Income
This article summarizes the potential federal tax benefits from qualified opportunity zone investments in Puerto Rico under Sec. 1400Z-2, coupled with incentives of the Puerto Rico Incentive Code of 2019 (Act 60).
Sec. 401(k) plan distribution is not excludable from income or exempt from the Sec. 72(t) addition to tax due to taxpayer’s diabetes.
On Aug. 15, 2022, the IRS announced that it intends to defer by one more year the applicability date of certain foreign currency regulations under Sec. 987.
This item discusses how the rules for calculating ATI have changed for 2022 and beyond and how this affects the deductibility limit.
The Social Security Administration announced the maximum amount of wages subject to Social Security tax in 2023 and a cost-of-living adjustment (COLA) for Social Security benefits. The COLA is 8.7%.
Taxpayer’s health may have been the reason for sale of personal residence, but the issue may not be material to whether taxpayers are entitled to an exclusion of gain on the sale.
This item discusses whether and when ‘freebies’ or discounts result in taxable income to the influencer and possible limitations on deductions for the related expenses.
The new, lower $600 reporting threshold for reporting credit card and cash payment app transactions will likely lead to problems for taxpayers and payment settlement entities, the Taxpayer Advocate Service warns.
This semiannual update covers recent federal tax developments involving individuals, highlighting noteworthy IRS guidance and decisions of the Tax Court and other courts, as well as tax changes made by legislation.
A taxpayer has taken a distribution from a self-directed IRA if he or she takes physical possession of IRA assets;
A potential restriction on the sale of stock by a trust does not cause the trust’s grantor’s right to the income to be restricted for claim-of- right doctrine purposes.
The IRS advises that Form 1099-C, Cancellation of Debt, should not be filed for student loans covered by the ARPA temporary special rule excluding most discharges from borrowers’ income.
Due to concern about tax rate increases, some taxpayers may be looking to accelerate income. While income acceleration does not make sense in all circumstances, this article outlines seven strategies for accelerating income when it does.
The IRS advises on the effects on tax credits and the Free Application for Federal Student Aid and what taxpayers should do.
Chief Counsel Advice found that a taxpayer who was both a shareholder and an employee of the dividend-issuing corporation did not qualify for the exception to the net investment income tax for dividend income derived from a trade or business.
Sec. 83(i) allows a qualified employee to defer income inclusion from the exercise of a restricted stock unit or option of the qualified stock of a nonpublicly traded corporation for up to five years from the date of vesting.
The Tax Court held that a taxpayer was required to reduce the bases of depreciable real properties to calculate the basis adjustment necessary for determining the amount of the QRPBI discharge that may be excluded from income.
This semiannual update surveys recent federal tax developments involving individuals.
To help taxpayers who might otherwise have been required to file amended income tax returns, the IRS announced that it will automatically issue to eligible taxpayers refunds of income tax paid on 2020 unemployment benefits.
Economic benefits from a compensatory split-dollar
life insurance arrangement are not property distributions.
