Insights
What Remote Sellers Should Know About Texas’ New Sales Tax Rules
Following the monumental 2018 U.S. Supreme Court ruling in South Dakota v. Wayfair Inc. which made it constitutional for states to tax sales made by vendors that have no in-state physical presence, Texas has rolled out new economic nexus standards that require...
Lease Accounting for Private Companies Delayed One Year
The Financial Accounting Standards Board (“FASB”) members voted unanimously to propose moving back the effective date for lease accounting and two other major new accounting standards until January 1, 2021. The FASB is the independent, private-sector,...
What is the Impact of Section 199A on the Construction Industry?
Section 199A provides a 20% deduction on the amount of Qualified Business Income (referred to as QBI and defined later) from a domestic business operated as a partnership, S-Corporation, sole proprietorship, trust or estate. This deduction is in response to the...
Construction Accounting Methods
Part I in our Tax Planning Opportunities for the Construction Industry series One of the most comprehensive changes included in the TCJA is the changes in tax accounting methods available for contractors. Methods previously only available to smaller contractors are...
Revenue Recognition: Accounting for Uninstalled Materials
One of the significant changes required by the new accounting guidance under ASU 2014 09, Revenue from Contracts with Customers (Topic 606) relates to accounting for uninstalled materials. Under the previous accounting practice, the cost of materials specifically...
Accounting for Fulfillment Costs
The new revenue recognition standard (ASC 606) which significantly changes the revenue recognition model for contractors is here, and many firms have yet to evaluate the impact the new rules will potentially have on their company’s financial statements. How to...
IRS Grants Automatic Consent to Change to Cash Method of Accounting – Revenue Procedure 2018-40
The Tax Cuts and Jobs Act (TCJA) increased the number of taxpayers eligible to use the cash method of accounting. The TCJA also expanded the threshold for small businesses to use the cash method of accounting, which now includes those with average annual gross...
Practical Guidance on ASU 2017-01 and Its Implications to Upstream Companies
Background The current FASB accounting standards codification associated with Business Combinations (Topic 805) defines a business as, "an integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing a return...
Qualified Business Income Deduction: Understanding the Specified Service Trade or Business Rules
On December 22, 2017, the Tax Cuts and Jobs Act was signed into law and Internal Revenue Code Section 199A “Qualified Business Income” was created. In its simplest terms, Section 199A allows owners of sole proprietorships, S-corporations, or partnerships to take a...
