The Tax Professionals Blog

An interesting situation arises when a landlord makes an offer to a tenant to buy out the tenant’s lease. This recently occurred when an apartment building was changing hands and the new landlord wanted all the current tenants out. The new landlord is offering the tenants $35,000 to move out plus giving them three months free rent and also telling them this is all tax free.  

Ever wonder if you can revoke an election not to claim bonus depreciation? Generally, the election out of bonus depreciation can only be revoked with IRS consent, except that if made on a timely filed return, the election-out can be revoked on an amended return filed within six months of the original return's due date (excluding extensions). (Reg § 1.168(k)-1(e)(7))Reg § 1.168(k)-1(e)(7)(ii) - Automatic 6-month extension - If a taxpayer made an election specified in paragraph (e)(1) of this section for a class of property, an automatic extension of 6 months from the due date of the taxpayer's Federal tax...