Any fan of late-night infomercials knows that a key part of the marketing pitch is that final offer that pushes the perceived value of the package well past the asking price. Similarly, the extension of bonus depreciation is the literal “bonus” of the Protecting Americans from Tax Hikes (PATH) Act that can deliver impressive value [...]
While some tax incentives seem to be common knowledge, others often go nearly unnoticed. Watch as CRI's Dawn Steed describes overlooked deductions that contractors and manufacturers can use to their advantage.
Apple pie and baseball are long-standing symbols of our country’s most favorite pastimes. For some businesses, there is a tax deduction that is also strongly associated with America: the domestic production activities deduction (DPAD). This deduction, also known as the Section 199 deduction for its place in the Tax Code, allows U.S. manufacturers and contractors [...]
The IRS issued final regulations in 2013 allowing businesses to expense certain purchases of tangible property under the de minimis safe harbor election. The threshold for expensing was originally set at $500 per item for businesses without applicable financial statements. The IRS has now raised that threshold to allow these businesses to expense up to [...]
In 2013, the IRS released final tangible property regulations that require the capitalization of amounts paid to acquire, produce, or improve tangible property but allow amounts for incidental repairs and maintenance of property to be deducted. Plus, the regulations explain how to distinguish between capital expenditures and deductible business expenses. They are generally applicable to [...]
What is a Cost Segregation Study? Cost segregation is a strategic analysis performed by a team of qualified professionals that identifies, segregates, and reclassifies property costs currently being depreciated over a longer term (such as 39 years) to shorter depreciable periods. This process allows businesses to take advantage of tax deductions that they would normally [...]
The IRS has largely completed its overhaul of the federal tax regulations addressing the proper treatment of expenditures incurred in acquiring, producing, or improving tangible assets. The agency has now issued final regulations outlining the proper tax treatment of dispositions of tangible depreciable property under the Modified Accelerated Cost Recovery System (MACRS), which impact all [...]
1. Are cost segregation studies recognized by the Internal Revenue Service (IRS)? Yes. The Internal Revenue Service recognizes properly prepared cost segregations, performed with engineers, as a valid tax benefit. Better yet, current IRS procedures allow a taxpayer to reflect the tax benefits on a current return without amending prior year returns. 2. When should [...]