Income/Franchise:
Massachusetts: Draft Release on Accounting for Leases Under Non-Income Measure of Corporate Excise Tax
Working Draft TIR: Accounting for Leases Under ASC 842 for Purposes of the Non-Income Measure of the Corporate Excise, Mass. Dept. of Rev. (11/30/22). The Massachusetts Department of Revenue posted a working draft technical information release (“draft TIR”) for practitioner comment, explaining that leases subject to Accounting Standard Codification (ASC) 842 should be characterized as intangible assets for purposes of the non-income measure of the Massachusetts corporate excise tax on business corporations. In doing so, the draft TIR explains that the Financial Accounting Standards Board (FASB) has updated its accounting standards for leases such that for annual financial reporting periods beginning after December 15, 2021, FASB requires privately-held companies and nonprofit organizations to follow ASC 842, which mandates that all leases with a term longer than one year be capitalized. Please contact us with any questions.
30 Rockefeller Plaza New York, NY 10112-0015 United States
About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.
Deloitte provides industry-leading audit and assurance, tax and legal, consulting, financial advisory, and risk advisory services to nearly 90% of the Fortune Global 500® and thousands of private companies. Our professionals deliver measurable and lasting results that help reinforce public trust in capital markets, enable clients to transform and thrive, and lead the way toward a stronger economy, a more equitable society and a sustainable world. Building on its 175-plus year history, Deloitte spans more than 150 countries and territories. Learn how Deloitte’s approximately 415,000 peopleworldwide make an impact that matters at www.deloitte.com.
