IRS Publishes Formal Amendments to Repair vs. Capitalization Regulations

12/17/2012Tax Insight

On Friday, December 14, the IRS published the amended temporary Repair vs. Capitalization regulations to incorporate the changes announced in the recent Notice 2012-73. The changes include a two year delay of the effective date of the regulations to January 1, 2014. While Notice 2012-73 indicated that taxpayers had the option to apply the temporary … Read More

IRS Changes Rules For A&E Firms: Window Closing To Claim 179D Energy Tax Deduction For Prior Years

09/20/2012Tax Insight

Starting September 4, 2012, designers of government-owned buildings have one less option for retroactively pursuing missed Code Section 179D energy tax deductions. The IRS recently issued Revenue Procedure 2012-39 which prohibits designers from filing a Form 3115 (Application for Change in Accounting Method) to claim missed deductions.  Previous guidance appeared to indicate that architects and … Read More

Is the Value of Cost Segregation Depreciating?

08/10/2012Cost Segregation, Tax Insight

The IRS has challenged the classification components of cost segregation studies done for major corporations such as AmeriSouth XXXII, Ltd. They are calling into question the validity of cost segregation studies and its “savings” to taxpayers. The courts have generally ruled in favor of the IRS, however, even after such rulings, many believe that the … Read More

KBKG Tax Commentary on Regulations for Repairs vs. Capitalization

07/31/2012Tax Insight

It has been several months since the new “Repair Regulations” were issued and many companies are still trying to figure out how this impacts their business. The IRS’s intent was to clarify the existing rules for capitalization but the overwhelming sentiment among CPAs and taxpayers is that they are too cumbersome. The IRS initiated this … Read More

Repair Regulations

05/18/2012Tax Insight

The “Repair Regulations,” are applicable to businesses in all industries that acquire, produce, replace, or improve tangible property. Since these rules mostly affect real property, they can provide significant benefits to your clients even if cost segregation studies have already been performed. Further, the rules allow taxpayers to go back to previous years and take … Read More

Chairman Boustany Suspects GSA of abusing the 179D Tax Deduction

05/10/2012Tax Insight

Facts: On May 3, 2012, Charles Boustany, Jr., Chairman of the House Committee on Ways and Means Subcommittee on Oversight, raised question as to whether the General Services Administration (GSA) is abusing the 179D Tax Deduction. Recent documentation insinuates that the GSA may be improperly requiring contractors to provide kickbacks in order to allocate 179D … Read More