The End of TEFRA…and Other Reasons to Review Your Partnership/LLC Agreement
If you currently own, or are thinking of acquiring, an interest in a partnership or limited liability company (LLC), now may be a good time to review your organizational and operating agreements. While it is always a good idea to review these documents on a periodic basis, certain changes enacted by Congress make such a review even more important. What changed? For many years, the Internal Revenue Service (“IRS”) conducted partnership audits under one of three different regimes depending on the number and nature of the partners. Under provisions enacted late last year, all aspects of partnership examinations will generally. Read More.
Business Deductions, Credits & Incentives for Real Estate & Construction
If you develop or hold real estate, Congress’ latest bill provides several potential tax incentives for you in the years to come! Signed on December 18th, the Protecting Americans from Tax Hikes (PATH) Act of 2015 contains many provisions focused on incentives for investments, growth, innovation, charitable contributions and relief for individuals. Those provisions addressed by the Act that had previously expired as of December 31, 2014, have been retroactively reinstated, so that they are treated as having been in effect throughout 2015. Below are links to our discussions of the changes that specifically relate to depreciation and Real Estate. Read More.
Fixed Asset Depreciation & Expensing for Real Estate & Construction
If you own or manage real estate, you may have just received a holiday gift from Congress. Signed on December 18th, the Protecting Americans from Tax Hikes (PATH) Act of 2015 continues an annual tradition of Congress waiting until December to determine the tax treatment of certain transactions that occurred during the year. In one case, the treatment of certain transactions was not determined until the following January. The cycle of lapse and reinstatement of these provisions (commonly referred to as “extenders”) have become an annual event, frustrating both taxpayers and planners. Needless to say, this late action has made. Read More.
Did You Get a Tax Reduction for the Holidays?
In recent years, it has become an annual tradition for Congress to wait until December to determine the tax treatment of certain transactions that occurred earlier in the year. In one case, the treatment of certain transactions was not determined until the following January. The cycle of lapse and reinstatement of these provisions, commonly referred to as “extenders”, has become an annual event, frustrating both taxpayers and planners. Needless to say, this late action has made income tax planning extremely difficult. Just in time for the holidays, however, Congress has delivered a gift in the form of a bill that. Read More.
FASB Simplifies Presentation of Deferred Income Taxes & Liabilities
If your business prepares financial statements in accordance with Generally Accepted Accounting Principles, you may be interested to know that the Financial Accounting Standards Board has recently issued Accounting Standards Update (ASU) that offers a simplified approach to the presentation of deferred income taxes and liabilities in your balance sheets. Per the amendments under ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, you will no longer be required to separate deferred tax assets and liabilities into current and noncurrent amounts. Instead, deferred tax assets and liabilities, along with any related valuation allowance, are to be classified. Read More.
New Limit for De Minimis Expensing Safe Harbor
New Guideline. If you operate a small business without an applicable financial statement, new guidance from the Internal Revenue Service (“IRS”) could benefit your bottom line in the coming tax year. Issued under the tangible property regulations, Notice 2015-82 increases the de minimis expensing safe harbor limit for businesses without an applicable financial statement, from $500 to $2,500. The new $2,500 limit is effective for tax years beginning on or after January 1, 2016. The new threshold of Notice 2015-82 allows your business to expense up to $2,500 per invoice or per item for the costs to acquire, produce, or improve. Read More.
Immediate Tax Deductions for Retail and Restaurant Remodeling Costs
If your retail or restaurant business will incur costs for remodel and/or refresh (“remodel-refresh”) projects, the IRS has issued guidance that may offer you tax relief via immediate deductions for these costs. Rev. Proc. 2015-56 provides a safe harbor accounting method that will allow qualified taxpayers in the retail and restaurant industries to report expenses related to remodel and/or refresh projects. The new simplified method of reporting remodel-refresh costs is as follows: 75% of qualified costs are deducted as ordinary and necessary business expenses; and 25% are capitalized as costs to improve a qualified building. Can you benefit from this. Read More.