News & Analysis as of

Depreciation

Vinson & Elkins LLP

Treasury Releases Long-Awaited Proposed Regulations on the Corporate Alternative Minimum Tax

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On September 12, 2024, the Department of the Treasury (the “Treasury”) and the Internal Revenue Service (the “IRS”) issued long-awaited proposed regulations (89 FR 75062) (the “Proposed Regulations”) on the application of the...more

Mandelbaum Barrett PC

New Jersey Introduces Accelerated Depreciation for Affordable Housing

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In a bid to incentivize the development of affordable housing, New Jersey has implemented a significant policy change. Effective from the tax year beginning on January 1, 2025, the state now offers accelerated depreciation...more

Barnea Jaffa Lande & Co.

Depreciation from Apartment Purchase Value

The Tel Aviv Administrative Court recently ruled that the Israel Tax Authority (ITA) acted unlawfully and without authority when it deducted depreciation from the value of apartment purchases. This ruling applies to instances...more

Holland & Knight LLP

IRS Rules Utility's NOL Carryforward Cannot Be Reduced by Tax Allocation Payments

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The IRS recently issued private letter ruling (PLR) 107770-22 that involved a normalization issue of first impression, namely, whether payments received by a utility pursuant to an intercompany tax allocation agreement (TAA)...more

Holland & Knight LLP

IRS: Use of "Attrition Allowance" to Calculate Rate Base Violates Normalization Consistency Rules

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Consistent with a state commission's existing regulatory policy, a utility's rate base for the first two years of the three-year rate cycle was computed using traditional cost-of-service/rate of return principles....more

Eversheds Sutherland (US) LLP

Proposed bill aims to postpone TCJA limits on business incentives

Businesses have entered 2024 facing the challenge of forecasting future tax obligations and preparing tax filings in a time of uncertainty, not the least of which is created by Congressional indecision on the future of a...more

Whitman Legal Solutions, LLC

Real Estate’s Role In Building Generational Wealth

The most basic real estate investment is a home; for many people, their home is their largest single asset. Since real estate historically has increased in value over time, buying a home can be a way to grow wealth while also...more

Greenbaum, Rowe, Smith & Davis LLP

New Jersey Local Property Taxation Update: An Overview of Material Depreciation in Value Post-Valuation Date

What You Need to Know - •New Jersey property owners should be aware of the statutory framework, related deadlines, and application of those deadlines within the context of the valuation of property for local taxation...more

Bricker Graydon LLP

Overview of the 179D Deduction: Construction of New Energy Efficient Commercial Buildings

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There shall be allowed as a deduction, an amount equal to the cost of energy efficient commercial building property (EECBP) placed in service during the taxable year. Maximum amount of deduction: the product of the...more

Holland & Knight LLP

Nearshoring: U.S., Mexico Announce New Tax Incentives

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The advent of the United States-Mexico-Canada Agreement (USMCA), along with recent disruptions to global supply chains, has generated opportunities once again to relocate business and manufacturing operations closer to the...more

Dentons

I Don’t Appreciate Your Alleged Depreciation

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In Iowa, child and spousal support (alimony) amounts are mainly determined by each party’s income. But income is not the whole story. Parties may deduct certain qualified expenses, resulting in a lower income amount used in...more

Woods Rogers

Following the Government’s Playbook: Tax Incentives for CRE Investments 

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Investing in commercial real estate can offer various tax incentives that can help investors reduce their tax liability and enhance the overall profitability of their investments. Below is a non-exhaustive summary of key tax...more

Miller Canfield

Asset Sale or Share Sale? Key Considerations About the Legal and Employment Implications

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When it comes to selling a business, there are two primary methods: an asset sale and a share sale. Both have their own advantages and disadvantages, and it is important to understand the key legal differences between the...more

BakerHostetler

Insurance Class Action Update - 2023 Q1

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This year began like the last one ended, with lots of activity. Total loss class actions kept going around the country, and labor depreciation class actions experienced ups and downs, depending on one’s viewpoint. New class...more

Hogan Lovells

Odpisy amortyzacyjne w spółkach nieruchomościowych

Hogan Lovells on

Wraz z początkiem 2022 r. do ustawy o CIT wprowadzono przepisy ograniczające wysokość podatkowych odpisów amortyzacyjnych w spółkach nieruchomościowych. Zgodnie z art. 15 ust. 6 ustawy o CIT, odpisy amortyzacyjne dokonywane...more

Hogan Lovells

Depreciation deductions in real estate companies

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At the beginning of 2022, provisions were introduced into the CIT Act limiting the amount of tax depreciation deductions in real estate companies. According to Article 15(6) of the CIT Act, depreciation deductions made by...more

Mitchell, Williams, Selig, Gates & Woodyard,...

Hot Topics in Products Liability Litigation: The Depreciation-Based Injury Theory Used to Support Standing in a Products Case

The depreciation-based injury theory is a method that has been increasingly tested by the plaintiffs’ bar to support the assertion of standing necessary to bring a product liability case. Under this theory, a plaintiff who...more

McDermott Will & Emery

Weekly IRS Roundup February 6 – February 10, 2023

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Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of February 6, 2023 – February 10, 2023...more

Holland & Knight LLP

Phasedown of Bonus Depreciation for Aircraft Begins in 2023

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This Holland & Knight alert explains the phasedown of bonus depreciation for aircraft beginning in 2023. Through 2022, bonus depreciation has been allowed for 100 percent of the cost of qualifying property (which generally...more

Cozen O'Connor

Missouri Takes A Stand On Depreciation

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On June 28, the Missouri Court of Appeals upheld a lower court’s decision finding Lexington Insurance Company (“Lexington”) breached its policy with homeowner Cynthia Franklin. Franklin’s home has sustained damage in a May...more

McDermott Will & Emery

Weekly IRS Roundup April 17 – April 23, 2022

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Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of April 17, 2022 – April 23, 2022... April 18, 2022: The IRS issued Revenue Ruling 2022-9,...more

Goulston & Storrs PC

Biden’s FY2023 Budget: Key Real Estate & Corporate Tax Proposals

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On March 28, 2022, President Biden released his FY2023 budget (the “FY2023 Budget”), and the U.S. Treasury released the so-called “Green Book,” which provides details related to the revenue provisions in the FY2023 Budget....more

Eversheds Sutherland (US) LLP

No surprises under the tree as IRS concludes no normalization violation in use of revised composite depreciation rate lives to...

On December 17, 2021, the IRS released Private Letter Ruling 202150003 where it concluded that a Taxpayer would not violate the normalization rules if it ratably amortized its Protected EDIT (defined below) pursuant to an...more

Whitman Legal Solutions, LLC

Evaluating Real Estate Investments -- Internal Rate of Return

This article is part of a series about methods investors use to evaluate investment profitability. A previous article discussed cash on cash return.  This article focuses on IRR....more

Whitman Legal Solutions, LLC

Evaluating Real Estate Investments -- Cash-on-Cash Return

Like music theorists, real estate investors also have methods for describing how to value a property. At the most fundamental level, real estate investors are concerned about how much cash they need to invest the property...more

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