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The 95% Rule - Any number of replacement properties if the fair market value of the properties actually received by the end of the exchange period is at least 95% of the aggregate FMV of all the potential replacement properties identified. In other words, 95% (or all) of the properties identified must be purchased or the entire exchange is invalid.
repealed scheduled increases in accelerated depreciation deductions; tightened safe harbor leasing rules; required taxpayers to reduce basis by 50% of investment tax credit; instituted 10% withholding on dividends and interest paid to individuals; tightened completed contract accounting rules; increased FUTA wage base and tax rate
The code provided a way for companies to achieve a safe-harbor valuation. A safe-harbor valuation is one where the IRS must accept the valuation as valid unless the IRS can demonstrate that the valuation is "grossly unreasonable". [12] [13] The code provides three possible ways for companies to achieve a safe-harbor valuation of their common ...
Companies that offer 401(k)s also have the option of choosing “safe harbor” plans, which do not have the nondiscrimination tests and other rules, fees, etc. that you might find with your usual ...
Adding a safe harbor provision to an existing plan is easier, and needs to be in effect by Jan. 1, but employees must be notified of the plan’s rules at least 30 days before they go into effect.
TRA86 lengthened these lives, and lengthened them further for taxpayers covered by the alternative minimum tax (AMT). These latter, longer lives approximate "economic depreciation," a concept economists have used to determine the actual life of an asset relative to its economic value. Defined contribution (DC) pension contributions were curtailed.
Safe harbor provisions appear in a number of laws and in many contracts. An example of safe harbor in a real estate transaction is the performance of a Phase I Environmental Site Assessment by a property purchaser: creating a "safe harbor" protecting the new owner if, in the future, contamination caused by a prior owner is found. Another common ...
Every tax season, the IRS comes out with various warnings and reminders to taxpayers about how to avoid problems with their filings. Usually, this is in response to common mistakes that taxpayers...