Two Ways to Treat the Vanishing Bonus Depreciation Tax Break
Michelle Gallagher and Nathan Olberding (both with Adamy Valuation) present a nice example of how to consider the sunsetting of the bonus depreciation rules in a valuation. The rules were enacted by the Tax Cuts and Jobs Act (TCJA).
Business tax break extensions stalled
At the time of this writing, the tax extenders legislation is still tied up in the Senate.
EY study examines TCJA impact on S corps
The Tax Cuts and Jobs Act (TCJA) succeeded in maintaining rough tax parity between large pass-through businesses and large C corps but only if the 20% qualified business income (QBI) deduction is in effect and only if it’s made permanent, according to an EY study commissioned by the S Corporation Association.
IRS updates QBI deduction FAQs
Under the Tax Cuts and Jobs Act, Section 199A allows taxpayers to deduct up to 20% of qualified business income for tax years 2018 through 2025.
Move to make permanent the QBI deduction gains steam
More than 100 business groups have come out in support of new legislation to make permanent the 20% qualified business income (QBI) deduction for pass-through entities (PTEs), according to a release from the S Corp Association.
Current Observations on the Valuation Impact of the TCJA
Based on sessions at the 2018 AICPA Forensic & Valuation Services (FVS) Conference in Atlanta.
Final regs issued on PTE QBI deduction
The Treasury has issued final regulations explaining who qualifies for the new tax law’s 20% “qualified business income” (QBI) deduction for pass-through entities (PTEs).
IRS issues proposed regs on business interest limits
The IRS proposed rules that would govern the new business interest expense deduction limit in the Tax Cuts and Jobs Act (TCJA).
S corp group comments on Section 199A proposed rules
In August, the IRS issued proposed regulations explaining the new tax law’s “qualified business income” (QBI) deduction for pass-through entities (PTE) that will impact all business valuations.
Restricted services re: QBI deduction
In last week’s BVWire, we mentioned that the new tax law’s 20% “qualified business income deduction” (QBID) for pass-through entities (PTE) is not allowed for those providing certain services and included in the list was insurance (under “brokerage services”).
Get-around to the QBI deduction restrictions
The IRS recently issued proposed regulations explaining the new tax law’s 20% “qualified business income deduction” (QBID) for pass-through entities (PTE).
IRS issues long-awaited QBI deduction guidance
The IRS has issued proposed regulations explaining the new tax law’s “qualified business income” (QBI) deduction for pass-through entities (PTE).
Tax Reform 2.0 in the works
Republicans from the House Ways and Means Committee released a very top-level outline of their plans for what they call “Tax Reform 2.0.”
Trade war may shift use of tax cut’s windfall
The extra cash flow companies will see from the Tax Cuts and Jobs Act will affect valuation depending on how the funds will be used.
QBI guidance due out end of July
U.S. Treasury Department rules outlining which pass-through entities can claim the new 20% qualified business income (QBI) tax deduction are expected by the end of July, according to a report in AccountingToday.
New study predicts ‘mass’ conversion from PTE to C corp
A new study by Penn Wharton predicts a “mass conversion” of pass-through businesses to C corporation under the Tax Cuts and Jobs Act.
Firms expect significant valuation effects from tax reform
Tax and finance executives were asked the following question during a recent KPMG webinar: How significant do you expect the effects of tax reform to be on valuations performed for your business?
‘Does new bonus depreciation apply to intangibles?’
That was a question from the audience at the ASA/USC 13th Annual Fair Value Conference held May 10 in Los Angeles.
Flowchart seeks to sort out QBI
Arguably the most puzzling provision of the Tax Cuts and Jobs Act is the New IRC Code Section 199a, which allows a 20% write-off of “qualified business income” (QBI) for sole proprietors, owners of S corporations, and members of partnerships/LLCs.
20 Points to Consider for Valuations Under the New Tax Law
Since the Tax Cuts and Jobs Act was enacted, BVR has been gathering opinions and observations from valuation experts about the impacts of the new tax law on valuations. Here's a list of some points to consider that is by no means exhaustive but is a good starting point.
New IRS guidance on interest expense limits
The Treasury Department and the IRS have issued guidance (Notice 2018-28) for computing the business interest expense limitation under the Tax Cuts and Jobs Act.
Extra cash flow from tax reform to be invested
Much of the windfall savings companies are expecting from the new tax law will be used to increase domestic investment, according to a Deloitte survey of CFOs.
QBI puzzles fund managers
A flash poll conducted by Baker Tilly Virchow Krause LLP (Baker Tilly) reveals that 36% of fund managers specify qualified business income (QBI) deductions as the greatest challenge faced from the passage of tax reform.
What tax reform?
If any of your clients need valuation-related work because of the new tax law, don’t wait for them to call you.
Court of appeals KOs DOL fiduciary rule
A three-judge panel of the 5th Circuit Court of Appeals has struck down the Department of Labor’s (DOL) fiduciary rule, agreeing with the plaintiffs that the DOL overstepped its statutory boundaries.