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Washington Report
July 2006
New IRS regulations may help cemeteries and funeral homes
by ICFA General Counsel Robert M. Fells, Esq.
The Internal Revenue Service recently published regulations detailing procedures to be used by domestic manufacturers under the American Jobs Creation Act of 2004 to qualify for a special tax deduction. The act added section 199 to the Internal Revenue Code whereby a deduction from taxable income may be taken for "net revenue" earned from the sale of property produced in the United States.
The new deduction requires the taxpayer to be engaged in the production and either sale or lease of tangible personal property, although it does not matter when the property was produced as long as the property is sold by the taxpayer after 2004.
According to ICFA Special Tax Counsel Leslie J. Schneider, the new deduction "might seem on its face not to be applicable to the typical types of activities that are performed by cemeteries (or funeral homes), but it turns out that certain types of cemetery activities might qualify for this special deduction."
Schneider has written an article explaining the terms of the new IRS regulations that will appear in the August-September issue of ICFM.
Copyright ICFA 2006
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