IRS Releases Section 163(j) Guidance for Electing Real Property Trades or Businesses: The IRS released Revenue Procedure 2018-59, which provides a safe harbor that allows taxpayers to treat certain infrastructure trades or businesses as real property trades or businesses solely for purposes of qualifying as electing real property trades or businesses under section 163(j)(7)(B). Taxpayers that make an election for an infrastructure trade or business to be an electing real property trade or business under section 163(j)(7)(B) are not subject to the limitation on business interest expense under section 163(j), but must use the alternative depreciation system of section 168(g) to depreciate the property described in section 168(g)(8). The revenue procedure describes the types of infrastructure trades or businesses that can qualify as electing real property trades or businesses and provides general guidance on the election.

European Council Releases Directive on the Simplification of VAT System Rules: Today, the European Council released a Council Directive amending Directive 2006/112/EC, regarding the harmonization and simplification of certain rules in the value added tax (VAT) system for the taxation of trade between member states of the European Union.