IRS explains which meals qualify for temporary 100% expense deduction
The IRS issued guidance on Thursday on the temporary rule that allows a 100% deduction for eligible restaurant meals in 2021 and 2022.
Deductions
Final rules determine when fines and penalties are deductible
The IRS issued final regulations on when fines and penalties paid to a government are not deductible by a taxpayer, including defining when a payment counts as restitution, which may be deductible.
IRS issues additional rules on the business interest expense limitation
The IRS issued final regulations containing rules on the Sec. 163(j) interest expense limitation, including rules for specific passthrough entities and regulated investment companies.
Amounts paid for personal protective equipment qualify for medical deduction
The IRS announced that purchases of personal protective equipment used to combat the COVID-19 pandemic qualify for the Sec. 213 medical expenses deduction to the extent they exceed 7.5% of a taxpayer’s adjusted gross income and have not been compensated for by insurance or otherwise.
No deduction for donation of house for deconstruction
Contribution of a house to a charity for deconstruction was not a donation of the taxpayers’ entire interest in the property.
Eligible educators may deduct personal protective equipment expenses
The IRS issued guidance providing a safe harbor under which eligible educators who have unreimbursed expenses for personal protective equipment, disinfectant, and other supplies used to prevent the spread of COVID-19 in the classroom can deduct those expenses as educator expenses.
Refusal to pay court-ordered divorce settlement is not theft
An ex-spouse’s refusal to pay a divorce settlement award is not theft.
Final regs. provide guidance on TCJA changes to entertainment deduction rules
In general, food or beverage expenses paid or incurred while traveling for business are subject to the 50% limitation as well as the substantiation requirements described in Sec. 274(d).
Final regs. govern deductibility of fines and penalties
The IRS issued final regulations on when fines and penalties paid to a government are not deductible by a taxpayer, including defining when a payment counts as restitution, which may be deductible.
Final regs. address certain Sec. 163(j) rules
The IRS issued final regulations containing rules on the Sec. 163(j) interest expense limitation, including rules for specific passthrough entities and regulated investment companies.
Gambler is big winner in Tax Court
The Cohan rule is used to determine the losses of a compulsive gambler.
2021 standard mileage rates decrease
The IRS issued the 2021 standard mileage rates for use in computing the deductible costs of operating an automobile for business, charitable, medical or moving expense purposes. The rates all decreased from 2021 to 2020.
Final regulations on the meals and entertainment deduction
The IRS issued regulations to address the changes made to the meals and entertainment deduction under the TCJA.
Deductions for meal and entertainment expenses
The IRS finalized rules disallowing deductions for most business entertainment expenses and distinguishing them from business food and beverage expenses that remain deductible.
QBI deduction: Interaction with various Code provisions
This discussion focuses on how Sec. 1231 and various loss disallowance provisions affect the QBI deduction.
Changes to charitable giving rules for 2020
There is a unique opportunity this year for clients with charitable contribution carryforwards to 2020.
New set of Sec. 199A final regulations
The final regulations clarify what is considered QBI and how to calculate it in certain situations.
Tax Court allows appraisals that substantially comply with the rules
Substantial compliance is sufficient for qualified appraisal requirements.
IRS issues additional regs. on charitable organization payments in lieu of state and local taxes
The IRS issued additional final regulations on payments made to charitable organizations in lieu of state and local tax credits.
IRS releases final rules on business meals and entertainment
The IRS finalized rules implementing provisions of the law known as the Tax Cuts and Jobs Act, disallowing deductions for most business entertainment expenses and distinguishing them from business food and beverage expenses that remain deductible.
