The Tax Court held that payments made to an elderly woman’s caregivers for personal care that she required due to her diminished capacity qualified as long-term care services and were therefore deductible.
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TOPICS / INDIVIDUALS
Deductions
Election to Deduct Business Startup Expenses Gets Final Rules
The IRS issued final regulations governing elections by individual taxpayers, corporations and partnerships to deduct startup expenses or organizational expenditures.
Charitable Deduction Allowed for Expenses of Cat Rescue Organization Volunteer
The Tax Court allowed a taxpayer to take a charitable deduction for expenses she incurred while taking care of cats for a charitable organization dedicated to cat neutering and rescue because her expenses were incident to services provided to a charitable organization.
IRS Discontinues High-Low Method for Substantiating Travel Expenses
The IRS announced that it is discontinuing the high-low method for substantiating lodging, meal and incidental expenses incurred in traveling away from home.
Tax Court Allows Deduction for Payment to Long-Term Caregivers
The Tax Court held that payments made to an elderly woman’s caregivers for personal care that she required due to her diminished capacity qualified as long-term care services and were therefore deductible.
IRS Raises Standard Mileage Rate for Second Half of 2011
In response to rising gasoline prices, the IRS has raised the standard mileage rate for business use of an automobile from 51 cents per mile to 55½ per mile, effective July 1.
Expense Does Not Qualify as Compensation but Does Qualify as Theft Loss
The Tax Court held that amounts that an abusive man took from his live-in girlfriend’s business did not qualify as deductible compensation expenses but did qualify as deductible theft losses.
Individual Taxation: Digest of Recent Developments
This article covers recent developments affecting taxation of individuals, including last year’s tax relief and small business legislation, regulations, cases, and IRS guidance. The items are arranged in Code section order.
Tax Consequences of Transaction Costs
This article discusses the tax consequences of transaction costs in four settings: in general, when acquiring or producing tangible assets, when acquiring or creating intangible assets, and when acquiring a business.
Interest on Home-Equity Indebtedness
The IRS ruled that a taxpayer can deduct as qualified residence interest up to $1.1 million of the debt securing the purchase of a taxpayer’s principal residence.
Violation of Public Policy and the Denial of Deductions
Recent events have drawn attention to the disallowance of deductions where allowing the deductions would violate public policy. This article discusses the disallowance of deductions under Sec. 162 and Sec. 165 for public policy reasons.
Contribution Deduction Denied for Gifts to Family Public Charity
The Tax Court denied a taxpayer’s claim for a deduction for a contribution of stock to a charitable foundation that the foundation used to set up a family public charity account in which the taxpayer’s contribution was segregated for investment and future distribution at the taxpayer’s discretion.
IRS Will Allow Costs of Breast Pumps as Deductible Medical Expenses
The IRS has announced that it will treat expenses for breast pumps and supplies that assist in lactation as deductible medical expenses, and that the amounts that a taxpayer is reimbursed for these expenses will not be income to the taxpayer.
The Changing Landscape of Conservation Easements: Appendix
This appendix discusses various recent and landmark decisions affecting the law of conservation easements. It accompanies the article “The Changing Landscape of Conservation Easements.”
The Changing Landscape of Conservation Easements
Conservation easements are some of the most effective tools available to ensure permanent conservation of privately held land in the United States. This article discusses federal income tax benefits from the creation of conservation easements.
IRS Will Allow Costs of Breast Pumps as Deductible Medical Expenses
The IRS announced it will treat expenses for breast pumps and supplies that assist in lactation as deductible medical expenses.
IRS Releases 2011 Standard Mileage Rates
The IRS released the standard mileage rates for use in 2011. Taxpayers can use the optional standard mileage rates to calculate the deductible costs of operating an automobile.
No Deduction for House Donated to Fire Department
This item discusses the determination of the amount of the charitable deduction for the donation of a house to a fire department that intends to use the house for training exercises—including burning it to the ground.
IRS Confirms That Mortgages Over $1 Million Can Be Deductible
The IRS has ruled that indebtedness incurred by a taxpayer to acquire, construct, or substantially improve a qualified residence can constitute home equity indebtedness to the extent it exceeds $1 million.
IRS Releases 2011 Standard Mileage Rates
The IRS released the standard mileage rates for use in 2011.
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