Archives for Tax Credits

R&D Tax Credit – Discovery test invalidated

Important R&D tax case back in June 9, 2009, 5th Circuit of Appeals in Texas Southern District ruled in US vs McFerrin.  The Mcferrins co-founded KMCO Inc a manufacturer of chemicals. The engaged an R&D tax credit firm to perform a study for them.  IRS challenged the credit and the district court ruled in the government’s favor that the taxpayer failed to engage in the controversial discovery of information test showing some threshold of innovation
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Small Business Jobs Act 2010

Highlights of Small Business Jobs Act 2010 HR 5297 signed on 9/27/2010 1) Bonus depreciation extended to 12/31/2010.   Bonus depreciation is 50% depreciation on new equipment acquired. No taxable income or equipment total restrictions 2) Section 179 expensing up to $250,000 thru 12/31/2011.  Was scheduled to revert back to $125,000. 3) Auto depreciation for new passenger cars now up to $11,060 for 2010. 4) S corp built in gain period for conversion of C corp to S
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Congress extends Medicaid and education funding at expense of multinational corporations

Just read an excellent update on the new bill that passed on 8/10/2010 in the House, still subject to Senate vote.  Quick summary: Medicaid / Education funding for states passed Continual erosion of ability to get foreign tax credits for multinationals or even taxpayers with multiple foreign corps.  Foreign tax credits prevent the double taxation of US and foreign taxes.  For example if your US corp owns a UK corp, that US corp may have
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Alternative vehicle tax credits

Please check out the IRS website for the alternative vehicle credits.  There are credtis for hybrids, electric, clean diesel, fuel cell vehicles.  Keep in mind depends on quotas.  Talk with your tax advisor to see if the quota has been met for that vehicle.  Credits seem to be best on electric vehicles. Credits range from $500 to $4,000. http://www.irs.gov/businesses/corporations/article/0,,id=202341,00.html
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