New rules will soon go into effect that impact all taxpayers that acquire, produce, or improve tangible property. The most significant tax accounting change in decades, virtually every taxpayer with a building or equipment will need one or more accounting method changes to comply with these new rules. These new rules are very complex and you should start preparing for them NOW - how to take advantage of the rules to accelerate deductions, what new accounting policies need to be established, how these rules impact your financial statements and how you'll need to adapt your accounting systems and procedures
On September 13, 2013, the IRS and Treasury Department released final regulations relating to the deduction and capitalization of expenditures related to tangible property. These once informal regulations have now been formalized providing increased guidance and rules surrounding repairs and maintenance on tangible property. The regulations affect businesses of all types and sizes, ranging from Fortune 500 companies to small businesses reported on individual tax payer's Schedule C. Compliance with the regulations will challenge every business, especially in light of a January 1, 2014 effective date.
This presentation discusses the nuts and bolts of staying in compliance with IRS repair and maintenance regulations.
Greenergy: Commercial Building Tax Deduction dloziuk
As part of Energy Policy Act (EPact) of 2005, the federal government passed a tax bill that supports building energy efficient measures. Building owners can qualify for up to $1.80 per sq. ft. in tax deductions when energy efficient measures are installed.
Presenting at Habinteg's Homes for Living Forum on 17 September 2013 DCLG Principal Architect Richard Harral introduced the Housing Standards Review to give the policy context for the proposed access standards.
On September 13, 2013, the IRS and Treasury Department released final regulations relating to the deduction and capitalization of expenditures related to tangible property. These once informal regulations have now been formalized providing increased guidance and rules surrounding repairs and maintenance on tangible property. The regulations affect businesses of all types and sizes, ranging from Fortune 500 companies to small businesses reported on individual tax payer's Schedule C. Compliance with the regulations will challenge every business, especially in light of a January 1, 2014 effective date.
This presentation discusses the nuts and bolts of staying in compliance with IRS repair and maintenance regulations.
Greenergy: Commercial Building Tax Deduction dloziuk
As part of Energy Policy Act (EPact) of 2005, the federal government passed a tax bill that supports building energy efficient measures. Building owners can qualify for up to $1.80 per sq. ft. in tax deductions when energy efficient measures are installed.
Presenting at Habinteg's Homes for Living Forum on 17 September 2013 DCLG Principal Architect Richard Harral introduced the Housing Standards Review to give the policy context for the proposed access standards.
179D Commercial Building Energy Efficient Tax Deductiondloziuk
As part of Energy Policy Act (EPact) of 2005, the federal government passed a tax bill that supports building energy efficient measures. Building owners can qualify for up to $1.80 per sq. ft. in tax deductions when energy efficient measures are installed. Go to http:///www.179d.info for more information on the 179d
Baker Tilly Presents: Government Contract Reporting Requirements: What did yo...BakerTillyConsulting
Presented at NCMA's World Congress 2016
Presenters: Baker Tilly's Nathan Geesaman, CPA, CFE, Manager and Accenture Federal Services' Katherine Adams, Senior Contract Manager.
For U.S. federal government contractors, there are myriad contractual reporting requirements that must be submitted to the government beyond the annual ICS submitted to DCAA. Contract managers must understand and communicate what is required in order to comply with the terms of the contract. This session will discuss some of these government reporting requirements, such as small business subcontracting, government property, service contracts, eCMRA, GSA Schedules, GWACs, and CPARS. www.bakertilly.com/governmentcontractors
JW Marriott Mumbai Sahar - Gold Rated Green BuildingDanfoss India
A five-star luxury hotel, located in the vibrant location and accessible to the airport, JW Marriott Mumbai Sahar is known for its amenities, intelligently designed hotel rooms, and first-rate service. The project has been certified as Gold rated Green Building by IGBC.
Marriott’s sustainability strategy supports business and reaches beyond the doors of hotels to preserve and protect the planet and its resources. Focus is on reducing the carbon footprint, constructing more sustainable buildings, making supply chain more environmentally conscious and supporting innovative conservation initiatives. JW Marriot was one of the top 10 shortlisted finalists for ACREX Hall of Fame powered by Danfoss.
Sustainable Practices
• VFD driven equipment including chillers, pumps, cooling towers, AHUs, heat recovery fans, ventilation fans
• Indoor air quality sensors in public areas
• Usage of low VOC material
• Highly efficient fans (68 to 80% efficient) for AHUs and ventilation system
• Heat pipes/heat recovery wheels for AHUs having high occupancy load
This training module is one of a series produced by the Australian Building Codes Board; the organisation responsible for the development and maintenance of the National Construction Code (NCC)
For the purposes of this presentation it is assumed that participants have a general understanding of the content of ABCB training Modules One and Two
Energy Consulting Engineering 179D Energy Efficient Commercial Real Estate Ta...Kari Mueller, PE, LEED AP
What is the 179D Energy Efficient Commercial Real Estate Tax Deduction?
What are the 2015 and 2016 Congressional Updates to the Tax Deduction program?
What is the new ASHRAE 90.1 baseline for projects put into place in 2016?
How can Designers of public and government buildings capture income tax savings on projects that they specify energy efficient equipment and materials?
Specialized Tax Strategies - Using engineering, design and costing to seize t...Capital Review Group
Specialized tax strategies that may allow for substantial benefits for architects, engineers, material suppliers, and their clients. Using engineering, design and costing to seize tax savings through 179D, Cost Segregation, and Tangible Property. Without an engineering-based studies, taxpayers are unable to take full advantage of the tax law; therefore, they surrender significant cash flow to the IRS for commercial buildings.
STW Sustainable/ NZEB Design Presentation - Nov 2019Noel Hughes
A presentation given by Noel Hughes of Scott Tallon Walker Architects in November 2019 on sustainable architecture and nearly zero energy design strategies.
California Air Quality in 2019: What You Need to KnowBlueScape
This webinar by James Westbrook, President of BlueScape Environmental, provides businesses with a 2019 update on California air quality regulations.
