![[Updated] KBKG Tax Insight: R&D Tax Credits – Protective 280C(c)(3) Elections](https://www.kbkg.com/wp-content/uploads/Copy-of-A-Taxpayers-Property-Purchase-Land-vs-Building-Allocation.jpg "[Updated] KBKG Tax Insight: R&D Tax Credits – Protective 280C(c)(3) Elections")
Updated September 16, 2020 The Section 41 Research Credit was enacted in 1981 as a temporary code section and made permanent with the passage of the Protecting Americans from Tax Hikes (“PATH”) Act of 2015. The research credit is an incentive providing taxpayers across all industries, performing qualified activities, the opportunity to reduce their tax … Read More
We recently added a Business Development Director at KBKG, Lon O’Connor, based out of our Pasadena headquarters. As a Director, she covers the Los Angeles region and focuses on building in-depth relationships with our CPA and industry partners. Lon has over 18 years of business management experience and spent the last decade serving small to … Read More
Many companies are hesitant to take advantage of the Research & Development (R&D) Tax Credit for fear of a possible IRS audit. In our first 2 minute video, former IRS engineering officials discuss how many companies can avoid IRS scrutiny by properly describing their research activities. KBKG’s IRS Audit Defense videos give a better understanding … Read More
On April 17, 2020, the IRS released Rev. Proc. 2020-25 outlining how to implement the Qualified Improvement Property (QIP) changes that were part of the CARES Act of 2020 using Form 3115, Change in Accounting Method. Section 6.03(4)(b), states that a taxpayer making a change 244 to correct QIP and changed related to depreciation recovery … Read More
Last week, the IRS issued proposed regs that define what real property is for purposes of 1031 exchanges. This became necessary due to changes in the Tax Cuts and Jobs Act (TCJA) that no longer allows personal property from being eligible for 1031 exchange. To address complications due to the inherent personal property included in … Read More
Even in a pandemic, multinationals may be surprised to receive a tax bill for their overseas operations, but there may be a silver lining. Ben Franklin is widely credited with the quote, “In this world, nothing can be said to be certain, except death and taxes.” With a pandemic, some companies with cross-border operations expect … Read More
On April 17, 2020, the IRS released Rev. Proc. 2020-25 outlining how to implement the Qualified Improvement Property (QIP) changes that were part of the CARES Act of 2020 and modify certain elections under Section 168 using Form 3115, Change in Accounting Method. KBKG authored a comprehensive overview of the new procedures that can be … Read More
For the most up-to-date information on Qualified Improvement Property, see our latest post. Rev. Proc. 2020-25 was issued on April 17, 2020, providing guidance on how to implement Qualified Improvement Property (QIP) corrections made within the CARES Act. With this guidance, the IRS provides several options for taxpayers who have placed QIP into service during … Read More
The Commonwealth of Virginia made key changes and extended the income tax credit for conducting qualified research and development in Virginia. Key changes include: A three (3) year extension of the credit from tax years beginning before January 1, 2022 to tax years beginning before January 1, 2025 Beginning January 1, 2021, an increase in … Read More
As featured in AICPA The Tax Advisor When a property is acquired in a Sec. 1031 like-kind exchange, tax preparers should consider several facts before deciding how to best depreciate the carryover basis from a relinquished property. When a cost segregation study is also considered on the newly acquired property, additional analysis is recommended before … Read More