The IRS issued proposed regulations that permit employees to treat certain expenses paid or incurred for local lodging as deductible business expenses.
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TOPICS / INDIVIDUALS
Deductions
Deducting Employee MBA Expenses
The deductibility of the cost of an MBA degree under Sec. 162(a) as a trade or business expense for an employee is a complex subject, with several factors to consider.
No Deduction Allowed for Contribution of Easement
The Tax Court held that a taxpayer was not entitled to a charitable deduction for a contribution of a conservation easement on land subject to a mortgage because the mortgagee’s rights in the land had not been subordinated to the rights of the charitable organization that received the easement.
Final Regs. Explain Allocation of Deduction for Prepaid Mortgage Insurance Premiums
The IRS issued final regulations governing the allocation of prepaid mortgage insurance premiums for periods after Dec. 31, 2010.
Guidance Issued on Interest Exceeding Acquisition and Home Equity Indebtedness Limitations
The IRS recently released guidance for allocating excess mortgage interest expense.
Taxpayers Can Deduct Certain Local Lodging Expenses Under Proposed Rules
The IRS issued proposed regulations that permit employees to treat certain expenses paid or incurred for local lodging as deductible business expenses.
Securities Fraud and the Theft-Loss Deduction
Whether investment losses from fraud should be treated as capital losses or theft losses when the stock is purchased through a stockbroker is currently undecided for tax purposes.
Tax Court Says Limitation on Deductible Mortgage Interest Applies to Unmarried Co-Owners
The Tax Court held that unmarried co-owners were together subject to the $1.1 million limit on personal residence indebtedness under Sec. 163(h)(3).
When Is Form 8283 Required to Be Filed?
The IRS should revise the instructions for Form 8283 to more clearly explain when it is required to be filed, given that the instructions state that failure to file the form can cause the deduction to be disallowed in its entirety.
Individual Taxation Developments
This article covers recent developments affecting individual taxation. The items are arranged in Code section order
2012 Standard Mileage Rates Released
The IRS released standard mileage rates for use in 2012.
Equitable Ownership and Mortgage Interest Deductions
Many individuals have experienced difficulty in obtaining a loan for a new home or refinancing a present home. An alternative for many individuals is to tap into the creditworthiness of parents or other family members. The question is: Who is entitled to the mortgage interest deduction?
Standard Mileage Rates for 2012 Released
The IRS released standard mileage rates for use in 2012.
Year-End Individual Taxation Report
This article covers developments from the past year affecting taxation of individuals, including last year’s tax relief, health care, and small business legislation, regulations, cases, and IRS guidance.
IRS Reinstates High-Low Substantiation Method
The IRS issued an update and new guidance regarding the use of the federal per diem rate to substantiate the amount of ordinary and necessary expenses for lodging, meals, and incidental costs paid or incurred for business-related travel away from home and reinstated the high-low substantiation method.
Keeping Alimony from Being Reclassified as Nondeductible Payments
This column discusses the tax implications of alimony or spousal support, with a focus on the specific criteria that payments must meet to qualify as alimony.
Taxpayer Entitled to Charitable Deduction for Gifts of LLC Units
The Ninth Circuit held that a taxpayer was entitled to a charitable deduction for gifts of LLC units to two charitable foundations that were transferred to the foundations when the IRS increased the value of the LLC units on audit.
High-Low Method for Substantiating Travel Expenses Discontinued
The IRS announced that it is discontinuing the high-low method for substantiating lodging, meal, and incidental expenses incurred in traveling away from home (Announcement 2011-42)
Final Regs. Govern Election to Deduct Business Start-up Expenses
The IRS issued final regulations (T.D. 9542) governing elections by individual taxpayers, corporations, and partnerships to deduct start-up expenses or organizational expenditures.
IRS Updates, Clarifies Travel Allowances, Reinstates High-Low Method
The IRS issued an update and new guidance for use of a federal per diem rate to substantiate the amount of ordinary and necessary expenses for lodging, meals and incidental costs paid or incurred for business-related travel away from home.
TAX PRACTICE MANAGEMENT
2025 tax software survey
AICPA members in tax practice assess how their return preparation software performed during tax season and offer insights into their procedures.