The webinar topics include: recent and upcoming changes in US EPA air quality regulations, including Ozone Standards, New Source Review, Greenhouse Gas (GHG) Emissions regulations, and NSPS/MACT Standards; new state legislative bills and changes in important state regulations, including AB617, Clean Energy and GHG regulations, Proposition 65, and onroad/offroad emission standards; an update on Air District regulations in Southern California, the Bay Area, and the Central Valley; updates to Technical Guidelines and common tools used in California for air quality technical analysis, such as CalEEMod, AERMOD and HARP2; recent court decisions affecting CEQA air quality review, such as the Friant Case, Sierra Club v. San Diego County, and other important decisions; regulation changes impacting such industries as power generation, chemical manufacturing, oil & gas production, oil refining, and heavy manufacturing; and strategic business decisions companies should consider making in 2019.
James Westbrook can be reached at jwestbrook@bluescapeinc.com or 877-486-9257. Please contact us for any questions or support you need to work with the air agencies to design effective NSR permits for your operations.
Module 4 Understanding energy effeciency provisions class 2 to 9Michael Farrugia
This training module is one of a series produced by the Australian Building Codes Board; the organisation responsible for the development and maintenance of the National Construction Code (NCC)
For the purposes of this presentation it is assumed that participants have a general understanding of the content of ABCB training Modules One and Two
Accenture 2014 College Graduate Employment Survey: What Awaits Grads in the W...accenture
The Accenture 2014 College Graduate Employment Survey examines the expectations and experiences of US college students who will be graduating in 2014 compared to the realities of the working world for those who graduated in 2012 and 2013, related to education, skills, finding a job, salary expectations, debt and post-graduation living arrangements.
Site Florida - Social Media Strategy and Tactics Presentation: 140 CHARACTERS...Murray Izenwasser
140 CHARACTERS OR LESS: Is Social Media Driving Real Business or are we just Tweeting / Friending / Following / Linking / Digging between ourselves?
Can you truly use social media to drive business, and if so, how should your company be using social media to do so?
179D Commercial Building Energy Efficient Tax Deductiondloziuk
As part of Energy Policy Act (EPact) of 2005, the federal government passed a tax bill that supports building energy efficient measures. Building owners can qualify for up to $1.80 per sq. ft. in tax deductions when energy efficient measures are installed. Go to http:///www.179d.info for more information on the 179d
Baker Tilly Presents: Government Contract Reporting Requirements: What did yo...BakerTillyConsulting
Presented at NCMA's World Congress 2016
Presenters: Baker Tilly's Nathan Geesaman, CPA, CFE, Manager and Accenture Federal Services' Katherine Adams, Senior Contract Manager.
For U.S. federal government contractors, there are myriad contractual reporting requirements that must be submitted to the government beyond the annual ICS submitted to DCAA. Contract managers must understand and communicate what is required in order to comply with the terms of the contract. This session will discuss some of these government reporting requirements, such as small business subcontracting, government property, service contracts, eCMRA, GSA Schedules, GWACs, and CPARS. www.bakertilly.com/governmentcontractors
JW Marriott Mumbai Sahar - Gold Rated Green BuildingDanfoss India
A five-star luxury hotel, located in the vibrant location and accessible to the airport, JW Marriott Mumbai Sahar is known for its amenities, intelligently designed hotel rooms, and first-rate service. The project has been certified as Gold rated Green Building by IGBC.
Marriott’s sustainability strategy supports business and reaches beyond the doors of hotels to preserve and protect the planet and its resources. Focus is on reducing the carbon footprint, constructing more sustainable buildings, making supply chain more environmentally conscious and supporting innovative conservation initiatives. JW Marriot was one of the top 10 shortlisted finalists for ACREX Hall of Fame powered by Danfoss.
Sustainable Practices
• VFD driven equipment including chillers, pumps, cooling towers, AHUs, heat recovery fans, ventilation fans
• Indoor air quality sensors in public areas
• Usage of low VOC material
• Highly efficient fans (68 to 80% efficient) for AHUs and ventilation system
• Heat pipes/heat recovery wheels for AHUs having high occupancy load
This training module is one of a series produced by the Australian Building Codes Board; the organisation responsible for the development and maintenance of the National Construction Code (NCC)
For the purposes of this presentation it is assumed that participants have a general understanding of the content of ABCB training Modules One and Two
Energy Consulting Engineering 179D Energy Efficient Commercial Real Estate Ta...Kari Mueller, PE, LEED AP
What is the 179D Energy Efficient Commercial Real Estate Tax Deduction?
What are the 2015 and 2016 Congressional Updates to the Tax Deduction program?
What is the new ASHRAE 90.1 baseline for projects put into place in 2016?
How can Designers of public and government buildings capture income tax savings on projects that they specify energy efficient equipment and materials?
Specialized Tax Strategies - Using engineering, design and costing to seize t...Capital Review Group
Specialized tax strategies that may allow for substantial benefits for architects, engineers, material suppliers, and their clients. Using engineering, design and costing to seize tax savings through 179D, Cost Segregation, and Tangible Property. Without an engineering-based studies, taxpayers are unable to take full advantage of the tax law; therefore, they surrender significant cash flow to the IRS for commercial buildings.
STW Sustainable/ NZEB Design Presentation - Nov 2019Noel Hughes
A presentation given by Noel Hughes of Scott Tallon Walker Architects in November 2019 on sustainable architecture and nearly zero energy design strategies.
California Air Quality in 2019: What You Need to KnowBlueScape
This webinar by James Westbrook, President of BlueScape Environmental, provides businesses with a 2019 update on California air quality regulations.
The webinar topics include: recent and upcoming changes in US EPA air quality regulations, including Ozone Standards, New Source Review, Greenhouse Gas (GHG) Emissions regulations, and NSPS/MACT Standards; new state legislative bills and changes in important state regulations, including AB617, Clean Energy and GHG regulations, Proposition 65, and onroad/offroad emission standards; an update on Air District regulations in Southern California, the Bay Area, and the Central Valley; updates to Technical Guidelines and common tools used in California for air quality technical analysis, such as CalEEMod, AERMOD and HARP2; recent court decisions affecting CEQA air quality review, such as the Friant Case, Sierra Club v. San Diego County, and other important decisions; regulation changes impacting such industries as power generation, chemical manufacturing, oil & gas production, oil refining, and heavy manufacturing; and strategic business decisions companies should consider making in 2019.
James Westbrook can be reached at jwestbrook@bluescapeinc.com or 877-486-9257. Please contact us for any questions or support you need to work with the air agencies to design effective NSR permits for your operations.
