The U.S. Department of Treasury and Internal Revenue Service released proposed regulations under the recently enacted section 199A of the Internal Revenue Code on August 8, 2018. Section 199A of last year’s tax reform was intended, through a deduction, to reduce the highest marginal tax rate on certain business income earned by passthrough entities (e.g., partnerships, S corporations, and sole proprietorships) from 39.6 percent to 29.6 percent. This deduction achieves greater parity with the […]

The Internal Revenue Service (IRS) and Department of the Treasury recently proposed regulations that shed light on how the new, expanded bonus depreciation regime may work in the context of many common acquisitions involving corporations and partnerships. Pending the release of final regulations, a taxpayer may rely on the proposed rules with respect to property acquired and placed in service after September 27, 2017.1As such, these proposed regulations should be of interest to businesses […]