Daily Archives: March 7, 2014

The IRS wants to know your name

Most of us would be happy if the IRS never knew who we are or where we live. But sometimes it’s a good idea to keep the government informed. If you or one of your dependents had a name change last year, you should notify the Social Security Administration (SSA) before you file your federal […]

No capitalization required – in this case

The IRS has concluded that amounts that a manufacturer paid to retailers to offset the cost of constructing display areas for the manufacturer’s products did not have to be capitalized. Under the facts presented in Chief Counsel Advice (CCA) 201405014, the manufacturer enters into an agreement to pay the retailers to maintain retail space that […]

Completed amenities were part of the contract

The Tax Court concluded in a recent case that a developer of a planned residential community did not have to recognize income under the completed contract method of accounting until the common improvements were completed. Shea Homes and its related entities developed large planned residential communities. Shea contended that final completion and acceptance under the […]

‘Momma Mia!’ ABBA admits to unusual tax planning

Björn Ulvaeus, founder of the Swedish rock group ABBA, has admitted that the quartet was looking to save “Money, Money, Money” in the late ’70s and early ’80s when they donned their trademark glittering hot pants, sequined jumpsuits and platform heels to take to the stage to perform hit songs like “Fernando” and “Dancing Queen.” […]