A new law allows taxpayers to exclude from income money they receive to compensate them for being wrongfully incarcerated and to claim refunds for earlier tax years if they included such damages in income.
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TOPICS
Individuals
IRS Rules on Qualified Real Property Indebtedness
The IRS issued a ruling explaining when a taxpayer can exclude cancellation-of-debt income for debt forgiven in connection with property held in a real property trade or business.
Revised Vehicle Depreciation Limits Are Issued
The IRS released guidance providing revised limits for the amount of depreciation taxpayers can take for the first year they use a passenger
automobile for business.
Foreign Currency Straddles and Transactions Present Complex Tax Issues
Foreign currency straddles may be used to manage foreign currency exposure, but they may carry hidden tax issues.
Form 5471 Substantial Compliance: What Does It Mean and Why Is It Critical?
A required person who fails to file the form or files a late or incomplete form is subject to substantial monetary penalties.
Scrappy Taxpayer Off the Hook for Self-Employment Taxes
A taxpayer’s proceeds from sales of scrap steel over a seven-year period were not considered self-employment income.
Mary Kay Sales Consultant’s Retirement Payments Subject to Self-Employment Tax
The Eleventh Circuit Court of Appeals held that payments a retired Mary Kay sales consultant received from the cosmetics company were subject to self-employment taxes because they were payments of deferred compensation.
Planning for Divorce-Related Stock Redemptions
A transfer of ownership of a closely held business in divorce does not trigger gain or loss if it is directly between the spouses.
Using Excel in the Classroom: Performing a Multilevel Tax Analysis of an S Corporation Conversion
Developing students’ ability to employ Microsoft Excel is essential to their future career success.
Personal Goodwill and the Net Investment Income Tax
This article discusses when the sale
of goodwill related to a C corporation is the sale of a shareholder’s personal goodwill
and the reasons the gain from the sale of personal goodwill should not be subject to
the net investment income tax.
IRS Releases 2017 Health Savings Account Limits
The IRS issued the inflation-adjusted figures for calendar year 2017 for the annual contribution limits for health savings accounts.
Charitable IRA Distributions: A Great Opportunity
Exclusion of IRA “qualifying charitable distributions” can a powerful incentive to charitable giving.
Transparency for Individual Taxes
This article reviews how “taxpayer receipts” can help practitioners provide additional tax information to clients.
Change in Form 1099-B Cost Basis Reporting Can Result in Double-Counting of Income
Since the compensatory income is already included in the employee’s Form W-2, the failure to report it in the Form 1099-B cost basis results in double-counting the income unless an adjustment is entered on Form 8949.
New Exclusion for Damages Received From a Wrongful Incarceration
Damages received for wrongful incarceration are now specifically excluded from an individual’s taxable income.
IRS Issues Maximum Vehicle Values for 2016 for Personal-Use Vehicles
The limits for passenger vehicles are lower than they were in 2015, but the values for vans and trucks increased slightly.
Charitable Contributions of Artwork: An Important Primer
A number of tax planning opportunities are available when gifting artwork, but donors should do their homework to avoid surprises.
Kiddie Tax May Be Due on College Scholarships
The taxable portion of college scholarships may be unearned income and subject to the kiddie tax.
Tax Planning Insights for Foreign Work Assignments
This column provides a basic overview of what one would want to know when advising clients prior to foreign work assignments.
IRS Withdraws Controversial Charitable Donation Rules
The IRS withdrew proposed regulations that would have allowed charities to file information returns with the IRS and donors instead of providing contemporaneous written acknowledgments of charitable donations.
TAX PRACTICE MANAGEMENT
2025 tax software survey
AICPA members in tax practice assess how their return preparation software performed during tax season and offer insights into their procedures.
