The IRS released standard mileage rates for use in 2012.
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TOPICS / INDIVIDUALS
Deductions
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.
Deduction Allowed for Payments 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.
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.
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.
