Clients renting out their properties need to know a few key rules.
Individual income taxation
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.
Tax help for working parents
Federal and state credits and employer-provided care may help reduce the high cost of child care.
IRS issues 2017 inflation adjustments for many tax provisions
The IRS issued its annual revenue procedure containing inflation-adjusted amounts for the 2017 tax year, affecting over 50 Code provisions, as well as the new tax rate tables for individuals and estates and trusts.
Social Security Administration announces large increase in 2017 wage base
The SSA announced that the maximum amount of earnings subject to the Social Security tax will increase by more than 7% in 2017, after remaining flat in 2016.
Olympic tax break enacted
Legislation excluding prize money earned by Olympians and Paralympians from gross income was signed into law.
Tax issues for professional gamblers
Professional status allows deduction of ordinary and necessary business expenses.
IRS issues 2016–2017 special per-diem rates for travel
The IRS issued its annual updates of per-diem rates for use in substantiating certain business expenses taxpayers incur when traveling away from home on or after Oct. 1.
Final regulations amend definitions of marriage
The IRS finalized proposed rules issued last October amending the definitions of marriage and husband and wife after the Supreme Court’s decision in Obergefell v. Hodges, which legalized same-sex marriages.
FAQs explain the wrongful incarceration exclusion
A new PATH Act provision excludes certain damages, awards, and restitution from gross income; the normal refund limitation period is waived through Dec. 19.
Proposed regs. govern reporting and claiming qualified tuition and related expenses
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.
Tax relief for federal student loan forgiveness
The IRS streamlines the process for taxpayers to avoid including discharged student loans in gross income.
Undue influence over elderly man results in taxable income and penalties for caregiver
The Tax Court holds that payments from the 92-year-old were not a loan or a gift.
Infrequent sale of scrap steel is not subject to self-employment tax
The metal was not held for sale in the ordinary course of a trade or business, and income from its sale is not self-employment income.
Rules change for ITINs and tax credits
The PATH Act of 2015 established new limitations on filing for certain credits.
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.
What you need to know to help clients with an IRS ETP agreement
Here are 12 things you need to know about extension-to-pay agreements that can help clients who need more time to pay their tax bill.
Mary Kay sales consultant’s retirement payments subject to self-employment tax
The Eleventh Circuit Court of Appeals held that payments a retired Mary Kay sales consultant received from the cosmetics company were subject to self-employment taxes because they were payments of deferred compensation.
Installment sale marked to market before taxpayer’s expatriation
The Tax Court upholds a 2008 law’s retroactive application and denies a treaty exemption.
IRS releases 2017 health savings account limits
The IRS issued the inflation-adjusted figures for calendar year 2017 for the annual contribution limits for health savings accounts.
Features
FROM THIS MONTH'S ISSUE
How a CPA beat burnout after strokes, depression
Get ready for tax season with the JofA’s annual filing season quick guide, an easy-to-use compilation of dollar thresholds, tax tables, standard amounts, credits, and deductions. Download and print for quick reference this tax season.
