{"id":12222,"date":"2023-07-18T17:44:16","date_gmt":"2023-07-18T17:44:16","guid":{"rendered":"https:\/\/taxops.com\/?p=12222"},"modified":"2023-07-18T18:30:41","modified_gmt":"2023-07-18T18:30:41","slug":"where-174-costs-and-382-limitations-converge","status":"publish","type":"post","link":"https:\/\/taxops.com\/where-174-costs-and-382-limitations-converge\/","title":{"rendered":"Where \u00a7174 costs and \u00a7382 limitations converge"},"content":{"rendered":"\n<div style=\"height:35px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"https:\/\/taxops.com\/wp-content\/uploads\/2023\/07\/Intersection-of-174-and-382-1-1024x576.png\" alt=\"\" class=\"wp-image-12227 lazyload\" data-srcset=\"https:\/\/taxops.com\/wp-content\/uploads\/2023\/07\/Intersection-of-174-and-382-1-980x551.png 980w, https:\/\/taxops.com\/wp-content\/uploads\/2023\/07\/Intersection-of-174-and-382-1-480x270.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" \/><noscript><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/taxops.com\/wp-content\/uploads\/2023\/07\/Intersection-of-174-and-382-1-1024x576.png\" alt=\"\" class=\"wp-image-12227 lazyload\" srcset=\"https:\/\/taxops.com\/wp-content\/uploads\/2023\/07\/Intersection-of-174-and-382-1-980x551.png 980w, https:\/\/taxops.com\/wp-content\/uploads\/2023\/07\/Intersection-of-174-and-382-1-480x270.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" \/><\/noscript><\/figure>\n\n\n\n<div style=\"height:35px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div style=\"height:66px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><em>\u00a7174 costs that arise before an ownership change may now be subject to \u00a7382 rules, potentially resulting in a tax basis in unamortized \u00a7174 costs.<\/em><\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">By <a href=\"https:\/\/taxops.com\/mark-dunning\/\" target=\"_blank\" rel=\"noopener\" title=\"Mark Dunning\">Mark Dunning<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Tax Cuts and Jobs Act (TCJA) of 2017 affected \u00a7174 costs beginning January 1, 2022 (<em>see<\/em> <a href=\"https:\/\/taxops.com\/major-changes-in-%c2%a7174-amortization-hit-q1-estimates-in-2022\/\"><em>Major Changes in \u00a7174 Amortization Hit Q1 Estimates in 2022<\/em><\/a>). The amended provision requires corporate taxpayers to capitalize all IRC \u00a7174 expenses, spreading the amortization of those expenses over five years (or 15 for foreign costs). This provision impacts not only \u00a7174 expense deductions but also R&amp;D credit claims, income tax provisions, quarterly estimated tax payments, and \u00a7382 change in ownership provisions. See link for more.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Corporate taxpayers may now find themselves with a tax basis in unamortized \u00a7174 costs, which can impact safe harbor methods for determining accounting approaches. In some cases, \u00a7174 costs that arise in the period before an ownership change are now subject to \u00a7382 net unrealized built-in gain and loss rules, potentially resulting in a tax basis in unamortized \u00a7174 costs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At TaxOps, we concentrate on advising our clients on changes that might impact their tax planning. Reach out to your TaxOps Min advisor for more guidance on how \u00a7174 changes may impact your tax profile and business strategy. <\/p>\n\n\n\n<div style=\"height:66px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div style=\"height:59px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/taxops.com\/contact\/\" target=\"_blank\" rel=\"noreferrer noopener\">Let&#8217;s Talk Tax<\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:59px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/taxops.com\/wp-content\/uploads\/2023\/06\/Working-with-TaxOps-MIN.pdf\"><img decoding=\"async\" width=\"555\" height=\"591\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"https:\/\/taxops.com\/wp-content\/uploads\/2023\/07\/Working-with-TaxOps-Min.png\" alt=\"\" class=\"wp-image-12087 lazyload\" data-srcset=\"https:\/\/taxops.com\/wp-content\/uploads\/2023\/07\/Working-with-TaxOps-Min.png 555w, https:\/\/taxops.com\/wp-content\/uploads\/2023\/07\/Working-with-TaxOps-Min-480x511.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 555px, 100vw\" \/><noscript><img decoding=\"async\" width=\"555\" height=\"591\" src=\"https:\/\/taxops.com\/wp-content\/uploads\/2023\/07\/Working-with-TaxOps-Min.png\" alt=\"\" class=\"wp-image-12087 lazyload\" srcset=\"https:\/\/taxops.com\/wp-content\/uploads\/2023\/07\/Working-with-TaxOps-Min.png 555w, https:\/\/taxops.com\/wp-content\/uploads\/2023\/07\/Working-with-TaxOps-Min-480x511.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 555px, 100vw\" \/><\/noscript><\/a><\/figure>\n\n\n\n<div style=\"height:59px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"block-2666d1fd-3ba5-44f9-9633-31908556df8a\">More Tax News<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/taxops.com\/us-state-and-local-tax-for-foreign-companies\/\">U.S. State and Local Tax for Foreign Companies<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/taxops.com\/texas-supreme-court-opinion-clarifies-service-receipt-apportionment\/\">Texas High Court Clarifies Service Receipt Apportionment<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/taxops.com\/california-issues-guidance-on-sourcing-service-receipts\/\">California Issues Guidance on Sourcing Service Receipts<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/taxops.com\/ethics-in-business-awards-sponsor\/\">Ethics in Business Awards Sponsor<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/taxops.com\/how-tos-for-partnerships-and-s-corporations-in-colorado-2\/\">State Legislatures Move on Tax Reform and Relief<\/a><\/li>\n<\/ul>\n\n\n\n<div style=\"height:53px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/taxops.com\/contact\/#subscribe\" target=\"_blank\" rel=\"noreferrer noopener\">Subscribe to Tax News<\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:53px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a7174 costs that arise before an ownership change may now be subject to \u00a7382 rules, potentially resulting in a tax basis in unamortized \u00a7174 costs. By Mark Dunning The Tax Cuts and Jobs Act (TCJA) of 2017 affected \u00a7174 costs beginning January 1, 2022 (see Major Changes in \u00a7174 Amortization Hit Q1 Estimates in 2022). [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":12227,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","spt_transcript":"","footnotes":""},"categories":[78,226],"tags":[252,284,908,126,58,61,459,265,1055,931,48,62,783,742,1027,1056,1057],"class_list":["post-12222","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tax-savings","category-tax-news","tag-accountant","tag-cfo","tag-costs","tag-cpa","tag-credits","tag-development","tag-expenses","tag-finance-professional","tag-net-losses","tag-net-operating-losses","tag-rd","tag-research","tag-section-174","tag-section-382","tag-tax-incentives","tag-unrealized-gains","tag-unrealized-losses"],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/taxops.com\/wp-content\/uploads\/2023\/07\/Intersection-of-174-and-382-1.png","_links":{"self":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/12222","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/comments?post=12222"}],"version-history":[{"count":4,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/12222\/revisions"}],"predecessor-version":[{"id":12235,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/12222\/revisions\/12235"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/media\/12227"}],"wp:attachment":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/media?parent=12222"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/categories?post=12222"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/tags?post=12222"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}