The IRS issued final regulations on the use of negative adjustments under Sec. 263A’s simplified methods for determining costs that must be capitalized.
Tax Accounting (Methods & Periods)
The IRS is proposing to remove regulations on advance payments and long-term contracts to reflect amendments to Sec. 451 included in the law known as the Tax Cuts and Jobs Act.
The IRS issued proposed regulations providing guidance on Sec. 168(k), which was amended by P.L. 115-97, known as the Tax Cuts and Jobs Act, to increase the allowable first-year depreciation deduction for qualified property from 50% to 100%.
Forthcoming regulations will cover consolidated groups and carryforward of pre-TCJA interest expense.
The IRS issued updated procedures for automatic accounting method changes. The new rules generally apply to changes on or after May 9, 2018.
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 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.
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.
Even the simplest uses of this increasingly popular medium of exchange will likely involve a basis calculation for tax purposes.
A sometimes overlooked adjustment may cause deficiencies and penalties.
Tax preparers must reckon with not only transfers for property but also for other virtual currencies.
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.
The revenue procedure covers amended returns claiming property expensing, qualified real property, and bonus depreciation transition rules.
Companies must prepare for unforeseen implications for tax planning.
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.
The IRS released the inflation adjustments to the depreciation limits for cars and trucks used for business purposes in 2017.
Changes to 15-year and bonus depreciation rules and Sec. 179 expensing may deliver tax savings to business clients.
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.
A taxpayer could lose the benefits of a partial-disposition election if it fails to perform the required compliance.
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.