Individual Income Taxation

TOPICS

June 10, 2016

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.

June 1, 2016

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.

June 1, 2016

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.

June 1, 2016

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.

June 1, 2016

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.

May 25, 2016

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.

May 1, 2016

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.

May 1, 2016

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.

May 1, 2016

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.

April 29, 2016

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.

April 21, 2016

Charitable IRA Distributions: A Great Opportunity

Exclusion of IRA “qualifying charitable distributions” can a powerful incentive to charitable giving.

April 14, 2016

Transparency for Individual Taxes

This article reviews how “taxpayer receipts” can help practitioners provide additional tax information to clients.

April 1, 2016

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.

April 1, 2016

New Exclusion for Damages Received From a Wrongful Incarceration

Damages received for wrongful incarceration are now specifically excluded from an individual’s taxable income.

April 1, 2016

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.

April 1, 2016

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.

April 1, 2016

Kiddie Tax May Be Due on College Scholarships

The taxable portion of college scholarships may be unearned income and subject to the kiddie tax.

March 1, 2016

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.

March 1, 2016

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.

March 1, 2016