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Tag Archive for Form 3115

Construction Tax Planning: A Proactive Methodology To Accelerated Depreciation Planning

A properly designed and implemented Construction Tax Planning analysis will proactively identify additional tax savings related to new and / or planned construction projects. It should be duly noted that a Construction Tax Planning analysis should not be confused with a Cost Segregation analysis as there are several notable differences between a Cost Segregation analysis and a Construction Tax Planning analysis. Read more

Scope And Application Of The IRS Notice 2016-14 Effecting Form 3115 Filers

Peter Scalise

The Internal Revenue Service (hereinafter the “Service”) issued on March 24 of 2016 their Announcement 2016-14 addressing the transition period implementation dates in connection with the recently revised Form 3115 entitled “Application for Change in Accounting Method” which was most recently revised and released to the public in December of 2015. This presents a paradigm shift as while most tax forms and publications are updated annually, this was the first update to Form 3115 since December of 2009. Read more

Tax Compliance Alert: The IRS Issues Transition Period Guidance for Recently Revised Form 3115

Peter Scalise

Introduction                                                                                                  

The Internal Revenue Service (hereinafter the “Service”) issued on March 24 of 2016 their Announcement 2016-14 addressing the transition period implementation dates in connection with the recently revised Form 3115 entitled “Application for Change in Accounting Method which was most recently revised and released to the public in December of 2015. This presents a paradigm shift as while most tax forms and publications are updated annually, this was the first update to Form 3115 since December of 2009. 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 automatically forfeit any opportunity to retroactively correct capitalized expenditures that should have been deducted in years prior to 2014.

A qualified “small business taxpayer” for this purpose is any business with total assets of less than $10 million or less than $10 million in average annual gross receipts (from prior three taxable years). Read more

Construction Tax Planning: A Proactive Approach to Accelerated Depreciation Planning

A properly designed and implemented Construction Tax Planning engagement will proactively identify additional tax savings related to new and / or planned construction projects. It should be duly noted that a Construction Tax Planning engagement should not be confused with a Cost Segregation engagement. As a reminder, there are several noteworthy differences between a Cost Segregation Engagement and a Construction Tax Planning Engagement.

A Cost Segregation Engagement will methodically review property, plant and equipment and properly reclassify real property (e.g., property that is generally depreciated for tax return purposes over a period of either 27.5 or 39 years) into personal property (e.g., property that is generally depreciated for tax return purposes over a period of either 3, 5, 7 Read more

October 15 – Last Chance to Take Advantage of Retroactive Business Expensing

If you are a small business owner, October 15, 2015, is your last chance to retroactively adopt the new tangible property regulations that took effect in 2014.

Why is adopting these new regulations important? They give you the opportunity to expense items that you had capitalized (depreciated) in years for which the three-year statute of limitations has not yet expired. As an example, say you are a landlord, and you replaced the roof on your rental at a cost $6,000 in 2012. Prior to the new regulations, that expense would have been treated as a capital expense, and you would have had to depreciate it (deduct it slowly), over 27½ or 39 years. However, under the new regulations, the expense of replacing the roofing membrane is fully deductible in the year the cost was incurred. Read more

The Service Issues New Draft Version of Form 3115

The Internal Revenue Service (hereinafter the “Service”) issued on July 15th of 2015 their long awaited draft version of their revised Form 3115 entitled “Application for Change in Accounting Method” which incorporates revisions to the process for requesting accounting method changes (e.g., accounting method changes in complying with the Final Treasury Regulations governing Tangible Property; accounting method changes in connection to depreciation adjustments resulting from Cost Segregation Analysis; etc.). The draft version of Form 3115 can be accessed at http://www.irs.gov/pub/irs-dft/f3115–dft.pdf

Once finalized, the latest form will replace the current version, which was previously issued in 2009. The Service requests that comments on the draft Form 3115 be made on Read more

Tax Compliance Alert Effecting Tangible Property Regulations

Tax Compliance Alert: The IRS Streamlines The Methodology For Small Businesses To Comply With The Tangible Property Regulations

As a tax compliance reminder for calendar year end partnership entity tax returns due on April 15th, The Internal Revenue Service (hereinafter the “Service”) recently streamlined the methodology for small business owners to comply with the Final Treasury Regulations (hereinafter the “regulations”) governing Tangible Property with newly released administrative authority on February 13th of 2015.

Revenue Procedure 2015-20 permits small businesses to change a method of accounting under the regulations on a prospective basis for the first taxable year Read more

Tangible Property Webinar

March 31 – 11:00AM (CDT) – Click To Register

TaxConnections and ACPEN offer The Tangible Property Webinar.

The Tangible Property Regulations went into effect on January 1, 2014. On February 13, 2015, the IRS released the “repair regs” under Rev. Proc. 2015-20. These were billed as providing relief for small taxpayers struggling with the tangible property regulations. However, as with most attempts to help taxpayers this “relief” is a mixed blessing for some taxpayers. Learn how, as a practical matter, availing oneself of the processes contained in Rev. Proc. 2015-20 could cause the taxpayer to miss out on important tax savings. ACPEN’s expert practitioners will explain the practical impact of under the repair regulations. Both practitioners and taxpayers need to be wary of the possible traps of Read more

Additional Dates For Tangible Property Webinar

March 23 – 11:00AM (CDT) – Click To Register

March 31 – 11:00AM (CDT) – Click To Register

TaxConnections and ACPEN offer these additional dates for for The Tangible Property Webinar.

The Tangible Property Regulations went into effect on January 1, 2014. On February 13, 2015, the IRS released the “repair regs” under Rev. Proc. 2015-20. These were billed as providing relief for small taxpayers struggling with the tangible property regulations. However, as with most attempts to help taxpayers this “relief” is a mixed blessing for some taxpayers. Learn how, as a practical matter, availing oneself of the processes Read more

Additional Dates For Tangible Property Webinar

March 16 – 11:00AM (CDT) – Click To Register

March 23 – 11:00AM (CDT) – Click To Register

March 31 – 11:00AM (CDT) – Click To Register

TaxConnections and ACPEN offer these additional dates for for The Tangible Property Webinar.

The Tangible Property Regulations went into effect on January 1, 2014. On February 13, 2015, the IRS released the “repair regs” under Rev. Proc. 2015-20. These were billed as providing relief for small taxpayers struggling with the tangible property regulations. Read more

Change Of Accounting Method

Final Tangible Property Regulations Necessitate that Many Businesses Apply for Change Of Accounting Method: IRS Form 3115; Rev Procs 2015-13 & 2015-14

Back in June 2014 I blogged about the new IRS Regulations governing tangible personal property. These regulations prompted a vigorous debate over the last 7 months between the most astute students of the US Tax Code as to what constitutes the need to file IRS Form 3115 – Change in Accounting Method for our business clients as a direct result of these new governing regulations.

Many practitioners make compelling points supporting the position that most ALL Read more