For a lessor, the general rules for defining a unit of property for purposes of applying the tangible property regulations are applied to leased property Any past amounts incurred and capitalized for tenant improvements should be analyzed for incorrect accounting methods
or possible recharacterization as a repair.
Given the complexity of cost basis reporting for bonds, there are multiple factors for advisors to consider when selecting an appropriate accounting method
. Bonds are very different from and more complicated than equities and mutual funds, so calculating cost basis for federal income tax purposes is also complex.
The cash method of accounting, which records revenue when cash is received and records expenses when cash is paid, is a longstanding accounting method
popular among service-based businesses, such as CPA firms.
Further, since taxpayers adopt accounting methods
on a trade or business basis (see Regs.
Changing accounting methods
to obtain the Liberty Zone bonus depreciation deduction.
2008-52 relating to the automatic consent procedures by which taxpayers may obtain the IRS Commissioner's consent to make changes in accounting methods
that are described in the revenue procedure's appendix.
TEI commends the IRS for issuing Notice 2007-88, proposing an approach to streamline the process for obtaining the consent of the Commissioner for changes in accounting methods
, and inviting comments on other approaches.
The differences among current accounting methods
in countries that are moving toward convergence with the EU may actually serve as a starting point for the Phase II working group's project on insurance contracts, according to Clark.
First, previous research that does not use the details of firms' actual debt contracts assumes that contract calculations are based on current accounting methods
. However, Mohrman (1996) and Beatty, Ramesh, and Weber (2002) document that private debt contract calculations often prohibit firms from changing accounting methods
Ideally, you would have an accounting method
that could measure how a little money spend now on highways is actually saving a whole lot later on.
When a corporation changes accounting methods
, adjustments must be made to ensure that the change does not result in the omission or duplication of income or expense (Sec.
Zarzar of PricewaterhouseCoopers LLP spoke at the March 14 dinner meeting, focusing on accounting methods
, particularly in the inventory areas.
If the taxpayer cannot demonstrate reasonable cause for failure to satisfy the above requirements, the computation of E&P should be made as if no elections had been made and any otherwise permissible accounting methods
not requiring an election had been adopted.
The taxpayers disagreed with this adjustment and asked the Tax Court for relief, arguing that they had not changed accounting methods
but instead had made a mathematical error.
Robert Call and Scott Remington of Grant Thornton conducted a workshop on tax accounting methods
at the Portland Chapter's October 12 meeting.