Many taxpayers will adopt the IRS’s new simplified method of calculating home-office deductions, but there are certain instances where simpler may not be better.
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TOPICS / INDIVIDUALS
Deductions
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.
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.
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.
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.
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.
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.
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.
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.
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