Tag: deductions

IRS Confirms Paycheck Protection Program (PPP) Loan Forgiveness is Taxable in 2020 

A recent IRS ruling (Rev Ruling 2020-27) specifies the circumstances of when PPP-funded expenses cannot be deducted.  A taxpayer that received a covered loan guaranteed under the PPP and who paid or incurred certain otherwise deductible expenses listed in section 1106(b)...

Tax court rejects theft deduction loss

In a recent Tax Court ruling (McNely v. Comm'r, T.C. Memo. 2019-39), the Court held that a couple could not deduct theft losses of more than $400,000 that they alleged were incurred by their wholly owned S corporation in 2011...

IRS acknowledges per-taxpayer interpretation of mortgage interest deduction limits

The IRS has announced that it will follow the decision in Voss v. Commissioner, which specifies that two unmarried individuals purchasing a residence together can each deduct interest on a mortgage up to $1 million and home equity debt up...

IRS raises standard mileage rate for businesses

  • January 8, 2015
  • Mark Hughes CPA CFE

The Internal Revenue Service recently issued  Notice 2014-79 which outlines the 2015 optional standard mileage rates that are used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2015, the...

IRS adjusts tax rate and deduction levels for 2015

For tax year 2015, the Internal Revenue Service recently announced annual inflation adjustments for more than 40 tax provisions, including the tax rate schedules, and other tax changes. A list of the more significant items that are increased for 2015...

Mortgage interest deduction is limited to interest paid during the year

As our clients prepare for year-end, we like to remind them that the mortgage interest deduction is limited to the amount of interest actually paid on the loan during the year. Here’s an example from a recent tax court case: A...

SR Client Question: When are transportation expenses deductible?

The IRS has rules to determine if transportation expenses are deductible.  Here are a few of their guidelines: Between home and regular or main job, Never deductible. Between home and temporary work location, Deductible if you have a regular or...

Beware of the Tax Grinch when Giving Gifts to Clients or Employees

With the holiday season right around the corner we thought it would be a good idea to remind everyone of the tax rules related to gift giving.  While gifts given customer or employees are a great way to generate good...

Preparing for an audit? Don’t panic and follow these steps…

Small business owners may receive some unwanted mail in 2014--an IRS audit notice.  While it's likely a randomly generated inquiry into your business, the mere thought of accounting for every last step on your tax trail can be daunting.  We...