IRS Released Proposed Regulations for Section 168(k) Bonus Depreciation

On August 8, 2018, the IRS issued proposed regulations  providing guidance on the 100% bonus expensing rules enacted by the Tax Cuts and Jobs Act (“TCJA”) last December. The proposed regulations update the existing regulations in Treas. Reg. § 1.168(k)-1 and add Prop. Treas. Reg. §1.168(k)-2. Proposed Treasury Regulations Synopsis Section 168(k) allows a taxpayer to take an additional first year depreciation deduction in the placed-in-service year of qualified property. In order to be eligible for the extended and modified 100% bonus depreciation, your property must meet four key requirements: The depreciable property must be of a specific type. Your property must have a. Read More.

How to Navigate New Rules for Expensing Capital Assets: Section 179 Expensing and Bonus Depreciation

The new tax rules for writing off large purchases for equipment and other forms of tangible property may have you asking: Can I write off the entire cost of the equipment I just purchased? What property is eligible for expensing and depreciation deductions now? Which method for expensing large equipment purchases will benefit my business the most? Should I go ahead and claim 100% bonus depreciation, or is there a better choice for my situation? Changes to the methods for calculating bonus depreciation and section 179 deductions have many businesses jumping for joy. Increased spending caps and higher deduction amounts could. Read More.

Fringe Benefits: Navigating the New Entertainment Expense and Transportation Rules

As an employer, you are well aware of the difficulties businesses are facing in implementing the new tax statute known as the Tax Cuts and Jobs Act (“TCJA”). To lower tax rates, especially for businesses, the TCJA eliminates certain deductions so federal revenues do not decline too much. January 1, 2018 marked the change to tax deduction rules on two common business expenses: entertainment expenses and transportation fringe benefits. While the TCJA legislative changes are not detailed, the effects are significant. With the loss of employer deductions, your business should consider behavior adjustments to account for the increased cost of. Read More.

Supreme Court Rules Against Wayfair, et al, in Sales Tax Case

On Thursday, June 21, 2018, the United States Supreme Court overturned the physical presence standard imposed by the Court in prior cases, Quill v. North Dakota and National Bellas Hess, Inc. v. Department of Revenue of Ill. This ruling in favor of the state of South Dakota has cleared the way for states to impose sales and use tax collection requirements on out of state sellers. The court based its decision in part on the fact that the physical presence requirement established under the previous cases created an unfair advantage for out of state retailers with no presence in the state. With. Read More.

New Florida Scholarship Real Property Sales and Use Tax Credit

On March 12, 2018, the Florida Legislature passed House Bill 7055, which established a new sales and use tax credit for businesses that lease real property in Florida. The credits are obtained by making eligible contributions to qualified scholarship-funding organizations and may be applied against the sales tax owed on commercial lease payments. The bill is effective July 1, 2018, and a total of $57.5 million in credits are funded for this program. Background on the Commercial Rent Tax Florida currently charges a sales tax of 5.8 percent on commercial lease payments. The tax is charged to lessees by the. Read More.

Opportunity Zones: A New Investment Opportunity

Community Revitalization by Rewarding Private Investment Are you interested in reviving hard-hit areas in your community? Could you use a tax benefit, too? The newly created Opportunity Zones program, enacted as part of the Tax Cuts and Jobs Act of 2017, provides an opportunity to do both. The Opportunity Zones program, found in Sections 1400Z-1 and 1400Z-2 of the Internal Revenue Code (“IRC”), is intended to spur investment in low-income or economically disadvantaged areas. The tax incentives provide investors with an opportunity to defer recognition of gains on sales of assets, permanently reduce a portion of the deferred gain to. Read More.

Georgia Rural Hospital Organizations Expenses Credit Update

The Rural Hospital Organizations (“RHO”) tax credit was enacted and became law effective January 1, 2017. The statute provides a tax credit for individuals and corporate donors to qualified rural hospital organizations. On May 2, 2018, Governor Nathan Deal signed House Bill 769, which amended the tax credit. The changes to the legislation, which become effective July 1, 2018, include increasing the amount of the credit from 90% of the donation to 100% of the donation and extending the sunset date from December 31, 2019, to December 31, 2021. Thus, taxpayers are allowed the tax credit as follows: So what’s. Read More.

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