Use of standard mileage rate, other rules are updated for TCJA
The IRS updated its rules concerning the use of standard mileage rates and to reflect the current suspension of miscellaneous itemized deductions and moving expense deductions.
Expenses & Deductions
TIGTA reports large increase in alimony tax gap
Discrepancies between the amount of alimony deducted by payers and reported as income by its recipients increased by 38% in six years, the Treasury Inspector General for Tax Administration reported.
Maximizing the QBI deduction with UBIA property
This article examines the calculation of the UBIA of qualified property; offers guidance on special situations such as like-kind exchanges and the Sec. 754 election; and presents planning opportunities to maximize the UBIA of qualified property.
Taxpayers may deduct casualty losses in prior years
The IRS finalized regulations permitting taxpayers to deduct disaster losses in the prior tax year and removed the related temporary regulations that were issued in 2016.
Pitfalls and treasures of the QBI deduction
The QBI deduction raises new considerations for retirement contributions and accounting method changes for small businesses.
Safe harbor allows QBI deduction for rental real estate businesses
The IRS issued a revenue procedure describing the requirements taxpayers have to meet to be a rental real estate business that qualifies for the safe harbor to be treated as a trade or business in order to qualify for the Sec. 199A qualified business income deduction.
Limiting business interest expense
Under new Sec. 163(j), business interest expense deductions are limited, and a business interest expense that is disallowed in the current year is carried forward to the succeeding tax year.
Current developments in individual taxation
This article is a semiannual review of recent developments in individual federal taxation, covering cases, rulings, and guidance on a variety of topics.
Taxpayer can deduct settlement payment to ex-husband
The Eleventh Circuit holds a taxpayer is entitled to a deduction under Sec. 1341 for a payment made to reimburse her ex-spouse for a portion of a settlement in an excess-compensation lawsuit.
Alimony tax gap swells to $3.2 billion, TIGTA finds
Discrepancies between the amount of alimony deducted by payers and reported as income by its recipients increased by 38% in six years, the Treasury Inspector General for Tax Administration reported.
Sec. 199A dividends paid by a RIC with interest in REITs and PTPs
The proposed regulations provided much-anticipated rules for RICs with REIT income for purposes of Sec. 199A.
Determining what is a separate trade or business for Sec. 199A purposes
This item discusses the general factors courts and the IRS have considered in determining whether a taxpayer is engaged in more than one trade or business.
IRS applies tax benefit rule to state and local tax refunds
The IRS issued guidance on the tax treatment of state and local refunds now that taxpayers are limited to a $10,000 deduction on their individual tax returns.
REIT dividends and PTP income under Prop. Regs. Sec. 1.199A-3(d)
Dividends from REITs and income from PTPs generally qualify for the 20% deduction.
Key tax reform provisions affecting sports franchises
This discussion focuses on two notable business provisions in the TCJA affecting sports franchises: new like-kind exchange provisions under Sec. 1031 and the QBI deduction under Sec. 199A.
Computing qualified W-2 wages for Sec. 199A purposes
Computing total W-2 wages under Sec. 199A appears daunting, in part because three possible methods are available to do so.
Sec. 199A and the aggregation of trades or businesses
Aggregation may allow a taxpayer to claim a greater QBI deduction than if the wages and capital limitation was applied separately.
Tax consequences for professional athletes in 2018
Proper advance planning is imperative to maximize the benefits of the TCJA provisions.
Sec. 199A rental real estate activity safe harbor proposed
The IRS issued a proposed revenue procedure that would provide a safe harbor for taxpayers under which a rental real estate enterprise will be treated as a trade or business for purposes of the Sec. 199A deduction.
Exploring the undefined: Trade or business
A group of TCJA-related changes requires taxpayers to distinguish separate and specific types of trades or businesses in order to take advantage of certain tax benefits.