Module 4 Understanding energy effeciency provisions class 2 to 9Michael Farrugia
This training module is one of a series produced by the Australian Building Codes Board; the organisation responsible for the development and maintenance of the National Construction Code (NCC)
For the purposes of this presentation it is assumed that participants have a general understanding of the content of ABCB training Modules One and Two
Accenture 2014 College Graduate Employment Survey: What Awaits Grads in the W...accenture
The Accenture 2014 College Graduate Employment Survey examines the expectations and experiences of US college students who will be graduating in 2014 compared to the realities of the working world for those who graduated in 2012 and 2013, related to education, skills, finding a job, salary expectations, debt and post-graduation living arrangements.
Site Florida - Social Media Strategy and Tactics Presentation: 140 CHARACTERS...Murray Izenwasser
140 CHARACTERS OR LESS: Is Social Media Driving Real Business or are we just Tweeting / Friending / Following / Linking / Digging between ourselves?
Can you truly use social media to drive business, and if so, how should your company be using social media to do so?
Cyber Security: Take a Security Leap Forwardaccenture
High performing organizations align their security approach with the business objectives to improve security effectiveness across strategy, technology and governance.
An overview of the tax treatment of expenditures related to tangible property in accordance with the new regulations, including capitalization of expenditures, unit of property, the deminimis rule and dispositions.
Tangible Property Regulations - an MPS|CPA PresentationKathryn Brill
Learn about tangible property regulations and their applicability, RABI testing, and more in this presentation by MPS|CPA, one of Chicago's leading accounting firms. Check out http://mpscpa.com/ for more accounting solutions.
Final Regulations Governing Repairs & CapitalizationFreed Maxick CPAs
The IRS has released much-anticipated final “repair” regulations (T.D. 9636) governing when taxpayers must capitalize and when they can deduct their expenses for acquiring, maintaining, repairing and replacing tangible property. The final regulations make significant taxpayer-friendly changes to the 2011 temporary regulations. Compliance with the labyrinth of rules in the final regs, however, will challenge virtually every business, especially in light of an approaching January 1, 2014 effective date.
Learn more about the repair regulations and how it impacts by you by contacting Freed Maxick CPAs - Buffalo Rochester Batavia NY
Final repair regulations: What has changed and how will it impact you?Grant Thornton LLP
This webcast will provide you with an overview of the most significant aspects of the recently issued tangible property regulations that provide guidance on how to treat amounts paid to acquire, produce and improve tangible property (“repair regulations”), as well as re-proposed regulations regarding the disposition of depreciable property. The webcast will focus on important differences between the previous and new regulations, including opportunities and challenges relating to repairs, dispositions, asset groupings and the de minimis rules. In addition, we will address the transition rules to make changes in methods of accounting under the new regulations.
Regulatory Update: Introduction to Bill 135 and Environmental Policies Impact...Enercare Inc.
Enercare’s 3rd annual Thought Leadership event series, Energy Management: What’s New and What’s Next, explores energy conservation opportunities, the latest technologies and regulations shaping the multi-residential and commercial building management space.
Significant new regulations are moving to be implemented in Ontario, and each one may shape the way your property uses energy for years to come. The three major drivers of this change will be the Ontario's Climate Change Action Plan, Carbon Cap and Trade, and Energy Performance Disclosure regulations.
An explanation to: How will your day-to-day activities change? What preparation is needed to manage costs and risks to your business? How can you take advantage of upcoming opportunities?
Presented by: David Stevens, Partner, Aird & Berlis LLP
This power point explains the IRS Tangible Property Regulations and how they will effect the business owner. Contact Goldin Peiser & Peiser, LLP for more information or visit www.gppcpa.com.
OVERVIEW
• Notice 2012-73 delays effective date of Temporary Regulations effective for taxable years beginning on of after Jan. 1, 2014
• IRS will modify portions of Temp Regs related to De Mininis amounts, Dispositions, and Routine Maintenance Safe Harbor in 2013
• Rev Proc 2012-19 (M&S, Capital Expenditures, Transaction Costs, and Improvements) and 2012-20 (Leased Property, GAA, MACRS Property, Dispositions of MACRS Property) provide guidance including Sec 481(a) method changes
• Rev Proc 2012-20 permits late-GAA election for property placed in service prior to 2012 by filing Form 3115 within first two tax years beginning on or after Jan. 1, 2012 and Taxpayers should consider to timely elect GAA treatment for assets placed in service in 2012 on Form 4562 to take advantage of favorable disposition rules, especially for real property
CAPTURING TAX OPPORTUNITIES WITHIN THE FINAL TANGIBLE PROPERTY REGULATIONSCBIZ, Inc.
The tangible property regulations (TPRs) are the most dramatic changes in tax law to affect businesses since the overhaul of the Internal Revenue Code in 1986. The TPRs apply to all forms of business, whether a "C" corporation, an "S" corporation, a partnership, an LLC, a sole proprietorship (Schedule C on individual return), or a rental (Schedule E on individual return).
The facts and circumstances of each business situation should be carefully evaluated to determine the proper treatment of all business expenditures for materials and supplies, repairs and maintenance, and asset purchases along with the impact on subsequent depreciation. Needless to say, these regulations are quite complex and require timely attention.
What you need to know: Implementation is technically more complicated than developing a charging schedule; the 2014 regulations have introduced some useful amendments;
a number of policies are discretionary and require a decision to ‘turn on’ and there is little in the regulations regarding how to spend CIL.
BIZGrowth Strategies — Cybersecurity Special Edition 2023CBIZ, Inc.
As cybercriminals continue to advance and evolve, a stagnant cyber risk management approach is simply not an option. Further, the prevalence of cyber breaches means cybersecurity is not solely an IT concern. It takes a robust set of processes and people from across your organization, working together toward a common goal. We offer fresh insights to help protect your organization from cyberthreats in multiple operational areas. Articles include:
- How Cybercriminals Are Weaponizing Artificial Intelligence
- Employee Benefits Cyber Risk Exposure Scorecard
- Closing the Security Gap: Managing Vendor Cyber Risk
- Retirement Plan Sponsor Cybersecurity Checklist
- Protect Your Digital Frontline With Employee Training
BIZGrowth Strategies - Back to Basics Special EditionCBIZ, Inc.
Amid the increasing complexity of today’s business landscape, it can be of great benefit to shut out the noise and simply get back to the basics. Summer offers the rare opportunity for organizations to slow down and sweat the small stuff.
