July 2012 issue

July 2012

Overview

This publication provides timely updates on a range of federal income tax issues including accounting methods and inventories, depreciation, long-term contract accounting, leasing, fringe benefits, and other miscellaneous tax issues.

This month's features:

  • Lessee must capitalize costs from construction of leased property as leasehold improvementsUnamortized debt issuance costs deductible as separate item
  • Liability to pay rebates becomes fixed on purchase for purposes of the all events test
  • Utility can use accelerated cost recovery system for depreciation
  • Federal Circuit holds associated property rule invalid, reverses Claims Court
  • Corporation's expense deductions denied, sole shareholder received constructive dividends

Contact us

Annette Smith
Partner
Tel: +1 (202) 414 1048
Email

Christine Turgeon
Washington National Tax Services Partner
Tel: +1 (646) 471 1660
Email

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