This semiannual update of recent developments in the area of individual taxation includes cases on hobby losses, innocent-spouse relief, material participation in a business, discharge of indebtedness, and self-employment tax, as well as IRS guidance on charitable deductions, cryptocurrency, and other topics.
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March 2020 - The Tax Adviser
- Magazine
- March 2020

INDIVIDUALS
expenses & deductions
Optimal choice of entity for the QBI deduction
The enactment of the Sec. 199A QBI deduction adds a new consideration to the form of entity analysis because the QBI deduction available to a business owner may vary depending on a business’s entity form. This article discusses the differences in calculating the QBI deduction for S corporations and LLCs in a variety of scenarios.
TAX CLINIC
FOREIGN INCOME & TAXPAYERS
partners & partnerships
STATE & LOCAL TAXES
COLUMNS
NEWS NOTES
STATE & LOCAL TAXES
TAX PRACTICE MANAGEMENT
PERSONAL FINANCIAL PLANNING
CASE STUDY
50TH ANNIVERSARY
employee benefits & pensions
Profits interests: The most tax-efficient equity grant to employees
By granting them a profits interest, entities taxed as partnerships can reward employees with equity. Mistakes, however, could cause challenges from taxing authorities.