In 2017 it was reported that the construction industry contributed £113bn to the UK economy. As one of the large drivers behind the UK economy, it is surprising how little is claimed back by construction businesses through Research and Development (“R&D”) tax relief.

Although Innovative activities are taking place every day in this industry, recent statistics show that less than 2.5% of all R&D tax credit claims are made from construction companies: in 2016-17, a total of 39,700 R&D tax relief claims were made with only 1,365 claims from the construction sector.

Read more: R&D Tax Relief in the Construction Industry

The IRS recently announced the inflation-adjusted maximum fair market value (FMV) of an employer-provided vehicle under the vehicle cents-per-mile and fleet-average special valuation rules. Employers can use these rules to value an employee’s personal use of such a vehicle for income and employment tax purposes. Importantly, the new values reflect vehicle-related amendments in the Tax Cuts and Jobs Act (TCJA) and the IRS’ intent to make the rules more widely available to employers.

Read more: How the TCJA and Updated Rules for Personal Use of Employer-Provided Vehicles Will Benefit Employers

Author: Wayne K. Berkowitz CPA, J.D., LL.M.

Is it just me? Readers, have you noticed? Are state tax departments becoming more aggressive? Is this a brand new trend inspired by my tortured paraphrasing of Neil Armstrong’s famous statement upon exiting the lunar module at 10:56 PM on July 20, 1969 and the very recent release of a new documentary film about the Apollo 11 mission?

I think not. State tax departments have always been aggressive. What is new, in my opinion, is the emboldened stance taken by both tax departments and the state governments, which send the departments on their daily missions.

Read more: One Small Step (Backward) for Taxpayers, Many Giant Leaps for State Tax Departments

India-US agreement for Country by Country reporting

India and United States of America signed an inter- governmental agreement for exchange of country- by –country (CbC) reports on March 27, 2019. This enabled both the countries to exchange CbC reports filed by the ultimate parent organizations of multinationals in respect of jurisdictions, pertaining to the years commencing on or after January 1, 2016. Since there was no agreement between India and U.S before which resulted in a situation where CbC reports are required to be filed locally in India, even if the ultimate parent entities of the international group that were in U.S. had filed the CbC reports in U.S.

Read more: India-US agreement for Country by Country reporting

Author: Scott T. Ditman, CPA/PFS

Charitable giving is a key part of estate planning for many people. If you have a collection of valuable art and are charitably minded, consider donating one or more pieces to receive tax deductions. Generally, it’s advantageous to donate appreciated property to avoid capital gains taxes. Because the top federal capital gains rate for art and other “collectibles” is 28%, donating art is particularly effective.

Read more: Art Donations in Estate Planning — Consider these Three Tips