The optional standard mileage rates for use of a vehicle will go down by one-half cent per mile for 2014, the IRS announced.
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TOPICS / INDIVIDUALS
Deductions
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.
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.
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.
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.
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.
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.
Individual Tax Report
This article covers recent developments in individual taxation. The items are arranged in Code section order.
“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.
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.
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.
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).
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.
First Circuit Breathes New Life Into Façade Easement Deductions
A recent First Circuit decision will affect how the tax benefits of certain façade easements are litigated in the First Circuit and may result in appeals of some of the Tax Court’s recent easement holdings.
Developments in Individual Taxation
This article covers recent developments in individual taxation. The items are arranged in Code section order.
Planning for Charitable Contribution Limitations
The amount of charitable contributions an individual can deduct in any one tax year is limited depending on the types of organizations to which the contributions were made, the kinds of property contributed, and the amount or value of the donated property.
IRS Releases Standard Mileage Rates for 2013
Optional standard mileage rates for use of a vehicle went up by 1 cent per mile for 2013.
Tax Treatment When Employees Surrender Paid Time Off to Benefit Others
There are various types of PTO donation and leave-sharing programs, not all of which are disaster-related. The tax treatment to the donating employee differs based on the type of program.
employee benefits & pensions
Profits interests: The most tax-efficient equity grant to employees
By granting them a profits interest, entities taxed as partnerships can reward employees with equity. Mistakes, however, could cause challenges from taxing authorities.
