Current Developments in Taxation of Individuals
A number of recent significant developments affect taxation of individuals.
Gross Income
COD Reporting No Longer Triggered by Three-Year Nonpayment Period
The IRS finalized a proposed rule eliminating the three-year testing period for determining when debt was discharged for cancellation of debt information reporting purposes.
Inflation Adjustments for 2017 Issued for Employer-Provided Vehicles
The IRS released its annual notice containing the 2017 inflation-adjusted amounts for the maximum vehicle values to determine the amount that is included in employees’ income for personal use of an employer-provided vehicle.
Prize Money Exempt From Federal Tax
The United States Appreciation for Olympians and Paralympians Act of 2016 excludes the value of medals or prize money received from the United States Olympic Committee.
Final Rules Remove 3-Year Nonpayment Testing Period for COD Reporting
The IRS finalized a proposed rule eliminating the three-year testing period for determining when debt was discharged for cancellation of debt information reporting purposes.
Net Investment Income Tax: How Does It Affect You?
Proper planning may allow this tax to be deferred, reduced, or, in some cases, avoided completely.
Payments Under State’s In-Home Supportive Care Programs Can Be Excluded From Gross Income
The IRS ruled payments made under a state’s in-home supportive care programs should be treated as difficulty-of-care payments excludable from the gross income of the care provider.
Olympic Tax Break Enacted
Legislation excluding prize money earned by Olympians and Paralympians from gross income was signed into law.
Tax Relief for Executive Compensation Clawbacks Under Proposed Dodd-Frank Rules
This article discusses difficult tax problems faced by executive officers whose compensation is clawed back and the limited availability of relief under Sec. 1341.
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.
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.
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.
Individual Taxation: Recent Developments
This article covers recent developments in the area of individual taxation arranged in Code section order.
