![[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
The IRS on June 17, 2021 issued Revenue Procedure 2021-28, which provides procedures for taxpayers to change to the alternative depreciation system (“ADS”) for certain residential rental property placed in service prior to January 1, 2018, held by an electing Real Property Trade or Business (RPTOB). KBKG Insight: A RPTOB that made the election under … Read More
Governor Kim Reynolds recently signed into law Senate File 619 relating to a multitude of state and local tax issues. Included within this law is the retroactive applicability of Federal Bonus Depreciation rules for qualified assets placed into service on or after January 1, 2021. Additionally, the State of Iowa will remain decoupled from the … Read More
The Protecting Americans from Tax Hikes (PATH) Act of 2015 made it possible for start-ups and small businesses to qualify for a tax credit of up to $250,000. Start-ups and small businesses that were previously unable to benefit from the research and development (R&D) tax credits due to lack of taxability should take advantage of … Read More
After months of uncertainty, California taxpayers can begin to proceed with some degree of clarity around the treatment of Economic Injury Disaster Loans (“EIDL”) as well as Paycheck Protection Program (“PPP”) loans received and forgiven for income tax purposes. Assembly Bill 80 (“A.B. 80” or the “bill”) allows taxpayers that meet certain criteria to exclude … Read More
As featured in AICPA Tax Adviser – April 15, 2021 Heating, ventilation, and air conditioning (“HVAC”) replacement costs can be significant expenses for businesses that own or lease real estate. This guide is intended to help tax practitioners distinguish between deductible repairs and more extensive work that must be capitalized. Each year, tax professionals who … Read More
“You Can’t Beat the Feeling . . . of a $3 billion-plus transfer pricing tax bill.” With apologies to the authors of the Coca-Cola’s 1988 marketing tagline, the IRS won a landmark transfer pricing tax court case against Coca-Cola on November 18, 2020. Coke now owes an additional $3 billion in taxes for 2007 through … Read More
On Thursday, March 11th, President Biden signed the American Rescue Plan Act (ARPA) into law. The historic $1.9 Trillion stimulus package expands COVID-19 relief for individuals, families, local governments, and businesses. Specifically, the plan includes updates to the Employee Retention Tax Credit (ERTC), which we have discussed in recent webinars. In this overview, we will … Read More
As featured in Accounting Today Calculating land and building values for tax purposes is a critical step toward maximizing your available tax deductions from depreciation. This is because the law says you can only depreciate items that wear down over time (i.e., the building and not the land). Since most real estate purchase agreements do … Read More
We got some great news this morning. The House has voted 219-212 to extend the Employee Retention Tax Credit through December 31, 2021, as part of the $1.9 Trillion COVID Relief bill. If it passes the Senate next week it will very likely be signed by the President shortly after. The Employee Retention Tax Credit … Read More