Individual Tax Update
This article covers recent developments affecting taxation of individuals, including regulations, cases, and IRS guidance.
Expenses & Deductions
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.
Deduction for Seized Marijuana Goes Up in Smoke
The Tax Court held that the owner of medical marijuana dispensaries could not deduct the cost of marijuana seized by the DEA as costs of goods sold.
Special Per-Diem Rates Issued for 2015–2016 Travel
The IRS issued per-diem rates for use in substantiating business expenses taxpayers incur while traveling away from home.
Directions in Individual Taxation
This article covers recent developments in the area of individual taxation, including the treatment of support payments and IRA and qualified plan distributions, the Sec. 469 material participation rules, and the taxability of state economic development credits.
Ninth Circuit Holds Mortgage-Interest Deduction Applies on a Per-Taxpayer Basis
Unmarried co-owners of two qualified residences each qualified for mortgage-interest deductions on up to $1.1 million of acquisition indebtedness the Ninth Circuit Court of Appeals held.
Long-Haul Truck Driver Has No Tax Home
A long-haul truck driver who spent most of the time on the road did not have a tax home that would allow him to deduct his unreimbursed travel expenses because he was not away from home, the Tax Court held.
2015 Standard Mileage Rates Are Issued
Optional standard mileage rates for use of a vehicle have changed little for 2015, with the business use rate going up and the medical and moving rate going down.
Maximizing Individuals’ Deductions for Startup Expenses
Sec. 195 allows taxpayers to deduct business startup costs that would be deductible under Sec. 162 if they were incurred in a trade or business.
Employees Can Deduct Expenses for Local Lodging
Regulations the IRS issued finalize rules allowing employees to deduct certain expenses paid or incurred for local lodging as business expenses.
2014–2015 Per Diem Rates for Business-Related Travel
The IRS issued its annual update of special per diem rates for use in substantiating certain business expenses taxpayers incur when traveling away from home in 2014 and 2015.
Substantiating Expenses: All or Nothing
Without proper substantiation, no deduction is allowed for a Sec. 274(d) expense, even if the court believes that a legitimate expenditure was made.
