Individual income taxation

TOPICS / TAX

July 1, 2019

Broadened definition of Sec. 152 dependents

The Tax Cuts and Jobs Act of 2017 greatly increased the availability of the child tax credit. Find out the definition of dependent for those purposes and for taking advantage of “surviving spouse” status.

June 1, 2019

Casualty loss deduction from drug-induced gambling is disallowed

The Tax Court declines to expand ‘other casualty’ beyond one sustained with respect to tangible property.

June 1, 2019

‘Parsonage’ exclusion ruled constitutional

Reversing a district court, the Seventh Circuit upholds the Sec. 107 housing exclusion for ‘ministers of the gospel.’

May 9, 2019

IRS changes maximum-vehicle-value rule

The IRS revised its maximum-vehicle-value rule for personal use of an employer-provided vehicle for 2019 for both the cents-per-mile rule and the fleet-average-valuation rule.

April 17, 2019

More proposed regs. on qualified opportunity funds issued

The regulations define the term “substantially all,” the definition of which was reserved in the earlier proposed regulations issued in October 2018.

March 22, 2019

IRS expands relief from underpayment penalty

The IRS announced that it is lowering from 85% to 80% the amount taxpayers are required to have paid in order to escape an underpayment of estimated income tax penalty for 2018.

March 1, 2019

Maximizing the higher education tax credits

A counterintuitive strategy can save taxes by including otherwise excludable scholarships in gross income.

March 1, 2019

Salesman’s termination payment held not for goodwill

The Tax Court also denies capital gain treatment but allows business deductions for a taxpayer’s subsequent shooting activity.

February 1, 2019

Sec. 199A: Regulations shed light on QBI deduction

For the first time this tax season, many taxpayers will be claiming the Sec. 199A deduction, which provides a deduction for 20% of qualified business income.

January 22, 2019

Qualified business income deduction regs. and other guidance issued

The package includes final regulations, guidance on how to calculate W-2 wages, a safe-harbor rule for rental real estate businesses, and new proposed rules on the treatment of previously suspended losses.

January 17, 2019

Some individual taxpayers get relief from underpayment penalty

The relief applies to individuals whose tax withheld and estimated tax payments equal at least 85% of the tax shown on their 2018 tax return.

January 11, 2019

IRS announces Free File launch

The IRS announced that its Free File program, which provides free electronic filing options to moderate-income taxpayers, opened Jan. 11 and will operate through Oct. 15.

January 1, 2019

Meals continue to be deductible under IRS guidance

Advance guidance clarifies that the TCJA’s disallowance of deductions for entertainment, amusement, or recreation does not address business meals.

January 1, 2019

Church members’ donations to minister are denied gift treatment

Objective evidence indicates donors’ intent was to provide compensation, the Tax Court holds.

January 1, 2019

Tackling TCJA changes this tax season

An altered landscape awaits CPA preparers and their clients.

January 1, 2019

Filing season quick guide — tax year 2018

Download our annual quick guide, a tax season reference highlighting dollar thresholds, tax tables, standard amounts, credits, and deductions.

December 14, 2018

2019 standard mileage rates announced

The IRS released guidance on the standard mileage rate for business, medical and certain moving expenses incurred in 2019.

December 1, 2018

Tax Court grants innocent spouse relief from taxes on embezzled funds

The taxpayer’s subsequent knowledge of the embezzlement prevents relief for a second tax year.

December 1, 2018

Schoolteacher’s failure to file FBAR results in $800,000 penalty

The Court of Federal Claims holds that actions and failure to inquire into reporting requirements for a foreign account by a taxpayer who had made a ‘quiet disclosure’ showed willfulness.

December 1, 2018

The TCJA and foreign real property taxes

Despite the repeal of an itemized deduction for foreign real property taxes, some benefit may still be available to certain U.S. taxpayers living and working overseas.