Gross Income

Payments to Egg Donor Not Excludable From Income

The Tax Court ruled that a woman who received payments for undergoing the procedures necessary to donate her eggs could not exclude the payments from gross income as damages for personal injuries or physical sickness under Sec. 104(a)(2).

Forfeited Gambling Winnings Not Included in Income

The IRS advised that gambling winnings that a taxpayer surrenders to a state as part of a program intended to help treat gambling addiction do not have to be reported by a casino to the taxpayer on Form W-2G and are not includible in gross income by the taxpayer.

Understanding How Corporate Dividends Are Taxed to Shareholders

Shareholders recognize a taxable dividend to the extent a distribution is paid out of corporate earnings and profits. If the distribution exceeds E&P, the excess reduces the shareholder's stock basis. Any amount in excess of the shareholder's stock basis is capital gain.

The Tax Adviser 2013 Best Article Award

The winner of The Tax Adviser’s 2013 Best Article Award is Donald T. Williamson for his article, "Planning for the 'Parallel Universe' of the Net Investment Income Tax," in the August 2013 issue.

TIGTA Finds $2.3 Billion Alimony Tax Gap

The discrepancies between alimony income reported by taxpayers and alimony deductions claimed resulted in $2.3 billion in excess deductions in 2010, TIGTA reported.

Income From Partnership Is Community Property

The Tax Court held that a taxpayer was taxable on her community property share of the income from a partnership that her husband funded without her consent with community property.

Earnout Restriction Causes Substantial Risk of Forfeiture

The Tax Court held that sections of a restricted stock agreement and an employment agreement read together constituted an earnout restriction that might create a substantial risk of forfeiture for stock transferred to an employee.

Earnout Restriction Causes Substantial Risk of Forfeiture

The Tax Court held that sections of a restricted stock agreement and an employment agreement read together constituted an earnout restriction that might create a substantial risk of forfeiture for stock transferred to an employee.

Newsletter Articles

SPONSORED REPORT

States look to unclaimed property for revenue

State audits of abandoned and unclaimed property (AUP) have exploded in recent years. This report outlines the escheat process, common types of AUP, how different states are handling it and how companies can plan for potential audits and liabilities.

DEDUCTIONS

Understanding the new Sec. 199A business income deduction

The new deduction allows certain business owners to keep pace with the significant corporate tax cut provided by the Tax Cuts and Jobs Act.