provisions of Sec. 263A, including special rules and exceptions for resellers, and provides insight into a reseller’s uniform capitalization calculation that may be areas of focus during an IRS examination.
Opportunities for taxpayers with residential rental properties and residential living facilities
During 2021, the IRS issued taxpayer-favorable procedures allowing certain taxpayers that have made the real property trade or business election under Sec. 163(j)(7)(B) with residential rental property to depreciate such property using the shorter 30-yearrecovery period, using ADS, and certain other taxpayers with qualified residential living facilities to be eligible for the real property trade or business election.
Revenue recognition: Time to implement the final regulations
Beginning a detailed analysis early will allow taxpayers the time and flexibility to make those choices and to perform complex computations or make required tax filings.
List of automatic tax method changes updated
A revenue procedure catalogues changes subject to general procedures of Rev. Proc. 2015-13.
IRS issues accounting-method change procedures for small businesses
New procedures follow final regulations to implement simplifications by the law known as the Tax Cuts and Jobs Act.
Sec. 481(a) adjustment affects business interest deduction calculation
The IRS advised that a net negative Sec. 481(a) adjustment resulting from a change in method of accounting for depreciation must be included in calculating adjusted taxable income.
