KBKG Tax Insight: Impact of Proposed Regulations for Additional First Year Depreciation Deduction
This article is featured in Accounting Today and Tax Pro Today. On August 8th, 2018 the IRS published proposed regulations (REG-104397-18) that provide guidance regarding the additional first year depreciation deduction under section 168(k) of the Internal Revenue Code (Code). These proposed regulations reflect changes made to the Tax Cuts and Jobs Act (TCJA) to … Read More
KBKG Tax Insight: R&D Credit Opportunity – Improving an Existing Product
Businesses who are creating a brand-new product may be aware that the expenses associated with the cost of developing the prototype, or first article, of that product can qualify for the Research & Development (R&D) tax credit1. Qualifying expenses can include employee wages, materials used in the construction of the prototype and any third-party contractors … Read More
KBKG Tax Insight: IRS Penalizes Cost Segregation Provider for Aiding and Abetting
Tax preparers and their clients often cannot recognize quality differences among cost segregation service providers, leading to buying decisions based on who proposes the lowest fee or promises the highest tax benefit. However, the real test of quality is how the cost segregation results stand up in an IRS audit. What are the consequences of … Read More
KBKG Tax Insight: Congress Retroactively Extends Temporary Tax Breaks for 2017 in Budget Bill
President Trump just signed and enacted a 2-year budget bill that extends government funding through March 23 and also retroactively extends numerous tax breaks that had previously expired. The majority of the tax extenders included in the bill are renewed for one year through the end of 2017. Among these tax breaks are various provisions … Read More
KBKG Tax Insight: Avoid Common R&D Expense Documentation Errors
Business owners are often surprised to learn they may be able to claim the Research & Development (R&D) tax credit. The credit was originally created as way to encourage American companies to conduct R&D activities domestically. While initially thought to apply to large companies with formal R&D departments, “smaller businesses” in a wide range of … Read More
Minimize Gains on Sale of Condos in Mixed-Use Developments. Condo Tax Basis Allocation Studies
Traditional cost accounting for mixed-use residential projects often does not properly allocate all construction costs to each section of the property. Consequently, there may be a significant understatement of cost basis for residential condominium units resulting in higher taxable gains upon sale. This is most common within vertical mixed-use developments where residential condos are stacked … Read More
Reduce Taxes on Condo Sales in Mixed-Use Developments with Tax Basis Allocation Studies
Traditional cost accounting for mixed-use residential projects often does not properly allocate all construction costs to each section of the property. Consequently, there may be a significant understatement of cost basis for residential condominium units resulting in higher taxable gains upon sale. This is most common within vertical mixed-use developments where residential condos are stacked … Read More
KBKG Tax Insight: 5 Tips for Properly Vetting a Specialty Tax Consultant
CPAs know it is imperative to refer clients to 3rd party consultants for various issues that require deep specialization in an area of tax. In many ways, these specialty tax firms act as an extension of your team and require coordination to deliver results that often have a material impact on a tax return. While … Read More