AICPA Tax Insider (August 12, 2021): IRS updates car and truck depreciation limits; Guidance on claiming the ERC for third and fourth quarters of 2021; and More!

IRS updates car and truck depreciation limits
The IRS issued its annual inflation-adjusted update of depreciation limitations for passenger automobiles (including passenger vans and trucks) placed in service in 2021.

Guidance on claiming the ERC for third and fourth quarters of 2021
New guidance clarifies the application of the credit to “recovery startup businesses” and the treatment of wages paid to majority owners and their spouses.

Equity incentive plan considerations for startup companies
By Derek J. Godwin, CPA
Careful planning upfront is needed to ensure the equity plan satisfies the goal of incentivizing and retaining employees while avoiding any pitfalls under the Internal Revenue Code.

Risk mitigation best practices
By Roby B. Sawyers, CPA, Ph.D.
CPAs can limit liability risks by carefully drafting engagement letters, avoiding giving informal advice, fully vetting new clients, assessing the firm’s competence to handle clients’ issues, and maintaining appropriate data security practices.

Energize your practice with a tax innovation challenge
By Charlotte Frank, CPA, J.D., and Stephen P. Valenti, CPA
The skills and ingenuity the accounting profession showed in reacting to the pandemic can be applied proactively with a new type of competition.

Academic research for your practice consideration
By Janet A. Meade, CPA, CGMA, Ph.D.
Recent tax research papers focus on interactions practitioners have with clients on contentious issues; how state regulations affect the quality of preparers; the effect of addback statutes on corporate innovation; and how to mitigate the effect of the new GILTI.

Posted by Jessica Ji, Associate Editor, Wealth Strategies Journal.

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