Author: Ivan Tax

Feb 15, 2024 Maximum §179D Deduction Increased to $5.65 for 2024

The §179D Energy Efficient Commercial Building Deduction is a federal tax incentive encouraging energy efficient construction by providing building owners and designers with substantial financial benefits. An exciting aspect in 2024 is the inflationary increase of the maximum §179D Deduction to $5.65 per square foot for projects meeting the prevailing wage and apprenticeship requirements and $1.13 per square foot for those that do not. In 2023, the maximum deduction was $5.36 per square foot and $1.07 per square foot, respectively. In 2022 and prior years, the maximum deduction ranged between $1.80 to $1.88 per square foot....

Jan 18, 2024 The R&D Tax Credit Stands to Benefit from the Proposed Tax Act

The proposed Tax Relief for American Families and Workers Act of 2024 changes the period for when companies must start the five-year period for the deduction of research and experimental expenditures from tax years beginning after December 31, 2021, to tax years beginning after December 31, 2025....

Dec 22, 2023 How Cost Segregation Can Widen the Short-Term Rental Loophole

The short-term rental loophole allows investors in vacation homes and similar properties to offset wage income with accelerated tax deductions generated by cost segregation studies. The article titled "Expanding the Short-Term Rental Loophole with Cost Segregation," co-written by Alex Bagne, President of ICS, details the mechanics of this beneficial tax strategy....

Nov 1, 2023 2023 ASCSP Annual Conference

The American Society of Cost Segregation Professionals (ASCSP) just concluded its annual conference in Washington, DC. ICS Tax, LLC sent three of its cost segregation professionals, Alex Bagne, Roel Vicerra and Luis Barreira to stay abreast of developments within this ever changing industry. Alex Bagne, a Certified Cost Segregation Professional (CCSP) and the past ASCSP President, lead several sessions which covered the Alternative Depreciation System, updates to the 179D commercial and 45L residential energy efficiency incentives, and an Anatomy of a Cost Segregation Audit. He also reprised his role of Alex “TreBagne” and hosted Cost Segregation Jeopardy....

Sep 21, 2023 What does Notice 2023-63, Guidance on the New R&D Amortization and Capitalization Requirements, Mean for Taxpayers?

On September 8, 2023, the Internal Revenue Service (“IRS”) and Department of the Treasury (“Treasury”) released an advance version of Notice 2023-63. This Notice provides interim guidance intended to clarify the amortization and capitalization of specified research and experimental (“SRE”) expenditures under Section 174, amended by the Tax Cuts and Jobs Act (TCJA) in 2017. Proposed regulations provide rules consistent with the guidance for tax years ending after September 8, 2023. Until those regulations are provided, tax professionals can rely on interim guidance....

May 22, 2023 Roel Vicerra joined ICS as Cost Segregation Senior Manager

ICS Tax, LLC is pleased to announce that Roel Vicerra has joined our team as a Cost Segregation Senior Manager. Based in Houston, Texas, Roel brings over a decade of experience in the cost segregation industry. He is an associate member of the American Society of Cost Segregation Professionals and is currently pursuing his credential as a Certified Cost Segregation Professional....

May 16, 2023 360 Paint Supply. Denton, Texas.

ICS Tax Engagement Review: 360 Paint Supply. The directors at ICS demonstrate strong character and principles. They made our experience wonderful....

Mar 31, 2023 IRS Warns Taxpayers on Deceitful Employee Retention Credits Service Providers

The IRS has publicly issued several warnings on the aggressive promotion of the Employee Retention Credits, even making it onto their 2023 Dirty Dozen list of tax scams. Many ERC promotions can be based on misleading information related to eligibility and credit calculations. Radio and internet ads promising guaranteed credits should be scrutinized. "… there are promoters misleading people and businesses into thinking they can claim these credits. People should remember the IRS is actively auditing and conducting criminal investigations related to these false claims. We urge honest taxpayers not to be caught up in these schemes," said IRS Commissioner Danny Werfel. ...

Mar 15, 2023 Tax Court Case: Engineering Firm Overstated §179D Energy Efficient Commercial Building Property Deduction

In a recent case, Michael Johnson, et ux. v. Commissioner, the tax court denied the majority of a taxpayer’s Energy Efficient Commercial Building Deduction under IRC §179D since it claimed a §179D Deduction exceeding the cost of the Energy Efficient Commercial Building Property (EECBP)....

Mar 6, 2023 New IRS Form 7205 for the §179D Energy Efficient Commercial Building Deduction

The IRS recently published Form 7205 and the corresponding Instructions for taxpayers claiming the §179D Energy Efficient Commercial Building Deduction. In prior tax years, the §179D Deduction was listed as an Other Deduction, but the new Form 7205 allows qualified business entities and individuals to claim the deduction under section 179D....