More fundamentally, the plan fails to recognize that the purpose of the footnote is merely to illustrate the distinction set forth in the text of the committee reports -- that research fundamentally relying on principles of certain specified sciences, including computer science, is qualified research whereas research relying on certain social science principles, such as economics, does not qualify
. In other words, the footnote does not provide that computer-based research must invariably represent a higher level of technological sophistication than other research.
Except for certain contingent beneficiaries discussed below, an entity such as a charity or an estate cannot be a beneficiary since trust beneficiaries must be individuals and an estate or charity does not qualify
In 1994, the Oklahoma Quality Jobs Program Act was amended to include within qualifying new business establishments certain warehouse and distribution centers and to expand the definition of business "establishment" to include distinct, identifiable and independent subunits of the types of entities which can generally qualify
Computers often need software tailored to a company's needs, but businesses that develop internal-use programs have struggled for years with scant corporate-tax guidance on how to qualify
such software for the IRC section 41 research tax credit.
The IRS interpreted the basic exclusion for "routine, periodic, or cosmetic improvements" as requiring a significant improvement to an existing product in order for research on that product to qualify
.(15) In addition, the 1983 proposed regulations limited deductions and credits for computer software development expenditures to activities where the software's operational feasibility was seriously in doubt.(16)
Nevertheless, the court resolved the conflict and allowed the marital deduction, noting that in interpreting conflicting clauses, the decedent's intent must be determined "using the four corners of the mast agreement." Thus, because the trust contained the qualifying language, despite the drafting conflict, the "[d]ecedent manifested his intent to qualify
for the marital deduction in numerous ways," including references to the marital deduction and citations to Sec.
For example, if your client acquired stock by exercising stock options, or even employee stock purchase plans, it is possible that over a period of years, some of the stock will qualify
and some will not.
To comply with the new rules (and thereby continue to qualify
as cafeteria plans), plan documents, administrative procedures and employee communications must provide for,the revocation and election of benefits based on these changes in status.
Expenditures incurred after the point that the product or property (or component of the product or property) meets its basic design spedifications related to function and performance level generally will not qualify
as research and experimental expenditures under section 174 unless the expenditures relate to modifications to the basic design specifications for the purpose of curing significant defects in design, obtaining significant cost reductions or achieving significantly enhanced function or performance level.
856(c)(7), many debts owed to a REIT by individuals and businesses did not qualify
for this exception.
For an interest to qualify
under the 70% or 90% tests, at least 30% of the entity must be owned by the decedent and members of his or her family.
In addition, if a lessor makes a qualified leasehold improvement, such improvement does not qualify
as qualified leasehold improvement property to any subsequent owner of the improvement, unless acquired by reason of death or certain nonrecognition property transfers (e.g., Secs.
Exhibit 2, page 41, and exhibit 3, page 42, illustrate the restrictions on qualified plan benefits for HCEs, assuming an employee's bonus does and does not qualify
-- respectively -- as part of the benefit formula.
1.401(a)(9)-4, Q&A-5 and, thus, qualify
to make distributions to all beneficiaries over the life of the eldest beneficiary (i.e., the surviving spouse)?
However, qualified improvement property is significantly more taxpayer friendly in its expanded description of the types of properties that do qualify
. First, qualified improvement property does not require that the improvement be subject to a lease, so interior improvements made by the owners of an owner-occupied building that meet the other requirements for qualified improvement property may now qualify
for bonus depreciation.