by mariettacp | Aug 8, 2011 | Accounting News, Money Tips, Tax Tips
The Supreme Court has held that investment advisory fees paid by a trust were deductible only to the extent that they exceeded 2% of the trust’s adjusted gross income (AGI). Thus, such expenses didn’t qualify for the exception to the 2% of AGI limit in the...
by mariettacp | Aug 5, 2011 | Accounting News, Money Tips, Tax Preparation
A taxpayer whose debts are forgiven generally has cancellation of debt (COD) income subject to exceptions including one for bankruptcy and one for insolvency. Some taxpayers have taken the position that the bankruptcy exception is available if a grantor trust (trust...
by mariettacp | Aug 3, 2011 | Accounting News, Money Tips, Tax Tips
Late last year, the IRS issued final regulations under which an understated amount of gross income reported on a return resulting from an overstatement of unrecovered cost or other basis is an omission of gross income for purposes of the 6-year period for assessing...
by mariettacp | Aug 1, 2011 | Accounting News, Money Tips, Tax Tips
The IRS has provided guidance that allows certain real estate professionals to make a late election under the regulations to treat all interests in rental real estate as a single rental real estate activity for purposes of the passive activity loss (PAL) rules. This...
by mariettacp | Jul 29, 2011 | Accounting News, Money Tips, Tax Tips
Under IRS regulations, businesses that trade in machinery or equipment for which they claimed bonus depreciation may qualify for another bonus depreciation deduction on the remaining depreciable basis if they swap for like-kind property that also is eligible for bonus...
by mariettacp | Jul 27, 2011 | Accounting News, Money Tips, Tax Tips
Beginning July 1, 2011, the 0.2% federal unemployment tax (FUTA) surtax is no longer in effect. Thus, the FUTA tax rate, before consideration of state unemployment tax credits, is now 6.0%. Employers need to separately track FUTA taxable wages paid before July 1,...
