Capital Gains Exemption for Outgrowing Home
The IRS determined that a married couple could take advantage of the reduced maximum exclusion of gain from the sale of their home after the birth of their second child even though they hadn’t lived there long enough to qualify for the capital gains exemption. Unforeseen circumstances were found to […]
Mortgage Interest Tax Advantage For Unmarried Couples
Home mortgage interest is deductible if it is paid or accrues on either acquisition indebtedness or home equity indebtedness secured by a qualified residence. A taxpayer can have two qualified residences: the taxpayer’s principal residence, and one other home used by the taxpayer as a residence that is not […]
New Tax Rules For Partnership Audits
Under existing tax laws, partnership audits by the IRS are conducted using the rules provided in the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA). Under these rules, the IRS audits and proposes adjustments to partnership returns at the partnership level. As part of the TEFRA rules, the IRS […]
IRS Releases New Forms for Affordable Care Act
The IRS has released draft forms for Affordable Care Act compliance under Code Secs. 6055 and 6056 for tax year (TY) 2016. These draft forms reflect changes from the forms used for TY 2015 and will likely reflect what compliance under the final version will entail.
Under the ACA, […]
IRS Updates Affordable Care Act Tax Credits
The IRS continues to offer guidance to flesh out the specifics of the individual shared responsibility requirement and the premium assistance tax credit under the Affordable Care Act. The IRS has issued proposed regulations clarifying certain provisions of the Obamacare compliance individual shared responsibility requirement and the Code Sec. 36B […]
The Tax Implications of Crowdfunding
IRS Chief Counsel recently examined the tax treatment of crowdfunding activities in a new information letter (Information Letter 2016-36). Crowdfunding is a relatively recent phenomenon, used by an individual or entity to raise funds through small individual contributions from a large number of people. The guidance notes that the income tax […]
Is That Business Lunch Really Tax Deductible?
An employee or self-employed individual is allowed a deduction for the costs of meals and incidental expenses while traveling away from home for business purposes. The deduction of these costs usually requires the substantiation of the costs. However, there is an optional bookkeeping method provided for these taxpayers that […]
New Tax Credits For Missouri Farmers
Corporate and personal income tax legislation for Missouri farm taxes extended and revised the qualified beef animal sale tax credit, enacted a meat processing facility investment tax credit, and extended and revised the agricultural product utilization contributor and new generation cooperative incentive tax credits.
Qualified Beef Animal Sale Tax Credit
The credit […]
Phased Retirement Payments Tax Implications
Phased retirement has become an increasingly popular trend lately. Along with its increased use, however, a number of questions have arisen. The IRS has issued guidance for determining the taxable portion of payments made to an employee during phased retirement. The guidance explains whether the payments are “received as an annuity” […]
No Deduction For Covering Business Expenses
Business owners, especially those who operate in corporate form, need to work with their CPA firm and realize that there is a difference between advancing business funds to cover anticipated expenses and being entitled to a deduction for those expenses. A married couple who held partial interests in a corporation […]