September 2018 Article Archives

FASB Proposes Tweaks for Leasing Standard

Published on September 04, 2018

The Financial Accounting Standards Board is proposing to make a number of narrow improvements in the lease accounting standard as public companies get ready for it to take effect at the end of the year.

The proposal aims to reduce some of the costs and implementation headaches of applying the leasing standard. It would also clarify a specific requirement in the standard related to lessor accounting with sales taxes and other similar taxes collected from lessees. The new guidance would allow lessors, as an accounting policy election, to not evaluate whether these taxes are costs of the lessor or costs of the lessee. Instead, a lessor could account for them as costs of the lessee and exclude the amounts from lease revenue and the associated expense.

Read More >>

Treasury and IRS Propose Regulations for Increasing Depreciation Deduction to 100%

Published on September 04, 2018

The Treasury Department and the Internal Revenue Service proposed regulations to increase and expand the first-year depreciation deduction for qualified property from 50 to 100 percent, carrying out a provision of the Tax Cuts and Jobs Act.

The tax code overhaul, which Congress passed last December, increased the first-year depreciation deduction from 50 to 100 percent for qualified property acquired and placed in service after Sept. 27, 2017. The increased benefit aims to expand opportunities for small and midsized businesses to expense equipment purchases and make capital investments in their companies. The proposed regulations are among a litany of rulemaking that the Treasury and the IRS are expected to roll out in the years ahead to implement various provisions of the far-reaching tax overhaul.

Read More >>

Qualified Business Income Deduction Regs. Proposed

Published on September 04, 2018

The IRS issued proposed regulations regarding the qualified trade or business income deduction under Sec. 199A, which was enacted by P.L. 115-97, the law known as the Tax Cuts and Jobs Act (TCJA) (REG-107892-18). At the same time, it issued Notice 2018-64, which provides guidance on how to compute W-2 wages for purposes of the deduction, along with FAQs. The proposed rules include a way that taxpayers can group or aggregate separate trades or businesses and an anti-abuse rule designed to prevent taxpayers from separating out parts of an otherwise disqualified business in an attempt to qualify those separated parts for the Sec. 199A deduction.

Read More >>