IRS guidance addresses limitations on business interest expense
Forthcoming regulations will cover consolidated groups and carryforward of pre-TCJA interest expense.
Tax accounting
IRS updates automatic accounting method change procedures
The IRS issued updated procedures for automatic accounting method changes. The new rules generally apply to changes on or after May 9, 2018.
IRS guidance addresses limitations on business interest expense
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.
FASB addresses stranded income tax effects of new tax law
FASB issued new rules that provide financial statement preparers with an option to reclassify stranded tax effects within accumulated other comprehensive income resulting from the Tax Cuts and Jobs Act.
When a tax cut is a profit hit
Companies with deferred tax assets may report surprisingly lower net income in 2017 even though they will benefit from lower income tax rates under the new tax law in 2018.
Documenting virtual currency transactions
Even the simplest uses of this increasingly popular medium of exchange will likely involve a basis calculation for tax purposes.
Long-term contracts and AMT
A sometimes overlooked adjustment may cause deficiencies and penalties.
Trading virtual currencies
Tax preparers must reckon with not only transfers for property but also for other virtual currencies.
Accounting method changes make closed years relevant
A change in accounting method opens the door for the IRS to review periods closed by the statute of limitation to determine tax liability in open years.
Guidance issued on PATH Act depreciation, Sec. 179 changes
The revenue procedure covers amended returns claiming property expensing, qualified real property, and bonus depreciation transition rules.
U.S. tax and FASB’s new paradigm for revenue recognition
Companies must prepare for unforeseen implications for tax planning.
Rules proposed for accounting method changes to reflect FASB revenue recognition standards
The IRS is asking for comments on proposed procedures for requesting consent to make accounting method changes to reflect FASB’s new revenue recognition standards.
IRS issues 2017 car and truck depreciation limits
The IRS released the inflation adjustments to the depreciation limits for cars and trucks used for business purposes in 2017.
New PATH for depreciation
Changes to 15-year and bonus depreciation rules and Sec. 179 expensing may deliver tax savings to business clients.
Eligibility rule waiver extended for taxpayers adopting repair regs.
The IRS extended for one year its waiver of the eligibility rule that generally prevents taxpayers from using the automatic accounting method change procedures to change the treatment of the same item more than once within a five-year period.
Electing the benefits of partial dispositions
A taxpayer could lose the benefits of a partial-disposition election if it fails to perform the required compliance.
Special depreciation: 3 choices present new options
Recent changes have given taxpayers three attractive options for taking deductions in the year property is placed in service, rather than having to depreciate the property over many years.
New product or different presentation?
Courts and the IRS differ over a key qualification for the domestic production activities deduction.
Bonus depreciation applies to new class of property
December’s appropriations act created a “qualified improvement property” category for bonus depreciation.
IRS issues 2016 and revised 2015 vehicle depreciation limits
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.
