IRS Releases Proposed Regulations Addressing Purported Charitable Contributions in Exchange for State and Local Tax Credits
On August 23, 2018, the IRS released proposed regulations under section 170, which allows deductions for certain charitable contributions. The regulations are in response to plans by some states to circumvent the $10,000 deduction limitation for state and local taxes imposed by the Tax Cuts and Jobs Act by offering tax credits for contributions to certain government programs. The...Presentation by Proposed Section 168(k) Regulations Team Provides Insight Into Significant Policy Decisions
Posted on Aug 21, 2018 in Presentations, Tax Accounting
On August 21, 2018, the Federal Bar Association hosted at Eversheds Sutherland’s Washington, D.C. office, a panel discussion with the team of IRS and Treasury professionals who drafted the proposed regulations for section 168(k). Kathy Reed and Betsy Binder of the IRS Office of Chief Counsel were joined by Ellen Martin of the Department of the Treasury, as well as Barbara Young, Vice...
IRS Releases Interim Guidance for Unrelated Business Taxable Income
Posted on Aug 21, 2018 in Individual Taxation, News
The IRS released Notice 2018-67, which provides interim guidance addressing section 512(a)(6). Section 512(a)(6), added by the Tax Cuts and Jobs Act, requires a taxpayer to calculate its unrelated business taxable income separately for each unrelated trade or business in which the taxpayer is engaged. In determining whether a taxpayer has more than one trade or business, the Notice...
Federal Register Publishes Proposed Passthrough Deduction Regulations
On August 16, 2018, the Federal Register published the Treasury and the IRS’s proposed passthrough deduction regulations. The regulations provide guidance on section 199A, which grants up to a 20% deduction for certain business income with respect to individuals and passthrough entities. The publication in the Federal Register begins the comment period for the proposed regulations, and...Federal Register Publishes Proposed Transition Tax Regulations
Posted on Aug 9, 2018 in International Tax, News
On August 9, 2018, the Federal Register published the Treasury and the IRS’s proposed transition tax regulations. While the IRS had made an initial draft of the proposed regulations available for review, publication in the Federal Register begins the comment period for the proposed regulations. Comments on the proposed regulations must be received by October 9, 2018. Read More: Federal...
Proposed Pass-Through Deduction Regulations Released
The IRS has released proposed regulations on section 199A, a provision added by the Tax Cuts and Jobs Act that provides a deduction for certain qualified business income with respect to individuals and pass-through entities. Read more: IRS issues proposed regulations on new 20 percent deduction for passthrough businesses; REG-107892-18.AICPA and CIMA US Tax Reform Conference 2018
Posted on Aug 7, 2018 in International Tax
Eversheds Sutherland is the proud lead sponsor of the Association of International Certified Professional Accountants (AICPA) and the Chartered Institute of Management Accountants (CIMA) US Tax Reform Conference 2018 on September 17, 2018, at the Jumeirah Carlton Tower Hotel in London, United Kingdom. The US and International Eversheds Sutherland Tax team will be chairing the event and...
Regulations on Bonus Depreciation Are Mostly as Expected
Posted on Aug 7, 2018 in News, Tax Accounting
The proposed regulations addressing section 168(k) bonus depreciation largely conform to expectations, however there were a few unanticipated elements. In her recent comments to the press, Ellen McElroy of Eversheds Sutherland (US) LLP highlighted the IRS’ failure to address the drafting error that left qualified improvement property ineligible for bonus depreciation. McElroy also...
Proposed Full Expensing Regulations Released
Posted on Aug 3, 2018 in News, Tax Accounting
The IRS has released regulations on the full expensing provisions under section 168(k), as amended by the Tax Cuts and Jobs Act. That section allows businesses to fully expense certain business assets. Read more: REG-104397-18.
Full Expensing Regulations Ready for Publication
Posted on Jul 31, 2018 in Tax Accounting, Uncategorized
On July 30, 2018, the Office of Management and Budget (“OMB”) waived its review of the Internal Revenue Service’s (“IRS”) proposed regulations that implement the full expensing provisions of the 2017 tax act. The full expensing provisions allow temporary 100% expensing for certain business assets. With the OMB review complete, the IRS may publish the proposed regulations in the Federal...
OMB’s Review of 199A Regulations to Be Completed in Ten days
Posted on Jul 25, 2018 in News, Pass-through Taxation
Last week, the Office of Management and Budget’s Office of Information and Regulatory Affairs (OIRA) received draft proposed computational section 199A regulations from Treasury. OIRA’s expedited deadline for this review is ten business days after receipt of all necessary information, subject to extension as agreed with Treasury. Guidance sent to OIRA is generally subject to a 45-day...
Nunes’s Proposed Legislation Would Consider Inflation in Determining Capital Gains Tax
Posted on Jul 23, 2018 in Individual Taxation, News
Devin Nunes, a Republican member of the House Ways and Means Committee, has introduced legislation to index capital gains for inflation. Under Nunes’s legislation, the tax basis of a capital asset for purposes of calculating capital gains would be adjusted for inflation. Republican Senator Ted Cruz has introduced similar legislation in the Senate, and Congressional Republicans are...
The Tax Cuts and Jobs Act Could Impact Intangible Valuation
Thomas Amendolari, a senior economist at the Treasury Department, recently stated that many of the fundamental aspects of determining the discount rate, for purposes of valuing intangible transfers under the section 482 regulations, may be affected by the 2017 TCJA. While the economic effects of the TCJA may increase discount rates, Amendolari noted that it is not yet certain and...David Kautter Announces that Guidance on the Section 199A Pass-through Deduction will be Released in Weeks
On July 17, 2018, David Kautter, the acting Commissioner of the Internal Revenue Service (“IRS”), announced that the Treasury Department is currently reviewing guidance under section 199A and anticipates the guidance to be released within weeks. Kautter further stated that the IRS is treating the section 199A deduction, the section 59A base erosion and anti-abuse tax (“BEAT”), and the...Brady Announces that the Outline of Phase 2 of Tax Reform will be Released Next Week
Posted on Jul 18, 2018 in Individual Taxation, News
Kevin Brady, Chairman of the House Ways and Means Committee, announced on July 18, 2018 that an outline of the “phase 2” tax reform legislation will be released during the week of July 23rd. Brady also stated that the phase 2 legislation will not include any technical corrections or refinements to the 2017 tax act and that the focus of the legislation will be to make permanent the...