A recently issued IRS revenue procedure has resulted in uncertainty for some taxpayers seeking to change methods of accounting, according to the AICPA. In a letter dated June 8, the organization made recommendations to the IRS regarding accounting method changes for erroneously characterized research and experimentation (R&E) expenditures. Taxpayers sometimes wrongly attribute an expense to [...]
As a pillar of the U.S. economy, the manufacturing industry is an important driver of economic growth, innovation, and the creation of high-paying jobs. In recognition of the vital role that manufacturing companies play, legislators have created a number of tax incentives over the years designed to spur growth in the industry. Unfortunately, these incentives [...]
It saves businesses billions of dollars annually, yet less than ten percent of those savings are seized by small companies. The Research and Experimentation (R&E) Tax Credit, also known as the Research and Development (R&D) Credit, the credit for increasing research activities, or simply the research tax credit, is riddled with misconceptions that cause many [...]
Energy efficiency is among the rare political issues that occasionally draw bipartisan support, providing an opportunity for members of both parties to find common ground in initiatives that benefit the environment while lowering utility costs. One such initiative became law on April 30 when President Obama signed the Energy Efficiency Improvement Act of 2015. Coauthored [...]
Accounting for nearly 40 percent of energy consumed in the U.S., commercial buildings are prime candidates for environmentally friendly improvements. While newly constructed buildings tend to be more energy efficient, older buildings represent the greatest opportunity to reduce energy consumption. According to the U.S. Energy Information Agency, 72 percent of commercial buildings are more than [...]
When business planning be sure to take a hard look at incentives and credits available! Business planning should include a careful review of tax strategies for any possible loopholes to reduce the burden they will owe next year. Fortunately, the tax code provides several incentives for businesses and building owners, ranging from credits for hiring certain [...]
When a commercial building is constructed or renovated, may the owner begin depreciating it for tax purposes before it is even open for business? In January 2015, the District Court for the Western District of Louisiana answered this question in the affirmative with its holding in Stine LLC v. US. According to the IRS, taxpayers [...]
On February 13, the IRS issued Rev. Proc. 2015-20, which will allow small businesses to change certain methods of accounting under the final tangible property regulations for 2014 without having to file a Form 3115 or an election statement. The ruling aims to reduce the burden on small businesses and their tax preparers in response [...]
Born out of the realization that commercial buildings are responsible for a significant proportion of energy consumption in the U.S., §179D was added to the tax code under the Energy Policy Act of 2005. The goal of the provision was to encourage building owners in both the private and public sectors to implement energy efficient [...]
As architecture firms struggle to regroup in a post-recession economy, they may discover a financial boon through a little strategic tax planning. Capitalizing on tax provisions such as §179D and the R&D Tax Credit, and properly applying cost segregation and tangible property regulations to minimize tax burden, may result in substantial savings. Added to the [...]