It’s in every article, in every conversation, and on everybody’s mind – tax reform. The Tax Cuts and Jobs Act (TCJA) is a historic piece of legislation and may transform the way commercial real estate owners do business. It’s really no surprise that the TCJA has gotten lots of attention, and that much ink has […]
Tax Alert: Notice 2017-6 Extends Eligibility Rule Waiver for Automatic Accounting Method Changes
Happy Holidays from the IRS: Notice 2017-6 Extends Eligibility Rule Waiver for Automatic Accounting Method Changes The IRS gave taxpayers an early gift this season, releasing Notice 2017-6 on December 20, 2016. This Notice extends the waiver of what was initially a five-year eligibility limitation allowing taxpayers to file automatic accounting method changes in light […]
IRS Releases New Audit Technique Guideline Focusing on Tangible Property
Hot off the Presses: IRS Releases New Audit Technique Guideline Focusing on Tangible Property On September 14th the IRS issued an Audit Techniques Guide (ATG) entitled “Capitalization of Tangible Property.” ATGs are market-specific, and are intended to develop highly trained auditors who are subject matter experts. ATGs feature industry terminology, discussion of unique issues, and best […]
Partial Asset Disposition: Exploring Decision Making Under the TPRs
Partial Asset Disposition: Part III in a Series Exploring Decision Making Under the TPRs Welcome to the third and final post in our exclusive series focused on effective navigation of the Tangible Property Regulations. If you’re ready to jump right in, congratulations! However, if you need a brief refresher, you are welcome to review previous […]
Material World: Exploring Decision-Making Under the TPRs
Material World: Part II in a Three-Part Series Exploring Decision Making Under the TPRs Welcome back to our continued discussion of the complex Tangible Property Regulations. Our last blog post focused on applying the BAR Test to determine whether a given cost represented an improvement in the form of a Betterment, Adaptation, or Restoration. (If you’d […]
Passing the BAR: Exploring Decision Making Under the TPRs
Passing the BAR: Part I in a Three-Part Series Exploring Decision Making Under the TPRs Tax professionals have spent a great deal of time and effort attempting to clarify the complex Tangible Property Regulations. Unfortunately, many in the world of commercial real estate remain overwhelmed by the legislation, and haven’t been able to fully benefit […]
One Property, Three Scenarios: Expanded Utility of Cost Segregation under the TPRs
Many commercial real estate professionals are familiar with the basics of cost segregation, but few have taken full advantage of the possible opportunities it may yield. In recent years, important regulations have expanded the utility of cost segregation and related services, resulting in more ways to capture deductions than ever before. To illustrate the diverse […]
Tax Alert: Safe Harbor for Retail or Restaurant Establishment Refresh
Tax Alert: Revenue Procedure 2015-56 Safe Harbor for Retail or Restaurant Establishment Refresh The IRS recently released Rev. Proc. 2015-56, which provides owners of retail or restaurant establishments with additional clarity as they determine whether expenses incurred for remodel/refresh must be capitalized or may be deducted. Effective for tax year 2014 and beyond, it establishes […]
Breaking News – Tax Alert – IRS Raises Safe Harbor Threshold
Tax Alert – IRS Raises Safe Harbor Threshold As of November 24th 2015, the IRS has significantly increased the de minimus safe harbor limit for taxpayers without an applicable financial statement (AFS). While the final Tangible Property Regulations initially capped such deductions at $500, this notice raises the threshold to $2,500 per item substantiated by […]
Let Capstan Guide You to a Safe Harbor – TPRs Offer New Expensing Options
The Tangible Property Regulations brought a great deal of confusion and chaos in the wake of their arrival. Things were pretty rough, and some of us are still having Rev. Proc.-related nightmares. However, there’s a rainbow behind this storm, and the TPRs have established three new expensing options that may add quite a bit of […]