Since the enactment of Section 199A as part of the Tax Cut and Jobs Act late last year, tax practitioners have been devising ways to take a specified service trade or business, such as a physician group, and segregate the parts of the business that are a specified service trade…
Author: Michael J. Wilson
Accrual-Method Taxpayers with Audited Financials May Have to Recognize Income Sooner
Section 13221 of the 2017 Tax Cuts and Jobs Act amended IRC section 451 to link the all-events test for accrual-method taxpayers to revenue recognition on the taxpayer’s audited and certain other financial statements. Specifically, new IRC section 451(b) (old 451(b) through (i) were redesignated as 451(d) through (k)) provides…
Department of Revenue Publishes Guidance on New Sales and Use Tax Exemptions
The Florida Department of Revenue recently issued a Tax Information Publication (TIP No. 17A01-08) offering guidance on the new sales and use tax exemption for animal and aquaculture health products that came into effect on July 1, 2017. Under the new exemption, animal health products administered to, applied to, or…
Earlier this month, the Tax Court rejected an argument by the IRS that in order to establish good faith reliance on a tax advisor, for purposes of avoiding penalties, the taxpayer, a foreign corporation, needed to have (1) conducted an independent investigation into the tax advisor’s background and experience instead…
We previously blogged that the Florida Legislature enacted a reduction to the state sales tax rate on commercial real property leases from 6% to 5.8% effective January 1, 2018. The language of the new statute is unclear as to whether the rate decrease would apply to current leases. However, we…