Proposed regulations under Sec. 529A, issued Friday by the IRS, provide guidance on ABLE accounts, which are special tax-favored accounts designed to help disabled individuals and their families save for and pay disability-related expenses.
A recent Internal Revenue Service Office of Chief Counsel letter to the AICPA clarifies that S corporations are excluded from being component members of controlled groups for purposes of Sec. 179. This clears up an area of confusion and provides some interesting planning opportunities, as CPAs Robert Jamison and Christopher Hesse discuss in this article.
The Court of Appeals for the Federal Circuit held that the associated property rule in a Treasury regulation is not a permissible interpretation of the avoided cost rule under Sec. 263A, and the court invalidated the regulation, at least as it applies to property temporarily withdrawn from service. This was the first time a federal appeals court had considered the issue, and the decision allows the taxpayer to currently deduct interest expense that the regulation required to be capitalized.
Congressional negotiations reached a last-minute agreement on the federal budget that allows the government, including the Securities and Exchange Commission, to continue running for another week. The SEC was set to partially shut down when lawmakers approved a temporary funding initiative. However, uncertainty remains, including questions about the long-term funding of the SEC.