Individual Income Tax

TOPICS / INDIVIDUALS

May 1, 2007

Providing Meals and Lodging to Employees

Editor: Albert B. Ellentuck, Esq. Under Sec. 119(a), meals provided by an employer—including a C corporation employer—can be excluded from an employee’s gross income if they are furnished on the business premises and for the employer’s convenience. The employer can deduct the full cost of these meals (the normal 50%

April 1, 2007

Structured Settlements: Are Factoring and Commuting Different?

Although the Code appears to permit factoring, there is no clear answer as to whether annuity issuers can commute payments due under their own policies without adverse tax consequences.

April 1, 2007

Adjusting Basis of Inherited S Stock for IRD

Editor: Albert B. Ellentuck, Esq. Income in respect of a decedent (IRD) generally consists of items of gross income a decedent was entitled to at death that, because of the decedent’s method of accounting, were not included in the final individual return; see Regs. Sec. 1.691(a)-1(b). IRD is included in

April 1, 2007

Sec. 83 Risks when Compensating Founders in a New Venture

Co-Editors: Michael Metz, CPA; Nick Gruidl, CPA, MBT The founders of a new venture are often entrepreneurs who have the ideas and relationships to start and create a successful venture, but not the capital to sustain and develop it. Venture capitalists, private-equity funds and public markets satisfy the needs of