Employer-provided and company-owned vehicles - The Tax Adviser
For 2022, the limit is $56,100 for a passenger automobile, van, or truck (Notice 2022-3). The cents-per-mile valuation includes insurance, maintenance, and fuel. If fuel is not provided by the employer, the cents-per-mile rate may be reduced by no more than 5.5 cents per mile (Regs. Sec. 1.61-21 (e) (3)).
IRS notice response tips everyone should know - The Tax Adviser
May 11, 2017 · Taxpayers should explain themselves thoroughly, and attach documents where they will be helpful. The protest should analyze the facts and the law and put the taxpayer's best foot forward. The IRS may review the protest and agree. Even if it doesn't, how the protest is framed can help later.
Electing S status by an LLC - The Tax Adviser
Apr 1, 2020 · An LLC that is eligible to elect S status and timely files an S election (Form 2553, Election by a Small Business Corporation) is considered to have made the election to be taxed as a corporation (Regs. Sec. 301. 7701 - 3 (c) (1) (v) (C)). These entities are not required to file Form 8832, Entity Classification Election.
Five types of interest expense, three sets of new rules - The Tax …
Oct 1, 2018 · Individual taxpayers are subject to different rules for deducting different types of interest expense. The five primary types of interest for individual taxpayers are student loan interest, qualified residence indebtedness interest, investment interest, business interest, and personal interest. The law known as the Tax Cuts and Jobs Act ...
The rules on interest for loans between related parties
Mar 11, 2021 · In an effort to curb these perceived abuses, Sec. 7872 was enacted as part of the 1984 tax overhaul (Deficit Reduction Act of 1984, P.L. 98-369). This Code section required loans between certain related parties, usually in excess of $10,000, to bear a minimum amount of interest based on the applicable federal rates (AFRs).
Summary of tax rules for liquidating corporations - The Tax Adviser
Oct 1, 2020 · Editor: Mark Heroux, J.D. Domestic corporations, either S corporations or C corporations, are liquidated by applying Secs. 331-346. This discussion provides a review of the rules that apply to liquidating corporations, but it does not address the exceptions set forth in Sec. 361 via a reorganization plan or the exceptions arising from having foreign liquidating …
Stock-based compensation: Back to basics - The Tax Adviser
May 1, 2019 · Editor: Kevin D. Anderson, CPA, J.D. Many companies find stock-based compensation is a great way to attract and retain key employees. Over the past year, many employers focused primarily on changes from the law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97.Now that the TCJA dust has settled a bit, it may be a good time for …
Energy-efficient home improvement credit - The Tax Adviser
Mar 1, 2023 · The energy-efficient home improvement credit is allowed to offset regular income tax (reduced by the foreign tax credit) plus alternative minimum tax (Sec. 26 (a)). Energy-efficient building envelope components. Eligible building envelope components must be installed in or on a dwelling that is the taxpayer’s principal residence and that is ...
Qualified small business stock exclusion: Who’s eligible?
November 1, 2021. Editor: Mark G. Cook, CPA, CGMA. Sec. 1202 was enacted to incentivize investment in certain small businesses by permitting gain exclusion upon the sale of qualified small business stock (QSBS). This 30 - year - old Code section is very popular, especially since 100% of gain is excluded for QSBS issued after 2010.
Capitalized improvements vs. deductible repairs - The Tax Adviser
October 1, 2021. Taxpayers generally must capitalize amounts paid to improve a unit of property. A unit of property is improved if the cost is made for (1) a betterment to the unit of property; (2) a restoration of the unit of property; or (3) an adaptation of the unit of property to a new or different use (Regs. Sec. 1.263 (a)- 3 (d)).