In this issue, our experts address seven key topics intended to help leaders guide their teams to stability and refocus on the foundational elements of success, including:
- Talent Management 101: How to Attract & Retain Great Employees
- Exploring the What, Why & How Behind the Employee Experience
- The Shifting Normal: 3 Ways Leaders Can Embrace Change & Conquer Challenge
- What is Financial Wellbeing & Why Should Employers Care?
- D&O Insurance Application Basics to Protect Your Leaders
- Your Life Insurance Policy May Be One of Your Biggest Assets
- Understanding Labor Law Poster Compliance
Welcome to our newly branded newsletter, "The Advantage." The articles in this issue provide insights to help you:
■ Have conversations around tough decisions during periods of economic uncertainty
■ Evaluate fast-growing artificial intelligence tools like ChatGPT
■ Recognize colleagues who are key allies in supporting women in the workplace
■ Navigate career shifts along the path to successful leadership
■ Manage workplace culture in a hybrid model
■ Garner inspiration from the 2023 Women Transforming Business finalists and winners
BIZGrowth Strategies - Workforce & Talent Optimization Special EditionCBIZ, Inc.
Amid today’s economic uncertainty, we know you need strategies and solutions that will help your business thrive. With workforce and talent concerns running high for employers across the nation, our experts developed these articles with those critical issues top of mind. We offer fresh insights designed to attract, retain, engage and motivate your employees — all while protecting your bottom line and managing emerging risks. Articles include:
- Unlock Success with Effective Performance Management
- How Employers Can Benefit from Financial Wellbeing Programs
- How to Talk About Hard Decisions During a Recession
- Cost-Effective Health Plan Perks to Consider in 2023
- 3 HR Strategies to Recession-Proof Your Organization
- Responding to Employment Practices Liability (EPL) Claims
- Versatility — Important in Life & Life Insurance
BIZGrowth Newsletter - Economic Slowdown Solutions Special EditionCBIZ, Inc.
The "Economic Slowdown Solutions Special Edition" newsletter includes articles that present tips, strategies and ideas to help your organization master economic uncertainty and recessionary concerns. Topics include:
- Considerations for a Reduction in Force
- Tips to Prepare for Risk Management Challenges
- Tactics to Recession-Proof Your Benefits Strategy
- HR Best Practices
- Recruitment Strategies to Keep You Competitive
- 3 Innovations to Stay Nimble
- Disability Insurance for Business Owners
BIZGrowth Strategies - Cybersecurity Special EditionCBIZ, Inc.
Cyberattacks are becoming more frequent and sophisticated, making a recovery from them increasingly difficult. Without preparation, a cyberattack can be devastating to your business, having severe operational, financial, legal and reputational implications.
The prevalence of cyber breaches also means cybersecurity is no longer solely an IT concern. Elevating your information security from functional to effective takes a robust set of elements, processes and people working together toward a common goal.
Our professionals have developed these articles and resources to help you protect your organization from these attacks.
Connections Help Law Practice Efficiently Obtain $5 Million Line of CreditCBIZ, Inc.
A 15-attorney law firm operated on a contingency and hourly fee basis. While it had a strong outlook for contingency cases, the costs incurred to work...
Custom Communication Plan & Active Enrollment Result in Increased ConsumerismCBIZ, Inc.
The firm embarked on a multi-year strategic plan to build a culture of wellbeing and engagement. They wanted
to educate employees to become more engaged and wise health care consumers...
Experienced Consulting Approach Leads Engineering Firm to the Right CFOCBIZ, Inc.
The Chief Financial Officer of a leading multi-disciplined engineering and consulting
firm indicated he was considering retiring. After initially considering a search process as an in-house project, the company’s leadership agreed...
Check out the latest edition for articles on Preventing Social Engineering Attacks, Triumphing in the Talent War, 3 Signs It’s Time for a Compensation Study, Strategies to Protect Your Retirement & Tips for a Successful OSHA Inspection.
Inflation, Interest Rates & the Disruption to CRECBIZ, Inc.
From assessing the various sectors to analyzing the future of your investments, learn more from our experienced team leaders on the wide-spread trends of commercial real estate property and sales.
CBIZ Quarterly Manufacturing and Distribution "Hot Topics" Newsletter (May-Ju...CBIZ, Inc.
CBIZ Quarterly Manufacturing and Distribution "Hot Topics" Newsletter (May-Jun 2022) provides you with news and guidance on the labor crisis, how to retain top talent during the Great Resignation, the business impacts of the Russia-Ukraine War, and the benefit of long-term bonus plans.
Rethinking Total Compensation to Retain Top TalentCBIZ, Inc.
Even with a developed recruiting program, strong company culture and great work-life balance, it’s difficult for companies to attract and retain the best employees without an all-inclusive compensation strategy. Add in the combination of high inflation, talent shortages and the Great Resignation, and we’re left with a hyper-competitive labor market. As a result, employers must think outside of the box to retain top performers and explore new ways to increase the value of total compensation offered. Learn how in this article.
Common Labor Shortage Risks & Tips to Mitigate Your ExposuresCBIZ, Inc.
No industry is safe from the risks of the current labor market. Employee shortages can influence multiple liabilities, but a proactive strategy can help protect your organization. In this article, learn measures to minimize labor shortage liability risks across all industries, as well as influential industry risks for construction, manufacturing and trucking.
How the Great Resignation Affects the Tax FunctionCBIZ, Inc.
Talent shortages remain a challenge universally, but it may be hitting financial roles within businesses particularly hard. The
pressures to meet tax reform obligations coupled with the
job changeover opportunities that emerged during the Great Resignation have left many tax departments feeling under-resourced. If your company is experiencing a similar situation, here are steps you can take to support your tax function.
While employee turnover is inevitable, there are several strategies companies can implement to help combat the Great Resignation, and at the center of all these strategies is technology that can benefit employers and their staff. In this article, learn how your organization can use technology to enhance the recruiting and onboarding processes, which will help attract top talent, while setting new hires up for success.
Experienced Consulting Approach Leads Engineering Firm to the Right CFOCBIZ, Inc.
The Chief Financial Officer of a leading multi-disciplined engineering and consulting firm indicated he was considering retiring. After initially considering a search process as an in-house project, the company’s leadership agreed to secure the assistance of an executive search professional.
BIZGrowth Strategies - The Great Resignation Special EditionCBIZ, Inc.
