The IRS has released a notice that defines the terms “unemployed veteran” and “disconnected youth” for purposes of the Sec. 51 work opportunity tax credit.
Advertisement
Topics
Credits
Residential Energy-Efficient Property Credit Rules Issued
The IRS has provided guidance to manufacturers and consumers on satisfying the requirements of the residential energy-efficient property credit.
Sec. 168(k)(4) Credit in Lieu of Bonus Depreciation
As part of the Housing and Economic Recovery Act of 2008, Congress enacted a special tax benefit under Sec. 168(k)(4) that allows corporations to claim a refundable tax credit in lieu of 50% bonus depreciation for certain capital investments made during the period April 1–December 31, 2008
IRS Explains How Unmarried Taxpayers Allocate First-Time Homebuyer Credit
The IRS has issued Notice 2009-12, explaining how the Sec. 36 first-time homebuyer credit should be allocated between unmarried taxpayers who buy a principal residence together.
Research Credit Extended
Emergency Economic Stabilization Act of 2008 retroactively extended the research credit to amounts paid or incurred after December 31, 2007, and before January 1, 2010.
IRS Issues Guidance on Energy Credit
The IRS issued Notice 2008-68 to provide taxpayers with guidance on the computation and availability of the energy credit.
Housing Act Contains Tax Provisions
On July 30, 2008, the president signed into law the Housing Assistance Tax Act of 2008, containing tax provisions affecting homeowners and first-time homebuyers, as well as changes to the rules governing the low-income housing credit, tax-exempt bonds, and the alternative minimum tax (AMT).
Alternative Simplified Method for Claiming the Research Credit
Editor: Frank J. O’Connell Jr., CPA, Esq. On June 17, 2008, the IRS issued final and temporary regulations (T.D. 9401, Temp. Regs. Secs. 1.41-6T(j), 1.41-8T(b)(5), and 1.41-9T(d)) relating to the alternative simplified credit (ASC) method of computing the research and experimentation credit under Sec. 41(c)(5). The ASC was enacted in
Individual Taxation Report
This article covers recent developments affecting taxation of individuals, including legislation, regulations, and IRS guidance.
Reduced Credit for Increasing Research Activities
A recent IRS chief counsel internal memorandum, AM 2008-002 (2/8/08), provides insight relative to electing the reduced credit available under Sec. 280C(c)(3) when claiming a research tax credit.
Alternative Motor Vehicles and the AMT
Effective for 2006, Congress provided a credit for alternative motor vehicles in an effort to reduce U.S. reliance on fossil fuels and imported oil.
Regulations Provide Guidance on Child and Dependent Care Credit
Sec. 21 was enacted to provide families with a tax benefit to help them stay in the workplace—a nonrefundable child and dependent care tax credit for employment-related expenses for the care of certain qualifying individuals.
Does Imprisonment Constitute a Temporary Absence When Applying the EIC Residency Rules?
Editor: Michael D. Koppel, CPA, PFS Should a person’s imprisonment be considered a temporary absence from home for purposes of the residency requirement for the earned income credit (EIC)? The Tax Court recently held that a taxpayer’s jail confinement after her arrest but before her conviction was a temporary absence
The WOTC Expanded
Editor: Kevin F. Reilly, J.D., CPA The work opportunity tax credit (WOTC) has been in existence for years; however, the Small Business and Work Oppor-tunity Tax Act of 2007, P.L. 110-28 (SBWOTA), expanded the definition of some of the target groups, creating tax incentives that will affect more clients than
Final Regs. on Dependent Care Expenses
The Service has issued final regulations on the Sec. 21 credit for child and dependent expenses (TD 9354). The final regulations adopt, with changes, proposed regulations that were released in May 2006 (REG-139059-02). The final regulations apply to tax years ending after August 14, 2007. Sec. 21 allows a credit
Some Prior-Year MTCs Will Be Refundable Beginning in 2007
Editor: Joel E. Ackerman, CPA, MST A growing number of individual taxpayers have been subject to tax under the alternative minimum tax (AMT). Sec. 53(a) provides a minimum tax credit (MTC) for AMT paid in prior years that was attributable to deferral adjustments. The MTC is carried forward to offset
Claiming Passive Activity Credits
Credits arising from passive activities are allowable only to the extent a shareholder’s regular tax liability is attributable to passive activities for the year. The tax attributable to passive activities is the difference between the: Shareholder’s regular tax liability under Sec. 26(b) based on all income (disregarding credits), and Regular
Tax Incentives for Businesses in Distressed Communities
Executive Summary Businesses in designated EZs and RCs may be eligible for an employment credit, increased Sec. 179 expensing, tax-exempt bond financing and other tax incentives. A capital gain deferral applies to purchased EZ assets; a 60% exclusion applies to small business EZ stock. Enterprise zone facility bonds may be
Biomass and Notice 2006-88
As concerns for the nation’s energy supply have risen, the Federal government has periodically provided various incentives to encourage the use of renewable energy sources. Under Sec. 45, Congress provided for a renewable production credit for electricity produced by a taxpayer from qualified energy resources (wind, closed- and open-loop biomass,
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.
