Income recognition changes for accrual-method taxpayers
The Tax Cuts and Jobs Act made some widely applicable but, perhaps, lesser-known changes to accrual accounting rules.
Tax Accounting (Methods & Periods)
2019 inflation-adjusted vehicle depreciation limits and income inclusions issued
The IRS provided the limitations on depreciation deductions for passenger automobiles first placed in service in 2019 and the amounts of income inclusion for lessees of passenger automobiles first leased during 2019.
Bonus depreciation safe-harbor rules for vehicles issued
Rev. Proc. 2019-13 allows a deduction in succeeding years of excess unrecovered basis remaining after the Sec. 280F first-year limitation.
Bonus depreciation safe-harbor rules for vehicles issued
The IRS issued a safe-harbor procedure that taxpayers may follow for determining the deduction for depreciating passenger vehicles when they are eligible for 100% bonus depreciation but are also subject to the Sec. 280F limits on deductions for luxury automobiles.
Relief for small business tax accounting methods
The cash method and other favorable rules are now more widely available with Tax Cuts and Jobs Act changes.
IRS issues proposed regs. on 100% bonus depreciation
TCJA changes also include that eligible property does not have to be new.
Accounting method change procedures for book-tax conformity rule
The IRS announced procedures for taxpayers to change their accounting method to comply with the amendment of Sec. 451(b) enacted by the tax law known as the Tax Cuts and Jobs Act.
UNICAP rules on negative adjustments finalized
The IRS issued final regulations on the use of negative adjustments under Sec. 263A’s simplified methods for determining costs that must be capitalized.
Proposed regs. reflect amendments to all-events test and advance payments
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.
IRS issues proposed regs. on 100% bonus depreciation
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%.
IRS guidance addresses limitations on business interest expense
Forthcoming regulations will cover consolidated groups and carryforward of pre-TCJA interest expense.
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.
