Individual Income Tax

TOPICS / INDIVIDUALS

March 1, 2012

Preserving Tax Losses by Avoiding the Wash-Sale Rules

A taxpayer cannot deduct the loss realized on the sale of stock or securities (including shares in a mutual fund) if the taxpayer purchases substantially identical stock or securities within the period beginning 30 days before and ending 30 days after the sale.

February 1, 2012

Exercise of Stock Options Results in Taxable Income and Compensation Deduction

The IRS held that a taxpayer’s cashless exercise of stock options resulted in taxable income to the taxpayer and a compensation deduction for the company that issued the options.

January 20, 2012

Final Regs. Issued on Exclusion of Damages for Personal Physical Injury

The IRS on Friday issued final regulations relating to the exclusion from gross income for damages received on account of physical injuries or sickness.

December 1, 2011

Year-End Individual Taxation Report

This article covers developments from the past year affecting taxation of individuals, including last year’s tax relief, health care, and small business legislation, regulations, cases, and IRS guidance.

December 1, 2011

Exclusion of Employer-Provided Cell Phones from Gross Income

A recent IRS notice has cleared up confusion about whether employers may exclude the value of cell phones provided for employees’ use from gross income.

December 1, 2011

Qui Tam Payment Included in Income

The Eleventh Circuit held that qui tam payments that a whistleblower received were includible in income. It further held that the whistleblower was liable for a 20% accuracy-related penalty.

December 1, 2011

Short Sales of Investment Real Property

This item addresses a situation that often arises in today’s economic climate: a short sale of real property held for investment, not for rental, secured by a recourse note.

December 1, 2011

The Part Sale, Part Gift Trap for Nearly Worthless Securities

This item discusses a trap for the unwary when the part gift, part sale rule applies.

November 1, 2011

IRS Issues Guidance on Tax Treatment of Business Cell Phones

The IRS issued guidance that discusses the treatment of employer-provided cell phones as an excludible fringe benefit.

November 1, 2011

Keeping Alimony from Being Reclassified as Nondeductible Payments

This column discusses the tax implications of alimony or spousal support, with a focus on the specific criteria that payments must meet to qualify as alimony.

October 1, 2011

Shareholder Loan Documentation

This item explores the importance of paying attention to details and following document terms for shareholder loans.

October 1, 2011

Relief for Late Election to Treat All Real Estate Rental Interests as One Activity

This item reviews recent IRS guidance on how certain taxpayers can make a late election to treat all interests in rental real estate as a single rental real estate activity.

October 1, 2011

Forgivable Loans in Employment Agreements

The item examines the use of forgivable loans issued at the inception of employment, where the employee receives an upfront payment of cash and the related income arising from the forgiveness of such debt is recognized over the life of the obligation provided in the agreement.

October 1, 2011

Exchange of Shares in ISO Exercise

Under Regs. Sec. 1.6045-1(d)(2), which requires that broker statements disclose securities’ adjusted basis beginning January 1, 2011, basis tracking of ISOs is more relevant than ever.

September 14, 2011

Guidance Issued on Tax Treatment of Business Cell Phones

The IRS issued a notice on September 14 providing guidance on the tax treatment of employer-provided cell phones now that they have been removed from the definition of listed property.

September 1, 2011

Tax Court Determines Character, Source of Golfer’s Worldwide Endorsement Income

The Tax Court recently decided Goosen, a case with potentially far-reaching implications for foreign athletes who perform within the United States. The decision has become the leading authority for determining both the character and the source of the endorsement income earned by international athletes.

August 1, 2011