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The IRS on Tuesday announced that it plans to issue regulations providing that the reduction in the personal exemption amount to zero for tax years 2018 through 2025 will not be taken into account in determining whether a person is a qualifying relative under Sec. 152(d)(1)(B) (Notice 2018-70). Accordingly, in defining a qualifying relative for …
Continue reading Deemed personal exemption amount introduced for various tax benefits
The Tax Court holds that writing checks from funds distributed is not a transfer of an account interest incident to divorce. During the pendency of a divorce, a taxpayer was ordered by a family court to transfer funds to an individual retirement account (IRA) in his spouse's name. Where the taxpayer received a distribution of …
Continue reading IRA distribution to pay spousal support is taxable
To alleviate the burden on tax-exempt organizations and the IRS, the Service announced, with the issuance of Rev. Proc. 2018-38, that it will no longer require most tax-exempt organizations to report the names and addresses of substantial donors. The change does not apply to purely public charities exempt under Sec. 501(c)(3) because they are required …
Continue reading Many tax-exempt organizations no longer need to list donor information
As a self-employed person, you probably have been watching the development of the Tax Cuts and Jobs Act with some trepidation. The tax code is not often kind to the self-employed, nor are most of the changes to the code. However, the new tax law retains most self-employment deductions and offers a few new forms …
Continue reading Top 15 Tax Deductions For The Self-Employed
EXECUTIVE SUMMARY The deduction for an individual's personal casualty loss of property not connected with (1) a trade or business or (2) a transaction entered into for profit arising after Dec. 31, 2017, and before Jan. 1, 2026, has been eliminated, with several exceptions. Business taxpayers may deduct amounts paid for repairs and maintenance to …
Continue reading Casualty losses and expenditures under Sec. 162 or 165
During the pendency of a divorce, a taxpayer was ordered by a family court to transfer funds to an individual retirement account (IRA) in his spouse's name. Where the taxpayer received a distribution of funds from his IRAs and then wrote checks to the spouse, the exclusion from taxation available under Sec. 408(d)(6) was inapplicable, …
Continue reading IRA distribution to pay spousal support is taxable
As tax practitioners prepare to counsel clients about the loss of dependency exemptions on 2018 tax returns, there is good news to offer in the form of the enhanced child tax credit. The legislation known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, doubled the credit amount, increased the refundable portion, and expanded …
Continue reading Child tax credit now higher, more widely available
To give grantors and contributors to tax-exempt organizations more easily accessible guidance on deductibility and reliance issues, the IRS has combined into one revenue procedure previous scattered pieces of guidance dating back to 1981 (Rev. Proc. 2018-32). The new revenue procedure tells grantors and contributors when they can rely on a listing of an organization …
The IRS announced that it plans to issue regulations in response to state legislation intended to help taxpayers avoid the $10,000 limitation on the deduction for state and local taxes under Sec. 164 as amended by P.L. 115-97, known as the Tax Cuts and Jobs Act (Notice 2018-54). That limitation applies to individual taxpayers for …
Continue reading IRS to clarify rules on payments in lieu of state and local taxes
The IRS on Thursday issued a warning to employers and small businesses to beware of growing attempts by cybercriminals to target businesses to obtain the business’s and employees’ information. These criminals then use the stolen information to open credit card accounts and file fraudulent tax returns for “bogus refunds.” In the past two years, the …
Continue reading Small businesses should guard against tax-return identity theft
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