Individual Income Tax Deductions

TOPICS / INDIVIDUALS

February 5, 2021

Eligible educators may deduct personal protective equipment expenses

The IRS issued guidance providing a safe harbor under which eligible educators who have unreimbursed expenses for personal protective equipment, disinfectant, and other supplies used to prevent the spread of COVID-19 in the classroom can deduct those expenses as educator expenses.

February 1, 2021

Refusal to pay court-ordered divorce settlement is not theft

An ex-spouse’s refusal to pay a divorce settlement award is not theft.

February 1, 2021

Final regs. provide guidance on TCJA changes to entertainment deduction rules

In general, food or beverage expenses paid or incurred while traveling for business are subject to the 50% limitation as well as the substantiation requirements described in Sec. 274(d).

January 12, 2021

Final regs. govern deductibility of fines and penalties

The IRS issued final regulations on when fines and penalties paid to a government are not deductible by a taxpayer, including defining when a payment counts as restitution, which may be deductible.

January 6, 2021

Final regs. address certain Sec. 163(j) rules

The IRS issued final regulations containing rules on the Sec. 163(j) interest expense limitation, including rules for specific passthrough entities and regulated investment companies.

January 1, 2021

Gambler is big winner in Tax Court

The Cohan rule is used to determine the losses of a
compulsive gambler.

December 22, 2020

2021 standard mileage rates decrease

The IRS issued the 2021 standard mileage rates for use in computing the deductible costs of operating an automobile for business, charitable, medical or moving expense purposes. The rates all decreased from 2021 to 2020.

December 3, 2020

Final regulations on the meals and entertainment deduction

The IRS issued regulations to address the changes made to the meals and entertainment deduction under the TCJA.

December 1, 2020

QBI deduction: Interaction with various Code provisions

This discussion focuses on how Sec. 1231 and various loss disallowance provisions affect the QBI deduction.

December 1, 2020

Deductions for meal and entertainment expenses

The IRS finalized rules disallowing deductions for most business entertainment expenses and distinguishing them from business food and beverage expenses that remain deductible.

December 1, 2020

Changes to charitable giving rules for 2020

There is a unique opportunity this year for clients
with charitable contribution carryforwards to 2020.

November 1, 2020

New set of Sec. 199A final regulations

The final regulations clarify what is considered QBI and how to calculate it in certain situations.

November 1, 2020

IRS issues additional regs. on charitable organization payments in lieu of state and local taxes

The IRS issued additional final regulations on payments made to charitable organizations in lieu of state and local tax credits.

November 1, 2020

Tax Court allows appraisals that substantially comply with the rules

Substantial compliance is sufficient for qualified appraisal requirements.

October 1, 2020

IRS releases final rules on business meals and entertainment

The IRS finalized rules implementing provisions of the law known as the Tax Cuts and Jobs Act, disallowing deductions for most business entertainment expenses and distinguishing them from business food and beverage expenses that remain deductible.

October 1, 2020

Regulations and other guidance on the business interest expense limitation issued

Real property or farming trades or businesses can withdraw their decision to elect out of Sec. 163(j)’s business interest expense limitation for a 2018, 2019, or 2020 tax year.

October 1, 2020

Tax incentives for college students: Part 2

This second of a two-part article discusses the taxability of scholarships and who gets the deduction for repaying the student loans.

September 24, 2020

Tax incentives for college students: Part 1

This article examines planning issues when a student is a young child whose parents are saving for college and when the student is a young adult paying for college.

September 11, 2020

IRS issues 2020–2021 per-diem rates

The IRS issued the 2020-2021 per-diem rates for business travelers who incur expenses while traveling away from home.

September 1, 2020

RIC shareholders get benefit on Sec. 199A

The IRS issued final regulations allowing regulated investment companies to report qualified real estate investment trust dividends as Sec. 199A dividends to their shareholders.