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 [...]
Internal Revenue Code 263(a) - Tangible Property Regulations The IRS recently released the final tangible property repair regulations that provide a framework for distinguishing capital expenditures from deductible tangible property costs. These important new regulations will affect virtually all taxpayers that acquire, produce, or improve tangible property. Of Particular interest to commercial property owners are [...]
Taxpayers may now enjoy significant savings for the 2014 tax year. On December 19, the President approved the Tax Increase Prevention Act of 2014. The Act retroactively renews several provisions, collectively referred to as tax extenders, that expired on December 31, 2013. Although the bill is a temporary solution and will not renew the incentives [...]
Designed to foster technological advancement, §41 of the Internal Revenue Code (Research and Development Tax Credits) offers generous tax incentives to taxpayers engaged in qualified research. Due to the complexity of its requirements, this lucrative credit is often underutilized by small to medium sized businesses. To harness the most dramatic savings under the lucrative R&D Tax Credit, businesses [...]
On July 1, 2014, a powerful tax incentive capable of saving businesses over $8 million per year took effect in California. (Note: The exact maximum savings is $8,375,000. I got this amount by calculating $200 million x 7.5% = $15 million, then calculating $200 million at the reduced rate of 3.3125% = $6,625,000. The difference [...]
Collectively, the U.S. and China account for over one-third of the world’s climate-disrupting gas emissions. So when the two countries engaged in a mutual commitment to significantly reduce emissions earlier this month, skeptics naturally wondered whether the stated goals are actually attainable. The U.S., for example, vowed to reduce emissions by 26-28 percent compared to [...]
Update per GovTracks.us: H.R. 5771: Tax Increase Prevention Act of 2014 Introduced: Dec 1, 2014Status: Approved by President Obama December 19, 2014.On December 1, legislators introduced H.R. 5771, also known as the Tax Increase Prevention Act of 2014. The House passed the Bill Dec. 3 and the Senate Dec. 16. The President has now signed [...]