Texas taxpayers are being granted a Fresh Start with the Texas Taxpayer Amnesty Program 2012. From June 12 through August 17, 2012, the State of Texas is providing amnesty to taxpayers for any amount and any year they were delinquent in their payments prior to April 1, 2012. Persons participating in the program can “wipe the slate clean” by filing past due reports, or amending reports that underreported taxes, without paying penalties or interest. Taxpayers can also register for taxes that should have been reported, and catch up on those reports that should have been filed, without paying penalties or interest. See details at Texas Fresh Start Amnesty Program 2012. For SALT questions, contact Meredith Theiss at 720.227.0064 or mtheiss@taxops.com.

Fundamentals of Section 382: Net Operating Loss Limitations

Thursday, May 17th, 2012, 3:00 – 5:00 PM immediately preceding Lew’s List / 530 Inc. Networking Event of the Year.

Join us for a workshop to gain an understanding of the Fundamentals of Section 382, Net Operating Loss Limitations. The workshop will cover the basics of when the rules apply, how to calculate a change of ownership and annual limitation, shareholder aggregation and related exceptions, built in gains and losses, risks and planning opportunities and will include comprehensive examples that illustrate the application of the rules.

Eligible for 2 hours of CPE. Class Tuition $99.00. Registration is limited to sixty participants. Attendees of the Networking Event will receive a $20 gift card at the event.

• Learning Objective: Fundamentals of Section 382
• Prerequisites: Basic understanding of C Corporation tax principles
• Program Level: Intermediate
• Program content: when the rules apply, how to calculate a change of ownership and annual limitation, shareholder aggregation and related   exceptions, built in gains and losses, risks and planning opportunities.
• Advanced preparation: None
• Instructional Delivery Method: Live presentation lecture

Presenters:
Dan DeLau
Mike Abramovitz
John Monahan

CPE Credits: 2 hours

Date and Location:

Thursday, May 17th – University of Denver, Denver, Colorado

Frightfully long and complex rules under Section 263(a) address expenditures relating to tangible property, including buildings and other fixed assets. At issue is whether to treat these expenses as deductible repairs or as a capitalized improvement, which can be depreciated over the life of the asset. The temporary regulations became effective Jan. 1, 2012, and all taxpayers should review their accounting practices to determine the impact of the new guidance. See FR Doc No: 2011-32246 or contact John Monahan at 720-227-0060 or jmonahan@taxops.com with questions.

The Internal Revenue Service released the 2012 inflation-adjusted depreciation limits and lease income inclusion amounts for passenger automobiles, trucks and vans. The 2012 tables include amounts for vehicles placed in service in 2012 for which bonus depreciation applies and does not apply. See IRS Rev. Proc. 2012-23 or contact John Monahan at 720.227.0060 or jmonahan@taxops.com with questions.

Companies seeking to offset energy costs have choices. In new guidance, the IRS explains the benefits of electing a grant over energy credit. Known as a Section 1603 payments, the grant is an elective cash reimbursement from the Treasury department for costs of certain qualifying renewable energy projects. Taxpayers can apply to the IRS to elect a Section 1603 payment in lieu of energy credits. Treasury has provided Q&A at Section 1603. See the IRS Notice 2012-23, for additional details for reimbursements under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009. Contact Mike Abramovitz at 720.227.0423 or mabramovitz@taxops.com with questions.

IRS legal counsel concluded that unless the owner elects otherwise under Treasury Regulation § 301.7701-3a wholly owned eligible entity is a disregarded entity for federal tax purposes and as such, could not split the entity interest into separate classes of interests and then allocate basis and income, loss, deduction, and credit items among those classes. Tracking outside basis is necessary to tax a partner on various items of partnership income or loss, distributions, or on the disposition of partnership interest. In all instances, the partner’s federal tax consequences derive directly from its outside basis in its partnership interest. While a preferred interest in an eligible entity may entitle the owner of the preferred interest to preferential distribution or liquidation rights under State law, Revenue Ruling 99-5, and IRC §§ 731 and 741highlight that such preferences are not relevant for federal tax purposes while the same taxpayer owns 100% of all classes of interests. Therefore, the IRS concluded that the owner could not split the entity interest and attendant items and basis into separate classes for federal tax purposes. Details are available at IRS AM2012-001 or contact Mike Abramovitz at 720.227.0423 or mabramovitz@taxops.com with questions.

The IRS issued a list of 10-items taxpayers should know about capital gains and losses, including definitions, timing of classifications, and various tax rates. This year, a new form, Form 8949, Sales and Other Dispositions of Capital Assets, is to be used to list all capital gain and loss transactions. Subtotals from Form 8949 carry over to Schedule D (Form 1040), where gain or loss is calculated. The tax tips are available at Ten Things to Know About Capital Gains and Losses.