Tag: deductions

Managing tax implications for professional athletes

Professional athletes can have unique income and expense circumstances to consider when tax filing season comes.  These typically high-income individuals must be extremely mindful of the tax implications associated with their careers. Doing so will not only help them maximize...

Using the “Cohan Rule” to take record-less deductions

Most taxpayers realize they must keep adequate records in order to substantiate tax deductions and credits. Adequate business records can also be critical for a host of other situations, i.e., insurance losses, wage and hour claims, and civil litigation, to...

Appraisal requirement may cause some to rethink charitable donation of cryptocurrency

  • July 5, 2023
  • ShindelRock

In January 2023, the IRS advised that taxpayers will be denied a charitable contribution deduction for a donation of digital assets in excess of $5,000 without a qualified appraisal. While digital assets may have a value listed on an exchange...

Investigatory and acquisition costs when starting or buying a new business may be deductible

Many business owners know their business-related expenses may be deductible, but there are different tax rules for business start-up or acquisition costs.  Investigatory costs, start-up costs, organization costs, capitalized costs and expansion costs are treated by the IRS as follows:...

Michigan First-Time Home Buyer Savings Program offers favorable state tax treatment to new homebuyers

The Michigan First-Time Home Buyer Savings Program was created in 2022 to assist first-time home buyers (a Michigan resident who has not owned or purchased a single-family residence during a period of 3 years before the date of the purchase...

IRS clarifies which meals qualify for 100% deduction for 2021 and 2022

Under IRS Sec. 274(n)(1), any business expense of food or beverages is generally limited to 50% of the amount that would otherwise be deductible. However, a recently-enacted temporary exception allows 100% deduction of restaurant food and beverage expenses incurred after Dec....

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...