Guide to expensing roofing costs
This column provides tax preparers an outline of questions to ask clients when evaluating roof repair costs.
Tax Planning; Tax Minimization
Guidance issued on PATH Act depreciation, Sec. 179 changes
The IRS issued guidance on how taxpayers can take advantage of various provisions enacted by last year’s PATH Act.
Interplay between Sec. 174 and Sec. 41 for software development activities
Taxpayers should note the interplay between tax accounting methods and tax credit eligibility when choosing to adopt or change their method specific to software development activities.
Final Regulations Govern Money-Market Funds
The IRS finalized regulations that implement new SEC rules that change how gains and losses in money market funds are calculated.
How Internet Domain Names Are Taxed
The IRS determined that the costs of acquiring domain names are to be capitalized as intangible assets and amortized over a 15-year period.
Retailer and Restaurant Remodel-Refresh Safe Harbor: Frequently Asked Questions
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.
IRS Weighs In on the Tax Treatment of Computer Costs
Taxpayers apparently have been under the impression that the tax treatment of computer software costs was changed.
Qualifying Stores and Restaurants Can Deduct Majority of Remodeling Costs
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.
New Retail and Restaurant Remodel/Refresh Safe Harbor for Determining Repairs
A new safe harbor allows retail and restaurant taxpayers to deduct 75% of qualifying expenditures for remodeling qualified buildings and capitalize just 25%.
Sales-Related Expenses Remove Taxpayers From “Small Reseller” Exception of Sec. 263A
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.
IRS Announces Higher De Minimis Safe Harbor for Tangible Property Expensing
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.
IRS Issues Final Regulations on Integrated Hedging Transactions of Qualifying Debt
The regulations were meant to address a perceived abuse of taxpayers claiming a foreign currency loss by partially legging out of an integrated transaction.
The Sec. 461 All-Events Test: Timing for Deducting Accrued Warranty Claims
Practitioners must carefully consider several tests under Sec. 461 to determine the deductibility of accrued warranty expense for tax purposes.
Safe Harbor for Purchases of De Minimis Tangible Property Will Be Raised
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.
Majority of Costs to Remodel or Refresh Retail Stores Are Deductible Under New Safe Harbor
The IRS announced a safe-harbor method that allows qualifying taxpayers to deduct 75% of these expenses.
Revenue Procedure Permits Safe Harbor for Ratable Service Contracts
Taxpayers using the accrual-basis method of accounting were given a safeharbor to treat economic performance as occurring on a ratable basis for certain service contracts.
The Interaction Between Sec. 179 and the Repair Regs.
There is an overlap between Sec. 179 expensing and the materials and supplies and de minimis safe-harbor rules in the repair regulations.
AICPA Asks for Raise in Repair Regulations’ De Minimis Safe Harbor Threshold
The AICPA raised concerns about the low amount of the de minimis safe harbor threshold in the tangible property regulations and about the retrospective application of the new rules.
IRS Expands on Timing of Deducting Year-End Cash Bonuses
The IRS's issuance of several items of administrative guidance over the past few years indicates its increasing focus on the timing of an accrual-basis taxpayer's deduction of cash bonuses paid to its employees.
