Pepper Hamilton has launched a three-part webinar series on transaction costs. This series addresses the fundamental issues that arise when a company incurs transaction costs related to the acquisition or disposition of a business, and seeks to deduct a portion of these costs for federal income tax purposes.
In our second webinar, we evaluate the relevant authorities that impact the treatment of transaction costs for particular types of services performed (due diligence, investment advisory, financing services, employee compensation consulting and employee plan consulting, transition services, etc.) and discuss the types of documents that need to be reviewed to determine both the type of service performed and the timing of the services. An example of a cost allocation schedule generated from this type of review will be used to illustrate the application of the authorities.
This second webinar also discusses the availability of the safe harbor election for certain success-based fees under Rev. Proc. 2011-29, the procedures needed to document the ability to make the election, the consequences of making the safe harbor election, and what can be done if the election deadline is missed.
Our first webinar identified the central issues affecting the tax treatment of transaction costs and discussed the relevance of treating a particular cost as a “transaction cost” versus another type of cost. View the webinar recording and materials here.
Our last webinar in the series this September will help you determine which party is entitled to a deduction (if any) resulting from the transaction cost expense and the proper timing of any deduction. We will also discuss situations in which someone other than the party engaging a particular service provider seeks to take the costs for such services into account on their tax return, as well as certain tax positions supporting recovery of capitalized costs. An overview of typical IRS Exam issues that arise after the tax return has been filed will also be discussed.
Program is pending approval for one (1) MCLE credit in California, Pennsylvania, New York and New Jersey (through reciprocity). Credit for other jurisdictions may be available upon request.
Contact Brian Dolan at 215.981.4568 or firstname.lastname@example.org with any questions.