Tax Credits
Historic Boardwalk: 2 Differentiators
In a much anticipated decision, the Court of Appeals for the Third Circuit recently overturned the Tax Court’s decision in the Historic Boardwalk case. This case primarily dealt with the issue of who qualifiesas a “bona fide partner” for tax purposes, thus clarifying the scope of economic substance doctrine. In most recent developments, the Court of Appeals overturned the Tax Court’s decision holding that Pitney Bowes, a corporate investor, was not a bona fide partner in the Historic Boardwalk LLC. This disallowed Pitney Bowes the credit for the renovation of Historic Boardwalk Hall. But what does this mean for you. Read More.
Effective Date of Tangible Property Regs. Delayed
The IRS announced on Tuesday that it is delaying the effective date of the temporary regulations it issued in December 2011 governing whether tangible property expenses could be deducted or had to be capitalized (T.D. 9564), which were to apply to tax years beginning on or after Jan. 1, 2012. In Notice 2012-73, in response to numerous comments from taxpayers, the IRS said that it will amend the temporary regulations to make them apply to tax years beginning on or after Jan. 1, 2014, instead, but that taxpayers will be permitted to apply the temporary regulations for tax years beginning. Read More.
Tax Relief Act 2012: Government Impact
In a preliminary review of the The American Taxpayer Relief Act of 2012 we noted thefollowing items that have a possible positive impact for government entities: Arbitrage rebate exception for school construction bonds. Under current law, issuers of tax-exemptbonds must rebate to the U.S. Treasury arbitrage (excess interest income) earned from the investmentof tax-exempt bond proceeds in higher-yielding taxable securities. The calculation of excess interest income can be complex, and as a result, many governments incur large costs to comply with the requirements. To ease the burden on small issuers, the federal tax code exempts governments that issue a relatively. Read More.
Tax Impacts of the Impending Fiscal Cliff
As talk of the “Fiscal Cliff” continues to heat up and the Bush tax cuts expiring, taxpayers can anticipateseveral tax changes for the upcoming 2013 tax year. While there are an abundance of tax law changes that may occur, there are several changes to note. The major changes are the increasing of the income tax rates on ordinary income, increasing of the income tax rate on long-term capital gains and qualified dividends and the new 3.8% tax on net investment income and certain other passive income. The impact of the change in ordinary income tax rates can be seen on. Read More.
Preparing for the Tax Cliff
There are a number of tax events scheduled to occur on December 31, 2012. The confluence of these individual events is commonly referred to, in conjunction with certain government spending cuts, as the fiscal cliff. To prepare yourself for 2013, please review the below points as summarized in the Journal of Accountancy by Steven Holub. The Bush tax cuts are scheduled to expire at the end of 2012, causing tax rates to increase dramatically beginning in 2013. A number of new tax provisions related to the health care law, such as the 3.8% surtax on net investment income, are also. Read More.
Georgia Program Creates Tax Credit for Eligible Private School Donations
The Georgia Private School Tax Credit allows Georgia taxpayers to redirect Georgia income tax dollars to an eligible Georgia private school as a donation. Donors will receive a dollar-for-dollar Georgia tax credit for the amount they donate to the qualifying school’s student scholarship organization. Maximum donation amount for Individuals: $1,000 Maximum donation amount for joint filers: $2,500 Maximum donation amount for married filing separate taxpayers: $1,250 Maximum donation amount for C corporations: 75% of Georgia Tax Liability Who is eligible? Any Georgia taxpayer What happens if my donation exceeds my Georgia tax liability? The tax credit is a “non-refundable” credit. What. Read More.