Learn the latest tax strategies as well as happenings at ICS Tax, LLC

Alex Bagne and Mike Piper presented tax planning strategies specifically for the construction industry at the Columbus Contractors Network’s Construction Success workshop. See additional information here: www.columbuscontractorsnetwork.com.

BACKGROUND

The IRS recently released an Audit Techniques Guide titled “Capitalization of Tangible Property”. Audit Techniques Guides (ATGs) help IRS examiners during audits by providing insight into issues unique to specific industries. While designed to provide guidance for IRS employees, these guides are useful to business owners and tax professionals as they are more reader-friendly than the code and regulations, and they often discuss the implications of case law as well as other relevant authorities.

WHAT THIS MEANS TO TAXPAYERS

The Capitalization of Tangible Property ATG deals primarily with issues related to the Tangible Property Regulations (TPRs). In March of 2012, the IRS issued a directive that suspended current field examinations on the repair vs. capitalization issues to permit taxpayers to file accounting method changes under recently issued temporary regulations and revenue procedures. The IRS has since been lenient on examination of TPR issues to allow taxpayers time to adopt the new rules. The new ATG shows that the IRS has renewed interest in auditing TPR issues to ensure proper compliance.

HOW CAN ICS TAX HELP?

ICS Tax has nationally-renowned experts in the Tangible Property Regulations that can assist with compliance-related issues as well as take advantage of several new, taxpayer-friendly provisions. For more information, please contact an ICS Tax representative.

Click below to view the full Audit Techniques Guide

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The ICS Tax, LLC sister company, ICS Consulting, Inc., was just named one of the Minneapolis/St. Paul Business Journal’s Best Places to Work in 2016 for the second year in a row! Click here for more information.

ICS is providing specialty tax and cost segregation related services for Ted Glasrud Associates, a Twin Cities based property management and development firm, for approximately 2 million square feet of commercial and industrial space.

ICS Tax president Alex Bagne co-published an article on Avoiding Recapture Tax in Cost Segregations, featured in the AICPA’s Tax Insider newsletter. The recapture tax rules require taxpayers to pay back any tax deductions for accelerated depreciation when appreciated property is sold. While the effects of a cost-segregation study can magnify recapture issues, tax professionals should consider a number of worthwhile opportunities to reduce or avoid recapture tax that would otherwise be realized upon sale of property. To learn more, please click here.

ICS happy to announce that we are working on behalf of Eide Bailey, LLP to provide specialty tax consulting services for the Scheels All Sports facilities portfolio.

ICS Tax President Alex Bagne coauthored an article on the Tangible Property Regulations in “Disclosures” magazine, a publication by the Virginia Society of CPAs.

Click below to view the article.

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Taxpayers can realize significant benefits under the Tangible Property Regulations by identifying and removing building components that have been replaced or demolished by writing off and taking a loss upon the undepreciated basis. Valuing the cost of the replaced or demolished building component requires a careful understanding of these regulations. Alex Bagne coauthored an article for Bloomberg BNA on Dispositions of Tangible Property-IRS Restricts Use of Discount Value Approach. Click below view the article.

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