The Great Resignation continues to plague organizations across the country. It has exacerbated a host of employer challenges, including attraction, retention and engagement of top talent, as well as mitigating new risks. Our experts have developed these articles and linked resources to help your organization combat the mass employee exodus.
Kansas businesses have an opportunity for state tax incentives of which you may want to be aware.
Recent changes to the Kansas High Performance Incentive Program (HPIP) make it more broadly available
than it was in the past.
CBIZ Quarterly Commercial Real Estate "Hot Topics" Newsletter (Jan-Feb 2022)CBIZ, Inc.
The January 2022 issue of CBIZ’s Commercial Real Estate Quarterly Hot Topics Newsletter is now available! Learn about the impact of changes lease accounting, post-pandemic calculation companies are using to reassess office space needs, tax planning knowns and unknowns and the impact of rising construction costs on insurance costs. Plus – access strategies to combat the great resignation and safeguard against the unexpected.
B2B payments are rapidly changing. Find out the 5 key questions you need to be asking yourself to be sure you are mastering B2B payments today. Learn more at www.BlueSnap.com.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
➢ 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
➢ SUPER JUNIOR-L.S.S. THE SHOW : Th3ee Guys in HO CHI MINH
➢FreenBecky 1st Fan Meeting in Vietnam
➢CHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
➢ WOW K-Music Festival 2023
➢ Winner [CROSS] Tour in HCM
➢ Super Show 9 in HCM with Super Junior
➢ HCMC - Gyeongsangbuk-do Culture and Tourism Festival
➢ Korean Vietnam Partnership - Fair with LG
➢ Korean President visits Samsung Electronics R&D Center
➢ Vietnam Food Expo with Lotte Wellfood
"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
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Are You Ready for the New Tangible Property Rules?
1. Are You Ready for the New Tangible Property Rules?
by
Eustis Corrigan, CPA
Managing Director, CBIZ MHM, LLC
Mike Finnegan, CPA
Managing Director, CBIZ MHM, LLC
Steve Henley, CPA
National Tax Practice Leader, CBIZ MHM, LLC
2. 2
Circular 230 Notice
Any tax advice contained in this program is not intended
to be used and cannot be used for the purposes of
avoiding any penalties that may be imposed by the
Internal Revenue Code.
3. 3
• Area under IRS scrutiny for many years
• Latest attempt to develop some consistency in
treatment of tangible property transactions
– Many favorable changes (i.e. tax deductions available
now)
– IRS wants to make method changes as flexible as
possible
– This is the new law; tax compliance is required
Introduction
4. 4
• IRS has always had interest in the capitalization
vs. deduction of costs related to tangible property
–Original source: Case law
–August 2006: Proposed regulations
–March 2008: Re-proposed regulations
–IRS issued specific audit guidelines for this issue
History and Background
5. 5
• Temporary regulations issued (December 2011)
– Transition guidance issued (March 2012)
• Provides 19 new automatic method changes
• Scope limitations waived for 2012 and 2013
• Required compliance with section 263A
• Large Business & International (LB&I) Directive
issued (March 2012)
– Stand-down order on most repairs and associated
dispositions issues
History and Background, cont.
6. 6
• Final regulations contain the standards for determining
whether and when a taxpayer must capitalize costs
incurred in acquiring, maintaining, or improving tangible
property
– Temp regulations (effective for tax years beg on or after 1/1/12)
– Final Regulations effective for tax years beg on or after 1/1/14
• May be optionally applied for tax years beginning on or after
1/1/12
History and Background, cont.
7. 7
• Proposed Regulations issued 9/19/13 for the
Disposition of Tangible Property portion of these
rules:
– Temporary regulations (currently effective for tax years
beginning on or after 1/1/12):
– Final Regulations to be issued later in 2013
– Effective for tax years beginning on or after 1/1/14
• Proposed regulations may be optionally applied for
tax years beginning on or after 1/1/12
History and Background, cont.
8. 8
• Note that these rules are for “Tangible
Property”
–Not just for tangible personal property
–Improvements to and dispositions of real property
are a significant part of the new rules
–New rules were not designed for intangible assets
• Focus is on depreciable property, materials &
supplies, and repair expenses
History and Background, cont.
9. 9
• Compliance with these new rules may require changes in
methods of accounting for tax purposes
– Transition guidance issued for the Temporary Regulations
• Allows for automatic accounting method changes to get in compliance
with these rules
– Transition guidance expected for the Final Regulations
Accounting Method Changes
10. 10
• Form 3115 is used to request an Automatic Change
– Original Form 3115 is filed as an attachment to the income
tax return and a copy sent to a separate IRS office
– Negative adjustments (decrease to income) are deducted in
year of change
– Positive adjustments (increase to income) are picked up in
income ratably over 4 years
– Transition guidance provides a great deal of flexibility
Accounting Method Changes, cont.
11. 11
• As a result of issuing these new rules, the IRS is expecting
many Forms 3115 to be filed to get in compliance
– IRS stand-down order on audits in this area reflects their
desire to have taxpayers voluntarily make these changes
– Expectation is that after the transition period for making these
changes (tax years beginning 1/1/15) the IRS will begin heavy
examination activity in this area
• Critical to take advantage of the automatic change
provisions now to avoid risk of IRS making changes
• Note that changes in this area may impact other areas and
require further changes (UNICAP, Tax Depreciation…)
Accounting Method Changes, cont.
12. 12
•2 Primary Subject Areas Covered
1) Capitalization and Expensing
• Improvements to Tangible Property
• The de minimis safe harbor election
• Materials & Supplies
2) Dispositions of Tangible Property
• General Asset Account Elections
2 Primary Areas for tax savings and compliance
13. 13
• Critical tax compliance area
• What is a Capitalized Improvement vs. a Deductible
Expense?
Improvements to tangible property
Improvement
Betterment
Restoration
Adapt to new
or different
use
14. 14
• Betterment: In general, an expenditure is a Betterment
and must be capitalized if it has a “material” impact on
the property
– Improves a material defect, is for a material addition, or a
material increase in capacity or quality
• Restoration: In general, an expenditure is a Restoration
and needs to be capitalized if:
– It is for the replacement of a component or returns the property to
its ordinarily efficient operating condition after its class life
• Facts & Circumstances, no bright-line tests but many
examples in the Final Regulations
Improvements, cont.
