Accounting Methods Archives

Mar 6, 2026 Real Estate Tax Incentives and Planning Strategies Under the One Big Beautiful Bill Act (OBBBA)

The One Big Beautiful Bill Act (OBBBA), enacted July 4, 2025, significantly reshapes real estate tax planning by accelerating deductions while narrowing energy incentives. The Act permanently restores 100% bonus depreciation under §168(k), allowing immediate expensing of qualified property, including assets identified through cost segregation studies. New §168(n) enables full expensing of qualifying portions of newly constructed nonresidential buildings used in manufacturing and production, creating major benefits for industrial and logistics projects. OBBBA also permanently restructures the Opportunity Zone program with rolling 10‑year designation cycles and enhanced rural incentives, including a 30% basis step‑up through Qualified Rural Opportunity Funds. §179 expensing limits increase to $2.5 million, further supporting capital investment. At the same time, OBBBA accelerates the sunset of key energy credits, making careful timing and proactive planning between 2025 and 2031 essential to maximize tax benefits and after‑tax cash flow....

Nov 18, 2024 Accounting Methods Webinar November 2024

Alex Bagne, President of ICS, recently hosted a webinar on accounting methods in November 2024. The webinar drew an audience of over 1,000 participants, and we are now contributing our expertise by publishing answers to your accounting methods Accounting methods are the rules used to report income and expenses for tax purposes. A change in accounting method includes any adjustment to a taxpayer’s overall method of accounting. The IRS requires taxpayers to adopt an accounting method that accurately reflects their income and to consistently apply it year after year. As a tax planning tool, accounting methods help taxpayers implement cost segregation studies and energy efficiency incentives, adopt beneficial provisions of the Tangible Property Regulations, and numerous other tax minimization strategies. ...

Nov 10, 2022 Accounting Methods at CCH Connections User Conference

Alexander Bagne, JD, CPA, MBA, CCSP, is presenting accounting methods at the CCH Connections: User Conference in Tampa, Florida. The conference provides the skills, tools, and community that helps improve tax and accounting professionals. Alex’s presentation explains how accounting methods serve as a powerful mechanism to implement valuable tax strategies as well as how to maintain compliance or remove IRS audit exposure. ...

Jan 28, 2022 Accounting Methods Webinar Q&A January 2022

An accounting method refers to the set of rules used to report income and expenses for taxation purposes. Alex Bagne recently held a webinar on accounting methods and we are providing answers to your accounting methods questions...

Dec 16, 2021 Accounting Methods Webinar Questions and Answers December 2021

Nov 24, 2020 IRS Issued Final Regulations on Sec. 1031 Like-Kind Exchanges, Provides Definition of Real Property, Addresses Taxpayer’s Receipt of Personal Property Incidental to Real Property

The IRS released final regulations providing guidance under IRC Sec. 1031 to implement recent changes for like-kind exchanges. Sec. 1031 allows for the deferral of gain recognition on the sale of business property if the relinquished property is replaced with a similar type of property. Prior to the Tax Cuts and Jobs Act (TCJA), both personal property and real property qualified for like-kind exchange treatment, but now only real property qualifies....

Aug 3, 2020 Temporary Procedures Allow Taxpayers to Fax Required Duplicate Copy of Form 3115, Application for Change in Accounting Method

Due to COVID-19 concerns, the IRS has provided temporary procedures that allow taxpayers to fax the required duplicate copy of Form 3115, Application for Change in Accounting Method, when making an accounting method change using the automatic consent procedures....

Nov 11, 2019 IRS Publishes Updated List of Automatic Accounting Method Changes in Rev. Proc. 2019-43

The IRS recently published Rev. Proc. 2019-43, which is an updated list of automatic accounting method changes....

Mar 29, 2018 Tax Reform is Here: What You Must Know About Accounting Methods

Simply put, accounting methods are how income and expenses are reported for tax purposes. Changing a taxpayer’s accounting method may seem as easy as switching a setting in QuickBooks, but it’s actually a complex process that requires knowledgeable, experienced professionals to help organizations deal with the required IRS formalities....

Feb 4, 2018 Tax Reform and Real Estate Investors: Insights and Misconceptions

With the signing into law of the Tax Cuts and Jobs Act (the “Act”), Congress has enacted the biggest tax reform law in thirty years, one that will make fundamental changes in the taxation of businesses, particularly those who own real estate. For real estate investors, there are numerous opportunities to reduce tax, but there are also several misconceptions....