Category Archives: Tax Headlines
All States ~ Personal Income Tax: CCH Webinar: Multistate Tax Issues for Athletes and Entertainers Scheduled for June 1
CCH Tax and Accounting is hosting a live two-hour Webinar, Multistate Tax Issues for Athletes and Entertainers, on Friday June 1, 2012, at 1 p.m. Eastern; noon Central; 11 a.m. Mountain; 10 a.m. Pacific. This two-hour CCH Webinar is presented by Timothy P. Noonan, Esq., an accomplished speaker and author. He also writes a monthly column in State Tax Notes entitled “Noonan’s Notes on Tax Practice.” This Webinar will provide a substantive summary of the multistate personal income tax issues that athletes, entertainers, and their professional advisors should be considering. Continue reading
Individuals Not Entitled to First-Time Homebuyer Credit; Property Owned by LLC (Rospond, TCS)
A married couple was not entitled to claim the first-time homebuyer credit. The property was purchased by a limited liability company (LLC) that was owned by the couple and their four children. According to Code Sec. 36(a), only an individual who is the first-time homebuyer of a principal residence is allowed to claim the tax credit during the year that the residence is purchased. The term “individual” in the statute refers to a natural person and not to an entity. Continue reading
Neither Couple nor Their S Corporation Entitled to First-Time Homebuyer Credit for Purchase by S Corporation of Couple’s Principal Residence (Trugman, TC)
A couple was not entitled to claim the first-time homebuyer credit because their principal residence was purchased by an S corporation. Even though they were the sole shareholders of the S corporation, the purchase of the home by the S corporation did not qualify them as purchasers of the home. The S corporation could not claim the credit because only an individual, as determined under Code Sec. 36, can claim the credit and the S corporation did not qualify as an individual. It did not matter that IRS representatives may have indicated to the couple that they could claim the credit if the property was purchased through the S corporation because incorrect legal advice does not have the force of law. Continue reading
IRS Eases Offer-in-Compromise Requirements to Help More Taxpayers (IR-2012-53)
The IRS has expanded its “Fresh Start” initiative by offering more flexible terms in its Offer-in-Compromise (OIC) program. This will enable a larger number of financially distressed taxpayers to clear up their tax problems faster than in the past. While resolving tax problems might previously have taken four or five years, taxpayers may now be able to resolve their problems in as little as two years. Changes announced by the IRS include revising the calculation for the taxpayer’s future income, allowing taxpayers to repay their student loans, allowing taxpayers to pay state and local delinquent taxes, and expanding the allowable living expense allowance category and amount.
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New Hampshire ~ Corporate Income Tax: House Passes Bill to Allow Increased Asset Expense Deduction
The New Hampshire House of Representatives has passed a bill that would, if enacted, allow business profits taxpayers to calculate the asset expense deduction under IRC §179, as in effect on January 1, 2012, up to $25,000, in determining gross business profits before net operating loss and special deductions. The bill would apply to property placed in service on or after January 1, 2012, and would be effective July 1, 2013. The bill was reported previously when it passed the Senate. Among other differences, the Senate version would not limit the deduction. (TAXDAY, 2012/01/23, S.12) [CCH Note: Current state law permits a $20,000 asset expense deduction.] Continue reading