The proposal marks the second time in ten years that FASB has proposed mandatory expensing of all option awards.
A recent Broadgate Consultants survey found that 80% of portfolio managers and buy-side research professionals support expensing.
Further, taxpayers face a greater risk that the IRS will challenge their
expensing practices if the amounts expensed under the policy constitute more than a fraction of their income or if a regulatory agency did not mandate the policy.
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expensing to $15,000 of the remaining $40,000 barrier removal costs for a reduction in tax liability of $5,100 ($15,000 x 34% tax rate).
The taxpayer may select the properties for which the
expensing election will be made, as well as the portion of each property's cost to be expensed.
