• IRS Changes Rules For A&E Firms: Window Closing To Claim 179D Energy Tax Deduction For Prior Years
    By : Categories : Tax Insight

    Starting September 4, 2012, designers of government-owned buildings have one less option for retroactively pursuing missed Code Section 179D energy tax deductions. The IRS recently issued Revenue Procedure 2012-39 which prohibits designers from filing a Form 3115 (Application for Change in Accounting Method) to claim missed deductions.  Previous guidance appeared to indicate that architects and…

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  • Tax Alert: Positive Outlook on Extended Tax Credits for Multifamily Developers
    By : Categories : Tax Insight

    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…

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  • Is the Value of Cost Segregation Depreciating?
    By : Categories : Cost Segregation,Tax Insight

    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…

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  • KBKG Tax Commentary on Regulations for Repairs vs. Capitalization
    By : Categories : Tax Insight

    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…   Author: Gian P. Pazzia, CCSP   Principal, KBKG   » Biography   It has been several months since the new “Repair Regulations” were issued and many companies are…

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  • Repair Regulations
    By : Categories : Tax Insight

    The “Repair Regulations,” are applicable to businesses in all industries that acquire, produce, replace, or improve tangible property. Since these rules mostly affect real property, they can provide significant benefits to your clients even if cost segregation studies have already been performed. Further, the rules allow taxpayers to go back to previous years and take…

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  • Chairman Boustany Suspects GSA of abusing the 179D Tax Deduction
    By : Categories : Tax Insight

    Facts: On May 3, 2012, Charles Boustany, Jr., Chairman of the House Committee on Ways and Means Subcommittee on Oversight, raised question as to whether the General Services Administration (GSA) is abusing the 179D Tax Deduction. Recent documentation insinuates that the GSA may be improperly requiring contractors to provide kickbacks in order to allocate 179D…

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  • Revenue Procedures 2012-19 and 2012-20
    By : Categories : Tax Insight

    On March 7, 2012, the Internal Revenue Service (IRS) released two Revenue Procedures 2012-19 and 2012-20 as guidance for taxpayers to make changes to accounting methods in regards to the temporary regulations, “Repair Regulations,” which were released on December 23 of 2011. These two revenue procedures are effective for taxable years beginning on or after…

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  • Tax Alert: IRS takes a stand on Cost Segregation for Apartment Buildings
    By : Categories : Cost Segregation,Tax Insight

    Author: Gian Pazzia, CCSP Summary:In the recently released AmeriSouth XXXII., Tax Court Memo 2012-67, the IRS makes its first meaningful strike in its attempt to marginalize the benefits of cost segregation studies for residential rental property. For many taxpayers and CPAs, this is a complete surprise. However, KBKG clients have been warned for over a year…

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  • Decision in Peco Foods, Inc. v. Commissioner May Affect Your Ability to Perform a Cost Segregation Study
    By : Categories : Cost Segregation,Tax Insight

    Author: Gian Pazzia, CCSP & Lou Guerrero, MBT While the law regarding the binding nature of an asset allocation agreement under IRC Section 1060 is well established, KBKG notes the specific facts and circumstances of the Peco Foods case in making our recommendations below. Regarding the terms of a purchase agreement that includes real estate,…

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  • Release of the new Temp Regs. Under 263(a)
    By : Categories : Tax Insight

    The biggest news that came out over the last month was the long awaited Temporary Regs under 263(a). This 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…

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