I just received notice from my accountant about Obama’s new IRS regulations called:Final Tangible Property Regulations MemoSample Accounting Policy for Capitalizationinvolves something called De Minimis Safe Harbor (DMSH), and filing form 3115I’m paranoid about these kind of notices especially from this regime just an additional thought that this is just another way of this government trying to attack entrepreneurs and taxpayersAre you all aware of these regulations and what is your accountant recommending?
Has anyone filed this form with their taxes this year for change in accounting.
Just saw a notice a couple days ago that form 3115 is now not required for small businesses. (Under $20m in sales?). You might still need to have your deminimus letter on file in your company records. I am not an accountant or lawyer so please check to make sure.
At this rate the whole country could be the next Detroit.
Recently completed DD on a RV park near Leesburg, Fl. The net income is $150,000 and presently taxes are $18,000. With the sales price of $2,300,000 the new taxes will be $35, 425 or in 7 years one will pay nearly a quarter of a million in taxes or over 23% of income goes to Florida taxes plus extra hurricane taxes and lose of income requirement. Are taxes becoming a problem–we walked yesterday on that deal!!!