McGuire Sponsel was contacted by a developer to conduct a 45L study for a newly constructed apartment complex in Grand Rapids, MI.
In Forbes, “The Case for Bonus Depreciation,” Dave McGuire explains that as a new tax plan takes shape in the coming months, ensuring all businesses can utilize bonus depreciation should be top of mind for government officials.
Many taxpayers are asking if they should delay deductions. This question is particularly relevant as taxpayers plan for the 2021 tax season, given a newly elected president and now Democrat-controlled Congress. These government changes could impact tax rates this year and, therefore, filing strategies. In his latest podcast, Dave McGuire outlines the risks, timing, and other important factors for taxpayers to consider while planning when to take deductions.
In Accounting Today, Dave highlights important specialty tax provisions inside the stimulus bill and how they may be important to businesses.
In Forbes, Dave highlights what tax news we may be able to anticipate from President-elect Biden in 2021. He also discusses how those factors will impact tax planning and strategies.
In this episode of McGuire on the Wire, Dave McGuire explains updates under the CARES Act to net operating loss (NOL) carrybacks and related tax planning opportunities. The CARES Act provides a five-year NOL carryback, which can help most taxpayers access significant refunds. Considering a cost segregation study and accessing additional depreciation deductions are especially important in an election year, as President-Elect Joe Biden may attempt tax policy changes in 2021. Dave also explains additional provisions from the IRS which could provide tax relief.
On the latest McGuire on the Wire episode, Dave McGuire talks about taxable grants and the laws that affect them. Dave specifically highlights how taxable grants have changed under the Tax Cuts and Jobs Act of 2017. Taxable grants can come from the government, utilities, or in other, similar forms. It’s important for businesses using these tools to consider the implications of how grants may impact taxable income.
In Forbes, Dave McGuire provides insight to the Section 118 change under the TCJA and how companies can adjust.
This week, the IRS issued final regulations (T.D. 9916) which provide guidance on how to handle bonus depreciation under code section 168(k). These regulations supplement the final regulations issued in 2019 (T.D. 9874). In addition to clarifying positions taken in the 2019 regulations, these regulations also defined Qualified Improvement Property (QIP) based on the changes included in the CARES Act of 2020.
In Forbes, Dave discusses which tax incentives have actually been useful in stimulating the economy.
Approach & Results
The developer of a newly constructed apartment complex in Grand Rapids, MI contacted McGuire Sponsel to conduct a 45L study to identify energy-efficient inclusions.
After a preliminary analysis to determine the feasibility of qualification, in less than 6 weeks our team examined all 199 units and identified a number of systems that helped this project meet 45L standards, including:
- Air conditioner is electric with a 13.0 SEER
- Heating system has a 96.5 AFUE Rating
- Window U-Value is 0.30
- Exterior wall systems are R-21.0
As units are newly constructed ground up, energy-efficient inclusions on developments over 50 unites may qualify for a tax credit of up to $2,000 per unit through a 45L study. McGuire Sponsel professionals were able to qualify all 199 units in the maximum available credit, resulting in a total credit of $398,000 for the client.
45L Tax Credit
|45L Energy Efficient Tax Credit||$398,000|