Bonus Depreciation Q1 Update

This week on Let’s Talk Tax, hosts ⁠Justin Gephart⁠ and ⁠Dave McGuire⁠ discuss the latest on bonus depreciation and break down its crucial role in tax planning.

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Tax laws are becoming increasingly complex with each passing year. The Tax Cuts and Jobs Act of 2017 (TCJA), the Inflation Reduction Act of 2022 (IRA), and other general tax updates are making it increasingly challenging to stay up to date with all the changes.

The District of Columbia (D.C.) reassesses all real property annually. The basis for assessment is “Estimated Market Value,” defined by statute as 100% of the most probable price the property would be expected to sell on the market under “prevailing conditions.” For owners of office property, this should mean a reduction should be in store given the overall market in general and D.C. in particular.

North Carolina assesses most real property at the county level based on a multi-year “cycle, ” not annually. The counties place a value on all real property as of January 1, the start of the assessment year of the cycle adopted by that county.

On December 15, the IRS released proposed regulations relating to the 45X Advanced Manufacturing Production Credit. The 45X Credit is a production credit established under the Inflation Reduction Act of 2022 to support the domestic manufacturing of wind, solar, and battery system components as well as critical materials needed for these systems.

In his latest piece in Forbes, Dave McGuire discusses the rapid growth of solar energy and the importance of understanding the qualifications for the tax credits offered under the IRA

On September 27, 2023, the IRS released heavily anticipated guidance on the 45L Energy Efficient Home Credit. This notice clarifies many vital details, including who is eligible for the credit, how to determine the amount, and energy and certification requirements.

One of the acceptable methods of completing a cost segregation study includes the use of statistical sampling.  According to the IRS Audit Techniques guide one method for completing a cost segregation study is utilizing a Sampling or Modeling Approach. However, there are many considerations to consider when completing a sampling review.