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.
The announcement applies to anyone whose personal information may have been compromised in a data breach, including customers, employees, and others.
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.
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.
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).
Under Sec. 6050P and its regulations, cancellation-of-debt (COD) income of $600 or more must be reported on Form 1099-C when any of eight identifiable events occur.
The Seventh Circuit held that an atheist group and two of its members did not have standing to challenge the Sec. 107(2) parsonage exemption because the members had never actually tried to claim the exemption and had therefore suffered no injury.
The Tax Court held that part of a payment made to a company's co-founder and employee in a merger transaction was deferred compensation that was taxable as ordinary income.
The IRS advised that gambling winnings that a taxpayer surrenders to a state as part of a program intended to help treat gambling addiction do not have to be reported by a casino to the taxpayer on Form W-2G and are not includible in gross income by the taxpayer.
Shareholders recognize a taxable dividend to the extent a distribution is paid out of corporate earnings and profits. If the distribution exceeds E&P, the excess reduces the shareholder's stock basis. Any amount in excess of the shareholder's stock basis is capital gain.
The winner of The Tax Adviser’s 2013 Best Article Award is Donald T. Williamson for his article, "Planning for the 'Parallel Universe' of the Net Investment Income Tax," in the August 2013 issue.
The discrepancies between alimony income reported by taxpayers and alimony deductions claimed resulted in $2.3 billion in excess deductions in 2010, TIGTA reported.
The IRS finalized regulations that provide that distributions from qualified retirement plans to pay accident or health insurance premiums are taxable unless a statutory exclusion applies.
The Tax Court held that a taxpayer was taxable on her community property share of the income from a partnership that her husband funded without her consent with community property.
The IRS finalized regulations that clarify when a substantial risk of forfeiture exists on the transfer of stock to an employee that is treated as compensation under Sec. 83.
This is the second of a two-part article covering recent developments affecting taxation of individuals, including regulations, cases, and IRS guidance.
This article describes how the net investment income tax may affect Americans living abroad.
This article is Part I of a two-part article covering recent developments affecting taxation of individuals, including regulations, cases, and IRS guidance.
The Tax Court held that sections of a restricted stock agreement and an employment agreement read together constituted an earnout restriction that might create a substantial risk of forfeiture for stock transferred to an employee.
The IRS finalized regulations that clarify when a substantial risk of forfeiture exists on the transfer of stock to an employee that is treated as compensation under Sec. 83 (T.D. 9659).