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Video instructions and help with filling out and completing Will Form 4797 Advisor

Instructions and Help about Will Form 4797 Advisor

Music Applause hello and welcome to simply tax we're wrapping up a week on picture planet guidance today with Jesse father the director of tax quality control at bkd so let's see so far this week we've covered the new proposed regulations under section 199 cap a and the guidance received on accounting method changes for small business taxpayers that leaves the proposed regulations under Section 965 and section 160 a K that we had going into the week we previously discussed the repatriation under Section 965 for the so called toll tax guest Chris Clifton back in episode 10 of the podcast and I'll point through the four minute and 17 second 100 on this provision being that the 249 pages of the 965 guidance released on August 1st primarily prclarifying procedural guidance on aspects of the provision and that it incorporates guidance that was previously issued we'll save a deeper look at the significant aspect of the TIC chef for a future episode once we start to receive more of the guidance that we'll need for the International aspects of it and that just leaves the bonus depreciation breaks or at least it did until we started seeing more tics related guidance this week as I alluded to when we kick things off on Monday because obviously we expect to continue to see the sticks related guidance stuff in the weeks and months ahead Music it's a quick recap of what we've seen since we started the week the IRS issued notice 2022 - 67 providing guidance on determining which revenue streams are considered an activity for unrelated business income tax purposes the notice also clarified that unrelated business income from transportation fringe benefits are not considered a trade or business so this income is not required to report as a separate activity also we received initial procedural guidance on the grandfather rule in applying section 162 m and notice 2022 - 68 then we saw revenue procedure 2022 - 44 which provides a guidance for tax payers revoking their selections and converting from the overall cash method to the overall accrual method of accounting and just as we're doing the final added to this episode we received the also highly anticipated salt workaround regulations that we discussed with guests and net now on back in episode 27 at this point I think it's pretty safe to say that we'll see and talk much more about this controversial guidance that provides that a federal tax deduction is only allowed to the extent a contribution exceeds any state tax credit received less under a de minimis rule provided in the proposed regulations the state tax credit does not exceed 15% of the contribution and this thicker related guidance stuff really is a marathon so with that I'm excited to share with you what's Kush and I had with bee kiddies Jesse Palmer on the bonus depreciation rags and how the guidance we've received so far fits into the overall tax picture Music Applause Music simply tax Jessie obviously cash it's been a little over two weeks or so that we've had the the new regulations under 168 K and which is bonus depreciation but maybe before we even talk about what's in the proposed guidance why don't we maybe go back and just talk about what bonus depreciation is in the first place you know the bonus depreciation actually was was really intended I think to be a temporary provision you know this kind of dates back to September 11th and 2022 kind of response to the the 9/11 events and the downturn in the economy as a result it was meant to be kind of a stimulator to stimulate the economy and in in back then and they provided a 30 percent bonus depreciation provision for new assets acquired and and then kind of over the years and it was temporary as well was scheduled to sunset but then you know as with many things that that are added to the code that are tax you know deductions or credits or so forth it's really hard for Congress to let those things expire due to the politics and so forth so you know over the years we've seen bonus being rheic being changed so went from 30 percent to 50 percent and then for a period of time it was that a hundred percent and then back down to 50 percent and as it stood before the tax cuts and Jobs Act it was 50 percent scheduling to be phased down through 2022 this is nothing new I guess I would say but it's certainly something that that's been around for well over a decade now so that that's Vegas kind of the history of bonus depreciation but really it's meant to be kind of a way to stimulate the economy over the years just you know with the fact that you can write off you know such a large portion of your your fixed assets that's you know the intention is business owners will go out and buy new equipment or buy you know properties that could qualify for bone and get an immediate tax deduction yeah so I know and when we had talked about this sketch back in January when the the new tax law had just and that's it's early phases and we're still kind of really starting to understand it really what changed with the tax cuts in Jobs Act and we talked about Canada you know going out percent and phasing down any other changes that were in there as part of the tax cuts and Jobs Act yeah so you know as and as we've talked about before and and others have talked about but kind of the main things under takea that that changed is the fact that they did go to a hundred percent bonus depreciation for qualified property again this this is temporary so property acquired.

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