15. 15
• Key Concept is the Unit-of-Property (“UOP”)
• Taxpayers need to apply the Improvement
Standards to an expenditure made to the UOP
and capitalize the expenditure if it results in a:
– A Betterment to the UOP;
– A Restoration to the UOP;
– Adapts the UOP to a new or different use
Improvements – Unit of Property
16. 16
• Regulations attempt to make the UOP as small as
possible and splits the UOP into 2 main parts:
1. For property other than buildings -- adopts the functional
interdependence standard
• Plant property further broken out based on “discreet and
major function”
2. For Buildings and its Structural Components -- defines the
UOP as the building structure but further breaks the
structure into specified building systems which are
separate UOP’s
• Building systems are a new concept under these rules
Improvements – Unit of Property, cont.
17. 17
• Building Systems are the following building structures:
– (1) HVAC
– (2) Plumbing systems
– (3) Electrical systems
– (4) Escalators
– (5) Elevators
– (6) Fire protection and alarm systems
– (7) Security systems
– (8) Gas distribution systems
– (9) Other structural components identified in published
guidance
What is a Building System?
18. 18
• To determine if an expenditure must be capitalized as an
improvement to a building look at whether the expenditure
improves a building system, if not, then whether it
improves the building and its structural components
– Building systems are simply building structural components
that need to be considered independently in determining if an
expenditure needs to be capitalized as an “improvement”
– Effectively results in a smaller “unit-of-property”
– Taxpayer may have difficulty breaking out the appropriate
“building system” from its records if only the total building
cost is recorded
Improvements to Buildings
19. 19
• Example of applying the improvement standards to the
roof of a building:
– A building structure is a single unit of property: whether the
replacement of certain roof components constitutes a
capitalized improvement is determined by considering the
effect on the building structure, rather than the effect on the
roof
– The roof is part of the building structure, it is not a building
system, therefore the entire building structure is the
appropriate UOP to apply the improvement standards
Example: Improvements to a Building - Roof
20. 20
• Example of applying the improvement standards
to an elevator in the building:
– If a taxpayer performs maintenance on one or more of the
building's elevators, whether those costs are deductible
repairs or capital improvements depends on the
expenditures' effect on the building's elevator system, not
on their effect on the entire building
– The elevator system is a building system, therefore the
elevator system is the appropriate UOP to apply the
improvement standards
Example: Improvements to a Building - Elevator
21. 21
• The safe harbor election is for building property held by
taxpayers with gross receipts of $10 million or less
• A qualifying small taxpayer can elect to not apply the
improvement rules to an eligible building property (basis
of $1 million or less) if the total amount paid during the
taxable year for repairs, maintenance, improvements, etc.
does not exceed the lesser of:
– $10,000 or
– 2 percent of the unadjusted basis of the building
Safe harbor for small taxpayers
22. 22
• The safe harbor is elected annually on a building-by-
building basis by including a statement on the taxpayer’s
timely filed original Federal tax return for the year the
costs are incurred for the building
• Amounts paid by the taxpayer to which the taxpayer
elects the safe harbor are not treated as improvements to
the building, provided the amounts otherwise qualify for
deduction
• Should prove a popular election with rental properties
Safe harbor for small taxpayers, cont.
23. 23
• The Safe Harbor for Routine Maintenance applies to
expenditures to keep the property in its ordinary and
efficient operating condition (i.e. does not result in a
betterment)
• Applies to personal property and buildings
• Qualifying expenditures can be deducted currently
• A Routine Maintenance expenditure qualifies as routine if
the taxpayer reasonably expects to perform the activities:
• For personal property more than once during the life of
the property
• For buildings, more than once over a 10 year period from
when the building is placed in service
Safe Harbor for Routine Maintenance
24. 24
• Apply the new UOP rules to existing capitalized assets
– There is a method change to write off prior capitalized
assets that would not need to be capitalized under these
new rules
– Note: for open tax years need to consider whether
expenditures that were deducted should have been
capitalized (method change is available to capitalize)
• Consider if the safe harbor for small taxpayers will apply
– This is new to the Final Regulations so we need to see the
transitional guidance to see how this is implemented
– May require an accounting method change
Improvements: Tax savings opportunities
25. 25
• For capitalized maintenance expenditures to personal
property and buildings, consider if the Routine
Maintenance Safe Harbor would apply
– Look at Restoration-type expenditures
– There is a method change to write off prior capitalized assets
that would not need to be capitalized under these new rules
• Final Regulations added an election to capitalize otherwise
deductible repairs & maintenance
– New to the Final Regulations; need to see the transitional
guidance
Improvements: Tax savings opportunities, cont.
26. 26
• With the change in the tax rules for what is capitalized, will the
book accounting policies need to be changed?
– Will the write-off of prior capitalized amounts also be reflected on
the books?
– Will the Routine Maintenance Safe Harbor be followed for book
purposes?
– Increased scrutiny of repairs & maintenance expenses is required
• The Improvement rules are the new tax law in this area and
future expenditures need to be applied to the appropriate UOP
to determine if there is a capitalized improvement or a
deductible expense
– Taxpayers must have a methodology for breaking out the “building
system” in order to apply the improvement standards
Improvements: compliance considerations
27. 27
• The Code or Regulations have never condoned the
use of a de minimis rule for expensing costs that
were otherwise required to be capitalized
• Most taxpayers relied on agreements from prior IRS
audits
• The new de minimis safe harbor applies to:
– Amounts paid to acquire or produce a unit of real or
personal property
– Materials & supplies (discussed later)
The De minimis safe harbor election
28. 28
• De minimis safe harbor -- an annual election that permits
a taxpayer to currently deduct otherwise capital
expenditures (including materials & supplies) if the
taxpayer:
– (1) has an “accounting policy” (at the beginning of the tax
year) that requires expensing of items that cost no more than
a specified dollar amount for book purposes, and
– (2) consistently applies that policy for book purposes.
• Critical that book and tax treatment of small dollar items be
understood
De minimis safe harbor, cont.
29. 29
• Both requirements must be satisfied to deduct
amounts otherwise required to be capitalized
• The ceiling for the de minimis safe harbor depends
on whether the taxpayer has an Applicable Financial
Statement “AFS”
– AFS is an Audited statement
– AFS is also a financial statement required to be
provided to the Federal or State government or their
agencies (consider bonding agencies for
contractors????)
De minimis safe harbor, cont.
