This article covers recent developments affecting taxation of individuals, including regulations, cases, and IRS guidance.
Expenses & Deductions
The IRS is proposing to amend the rules governing eligibility to claim a deduction or credit for eligible education expenses to conform them to recent legislative changes.
The IRS issued the inflation-adjusted figures for the annual contribution limits for health savings accounts and the minimum deductible amounts and maximum out-of-pocket expense amounts for high-deductible plans.
Planning that maximizes the business bad debt deduction can help minimize the taxpayer’s overall economic loss.
This article covers recent developments in the area of individual taxation arranged in Code section order.
The IRS issued the standard mileage rates for business use of an automobile and for driving for medical or moving purposes for 2016.
The IRS issued its annual update of special per-diem rates for use in substantiating certain business-travel expenses.
A taxpayer who made high-interest loans to friends was not entitled to any bad debt deduction for a loan that went belly up because he did not prove that it was a business loan.
Unmarried taxpayers who co-own a residence can each deduct interest payments on home-acquisition and home-equity debt up to the $1.1 million limit.
Recordkeeping and attention to the letter of the law should pay off in avoiding lost deductions.
The Tax Court held that the owner of medical marijuana dispensaries could not deduct the cost of marijuana seized by the DEA as costs of goods sold.
The IRS issued per-diem rates for use in substantiating business expenses taxpayers incur while traveling away from home.
This article covers recent developments in the area of individual taxation, including the treatment of support payments and IRA and qualified plan distributions, the Sec. 469 material participation rules, and the taxability of state economic development credits.
Unmarried co-owners of two qualified residences each qualified for mortgage-interest deductions on up to $1.1 million of acquisition indebtedness the Ninth Circuit Court of Appeals held.
A long-haul truck driver who spent most of the time on the road did not have a tax home that would allow him to deduct his unreimbursed travel expenses because he was not away from home, the Tax Court held.
Optional standard mileage rates for use of a vehicle have changed little for 2015, with the business use rate going up and the medical and moving rate going down.
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.
Regulations the IRS issued finalize rules allowing employees to deduct certain expenses paid or incurred for local lodging as business expenses.
The IRS issued its annual update of special per diem rates for use in substantiating certain business expenses taxpayers incur when traveling away from home in 2014 and 2015.
Without proper substantiation, no deduction is allowed for a Sec. 274(d) expense, even if the court believes that a legitimate expenditure was made.