The IRS explained that contributions to disregarded SMLLCs wholly owned and controlled by a U.S. charity will be treated as if made directly to the U.S. charity.
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TOPICS / INDIVIDUALS
Deductions
Prop. Regs. Clarify Who Is Subject to Limit on Meal and Entertainment Expenses
The IRS released proposed regulations clarifying which party is subject to the rule that limits the deduction for meals and entertainment to 50% of the expenses incurred.
Special Per Diem Rates Updated for 2012–2013
The IRS issued the annual update of special per diem rates for use in substantiating certain business expenses taxpayers incur when traveling away from home.
Chief Counsel: Self-Employed Can Deduct Medicare Premiums
The Office of Chief Counsel advised that self-employed individuals may deduct Medicare premiums from their self-employment income.
No Deduction for Donating Right to Burn House
The Tax Court held that taxpayers who gave a local fire department the right to burn down a house on property they had recently purchased were not entitled to a charitable deduction donation for the value of the house.
Investors’ Dilemma on Purchasing Distressed Obligations
This article discusses the purchaser’s perspective of an investment in distressed obligations that are secured by leases on tangible property.
Proposed Regs. Would Clarify Who Is Subject to Sec. 274(n) Limit on Meal Expenses
The IRS released proposed regulations clarifying which party is subject to the rule that limits the deduction for meals to 50% of the expenses incurred.
Self-Employed Can Deduct Medicare Premiums, IRS Chief Counsel Advises
The Office of Chief Counsel advised that self-employed individuals may deduct Medicare premiums from their self-employment income.
Prop. Regs. Allow Taxpayers to Deduct Certain Local Lodging Expenses
The IRS issued proposed regulations that permit employees to treat certain expenses paid or incurred for local lodging as deductible business expenses.
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?
INDIVIDUALS
Current Developments in Taxation of Individuals: Part 1
This update surveys recent federal tax developments involving individuals, including court cases, rulings, and guidance issued during the six months ending October 2025.
