February 2013 Issue

In this month’s Accounting Methods Spotlight, taxpayers are reminded of general asset account considerations in preparing 2012 tax returns, as well as the extension of various depreciation provisions, including 50% bonus depreciation and the 15-year recovery period for qualified leasehold improvements. In addition, the IRS published several rulings that shed light on a variety of tax accounting method issues, including UNICAP guidance for farmers, guidance as to what constitutes an on-site sale for purposes of §263A, and guidance on whether certain billboard displays qualify for the §199 deduction. Further, recent court cases discuss the ability to amortize the cost of a repurchased business, reporting the sale of partnership property under the installment method, and LILO transactions.