Thee IRS issued proposed regulations for the net investment income tax under Sec. 1411 that went into effect on Jan. 1, 2013. At the same time, the IRS released a list of frequently asked questions concerning the net investment income tax.
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Individuals
The 3.8% Medicare Tax Proposed Regulations: Guidance or More Questions?
This item discusses provisions addressed in the 3.8% Medicare tax proposed regulations pertaining to the definition of business income as net investment income, grouping of activities, and treatment of the sale of S corporation stock and partnership interests.
Off-Duty Officer Pay Is Subject to Self-Employment Tax
The applicability of self-employment tax to amounts paid to off-duty police officers continues to create questions for CPAs.
IRS Announces Simplified Home Office Deduction
The IRS provided taxpayers with an optional safe-harbor method to calculate the amount of the deduction for expenses for business use of a residence during the tax year under Sec. 280A, beginning with the current tax year.
Employment Tax Liability of Third-Party Agents Subject of Prop. Regs.
The IRS released proposed regulations under Sec. 3504 that would govern the liability for employment taxes when an employer designates an agent under a “service agreement” to pay its employees and to satisfy all employment tax obligations.
Rules Proposed for Individual Health Care Mandate
The IRS released proposed rules for the Sec. 5000A shared-responsibility payment—the penalty or tax imposed on individual taxpayers who do not obtain minimum essential health care coverage beginning in 2014.
Flight Attendant Cannot Claim Foreign Earned Income Exclusion for Wages Earned in International Airspace and U.S.
The Tax Court held that a flight attendant who was a resident of Hong Kong and a U.S. citizen could not claim 100% of her wages were excludable under the foreign earned income exclusion.
Tax Court Denies Investment Interest Deduction
The Tax Court held that the taxpayers were not entitled to take an investment interest deduction for any of the mortgage interest they paid on property they had purchased because they failed to substantiate their claimed allocation of the mortgage debt.
First Circuit Breathes New Life Into Façade Easement Deductions
A recent First Circuit decision will affect how the tax benefits of certain façade easements are litigated in the First Circuit and may result in appeals of some of the Tax Court’s recent easement holdings.
Developments in Individual Taxation
This article covers recent developments in individual taxation. The items are arranged in Code section order.
Planning for Charitable Contribution Limitations
The amount of charitable contributions an individual can deduct in any one tax year is limited depending on the types of organizations to which the contributions were made, the kinds of property contributed, and the amount or value of the donated property.
2013 Automobile Depreciation Limits Released
The IRS on Monday issued the 2013 inflation adjustments to the depreciation limitations and lease inclusion amounts for certain automobiles under Sec. 280F.
2013 Filing Season ITIN Procedures Issued
The IRS issued slightly easier procedures for ITINs for the 2013 filing season.
Prop. Regs. Govern 3.8% Net Investment Income Tax
The IRS released proposed regulations governing the 3.8% net investment income tax imposed under Sec. 1411.
IRS Issues Guidance on 0.9% Additional Medicare Tax
The IRS issued proposed regulations concerning the 0.9% Medicare surtax, which took effect Jan. 1, 2013.
Payments to Taxpayer Held to Be Compensation, Not Distributions
The Eleventh Circuit held that payments made to a taxpayer by limited partnerships that he controlled but did not own an interest in were compensation reportable on Schedule C, not partnership distributions.
Personal Goodwill, Purchase Agreements, and Covenants Not to Compete
A common strategy for shareholders of closely held corporations to avoid double tax involves the assertion that a portion of the disposition of the business relates to the sale of personal goodwill of the shareholder.
Enhance Tax Courses With Documentaries, News Segments, and Other Nonfiction Video Resources
Valuable nonfiction film and video resources for tax courses, specifically documentary films, news segments, and news stories can be found at many video libraries and video-sharing websites.
IRS Releases Standard Mileage Rates for 2013
Optional standard mileage rates for use of a vehicle went up by 1 cent per mile for 2013.
Activity Grouping: The Impact of Recent Developments
Activity grouping is an often overlooked or misused component of tax strategy and compliance, and with the issuance of Rev. Proc. 2010-13, the importance of getting it right has increased.
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.
