This article is a semiannual review of developments
in individual federal taxation, including issues of alimony, trade or business expenses, and recognition of loss.
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TOPICS / INDIVIDUALS
Credits
What the House tax bill holds for individuals
From new tax rates to fewer deductions, credits, and exclusions, the tax reform bill released by the House would have wide-ranging effects on the taxation of individuals.
Tax credit for solar panels installed in residential property
Most people know that this credit is available for qualifying solar property installed in their homes, but they may not realize the credit is also available for rental properties they may own.
IRS issues regulations on premium tax credit
The IRS issued final regulations that govern the relief available for victims of domestic abuse or abandonment from the requirement that married taxpayers must file joint income tax returns to qualify for the Sec. 36B premium tax credit.
Passive activity credits and recharacterized income
Passthrough owners that do not materially participate in a trade or business may find their tax credits suspended.
Final regs. address premium tax credit issues
The IRS issued final regulations that govern the relief available for victims of domestic abuse or abandonment from the requirement that married taxpayers must file joint income tax returns to qualify for the Sec. 36B premium tax credit.
TIGTA issues reports on taxpayers who received advance premium tax credits
Health care exchanges failed to properly verify the identity and eligibility of all individuals who received the advance premium tax credit, the Treasury Inspector General for Tax Administration reported.
IRS rules defining dependents and EITC qualification are to be amended
The IRS proposed changing its position on when taxpayers may qualify as childless for purposes of the Sec. 32 earned income tax credit.
Maximizing the EITC for deployed troops
This article discusses why deployed troops who are in harm’s way are getting less benefit from the EITC, how it affects their households, and a simple solution to the problem.
Some individuals mistakenly received the advance premium tax credit
Health care exchanges failed to properly verify the identity and eligibility of all individuals who received the advance premium tax credit, the Treasury Inspector General for Tax Administration reported.
Current Developments in Taxation of Individuals
A number of recent significant developments affect
taxation of individuals.
Accelerating AMT Credits in Lieu of Bonus Depreciation
Changes provided in the PATH Act allow a much larger pool of potential credits than had been previously available.
IRS Proposes Changes to Rules for Dependents
The IRS proposed changes to various rules affecting dependents, including changing its position on when taxpayers count as “childless” for purposes of the earned income tax credit.
IRS Proposes Rules for Reporting and Claiming Tuition Expenses
The IRS is proposing to amend the rules governing eligibility to claim a deduction or credit for eligible education expenses to conform them to recent legislative changes.
Individual Tax Update
This article covers recent developments affecting taxation of individuals, including regulations, cases, and IRS guidance.
IRS Explains the Reinstated Sec. 35 Health Coverage Tax Credit
IRS issued a notice to explain how the recently reinstated Sec. 35 health coverage tax credit applies for 2014 and 2015.
Individual Taxation: Recent Developments
This article covers recent developments in the area of individual taxation arranged in Code section order.
Congress Makes Changes to Popular Tax Credits
Changes include new restrictions, penalties, and due diligence requirements for practitioners and affect the child tax credit, the American opportunity credit, and the EITC.
Passive Activity Credit Flowchart
Understanding the limitations on the use of passive activity credits is a key element in providing sound tax advice to clients.
Supreme Court Allows Premium Tax Credits in Federal Exchanges
The Supreme Court upheld the availability of premium tax credits under the PPACA when they are provided through health exchanges run by the federal government.
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.
