The Forensic and Valuation Services Executive Committee and the Tax Executive Committee of the AICPA have sent comments to Treasury on proposed regulations’ provisions regarding appraisals and individuals performing appraisals.
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TOPICS / INDIVIDUALS
Deductions
Economic Stabilization Act Extends Expired Provisions and Repeals MLTN Standard
The Emergency Economic Stabilization Act extends various tax benefits that expired at the end of 2007 and repeals the “more likely than not” standard for return preparers
Reminder: Support Your Auto Expense
Editor: Michael D. Koppel, CPA, PFS Auto expenses are a very common deduction for business owners and employees who must travel. Often the taxpayer does not know the exact amounts necessary to calculate the proper deduction and the tax preparer must estimate the mileage, business percentage, and ultimate auto deduction
Tax Aspects of Contributing a House to a Fire Department
Taxpayers can obtain a charitable contribution deduction for the fair market value of property donated to a fire department to be burned down. The taxpayer needs to properly structure the transaction so that the property, and not just the right to use the property, is being donated.
When Are Payments Treated as Child Support?
Payments are child support for tax purposes if they are either so designated in the divorce or separation agreement (fixed child support) or deemed to be child support.
Prop. Regs. Govern Charitable Contribution Substantiation and Reporting
Tthe IRS issued proposed regulations that would change the rules regarding substantiation and reporting of charitable contributions.
Individual Taxation Report
This article covers recent developments affecting taxation of individuals, including legislation, regulations, and IRS guidance.
Tax Planning for Elderly Clients
With the rapid increase in the number of elderly clients, tax practitioners will need to become familiar with the special issues that affect tax compliance and planning for the elderly.
Getting the Most from Individual Charitable Contributions
This article discusses the issues involved in determining whether a charitable contribution is deductible, what the amount of a contribution is, and when and how much of a contribution is deductible.
Converting a Residence to Rental Property
A decision to convert to rental should consider factors such as the taxpayer’s marginal tax rate, availability of excluding gain from the sale of a personal residence, expected growth rate of the rental property, length of time the house will be rented before being sold, cash flow from renting, effect of the passive activity rules, and rate of return on other invested funds.
Federal, State, and Local Tax Incentives for Environmental Remediation Costs
This item provides a high-level overview of the most common federal, state, and local tax incentives and a brief update of the federal rules regarding the expensing of environmental remediation costs.
IRS Updates Rules for Substantiating Travel Expenses
The IRS updated the rules for substantiating an employee’s travel expenses using reimbursement arrangements, per diem allowances, or the high-low method.
Gifting of a Remainder Interest in a Home
Editor: Kevin F. Reilly, J.D., CPA One of the first decisions taxpayers must make when planning their estates is what to do with the principal home. With the changing and sometimes downtrodden real estate market, this can be a difficult and time-consuming task for heirs, particularly if they do not
Hurricane GO Zones: An Update on Relevant Tax Provisions
The widespread devastation left in the wake of hurricanes has resulted in numerous tax provisions aimed at revitalizing and rebuilding the affected areas. Congress passed the Gulf Opportunity Zone Act of 2005, P.L. 109-135 (the GO Zone Act), in response to Hurricane Katrina and then revised it as Hurricanes Rita
Meeting the Home Office “Principal Place of Business” Requirement
Editor: Albert B. Ellentuck, Esq. A self-employed taxpayer may be able to claim deductions for the business use of his or her home. These deductions include mortgage interest, real estate taxes, maintenance, insurance, utilities, and depreciation. However, certain conditions must be met, sand the IRS closely scrutinizes home office deductions
Treatment of Legal Fees Incurred by Individuals
This article explains the possible tax treatments of legal fees and how to determine the proper treatment.
Opportunities to Claim Health Care Expenses as Deductions
Editor: Joel E. Ackerman, CPA, MST It is common knowledge that taxpayers may deduct qualified medical expenses for themselves and their dependent children. There are, however, other opportunities to deduct medical expenses that are not so widely known. One of those is the deduction of medical expenses that a taxpayer
New Ruling Expands Definition of “North American Area” for Attendance at Foreign Conventions
Editor: Anthony S. Bakale, CPA, M.Tax. Sec. 274(h) limits deductions for expenses incurred while attending a convention, seminar or similar meeting held outside the “North American area.” Generally, no deduction is permitted under Sec. 162 for expenses allocable to such a meeting, unless the taxpayer can establish that they are
Rules Governing Lodging Away from Home Will Be Liberalized
The IRS and Treasury intend to amend regulations under Sec. 262, relating to the deductibility of lodging expenses. Background Sec. 162(a) allows as a deduction all the ordinary and necessary business expenses paid or incurred during the tax year in carrying on any trade or business. Sec. 162(a)(2) provides that
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.
