Current Developments in Taxation of Individuals
A number of recent significant developments affect taxation of individuals.
Expenses & Deductions
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.
Standard Mileage Rates for 2017 Are Announced
The IRS issued the 2017 standard mileage rates for determining the deductible costs for operating a vehicle for business, medical, charitable or moving purposes.
Tax Planning for Aging Clients: Medical Expense Deduction for Home Improvements
Many clients making modifications to make homes more accessible may qualify for valuable home improvement medical expense deductions.
IRS Agrees That Mortgage Interest Deduction Limit Applies on Per-Taxpayer Basis
Mortgage interest limitation is meant to apply on a “per-taxpayer” basis, rather than on a “per-residence” basis.
Form 8332 Challenges for Divorced Couples
When parents divorce without a meeting of the minds or a well-crafted agreement, issues can result as to who is entitled to the tax benefits from supporting their children.
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.
Tax Relief for Executive Compensation Clawbacks Under Proposed Dodd-Frank Rules
This article discusses difficult tax problems faced by executive officers whose compensation is clawed back and the limited availability of relief under Sec. 1341.
IRS Issues 2016–2017 Special Per-Diem Rates for Travel
The IRS issued its annual updates of per-diem rates for use in substantiating certain business expenses taxpayers incur when traveling away from home on or after Oct. 1.
Co-op Owner Still Cannot Take Deduction for Wall’s Collapse
Progressive deterioration caused collapse of an 80-year-old retaining wall, making a taxpayer ineligible for casualty loss deduction.
Individual Tax Update
This article covers recent developments affecting taxation of individuals, including regulations, cases, and IRS guidance.
Proposed Regs. Govern Reporting and Claiming Qualified Tuition and Related 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.
Health Savings Account Limits for 2017 Are Issued
The IRS issued the inflation-adjusted figures for the annual contribution limits for health savings accounts and the minimum deductible amounts and maximum out-of-pocket expense amounts for high-deductible plans.
Deducting Business Bad Debts
Planning that maximizes the business bad debt deduction can help minimize the taxpayer’s overall economic loss.
Individual Taxation: Recent Developments
This article covers recent developments in the area of individual taxation arranged in Code section order.
Standard Mileage Rates Will Go Down in 2016
The IRS issued the standard mileage rates for business use of an automobile and for driving for medical or moving purposes for 2016.
Per-Diem Rates for 2015–2016 Travel Are Issued
The IRS issued its annual update of special per-diem rates for use in substantiating certain business-travel expenses.
Casual Lender Not Allowed Bad Debt Deduction
A taxpayer who made high-interest loans to friends was not entitled to any bad debt deduction for a loan that went belly up because he did not prove that it was a business loan.
Mortgage Interest Deduction Applies on a Per-Taxpayer Basis
Unmarried taxpayers who co-own a residence can each deduct interest payments on home-acquisition and home-equity debt up to the $1.1 million limit.
Poor Recordkeeping Hurts Taxpayers: Problems and Preventions
Recordkeeping and attention to the letter of the law should pay off in avoiding lost deductions.
