UHY LLP News Alert - S Corps Not Subject To Controlled Group Section 179 Limitations

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9/25 Sales & Use Tax Fundamentals

10/24 Annual Construction Outlook

10/30 Concepts & Developments of Nexus

11/13 Annual Manufacturing Outlook

12/4 Annual Accounting & Regulatory Update

12/4 Annual Tax Forum

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S CORPS NOT SUBJECT TO CONTROLLED GROUP SECTION 179 LIMITATIONS

The IRS has released Information Letter 2013-0016 in which it concluded that even though an S corporation (S corp) may be included in a controlled group, the S corp will not be considered a member of the controlled group for the rules that control the maximum Section 179 deduction that may be taken by the controlled group on an annual basis. For purposes of the maximum Section 179 deduction, component members of a controlled group are considered one taxpayer. Therefore, the members, in aggregate, are subject to Section 179 deduction and limitations as if they were a single taxpayer. Since S corporations are not component members of controlled groups, the aggregation rule does not apply. Thus, an S corp included in a control group is considered a separate entity for the Section 179 limitations and permitted an election up to the maximum amount.

Note: For 2013, the maximum Section 179 deduction that may be taken by a taxpayer is $500,000, subject to phase out limitations. The maximum deduction is reduced if the taxpayer places qualifying property in service in excess of $2,000,000 with the deduction totally phased out with qualifying acquisitions of $2,500,000 or more. In addition, the amount of allowable Section 179 expense is further limited by the amount of taxable income from the trade or business.

It is important to remember that although S corporations are not subject to the controlled group limitations for Section 179, there are still limitations applied at the shareholder level.

For more information or questions on this topic, please contact your professional at UHY LLP in Farmington Hills 248 355 1040 or Sterling Heights 586 254 1040 or visit us on the web at www.uhy-us.com.

EVENTS CALENDAR

9/25 UHY Advisors State & Local Tax Forum I: Sales & Use Tax Fundamentals

Please join us at UHY's Farmington Hills office on Wednesday, September 25 for the first in a series of three state and local tax forums.

No matter the size or nature of your business, every organization must deal with the complexity of sales and use taxes. Join us for a discussion on the essentials of the sales and use tax, various exemptions and exclusions, an overview of compliance and the increase in state audits and what corrective actions you can take prior to an audit.

7:30AM-8:00AM Registration, Breakfast & Networking

8:00AM-8:15AM Opening Commentary

8:15AM-9:45AM Sales & Use Tax Fundamentals

9:45AM-10:00AM Interactive Discussion

10/24 UHY LLP Annual Construction Outlook

Save the date! UHY LLP is pleased to announce Construction Outlook 2014 that will be held in UHY's Farmington Hills training center. Join us to learn more about the latest industry trends and recent financial and tax developments. Topics, speakers and keynote will be announced shortly.

Thursday October 24 2013

7:00AM-10:30AM

CPE credit will be offered. Pre-registration for this complimentary program is required. Breakfast will be provided. Space is limited. Multiple registrations are welcome. To RSVP contact Shannon Gnesda via email sgnesda@uhy-us.com or phone 586 843 2637. Formal invitation to follow.

11/13 UHY LLP Annual Manufacturing Outlook

Save the date for Manufacturing Outlook 2014 "Made In America: Growing Demand Fuels Optimism and Urgent Change". Join us either onsite at UHY's Farmington Hills office or online via webcast to learn more about developing industry trends including automotive, economic and banking. Topics, speakers and keynote will be announced shortly.

Wednesday November 13 2013

onsite breakfast program online webinar

Central Time 7:30AM-10:45AM 8:00AM-10:45AM

Eastern Time 8:30AM-11:45AM 9:00AM-11:45AM

Save the date! More UHY events are just around the corner...

10/30 UHY Advisors State & Local Tax Forum II: Concepts & Current Developments of Nexus

12/4 UHY LLP Annual Accounting & Regulatory Update

12/4 UHY Advisors Annual Tax Forum

SPECIAL ANNOUNCEMENTS

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The UHY LLP Sterling Heights office is proud to be Macomb County's largest accounting firm. Explore its history, involvement in the community, and plans to renovate and remodel to make room for the growth ahead. Click here to read the full press release.

Experienced Recruiting Update

UHY Michigan is actively looking for experienced candidates to fill key positions in our local offices. Please review the openings below and if you know someone who may be interested in any of these roles please reach out to Rina Henning, Recruiting Manager, via email rhenning@uhy-us.com or phone 248 204 9331.

Sterling Heights

Tax Managers

Audit Seniors (2-5 years of experience)

CSA (full charge bookkeeper with 1040 experience)

Farmington Hills

Tax Manager

Published by UHY LLP News.

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