Tax Due Diligence Checklist

Business Acquisition / Merger Tax Due Diligence Checklist   The following Tax Due Diligence Checklist is most applicable in terms of tax due diligence required by a buyer in a stock transaction to acquire another firm or business.[i] This checklist can be modified for use in the tax due diligence work required by the seller…

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Expensing, Bonus Depreciation, 15-Year Recovery Period for Qualifying Real Property – PATH Act

Examples of §179 Expensing, Bonus Depreciation, and the 15-Year Recovery Period for Qualifying Real Property under PATH Act A couple of blog posts ago we discussed the changes brought about to §179 expensing as well as first-year bonus depreciation and the reinstitution of the 15-year recovery period for qualifying real property through the 2015 PATH…

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IRS Issues First Partnership Audit Regulations Under New Regime

On November 2, 2015, Pres. Barack Obama signed into law the Bipartisan Budget Act of 2015 (BBA). This bill changes the audit regime which applies to partnerships by repealing the partnership audit regulations under the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) and introducing new rules. In general, the BBA eliminates the old…

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Qualified Real Property Expensing And Bonus Depreciation

PATH Act of 2015: Updates to §179 Expensing, Bonus Depreciation, and Depreciation for Qualified Real Property There are a panoply of tax breaks for which taxpayers may be entitled to for specifically defined categories of realty improvements. These include, but are not limited to, the following: Expensing under IRC §179 of part of the cost…

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New Individual Taxpayer Identification Number Rules And Procedures

The Protecting Americans from Tax Hikes Act of 2015 (PATH Act) was passed by Congress in December of 2015 and signed into law by Pres. Obama. The act changed the application procedures and established new rules regarding the use, renewal, and expiration of individual taxpayer identification numbers (ITIN). IRS Commissioner John Koskinen has stated that…

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Texas Franchise Tax Filing Changes for Passive Entities

The Texas Comptroller of Public Accounts recently issued amendments to Title 34 of the Texas Administrative Code §3.582 relating to the filing requirements for the Texas franchise tax for passive entities. These new rules went into effect on June 28, 2016. We will begin our discussion by defining what is considered a passive entity in…

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Foreign Pension Funds And Your Partnership

Exemption from FIRPTA Withholding and Tax under IRC §897 for Qualified Foreign Pension Funds Not Applicable to IRC §1446 Qualified foreign pension funds are not exempt from U.S. withholding tax on foreign partners’ share of U.S. effectively connected income. As discussed in our March 1, 2016 blog post (Path-Act), the Protecting Americans from Tax Hikes…

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Are Partnership Business Structures On The Rise?

Partnership Business Structures Expected to Continue Tremendous Growth According to Clifford M. Warren, special counsel to the IRS associate chief counsel of Passthroughs and Special Industries, the IRS has seen tremendous growth in partnership business structures, including joint venture partnerships between large corporations and startups, managed-fund partnerships, energy partnerships, financial services partnerships and publicly-traded partnerships.…

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Proposed Legislation Could Mean A Tax Break For You

Proposed congressional legislation would create tax parity among pass-through and corporate income tax rates. Rep. Vern Buchanan (R-FL) has recently introduced the Main Street Fairness Act which would link the top marginal tax rate paid on pass-through business income to the corporate tax rate. Buchanan is a senior member of the tax-writing House Ways and…

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PATH Act: Changes to Dispositions of Foreign Investments

PATH Act: Changes to Dispositions of Foreign Investments in U.S. Real Property under IRC §§ 897 and 1445 Introduction The Protecting Americans from Tax Hikes Act of 2015 (PATH Act), Pub. L. No.114-113, made changes to the income tax and withholding which nonresident aliens and foreign corporations are subject to upon the disposition of interests…

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