30. 30
• The de minimis safe harbor uses an invoice test:
• Taxpayers with an AFS: A taxpayer may rely on the de
minimis safe harbor only if the amount paid for property
does not exceed $5,000 per invoice or per item as
substantiated by the invoice;
– Note accounting policy must be written
• Taxpayers without an AFS: A taxpayer may rely on the
de minimis safe harbor only if the amount paid for
property does not exceed $500 per invoice or per item
as substantiated by the invoice;
– Note accounting policy just needs to “exist”
De minimis safe harbor, cont.
31. 31
• Under the Temporary Regulations, the de minimis rule
required an accounting method change
• Under the final regulations, it is an annual election
• The implementation guidance will let us know if a method
change is required
• Since the de minimis rule requires the policy to be in
existence at the beginning of the tax year, to utilize this rule
the policy needs to be prepared in 2013 for 2014 tax years
– For an AFS and the $5,000 ceiling it must be written
– Without an AFS and the $500 ceiling it just must be in place
De minimis safe harbor, cont.
32. 32
• Elect the de minimis safe harbor
– Will provide some protection during an IRS exam for the
deduction taken on small dollar items
– Can still deduct amounts above the safe harbor ceiling
amount, but will not have the same protections
– Book ceiling can be larger than allowed for tax, but the
safe harbor protection is limited to the ceiling provided in
the Regulations
– Annual election to be attached to return
De minimis safe harbor: Tax savings opportunities
33. 33
• Use of the de minimis safe harbor requires that the
taxpayer have an accounting policy (at the beginning of
the tax year) that requires expensing of items that cost no
more than a specified dollar amount for book purposes and
that it is followed consistently (written policy for an AFS)
• Need to be aware of the various P&L general ledger
accounts (including materials & supplies) that are impacted
by the de minimis safe harbor to ensure all applicable
expenditures are considered
• Note that the book policy of deducting amounts below the
policy ceiling needs to be followed consistently
De minimis safe harbor: compliance considerations
34. 34
• Same distinction must still be made:
– Non-incidental materials and supplies
• deductible in the taxable year in which the materials and
supplies are used or consumed in the taxpayer's operations
– Incidental materials and supplies
• no record of consumption or physical inventory kept
• deductible in the taxable year in which these amounts are paid,
provided taxable income is clearly reflected
• Materials & supplies generally must be treated as
non-incidental, unless they are “incidental”
Materials & Supplies
35. 35
• The regulations have provided a specific definition of
materials & supplies
– The regulations do not provide a definition of incidental or
non-incidental
• Taxpayers can use this definition to avoid capitalizing and
depreciating as a UOP
– Under the Final Regulations, cannot elect to capitalize and
depreciate materials & supplies
• Records must be kept to determine year of consumption
(i.e. the year deductible)
– Year of deduction may be impacted by UNICAP
Materials & Supplies, cont.
36. 36
• Definition -- Tangible property (other than inventory) used
or consumed in a taxpayers operations and that:
– Are components acquired to maintain, repair, or improve a UOP;
– Consists of fuel, lubricants, water, and similar items, that are
reasonably expected to be consumed in 12 months or less,
beginning when used in taxpayer's operations;
– Is a UOP that has an economic useful life of 12 months or less,
beginning when the property is used or consumed in the
taxpayer's operations;
– Is a UOP that has an acquisition cost or production cost of $200 or
less; or
– Is identified in published guidance as materials and supplies for
which treatment is permitted under this section
Materials & Supplies, cont.
37. 37
• Coordination with the de minimis safe harbor:
–The final regulations require that the de minimis
safe harbor be applied to all eligible materials and
supplies if the taxpayer elects the de minimis safe
harbor
–Exception for rotable, temporary, and standby
emergency spare parts that are subject to a
separate election to capitalize
Materials & Supplies, cont.
38. 38
• Automatic accounting method changes are
available to change the treatment of materials and
supplies to incidental from non-incidental, and
vice-versa
• If the de minimis safe harbor is elected –
beneficial if taxpayer treats all materials &
supplies as incidental
Materials & Supplies: Tax savings opportunities
39. 39
• IRS will utilize the definition of materials and supplies and
may determine incidental supplies are non-incidental
(issue if de minimis safe harbor is not elected)
• Consumption records need to be kept for non-incidental
supplies
• Tax accounting treatment may differ from book accounting
• Coordination with UNICAP is needed since materials and
supplies generally are subject to UNICAP
• Recordkeeping considerations if materials & supplies are
included in the de minimis safe harbor
Materials & Supplies: compliance considerations
40. 40
•2 Primary Subject Areas Covered
1) Capitalization and Expensing
• Improvements to Tangible Property
• The de minimis safe harbor
• Materials & Supplies
2) Dispositions of Tangible Property
• General Asset Account Elections
2 Primary Areas for tax savings and compliance
41. 41
• There are new proposed regulations and older temporary
regulations that deal with this area
• The proposed regulations appear to be similar to the
temporary regulations
• Issue: there is not any form of implementation guidance
for the proposed regulations
• Taxpayers can rely on the proposed regulations starting
in tax years beginning 1/1/12
• The Final Regulations may be issued by the end of the
year
Dispositions of tangible property
42. 42
• *** This is the biggest opportunity for tax savings***
• The Proposed Regulations define a disposition similar to the
Temporary Regulations but include a concept called a
“Partial Disposition”
• There is an election that can be made where the loss on the
partial disposition is taken and the replacement expenditure
is capitalized
• The loss is allowed on:
1. A structural component (or a portion thereof) of a building, or
2. The disposition of a major component (or a portion thereof) of
any other asset
Dispositions of tangible property, cont.
43. 43
• There are many examples in the proposed regulations
illustrating the impact of the Partial Disposition Election
– Included in the examples are the replacement of an
elevator, the replacement of aircraft engines and the
replacement of truck engines.
• The Partial Disposition Election is made on the
taxpayer’s timely filed original Federal tax return,
including extensions, for the taxable year in which the
portion of the asset is disposed of by the taxpayer
Dispositions of tangible property, cont.
44. 44
• If the partial disposition election is not made, the original
component continues to be depreciated
– The replacement expenditure needs to be reviewed under
the betterment and restoration improvement standards to
determine if it needs to be capitalized
– Under the temporary regulations, the original, replaced
component cannot continue to have depreciation taken
• In no case can a taxpayer take the loss on the component
disposition and also deduct the replacement expenditure
• In effect, cannot take a repair expense and a disposition loss
Dispositions of tangible property, cont.
