Expenses & Deductions

Individual Tax Report

This article covers recent developments in individual taxation. The items are arranged in Code section order.

Tithing Is Not Necessary Expense

The Tax Court upheld the IRS’s determination that a taxpayer’s tithing payments to his church were conditional expenses for purposes of determining the amount of the taxpayer’s monthly payments under a partial payment installment agreement.

IRS Announces Simplified Home Office Deduction

The IRS provided taxpayers with an optional safe-harbor method to calculate the amount of the deduction for expenses for business use of a residence during the tax year under Sec. 280A, beginning with the current tax year.

Tax Court Denies Investment Interest Deduction

The Tax Court held that the taxpayers were not entitled to take an investment interest deduction for any of the mortgage interest they paid on property they had purchased because they failed to substantiate their claimed allocation of the mortgage debt.

Per Diem Rate Updates for 2012–13

The IRS has issued its annual update of special per diem rates for use in substantiating certain business expenses taxpayers incur when traveling away from home.

Newsletter Articles

PRACTICE MANAGEMENT

Tax software survey

Our annual survey offers a look at how CPAs judged their tax preparation software in a wide range of types of practices.

NEWS

Congress enacts tax reform

Here are many of the most important provisions in the new law that affect both individual taxpayers and businesses. All changes were effective Jan. 1, 2018, except as noted.