Sec. 195 allows taxpayers to deduct business startup costs that would be deductible under Sec. 162 if they were incurred in a trade or business.
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Individuals
Disabled Individuals Can Set Up Special Accounts
As part of the larger tax extender legislation passed late last year, Congress approved the ABLE Act of 2014, which allows disabled individuals to save money to pay for their disability expenses in tax-favored accounts, called ABLE accounts.
Taxpayers Who Already Filed 2014 Returns Using Incorrect Forms 1095-A Won’t Have To Pay More Tax
The Treasury Department announced on Tuesday that taxpayers do not have to file amended returns if they already filed their 2014 tax returns relying on forms sent by the government that contained incorrect information about their health coverage and any advance premium tax credit they received.
Thousands Receive Incorrect Health Care Tax Forms; Signup Period Extended
The government announced that many taxpayers who signed up for health insurance on the site have received an incorrect Form 1095-A for 2014. It also announced an extension of time for uninsured taxpayers to sign up for insurance on the website.
Do PPACA Credits and Mandates Apply in States With Federal Exchanges?
Challenges now moving through the federal courts target the IRS’s interpretation that the Sec. 36B premium assistance credit to insurance purchased on both state health insurance exchanges and federal health insurance exchanges.
Depreciation Guidelines for Vehicles and When to Report Them as Listed Property
If business vehicles are passenger automobiles, they are listed property and are subject to limits on the amount that can be deducted for regular depreciation, as a bonus depreciation allowance, and as a Sec. 179 expense.
The Kiddie Tax: Inequitable Consequences and the Need for Reform
This article addresses the problems caused by the increases in the age at which the kiddie tax applies and explains why, as the kiddie tax heads toward its 30th birthday, it is time for Congress to reform it.
How the New One-a-Year IRA Rollover Rule Applies
The IRS clarified how the change in the way it interprets the statutory one-rollover-per-year rule for individual retirement arrangements affected 2014 rollovers and how the rules apply in 2015.
Enhancing Tax Analysis Skills Through Excel-Based Scenarios
This assignment attempts to address within a first course in federal income taxation of individuals the MTC’s concern for delivering basic tax knowledge and developing student skill sets.
Net Investment Income Tax Surprise: Significant Participation Rule Trumping Material Participation Tests
The significant participation rule threatens to swallow broader material participation tests under Sec. 469 for taxpayers applying passive loss rules.
Assignment of Rights in Lawsuit Results in Capital Gain
The Eleventh Circuit held that a taxpayer’s assignment of his rights in an ongoing lawsuit over a land sales contract was the sale of a right to purchase the land subject to the contract, not the sale of the land, and resulted in long-term capital gains to the taxpayer.
Congress Enacts Last-Minute Extenders for 2014
The Senate passed a bill to retroactively extend more than 50 expired tax provisions through 2014, by a vote of 76-16 on the evening of Dec. 16. The extender bill passed the House of Representatives on Dec. 3, and was signed by President Barack Obama on Dec. 19.
Guidance on Health Care Law Is Issued
The IRS released a package of guidance on 2010’s health care reform legislation, finalizing proposed regulations on minimum essential coverage, identifying the hardship exemptions from the Sec. 5000A individual shared-responsibility penalty for which individuals are not required to provide exemption certificates, and providing indexing adjustments for certain calculations under the Sec. 36B premium tax credit and Sec. 5000A
IRS Updates Its Rules for Qualified Transportation Fringe Benefits
In response to changes in the availability of electronic payment media on transit systems, the IRS announced that, beginning after Dec. 31, 2015, employers will no longer be permitted to provide qualified transportation fringe benefits in the form of cash reimbursement in geographic areas where terminal-restricted debit cards are readily available. After that date, the IRS will no longer permit employers to use cash reimbursement if the only available voucher or similar item exchangeable for a transit pass is a terminal-restricted debit card.
Taxpayers Get Penalty Relief for Incorrect Premium Tax Credit Advance Payments
The IRS will provide automatic penalty relief for taxpayers who, when they reconcile advance payments of the premium tax credit they received for 2014 to the amount of the credit they are entitled to on their income tax returns, find they owe additional tax.
Charter Schools to Be Allowed to Participate in Government Retirement Plans
The IRS announced that it will develop regulations under Sec. 414(d) that would permit a state or local retirement system that qualifies as a governmental plan to cover employees of charter schools.
Details of the President’s State of the Union Tax Proposals
President Barack Obama used Tuesday’s State of the Union address to announce that he will propose tax increases for higher-income individuals and provide tax relief for middle-class taxpayers.
Government to Reach Out, Provide Resources to Ease Health Care Tax Filing Burden
Taxpayers who are faced for the first time this tax season with complying with the health care law provisions will be able to get help from the government, the secretaries of the Treasury and of Health and Human Services announced.
IRS Disagrees With Tax Court on Ability to Designate Employment Tax Payments as Income Tax Withholding
The IRS announced in that it will not follow a Tax Court holding that an employer may designate payments of its employment taxes to the income taxes of specific employees.
Taxpayer Has Ordinary Income From Merger-Related Payment
The Tax Court held that part of a payment made to a company’s co-founder and employee in a merger transaction was deferred compensation that was taxable as ordinary income.
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.
