Vacation home rentals and the TCJA
Allocation of certain expenses between personal and rental use may need to change under the law known as the Tax Cuts and Jobs Act.
Individual Income Taxation
Profit motive key in hobby loss cases
Tax Court cases evaluate the nine-factor test in Regs. Sec. 1.183-2 for determining when losses may be deducted.
Taxpayers denied insolvency exclusion of COD income
Cash held by a couple's son as their nominee tipped their balance sheet to positive, the Tax Court holds.
Deemed personal exemption amount introduced for various tax benefits
The IRS issued guidance on how it intends to interpret the exemption amount in tax years 2018 through 2025 in determining who is a qualifying relative for purposes of the various Code provisions that refer to the definition of a dependent in Sec. 152.
Qualified business income deduction regs. proposed
The IRS issued guidance on the new Sec. 199A deduction for qualified business income in the form of proposed regulations and a separate notice on how to calculate W-2 wages for those purposes.
Final rules govern adequate substantiation for charitable contributions
Final regulations address how taxpayers can comply with the requirements for adequate substantiation of charitable contributions of money or property.
AICPA: 2019 Form W-4 needs to be simplified
The AICPA’s Tax Executive Committee sent a letter to the IRS, urging the Service to simplify the proposed draft 2019 Form W-4, Employee’s Withholding Allowance Certificate.
Claiming child tax benefits for noncustodial parents
IRS guidance on the waiver of a dependency exemption remains significant with the newly enhanced child tax credit.
Analyzing the new personal casualty loss tax rules
Targeted relief is undercut by new statutory limitations included in the Tax Cuts and Jobs Act.
Form 1040 to be shorter but with more schedules
The IRS is working on a draft version of the 2018 Form 1040, U.S. Individual Income Tax Return, that reduces the size of the form to two half-pages in length and eliminates more than 50 lines.
Draft 2019 Form W-4 and instructions posted
The IRS released a draft Form W-4, Employee’s Withholding Allowance Certificate, and its instructions, for individual taxpayers to use to determine their income tax withholding for 2019.
Short sale is considered one transaction
The Tax Court denies the taxpayers' claimed loss on the sale of their former home followed by an exclusion of cancellation-of-debt income.
IRA distribution to pay spousal support is taxable
The Tax Court holds that writing checks from funds distributed is not a transfer of an account interest incident to divorce.
Gravel mining income not exempt under Native American treaties
The Tax Court holds that the treaty provisions apply to tribes, not individuals.
Child tax credit now higher, more widely available
Middle-income taxpayers are more likely to have a greater benefit than before.
Due diligence in a sharing economy (Airbnb and Uber)
Annette Nellen, CPA, CGMA, Esq., chair of the AICPA Tax Executive Committee, outlines federal, state, and local tax obligations for clients involved in sharing economy activities.
Standard mileage rates, depreciation amounts updated
The IRS issued guidance on the standard mileage rates and depreciation limits that were changed by the Tax Cuts and Jobs Act.
IRS issues HSA contribution limits for 2019
The IRS issued the inflation-adjusted contribution limits for 2019 for health savings accounts.
Future-proof your tax practice by adding planning services
Consumers are seeking a primary point of contact to address the full scope of their financial needs.
How to treat virtual currency
Due diligence begins with one question you should be asking every client, according to Annette Nellen, CPA, CGMA, Esq.
