Real Estate & Construction
FASB Begins Next Phase of Business Definition Project
After issuing Proposed Accounting Standards Update (ASU) No. 2015-330 , Business Combinations (Topic 805): Clarifying the Definition of a Business, the Financial Accounting Standards Board (“FASB”) recently moved forward with the second phase of its business definition project. On Monday, November 23rd, the accounting board began discussions on clarifying the accounting for partial sales and retained interests in real estate transactions and similar deals. No decisions were made because most FASB members need more time to focus on complex issues before taking any formal action. In particular, the FASB has to consider ASU No. 2014-09, Revenue From Contracts With Customers. Subtopic 610-20, Other Income—Gains and Losses from the. Read More.
Treasury Department Proposes Changes to Carried Interest Rules
Addressing the complication of determining when an arrangement between a partnership and partner establishes a “disguised payment for services,” the Treasury Department has issued proposed tax regulations that would prohibit the fund arrangements some observers describe as an abusive use of the carried interest rules. Per the proposed changes, a taxpayer must prove a significant entrepreneurial risk is present to avoid the distribution being regarded as a disguised payment for services. The Real Estate Roundtable, which has a history of opposing Congressional carried interest proposals such as a recent amendment that was rejected by the U.S. Senate, has its Tax. Read More.