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TOPICS / INDIVIDUALS

Deductions

Microcaptive insurance arrangements subject to new rules

To protect against certain risks, businesses can create β€œcaptive” insurance companies. The final regulations designate certain microcaptive arrangements as reportable listed transactions or transactions of interest.

Substantiation of business expenses: A review of the basics

A recent Tax Court case highlights the fact that taxpayers bear the burden of substantiating not only the amount of the deduction but also that the purpose underlying the deduction is ordinary and necessary to operating their trade or business.

Tax Court rejects bad debt deductions

The Tax Court’s opinion in Allen emphasizes the parties’ conduct with respect to payments and contractual rights, along with a realistic view of the repayment expectations.

Special per diem rate for business travel rises

Starting Oct 1, 2023, the special per diem rates taxpayers may use to substantiate ordinary and necessary business expenses for travel away from home will go up, the IRS announced.

Long-awaited guidance provided for amortization of R&E expenditures

The IRS says taxpayers and tax professionals can rely on interim guidance under Sec. 174 for the amortization of research and experimental expenditures released on Friday in Notice 2023-63 until it issues proposed regulations based on the guidance, effective for tax years beginning in 2022.

Bad debt deductions from intrafamily advances

Loans within families can give rise to a loss deduction if not repaid, but this requires establishing, maintaining, and documenting a bona fide debtor-creditor relationship.

Taxpayer marital status and the QBI deduction

This article provides an analysis in four scenarios of whether the QBI deduction will cause a marriage penalty or bonus and discusses whether the existence of a marriage penalty or bonus affects couples’ decision to marry.

employee benefits & pensions

Abstract image of pie chart, with pieces being pulled from several directions. IMAGE BY VECTORMINE/ADOBE STOCK

Profits interests: The most tax-efficient equity grant to employees

By granting them a profits interest, entities taxed as partnerships can reward employees with equity. Mistakes, however, could cause challenges from taxing authorities.

Tax Clinic

Proposed regulations issued on retirement catch-up contributions

IC-DISC commission payment provisions

The role of REITs for foreign investors in US real estate

Signing partnerships’ returns and other tax documents

Practical considerations for taxpayers and advisers following Loper Bright and Corner Post