Taxpayers Must Prove Business Use of Assets to Claim Section 179 Deduction

Taxpayers who purchase assets for business use may be eligible to deduct the full cost in the year of purchase, subject to Section 179 limits. A taxpayer must prove the asset’s cost, where and when it was purchased, and the percentage of business use. Only the percentage of cost that applies to business use may be deducted.

The owner of an electrical services corporation purchased a forklift and a plow attachment, used mostly for business, and a boat that he said was used to entertain clients. The U.S. Tax Court approved a partial deduction for the business use of the forklift and plow. The boat was used mainly for personal purposes, so the court denied that deduction. (TC Memo 2023-114)

Contact one of our experts with questions about tax planning.

Murray, KY Press Releases

ATA CPAs + Advisors Names New Partner

Murray, KY. — Congratulations to Ty Ellegood on being named the newest partner at ATA, a nationally recognized CPA and advisory firm. With over seven years of dedicated service in the public accounting industry, Ty has proven to be a valuable asset to the firm, helping lead the Murray, KY. office.

As a certified public accountant specializing in tax and audit, Ty brings a wealth of expertise to his new leadership role. In his capacity as a partner, he will have several important responsibilities such as client relationship management, guidance for client success, mentoring and providing professional development to others on the ATA team.

“Ty’s promotion to partner signifies his dedication, expertise, and commitment to ATA’s success,” said Managing Partner John Whybrew. “It’s a significant achievement in his career, and his contributions will undoubtedly further strengthen ATA’s position in the industry. His clients and colleagues can look forward to continued excellence in service and leadership.”

“I feel very fortunate to be honored with this exciting career advancement and am thankful for the support and guidance I have received from the ATA partners and staff throughout my career,” said Ty. “I look forward to the ongoing opportunity to deliver outstanding service while accommodating the diverse requirements of our clients.”

Ty received both his Bachelor of Arts in Accounting/Information Systems and Master of Business Administration from Murray State University. During this time, Ty interned with ATA and upon graduation in 2016, he joined the firm full-time. Since then, he has earned both his Certified Public Accountant and Certified Management Accountant designations. Ty is devoted to meeting the needs of his clients and managing relationships while serving the Murray area through his personal and professional endeavors.

Ty has been married to his beautiful wife, Lauren, since 2017. Together, they have one son, Hank, who keeps them on their toes. Ty enjoys spending time with family and friends, as well as watching and playing a variety of sports.

As a Murray State alum, Ty is an active participant in the Murray community. He serves as Treasurer for the Murray-Calloway County Need Line and is an active member of the Murray-Calloway County Chamber of Commerce and Westside Baptist Church.



ATA CPAs + Advisors PLLC

ATA is a long-term business advisor to its clients and provides other services that are not traditionally associated with accounting. For example, Revolution Partners, ATA’s wealth management entity provides financial planning expertise; ATA Technologies provides trustworthy IT solutions; ATA Digital focuses on growth through the design and development of marketing and digital products as well as offers video, social media, and digital content for small businesses; and ATA Employment Solutions is a comprehensive human resource management agency.

ATA has 15 office locations in Tennessee, Arkansas, Kentucky and Mississippi. Recognized as an IPA Top 150 regional accounting firm, it provides a wide array of accounting, auditing, tax and consulting services for clients ranging from small family-owned businesses to publicly traded companies and international corporations. ATA is also an alliance member of BDO USA LLP, a top five global accounting firm, which provides additional resources and expertise for clients.


IRS Issues Warning About ERTC Scams

The IRS is continuing to warn businesses about aggressive marketing by nefarious actors involving the Employee Retention Tax Credit (ERTC). It has suspended the processing of ERTC claims until at least year end because of a spike in the number of fraudulent claims.

The IRS has now issued a series of red flags businesses should bear in mind. Warning signs include unsolicited calls mentioning an “easy application process,” claims from fraudulent promoters that a business qualifies for the ERTC even before any discussion of the company’s tax situation, large upfront fees, and additional fees based on a percentage of the refund claim. For more information:

Contact one of our experts if you have questions.


The Future of Crypto Tax Compliance: AI and Beyond

As the IRS begins compliance work on cryptocurrency transactions, taxpayers who participate in them should prepare their documentation for scrutiny. You need to keep good crypto activity records because you may not be able to rely on your transaction platform to provide that data. However, some platforms, such as Coinbase, send Form 1099s to customers who earn more than $600 over the course of a tax year.

The IRS has suggested that during this transition period, it will be lenient with taxpayers who owe tax or haven’t kept good records because they didn’t know they’d need them. Also, the agency has talked about using artificial intelligence to enforce compliance with crypto reporting rules.

Contact one of our experts with questions about cryptocurrency tax compliance.


Third Estimated Tax Payment Due September 15, 2023

Mark your calendars for this important date, Sept. 15, if you must make quarterly estimated tax payments. That’s the due date for the third estimated tax payment for 2023.

Who must pay estimated tax? Generally, those who have taxable income that isn’t subject to withholding must make payments if they expect to owe tax of $1,000 or more when they file their tax returns. Estimated payments are used to pay not only income tax, but also self-employment taxes. With the rise of the gig economy, more people, such as rideshare drivers, are now required to make estimated tax payments.

If you’re not sure if this includes you, contact us or learn more here: