Guidance Issued on New Exclusion for Wrongful Incarceration Damages
Wrongfully incarcerated individuals are now permitted to exclude from income civil damages, restitution, or other monetary award received as compensation.
Gross Income
Cancellation-of-Debt Rules for Qualified Real Property Business Indebtedness
The IRS ruled on two situations involving individual taxpayers who had debt forgiven on property used in their real property trades or businesses.
Individual Tax Update
This article covers recent developments affecting taxation of individuals, including regulations, cases, and IRS guidance.
IRS Issues Sec. 409A Proposed Regulations
The IRS issued proposed regulations under Sec. 409A, which provides that if certain requirements are not met, amounts deferred under a nonqualified deferred compensation plan are currently includible in gross income.
FAQs Explain the Wrongful Incarceration Exclusion
A new law allows taxpayers to exclude from income money they receive to compensate them for being wrongfully incarcerated and to claim refunds for earlier tax years if they included such damages in income.
IRS Rules on Qualified Real Property Indebtedness
The IRS issued a ruling explaining when a taxpayer can exclude cancellation-of-debt income for debt forgiven in connection with property held in a real property trade or business.
New Exclusion for Damages Received From a Wrongful Incarceration
Damages received for wrongful incarceration are now specifically excluded from an individual's taxable income.
IRS Issues Maximum Vehicle Values for 2016 for Personal-Use Vehicles
The limits for passenger vehicles are lower than they were in 2015, but the values for vans and trucks increased slightly.
Kiddie Tax May Be Due on College Scholarships
The taxable portion of college scholarships may be unearned income and subject to the kiddie tax.
Individual Taxation: Recent Developments
This article covers recent developments in the area of individual taxation arranged in Code section order.
Tax Court No Help for Opportunist Girlfriend
Rescission doctrine did not allow a taxpayer to exclude from income $400,000 she received under a fraudulently induced agreement with her elderly boyfriend that she was later forced to repay.
Maximum Vehicle Values for Personal-Use Vehicles Are Issued
The IRS issued the 2016 inflation-adjusted amounts for the maximum vehicle values for purposes of determining the amount that is included in employees’ income for personal use of an employer-provided vehicle.
Local Lodging Provided to an Employee: How to Determine Whether to Include It in the Employee’s Income
Local lodging typically goes unnoticed from a payroll perspective.
Debt Discharge Tax Relief Announced for Corinthian Colleges Students
The IRS announced that students who attended schools owned by Corinthian Colleges Inc. and whose debt is discharged under certain Department of Education programs will not have to recognize income on the discharged debt.
Is an Anomaly in Form 8960 Resulting in an Unintended Tax on Tax-Exempt Income?
This article provides an overview of the net investment income tax calculations for individuals and trusts.
Meeting the 100-Hour Significant Participation Activity Test
One strategy is to alleviate the net investment income tax to fund healthcare is to focus on a taxpayer’s level of participation in an activity so that income may be characterized as nonpassive and thus not subject to the tax.
Identity Theft Protection Services Provided After a Data Breach Are Not Taxable
The announcement applies to anyone whose personal information may have been compromised in a data breach, including customers, employees, and others.
Is It Rent? That Depends on the Lease
A recent Tax Court decision sheds light on the importance of lease terms to determine what is rent and how Sec. 467 may apply to advance rents.
Service-Related Earnouts: Contingent Purchase Price vs. Compensation
Consideration for earnout may be based on a seller's willingness to provide a level of service that results in the transfer of the business interest and relationships to the buyer.
Payments to Egg Donor Not Excludable From Income
The Tax Court ruled that a woman who received payments for undergoing the procedures necessary to donate her eggs could not exclude the payments from gross income as damages for personal injuries or physical sickness under Sec. 104(a)(2).
