Individual Income Tax Deductions

TOPICS / INDIVIDUALS

September 11, 2023

Long-awaited guidance provided for amortization of R&E expenditures

The IRS says taxpayers and tax professionals can rely on interim guidance under Sec. 174 for the amortization of research and experimental expenditures released on Friday in Notice 2023-63 until it issues proposed regulations based on the guidance, effective for tax years beginning in 2022.

July 1, 2023

Bad debt deductions from intrafamily advances

Loans within families can give rise to a loss deduction if not repaid, but this requires establishing, maintaining, and documenting a bona fide debtor-creditor relationship.

July 1, 2023

Mitigation of excess gain on inherited property

This item focuses on the rules to seek an adjustment: correcting excess gain on inherited property.

May 16, 2023

Is it a trade or business? Or a hobby or investment?

Many Code provisions apply only to a “trade or business.” This article discusses the various tax consequences when an activity fails the relevant test and is instead deemed a hobby or investment.

January 3, 2023

Business standard mileage rate increases for 2023

The standard mileage rate for business use of a vehicle has increased, the IRS announced, effective as of Jan. 1.

December 1, 2022

Taxpayer marital status and the QBI deduction

This article provides an analysis in four scenarios of whether the QBI deduction will cause a marriage penalty or bonus and discusses whether the existence of a marriage penalty or bonus affects couples’ decision to marry.

September 26, 2022

IRS raises per diem standard rates for business travel

Under Notice 2022-44, the high-low method rates will be slightly higher and the list of high-cost localities in the continental United States is revised, both effective Oct. 1.

September 1, 2022

Standard mileage rate increased July 1

Effective for miles traveled on or after July 1, 2022, the standard mileage rate for purposes of deductible business expenses is 62.5 cents per mile, an increase of 4 cents from the 58.5 cents per mile applicable to travel between Jan. 1, 2022, and June 30, 2022.

September 1, 2022

Paying for personal guaranties of company debts

A partner providing a personal guaranty may be entitled to an increase in the basis of his or her partnership interest by virtue of guaranteeing the partnership’s debt.

September 1, 2022

Microcaptive insurance arrangements after CIC Services

A federal district court recently held that Notice 2016-66, which classifies certain microcaptive insurance arrangements as transactions of interest that are reportable transactions under Regs. Sec. 1.6011-4, is invalid under the Administrative Procedure Act. This article discusses the ramifications of the decision for taxpayers engaging in microcaptive insurance transactions and possible responses to the decision by the IRS.

June 27, 2022