July 2012 issue

Accounting Methods Spotlight

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 improvements
  • Unamortized 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 


Accounting Methods Spotlight archive