45. 45
• How is the adjusted basis of the disposed component
determined?
– Typically, taxpayers include only a single asset in their fixed
asset systems for a building and for most personal property
assets leaving them with no way to determine the cost basis
of a certain component of those assets
– The Temporary Regulations provided that, if the taxpayer
cannot determine the unadjusted depreciable basis from its
books and records, the taxpayer may use any reasonable
method that is consistently applied
Dispositions of tangible property, cont.
46. 46
• The Proposed Regulations provide more guidance on
reasonable methods:
– A study (including a “cost-seg”) allocating the cost of the asset
to its individual components;
– Discounting the cost of the replacement asset to its placed-in-
service year cost using the Consumer Price Index; and
– A pro rata allocation of the unadjusted depreciable basis of the
general asset account or multiple asset account, as
applicable, based on the replacement cost of the disposed
asset and the replacement cost of all of the assets in the
general asset account or multiple asset account, as applicable
Dispositions of tangible property, cont.
47. 47
• The Temporary Regulations had the individual building
structures as the asset for disposition purposes
• Under the Proposed Regulations, the building is the asset
for disposition purposes
– This has the same practical impact as the GAA
election had from the Temporary Regulations in that it
allows for disposed structures to continue to be
depreciated;
• Therefore the GAA election is likely not needed under the
proposed regulations
General asset accounts (“GAA”)
48. 48
• Opportunity: The implementation guidance issued for the
Temporary Regulations, allowed for accounting method
changes to be filed to write off prior year building structure
dispositions
– This would be consistent with the goal of stopping the
depreciation of an asset and its replacement
– The temporary regulations only apply to building structures
• There will likely not be implementation guidance issued for
the proposed regulations, so it is unclear how the final
regulations will treat prior year dispositions, but
conceptually this should be allowed
Prior year dispositions of building structures
49. 49
• To take advantage of this opportunity under the
temporary regulations, an analysis must be made of the
real property assets on the tax depreciation schedule to
determine if there was a prior year disposition of a
building component
– If so, figure out the loss or stop depreciating
– In most cases, taking the loss deduction is preferable
to losing depreciation
Dispositions in prior years, cont.
50. 50
• Dispositions of prior year building structures under the
temporary regulations:
– Review tax depreciation records for clients with multiple
year 27.5-year or 39-year real property additions
• Could be evidence of a replacement of a structural
component and a loss can be taken (or depreciation must
be stopped)
– Also, look for multiple year 15-year land improvement
additions
• Could be evidence of a replaced land improvement and a
loss can be taken (or depreciation must be stopped)
Dispositions: Tax savings opportunities
51. 51
• Since the partial disposition removes that part of the
depreciable asset from the tax depreciation records, an
opportunity for future tax savings exists:
– The accumulated depreciation of the disposed asset is
no longer on the tax depreciation schedule;
– In a future sale of the property at a gain, this will
remove some future potential depreciation recapture
(§1250 or §1245) and more of the gain could be taxed
at the more favorable long-term capital gains rate
• This could be very valuable to pass-through entity owners
Dispositions: Tax savings opportunities, cont.
52. 52
• Remember that these disposition rules apply to many
types of businesses, as well as individuals that own
rental properties
– This could be an instance where individual taxpayers
file an accounting method change with their personal
return (i.e. an individual that has rental properties)
• These rules apply to capitalized leasehold
improvements if you do not own the building
Dispositions: Tax savings opportunities, cont.
53. 53
• With the change in the tax rules allowing for building
structure and significant component dispositions, will
the book accounting policies need to be changed?
– How will the tax law change to “componentizing” fixed
assets be treated under GAAP
– Will the write-off of prior year building structure
dispositions also be reflected on the books?
• Need to come up with the adjusted basis of the asset
disposed under the partial disposition election
Dispositions: compliance considerations
55. 55
• In order to be compliant with these new rules a
review of the following is required
– Tax Depreciation records
– Repair & maintenance account detail
– Materials & supplies expense detail
– Book capitalization policy
– UNICAP calculations
– Prior 3115’s impacting the above
– Prior cost-segregation studies
Taxpayer records to be reviewed
56. 56
• Section 263A UNICAP conformity requirement
• Optional application of temp/final/proposed rules
– 2012, 2013, 2014
• Repairs studies have been a Tier 1 issue; will continue to
receive IRS exam focus
• Prior repairs studies need to be evaluated
• IRS will continue to address industry-specific issues via
Industry Issue Resolution (“IIR”) process
Priority Considerations
57. 57
• Impact on DPAD deduction
• For individuals, deduction may decrease passive income
or increase passive losses (3.8% tax to be considered)
• Fixed assets/cost segregation
• State and Local Tax
– Apportionment factors
– Personal property taxes
• Impact on systems and processes
– G/L accounts
– Coding
Other Collateral Considerations
58. 58
• Tax savings are a likely result
• Effective for years beginning on or after 1/1/14, but early adoption is
possible
• 2 Primary Subject Areas
1. Capitalization and Deduction:
• Improvements to Tangible Property (incl. Routine maintenance safe
harbor)
• The de minimis safe harbor
• Materials & Supplies
2. Disposition of Tangible Property
• Automatic method changes available to assist in getting compliant
with these rules
Recap
59. 59
Summary/Key Takeaways
• Be aggressive in applying these rules:
– Tax savings opportunities -- Many changes will result in a
reduction to income
– Compliance and Risk Management – Taxpayers need to be
aware of tax return positions and risks
– Always consider UNICAP impact
• Learn the rules – the changes required are fact-based so taxpayers
and practitioners will need to be well versed in order to apply them
• Understand the impact these rules will have on accounting systems –
most tax accounting follows book accounting where capitalization is
concerned
– These rules may change a taxpayer’s book accounting or cause a
book versus tax difference
61. 61
Upcoming Webinars – Save the Date
Eye on Washington: Quarterly Business Tax Update (3rd Quarter) on
Wednesday, October 30th from 2:00 – 3:00 ET
Registration will be available closer to webinar date.
62. 62
CBIZ MHM, LLC Contact Information
Eustis Corrigan
Managing Director
901.842.2876 ecorrigan@cbiz.com
Mike Finnegan
Managing Director
602.650.6205 mfinnegan@cbiz.com
Steve Henley
National Tax Practice Leader
770.858.4443 shenley@cbiz.com