A homebuyer’s various settlement and closing costs may be deductible, capitalizable (added to basis), or, in some cases, neither.
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Individuals
A Powerful Learning Tool: Lessons From an Exam Reflection Assignment
Reflection is a valuable learning tool for the classroom and for professionals in practice: Both groups can learn from reflecting on their successes and failures and the steps that led to these outcomes.
Employee Expense Reimbursement Arrangement Guidance Issued
The IRS issued guidance on employee reimbursements and whether they satisfy the business connection and other requirements to be treated as paid under an accountable plan under.
IRS Announces Inflation Adjustments for 2013
The IRS released its annual revenue procedure making inflation adjustments to the gift tax annual exclusion and other items for tax years beginning in 2013.
Ponzi Schemes, Clawbacks, and the Claim of Right Doctrine
Many people who lost money in Ponzi schemes are later told by a bankruptcy trustee that they were “net winners” and are required to pay back past withdrawals to be redistributed to the larger pool of victims.
Taxpayer Liable for Willful Violation of FBAR Requirements
The Fourth Circuit held that a taxpayer had willfully violated the foreign bank account reporting requirements for two foreign bank accounts.
IRS Permits Charitable Contributions to Single-Member LLCs
The IRS explained that contributions to disregarded SMLLCs wholly owned and controlled by a U.S. charity will be treated as if made directly to the U.S. charity.
Prop. Regs. Clarify Who Is Subject to Limit on Meal and Entertainment Expenses
The IRS released proposed regulations clarifying which party is subject to the rule that limits the deduction for meals and entertainment to 50% of the expenses incurred.
Taxpayers Not Insolvent for Purposes of Sec. 108 Exclusion
The Tax Court held that a married couple had failed to prove the FMV of their two homes and the husband’s pension and thus could not prove they were insolvent.
Taxpayer Cannot Revive Equitable Innocent Spouse Claim
A U.S. District Court dismissed a taxpayer’s claim that she was entitled to innocent spouse relief under Notice 2011-70, which announced the removal of the two-year limitation period for claims for equitable innocent spouse relief under Sec. 6015(f).
Special Per Diem Rates Updated for 2012–2013
The IRS issued the annual update of special per diem rates for use in substantiating certain business expenses taxpayers incur when traveling away from home.
Guidance Issued on Employee Expense Reimbursement Arrangements
The IRS issued guidance on situations in which employers recharacterize wages as nontaxable reimbursements and whether they met the requirements to be treated as paid under an accountable plan.
Deducting Losses on Worthless Investment Securities
Understanding the rules for deducting losses on worthless securities is necessary to determine the correct timing of the loss deduction.
Chief Counsel: Self-Employed Can Deduct Medicare Premiums
The Office of Chief Counsel advised that self-employed individuals may deduct Medicare premiums from their self-employment income.
Determining Tax Consequences of Corporate Liquidation to the Shareholders
Under Sec. 331, a liquidating distribution is considered to be full payment in exchange for the shareholder’s stock, rather than a dividend distribution, to the extent of the corporation’s earnings and profits.
No Deduction for Donating Right to Burn House
The Tax Court held that taxpayers who gave a local fire department the right to burn down a house on property they had recently purchased were not entitled to a charitable deduction donation for the value of the house.
IRS Issues Sample Text for Sec. 83(b) Election
The IRS released sample language for making a Sec. 83(b) election to include property received in connection with the performance of services in income in the year the property is received even if there is a substantial risk that the property will later be forfeited.
Guidance Distinguishes Tips and Service Charges
The IRS issued question-and-answer guidance for distinguishing between tips and service charges for FICA tax and other purposes.
Investors’ Dilemma on Purchasing Distressed Obligations
This article discusses the purchaser’s perspective of an investment in distressed obligations that are secured by leases on tangible property.
Removal of Two-Year Limit on Innocent Spouse Claims Does Not Revive Taxpayer’s Case
A federal court dismissed a taxpayer’s claim that she was entitled to innocent spouse relief under Notice 2011-70, which announced the removal of the two-year limitation period for claims for equitable innocent spouse relief under Sec. 6015(f).
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.
