This Month’s Webinars
Looking for CPE credit? We have several sessions available this month. Click the links below to register. If you have questions or need help registering, please email [email protected]. Research & Development Tax Credits 11/1/2022 | 12:00 PM PT | 1 hour | 1 CPE credit This webinar will cover the fundamentals of the Research and … Read More
Evaluating a Cost Segregation Provider? Consider Someone with the ASCSP Certification
Are you considering a cost segregation study? As you begin to evaluate potential service providers, it’s important to remember that there are significant differences among cost segregation advisors in the marketplace. Sometimes taxpayers are not immediately aware of how those differences may impact their experience from start to finish. The American Society of Cost Segregation … Read More
Partial Disposition Election for Buildings Being Targeted by IRS
Recently, the IRS Large Business and International division highlighted five issues that it will be targeting in its “compliance campaign” audit strategy this year. One of the issues on its radar is the partial disposition election for buildings and its structural components. Treasury Regulations provide guidelines for recognizing gain or loss on the disposition of … Read More
KBKG Tax Insight: Guide to Expensing Roofing Costs
Each year, tax professionals who deal with real estate must evaluate the most recent building expenditures and determine which items should be written off as a repair expense or capitalized. The most common, and often significant, item that is evaluated is roofing-related work. In many cases, only a portion of the roofing system is replaced, … Read More
KBKG Tax Insight: IRS Provides Extension to Claim Missed Repair Deductions on 2016 Returns
The recently released IRS Notice 2017-6 extended a special eligibility rule for taxpayers making an automatic change of accounting method providing an opportunity to continue to take advantage of the Tangible Property Regulations (TPRs) on 2016 tax returns. KBKG Insight: Current rules under Rev. Proc. 2015-13 prevent taxpayers from making an automatic change in accounting … Read More
IRS provides 1 year extension to claim missed repair deductions on 2015 returns
The recently released Rev. Proc. 2016-29 details new procedures for automatic accounting method changes, as discussed in a previous KBKG Tax Insight, and effectively provides a one year extension for taxpayers to implement many portions of the Tangible Property Regulations (TPR).Taxpayers are generally not permitted to make an automatic method change if they made a … Read More
Retail/Restaurant Industry Safe Harbor Under Tangible Property Regulations
The IRS recently issued Revenue Procedure 2015-56 providing a safe harbor for certain taxpayers operating retail or restaurant establishments for determining whether expenditures incurred to “remodel” or “refresh” their property can be expensed under the Tangible Property Regulations released in 2013. Generally, the safe harbor benefits those enhancing the physical appearance and layout of their … Read More
Repair Regs – Another solution to “Elect-out” of Rev. Proc. 2015-20 to preserve missed deductions
The IRS has recently written on their website that eligible taxpayers may elect out of Rev. Proc. 2015-20 by filing a statement with their 2014 tax returns indicating their qualifying trade or business is not applying the simplified procedure of Rev. Proc. 2015-20. Qualified small business taxpayers who accept the relief of Rev. Proc. 2015-20 … Read More
Tangible Property Regs – Reconsidering Small Taxpayer Relief under RP 2015-20
Earlier this year, the IRS relieved small business taxpayers from having to file mandatory Form 3115’s to comply with the newly issued Tangible Property Regulations (TPRs). Accepting this relief under Rev. Proc. 2015-20 is done merely by filing of a federal tax return, leaving many CPAs unaware of the negative consequences of doing nothing. More … Read More
IRS Releases New Draft Form 3115
On July 15th, The IRS posted onto its website an early released draft of Form 3115, Application for Change in Accounting Method. Form 3115 is used for accounting method changes, including complying with the Tangible Property Regulations (“TPRs”) as well as making depreciation adjustments resulting from Cost Segregation studies. The current version of Form 3115 … Read More
Practice Tool – Unit of Property & Major Component Chart for Buildings
