Individual Income Taxation

TOPICS

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

Demolished structures and qualified opportunity zones

Rev. Proc. 95-27 uses a two-part test to define whether the modification of a building, other than a certified historic structure, is a demolition for
purposes of Sec. 280B.

December 1, 2020

Return filed without IP PIN starts running of limitation period

A tax return filed without an IP PIN starts the running of the Sec. 6501(a) limitation period.

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

Taxpayer not a shareholder of not-for-profit corporation

The president and a director of a not-for-profit is not its beneficial owner and cannot be a shareholder of it.

December 1, 2020

Final regulations govern income tax withholding rules after the TCJA

The IRS issued final regulations providing guidance on withholding federal income tax from employees’ wages under changes enacted in the TCJA.

December 1, 2020

Achieving a better life experience (ABLE) accounts rules finalized

Eligible individuals with disabilities received IRS guidance on rules regarding tax-favorable ABLE accounts to save money to meet qualified disability expenses.

December 1, 2020

Investments in qualified small business stock

The Code provides favorable treatment for gains from investing in small business stock under Sec. 1202.

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 16, 2020

It’s a tough year for year-end tax planning

Advisers face the difficult task of helping clients plan for next year without knowing for certain which party will control the Senate.

November 3, 2020

IRS announces help with tax debt

The IRS said it was revising its procedures to help taxpayers who cannot pay their taxes because of the pandemic. The new program is called the Taxpayer Relief Initiative.

November 1, 2020

Using Instagram to connect with the social media generation

Accounting programs can adapt the social media platform Instagram to promote learning outside the
physical classroom.

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

Malpractice lawsuit settlement payment is not a return of capital

A settlement payment from a malpractice claim cannot be excluded from income.

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.

November 1, 2020

Using trusts in divorce tax planning

A trust set up as part of a divorce settlement can ensure economic protection of the couple’s long-term obligations and provide tax benefits.

October 30, 2020

Guidance on deferred employee payroll tax issued

The IRS issued guidance to employers and employees on reporting deferred Social Security tax on Form W-2, Wage and Tax Statement, under the Aug. 8 Presidential Memorandum authorizing the deferral.

October 26, 2020

2021 inflation adjustments and tax tables issued

The IRS issued the 2021 inflation adjustment amounts and tax tables for use in preparing 2021 tax returns in the 2022 filing season. Many of the over 60 items increased from 2020.

October 22, 2020

Common sense and reasonable cause for IRS penalties

One of the biggest, yet most misunderstood, penalty defenses is that a tax position was based on reasonable cause and the taxpayer acted in good faith.