On December 31, 2006, San Jose was approved for a new Enterprise Zone designation with a 10-square mile area. This Enterprise Zone was expanded to 12-square miles on January 9, 2009. In addition to the pre-existing zone boundaries, the 2009 expansion included North San Jose, Rincon de Los Esteros, East San Jose, Edenvale and Airport … Read More
EZ
Tax Alert: Positive Outlook on Extended Tax Credits for Multifamily Developers
Good news for multifamily developers! On August 2, 2012, the Senate Finance Committee overwhelmingly approved the Family and Business Tax Cut Certainty Act of 2012 with a bipartisan vote of 19-5. The bipartisan bill is a comprehensive $205 billion package that extends numerous tax cuts but reverses the trends of the past by also reducing … Read More
Is the Value of Cost Segregation Depreciating?
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
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
California Enterprise Zone Mid-Year Update
» Lookup Enterprise Zone Addresses » Enroll in Free Enterprise Zone CPE for Tax Preparers Legislative Recap Currently, the Enterprise Zones are undergoing an administrative rule-making analysis. Potential program impacts include the elimination or limitation of a taxpayer’s ability to:• Voucher eligible employees retroactively • Claim certain qualifying criteria • Participate in the program without … Read More
AICPA Criticizes IRS Tangible Property Repair Regs
AICPA told the IRS that its proposed regulations for the capitalization & deduction of tangible property expenditures are unnecessarily complex. AICPA sent a second comment letter to the IRS with their concerns over the new regulations. AICPA believes the IRS should provide a couple of examples to guide taxpayers on the interrelationships of some of … Read More
Gian Pazzia, CCSP, is re-elected on the Board of Directors for the American Society of Cost Segregation Professionals
Gian has been on the board of ASCSP since 2007 and is also the Chair of the organizations Technical Issues/Standards committee. Gian was one of the first professionals in the country to earn industry certification in Cost Segregation. Gian Pazzia, CCSP, has been elected for an additional 2 year term on the Board of Directors … Read More
KBKG Responds to Technical Questions Raised on the R&D Tax Credits
Does the provision for eligible small business credits to eliminate AMT in 2010 carry forward into 2011. If a credit is generated in 2011 can it fully offset AMT? The 2010 R&D generated are the only credits which can be used to offset AMT. This was a special rule for 2010 only. The 2010 credits … Read More
Joint Tax Committee Report on Revenue Proposals in 2013 Budget
“Does the provision for eligible small business credits to eliminate AMT in 2010 carry forward into 2011? If a credit is generated in 2011, can it fully offset AMT? The Joint Committee on Taxation staff released a report entitled “Description of revenue provisions contained in the President’s fiscal year 2012 budget proposal.” The full report … Read More
California – Governor’s Budget May Revision 2012-2013
Governor Brown released his updated budget proposal referred to as the “May Revise.” In contrast to the January and May 2011 budget proposals, the latest budget does not mention any alteration to the California Enterprise Zone program as a source of additional revenue. This is great news for businesses who are taking advantage of the … Read More