KBKG strives to be a thought leader in the areas we service and we’re proud so many CPAs rely upon the tools we’ve created. For those applying the new Tangible Property Repair Regulations, the first step in a proper Repair vs. Capitalization analysis is to identify and understand the Unit of Property (UOP). For real … Read More
Tangible Property Final Regulations FAQ
Section 162 of the Internal Revenue Code (IRC) allows you to deduct all the ordinary and necessary expenses you incur during the taxable year in carrying on your trade or business, including the costs of certain materials, supplies, repairs, and maintenance. However, section 263(a) of the IRC requires you to capitalize the costs of acquiring, … Read More
Filing Relief Issued on Tangible Property Regulations under Rev. Proc. 2015-20
Numerous tax professionals have struggled with the compliance requirements under the final Tangible Property Regulations (TPRs) and when Form 3115, Application for Change in Accounting Method, is required. In response to public concerns, the IRS issued Rev. Proc. 2015-20 providing a simplified method of compliance for small business taxpayers. The new revenue procedure allows small … Read More
Tangible Property Regulations – IRS Considering Filing Relief
The 2014 tax season is underway and CPAs and tax professionals are knee deep in the implementation of the final Tangible Property Regulations (TPRs). Tax practitioners have expressed frustration regarding the overly burdensome filing requirements of the new TPRs. The number one question KBKG is asked is whether change #184 is really necessary for every … Read More
Dispositions of Tangible Property – IRS Restricts use of Discount Value Approach
In August, the IRS issued final regulations on dispositions of tangible depreciable property under Sec. 168 (T.D. 9689) that are generally effective for taxable years beginning on or after January 1, 2014. Taxpayers can realize significant benefits from these regulations by identifying building components that have been replaced or demolished in current or prior years.One … Read More
IRS Releases R.P. 2014-54; Extends Deadline To Claim Retirement Loss Deductions!
On September 18, the IRS released an advanced copy of Rev. Proc. 2014-54, which provides guidance on certain changes in method of accounting for dispositions of tangible depreciable property. One of the most notable changes in this 93-page document is that the time for making a late partial disposition election has been extended for one … Read More
The Tangible Property Repair Regulations Webinar Q&A
The Repair Regulations or the Tangible Property Regulations are rules issued by the IRS with regards to the deduction and capitalization of expenditures related to tangible property. The Repair Regulations are applicable to businesses that acquire, produce, replace or improve tangible property. Application of the new Repair Regulations requires an in-depth understanding of various tax … Read More
Rev. Proc. 2014-16 – IRS releases procedural guidance to implement Final Repair Regulations
The IRS recently released Revenue Procedure 2014-16, providing the procedural rules taxpayers follow to make “automatic” accounting method changes under the Final Repair Regulations. This revenue procedure modifies Rev. Proc. 2011-14 and supersedes Rev. Proc. 2012-19 regarding certain changes for amounts paid to acquire, produce, or improve tangible property.IRS PROCEDURE 2014-16 The automatic accounting method … Read More
Case Study: Retirement of Building Components
The Final Repair Regulations clarified the rules related to whether a building expenditure is a capital improvement or can be a repair expense. However, one of the most significant rules that has changed under these Regs is in regards to the disposition of structural components of buildings. In the past, when a taxpayer renovated an … Read More
Repair Regulations and Retirement of Structural Components
The Retirement of Structural Components and a Repair Regulations study can provide a significant tax savings. We are ready to identify and claim your missed deductions and help you conform to the new Repair Regulations. A summary of the new Repair Regulations rules and a case study from our last webinar:§Dispositions of MACRS PropertyPROPOSED: A … Read More
2014 Final Repair Regulations and Tangible Property Regulations.
Summary of the Repair Regulations and Tangible Property Regulations by Gian Pazzia ASCSP, Shareholder of KBKG, President of ASCSP.Summary of major changesGeneral Asset Account Election issue addressed – do not have to elect GAA treatment to forgo loss upon retirement of structural component.De minimis Rule Change – eliminated the ceiling! Amounts less than $5,000 per … Read More