Individual Income Tax Deductions

TOPICS / INDIVIDUALS

May 15, 2014

TIGTA Finds $2.3 Billion Alimony Tax Gap

The discrepancies between alimony income reported by taxpayers and alimony deductions claimed resulted in $2.3 billion in excess deductions in 2010, TIGTA reported.

May 1, 2014

Automobile Depreciation Limits Issued for 2014

The IRS issued the 2014 inflation adjustments to the depreciation limitations and lease inclusion amounts for certain automobiles under Sec. 280F.

April 1, 2014

Individual Taxation: Digest of Recent Developments: Part II

This is the second of a two-part article covering recent developments affecting taxation of individuals, including regulations, cases, and IRS guidance.

March 26, 2014

Gambler’s Luck Turns in Second Trip to Tax Court

A taxpayer who consistently lost money playing the slots at two casinos in California was found not to have an actual and honest profit objective and could not deduct her gambling losses on Schedule C.

March 1, 2014

Individual Taxation: Digest of Recent Developments: Part I

This article is Part I of a two-part article covering recent developments affecting taxation of individuals, including regulations, cases, and IRS guidance.

February 1, 2014

2014 Standard Mileage Rates Go Down

The optional standard mileage rates for use of a vehicle have gone down by one-half cent per mile for 2014.

December 6, 2013

Standard Mileage Rates Go Down Slightly in 2014

The optional standard mileage rates for use of a vehicle will go down by one-half cent per mile for 2014, the IRS announced.

December 1, 2013

Tax Issues for Individuals Who Create Intellectual Property

This article discusses the unique tax issues facing creators of intellectual property, particularly federal income tax treatment for individual taxpayers.

December 1, 2013

Special Per Diem Rates for 2013–2014 Travel Issued

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 2013 and 2014.

November 1, 2013

IRS Releases Final Regs. on Sec. 274 Reimbursement Arrangements

Final regulations clarify the treatment of reimbursement arrangements for the 50% meals and entertainment deduction under Sec. 274.

October 1, 2013

IRS Clarifies Who Is Subject to 50% Limit on Meal and Entertainment Expenses

The IRS issued final regulations clarifying which party is subject to the 50% limit on deductible meal and entertainment expenses.

October 1, 2013

Taxpayer in Trade or Business of Being a “Private Attorney General”

A district court held that a taxpayer who prosecuted an action against his former employer for false claims was was entitled to deduct his legal fees from the suit as ordinary and necessary business expenses.

September 25, 2013

IRS Updates Special Per Diem Rates for 2013–2014 Travel Expenses

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 2013 and 2014.

September 1, 2013

Individual Tax Report

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

August 9, 2013

“Private Attorney General” Can Deduct His Lawyers’ Fees as Trade or Business Expenses

A taxpayer who zealously and single-mindedly pursued False Claims Act lawsuits against his former employer was engaged in the trade or business of prosecuting those lawsuits and could deduct legal related expenses business expenses.

August 1, 2013

Rev. Proc. 2013-13: A New Option for the Home Office Deduction

The IRS will now allow taxpayers who otherwise qualify for the home office deduction to use a simplified safe-harbor method that reduces the recordkeeping generally involved under the actual-expense method.

July 1, 2013

Nine Factors That Determine Whether an Activity Is a Hobby

Under the hobby loss rules, the deductible expenses of a hobby are limited to the amount of income it generates and are further subject to a floor of 2% of AGI as a miscellaneous itemized deduction.

June 12, 2013

Oral Surgeon Cannot Deduct Expenses for Traveling Between Home and Job

The Tax Court upheld IRS-assessed deficiencies caused by the disallowance of a number of travel expenses an oral surgeon deducted on his Schedule C and its imposition of a negligence penalty under Sec. 6662(a).

May 1, 2013

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.

April 1, 2013

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.