In 2024, a year marked by numerous natural disasters, the IRS has stepped up to provide taxpayers with crucial relief measures. More than 60 disaster relief notices have been issued, offering postponement of tax return filing and tax payment due dates for individuals and businesses across various U.S. counties. This relief is vital as individuals and businesses begin the challenging recovery process, which often involves navigating insurance claims and understanding loss deductions for the first time.

The federal tax law provides rules for those claiming losses as a result of damages to business, investment and personal use property. Federal tax rules also benefit those who might realize a casualty gain when insurance proceeds exceed the cost or basis of damaged property.

In this episode, Tax Services Partner Brooks Nelson, Tax Director Sarah McGregor, and Tax Services Partner Mark Giallonardo join together to discuss IRS disaster filing relief, tax gains and losses resulting from property damage in federally declared disasters, and the impact of the TCJA on these claims.

Listen to learn more about:

• 03:47 – How the TCJA Affects Casualty Loss Deductions
• 05:32 – Methods for Assessing Fair Market Value
• 07:20 – Individual Loss Claims: TCJA Limitations Explained
• 08:40 – Business Loss Claims: Navigating TCJA Restrictions
• 09:55 – Understanding Timing Rules for Casualty Losses
• 12:45 – Strategies to Prevent Tax Gains When Claiming Losses
• 14:12 – Navigating the IRS Disaster Relief Funding Process

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The employee retention credit (ERC) remains a hot topic as the Internal Revenue Service (IRS) has opened a new window for its voluntary disclosure program, allowing employers to withdraw their claims. While the IRS is processing and paying out refunds for the ERC, it has also introduced new conditions that seem to disqualify certain wages from eligibility. In response, some eligible employers are beginning to take legal action to compel the IRS to address their pending refund claims.

In this episode, Tax Services Partner Brooks Nelson and Tax Director Sarah McGregor are joined by Partner and Tax Credits & Incentives Advisory Practice Leader Martin Karamon. Together, they discuss the complexities of the ERC and the IRS's actions to address both legitimate and dubious claims.

Listen to learn more about:

• 02:23 – ERC overview
• 04:34 – IRS moratorium updates
• 06:32 – IRS timeline for resuming new claims
• 09:06 – 8/15 ERC voluntary disclosure program
• 10:58 – Sources for employer VDP info
• 12:48 – IRS 12 signs of incorrect ERC claims
• 14:56 – ERC claim payment status amid IRS audits
• 15:58 – Trends in employer lawsuits for refunds

Related Insights

• Article: Avoiding the Risk of Incorrect Employee Retention Credit Claims
• Webinar: The Employee Retention Credit: 2024 Updates
• Article: 2024 Most Frequently Asked Questions about the Employee Retention Credit (ERC)
• Article: Understanding IRS’ Voluntary Disclosures Program for Employee Retention Credit (ERC) Claims

The Section 179D Energy Efficient Commercial Building Deduction (Section 179D) and cost segregation studies can help commercial building owners save significantly on taxes. Section 179D provides a tax deduction for new construction and renovations to the HVAC, interior lighting and building envelope, while cost segregation studies help identify assets with shorter depreciable lives. When paired together, they create the best opportunity for building owners to maximize tax savings and increase cash flow by identifying and accelerating depreciation on energy-efficient assets.

The expansion of the Section 179D deduction through the Inflation Reduction Act (IRA) offers even more incentives for building owners, architects, engineers and design-build contractors who create technical specifications before and during the construction process. Utilizing these options can significantly reduce a building owner's tax liability and improve cash flow. Cost segregation studies analyze the parts of a commercial building to identify assets with shorter depreciable lives allowing owners to accelerate their depreciation deductions and reduce taxable income.

In this episode, Brooks Nelson, Tax Partner and Sarah McGregor, Tax Director, are joined by Glenn LeMieux, Tax Credits & Incentives Advisory Director, and Andre Kohn, Tax Credits & Incentives Advisory Senior Associate. Together, they discuss federal tax credits and incentives related to clean energy, energy-efficient buildings and cost segregation opportunities.

Listen to learn more about:

• 03:28 – Cost segregation study background
• 07:02 – Applications of cost segregation
• 08:52 – Cost segregation study process
• 10:42 – Section 179D background
• 14:57 – Qualifying for Section 179D
• 17:01 – Energy-efficient improvements
• 18:58 – Prevailing wage updates
• 23:51 – Strong candidates for these incentives
• 27:20 – Combining Section 179D and cost segregation

Related Guidance

• Article | Designing for Efficiency: How the 179D Tax Deduction Benefits A&E Firms and the Environment
• Podcast | 179D Energy-Efficient Commercial Buildings Deduction for Not-for-Profits
• Webinar | Maximize Tax Savings Through Cost Segregation, Section 179D, and Section 45L Approach and Client Success Stories
• Article | Factors to Consider When Seeking Cost Segregation and Section 179D Study Service Providers