Leasehold improvements present AMT opportunities for corporate taxpayers

Article Abstract:

Some corporate assets are commonly misclassified under the corporate Adjusted Current Earnings because of exceptions contained in IRC section 56(g)(4) leading to increased tax liability over the assets full depreciation period. The pre-Tax Reform Act of 1986 accelerated cost recovery system allows leasehold improvements made between 1980 and 1987 to be amortized over the lease term if that term is shorter than the real property recovery period rather than depreciated. There are other assets that need to be re-evaluated on this basis to avoid significant corporate adjusted minimum tax liabilities.

Depreciation, Amortization

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Expiring tax provisions generate new planning opportunities

Article Abstract:

Tax planners need to be aware of the status of many popular tax provisions which will expire without action by Congress, because George Bush vetoed the tax bill that would have reauthorized them. These provisions include mortgage credit certificates, low income housing credits, benefit exclusions for qualified group legal services and health insurance deductions for self-employed persons. The 103rd Congress has a different composition than previous years and provisions may also be affected by Bill Clinton's tax plan, so planners should stay informed.

Tax accounting, Tax exclusion, Tax credits

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IRA computations required of social security recipients

Article Abstract:

Individual retirement account (IRA) contribution deductions for employed taxpayers under a retirement plan who receive social security benefits or their spouses do, must be calculated under a complex system requiring the taxable social security to be computed three times. The calculations are necessary to determine whether or not the taxpayer is still eligible for IRA deductions based on taxable income.

Taxation, Individual retirement accounts, Social security beneficiaries

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