Cloud-based software has grown in prevalence, and many companies find it an effective way to reduce upfront capital investment in software and outsource the upkeep of those systems. As technology has advanced, systems available on the cloud have increased in their size and complexity. These more complex systems have begun to require significant implementation costs in their own right to configure and integrate.
Topics: accounting, goodwill, Paul Languirand, FASB, Financial Accounting Standards Board, Testing for Goodwill, Cloud-Based Software
When acquiring a business, the acquirer will incur significant costs for planning, negotiating, brokering and conducting due diligence on the transaction. Depending on the facts and circumstances, portions of those costs may be immediately deductible, capitalized and amortized over as many as 15 years, or even capitalized permanently until the business is disposed. Understanding the rules that apply to the capitalization of transaction costs is critical to maximizing the acquirer’s current deductions.
Topics: bright line date, safe harbor election, legal entity, acquiring a business, business transaction
The tax law known as the Tax Cuts and Jobs Act (the TCJA) impacts income tax planning for trusts and estates, at least until Dec. 31, 2025 when many of the provisions are scheduled to expire.
Topics: estate planning, estate tax, Tax Cuts and Jobs Act, estate income tax, trust income tax, Elizabeth Lindsay-Ochoa
In the aftermath of the Wayfair Supreme Court decision, Massachusetts recently released additional information about its sales tax policy for remote vendors. The Technical Information Release 18-8, Tax Jurisdiction Over Internet Vendors Prior to and Subsequent to Wayfair, Inc. v. South Dakota (TIR 18-8) clarifies the state Department of Revenue’s position on the types of activities that would require an out-of-state business to collect and remit sales tax in Massachusetts.
Topics: Massachusetts, economic nexus, Sales Tax, sales and use tax, nexus, Wayfair, South Dakota vs Wayfair, remove vendors
Rhode Island sales tax applies to software as a service (SaaS) starting October 1, 2018. Tax applies to software accessed from the web even if it's not downloaded.
Topics: Sales Tax, sales and use tax, Rhode Island, SaaS, software as a service
The IRS took a step toward clarifying an issue in the new tax reform law, but it did not answer one of the biggest provisions surrounding bonus depreciation.
On Aug. 3, 2018, the IRS and Treasury Department released the first proposed regulations on the expanded bonus depreciation provisions enacted by the 2017 tax reform act (the Act). These regulations provide clarification on which types of property qualify, when a taxpayer will not be considered to have previously used property, when property is acquired and placed in service and the effect of certain partnership elections. The new anti-abuse provisions focus on ensuring that the deduction is not claimed by multiple entities in the same controlled group and that the original use requirement is not circumvented.
Topics: IRS, Bonus Depreciation, Partnerships, Tax Reform Act, Tony Pisani
As any business leader whose organization has been victimized by a significant fraud can attest to, the impact of such an event and the effect it has on the organization can be paralyzing. First, there’s the obvious financial impact. According to the Association of Certified Fraud Examiner’s (ACFE) 2018 Report to the Nations, the recent study of 2,690 of fraud cases resulted in estimated losses of $7.1 billion, which the ACFE acknowledged is only a fraction of the true cost of global fraud. The study concluded that the median cost of fraud to victim organizations is approximately $130,000, while approximately 24 percent of the fraud cases it studied exceeded $800,000. Further, these costs do not include the cost of attorneys, forensic accountants, and other specialists who will be called upon to assist with the investigation.
Topics: fraud, John Mulvaney, reputation, financial fraud, ACFE