Published on June 10, 2022, Texas Register, the Texas Comptroller proposed revisions to the recently amended Texas franchise tax regulations surrounding the Texas sales and use tax exemption and the Texas franchise R&D tax credit. These revisions soften the Internal Use Software (IUS) and Combined Group definitions after receiving overwhelming feedback surrounding the Texas franchise … Read More
IRS Updates Audit Technique Guide for Cost Segregation On June 1st of, 2022, the IRS published the latest edition of the Cost Segregation Audit Technique Guide (ATG). The Cost Segregation ATG assists IRS examiners during audits by providing an understanding of technical information, examination techniques, and what to look for when reviewing cost segregation reports. … Read More
Beginning with the 2023 tax year, Missouri taxpayers can claim a research and development (R&D) tax credit on its state tax returns for R&D activities performed within the state. Not since 2005 have Missourians had the ability to reduce its state tax bill with this credit. If you are a taxpayer or have taxpayer clients … Read More
R&D Tax Credit Insights from Former IRS Executives – Videos by Jack Jolly, Director and Mark Bodenstab, Director | KBKG, 6/14/2022 Jack Jolly is a Director of R&D Credit at KBKG. He worked 20 years for the IRS managing a team of IRS engineers who spent most of their time auditing R&D tax credit claims. … Read More
Wisconsin’s Department of Revenue recently updated its Publication 131, entitled Tax Incentives for Conducting Qualified Research in Wisconsin for Taxable Years Beginning on or After January 1, 2021. It explains qualified research, eligibility and the mechanics for calculating and substantiating the credit. The most notable change to the Wisconsin credit is increasing the percentage of … Read More
The IRS and Treasury released Rev. Proc. 2022-14 earlier this year, updating and superseding the current list of automatic method changes. Background Taxpayers generally cannot change from an established accounting method to a different method unless they first obtain IRS consent to change from the established accounting method. Taxpayers must obtain IRS consent to change … Read More
As featured in Accounting Today Real estate owners have limited options to pull cash out of a 1031 exchange without having to pay income tax. With proper tax planning, this problem can be solved with a cost segregation study. The application of cost segregation for this purpose may vary depending on the tax rules in … Read More
Earlier this month, the Kansas University Jayhawks men’s basketball team captured the school’s 6th National NCAA Championship with a 72-69 victory over the North Carolina Tarheels. In one of the most competitive college basketball years to date, Kansas was crowned number 1. Much like college basketball, states compete to attract businesses and innovation to spur … Read More
On January 21, 2022, Hawaii State Senator Jarrett Keohokalole introduced Senate Bill (SB) 2599, revising the certification requirements and increasing the annual aggregate cap for the State of Hawaii’s tax credit for research activities (“Hawaii R&D tax credit”). The proposed Section 235-110.91 revisions would first and foremost triple the aggregate cap of research credits available … Read More
Earlier this month, Nebraska State Senator Brett Lindstrom introduced Legislative Bill 827 allowing taxpayers to fully deduct research or experimental (R&E) expenditures in the year in which they were paid or incurred. Beginning January 1, 2022, federal law under IRC Section 174 requires federal taxpayers to charge these expenses to a capital account and amortize … Read More