PRIVATE FOUNDATION GETS NO STEP UP BASIS

Private foundation gets no step up basis. Heirs can generally benefit from a step up in basis of inherited assets to their fair market value as of the date of the decedent’s death. A recent program manager technical advice makes clear that, for purposes of an excise tax, a private foundation resulting from a charitable […]

IRS’s FACTA ENFORCEMENT FELL SHORT

IRS’s FACTA enforcement fell short. As part of the new law P.L. 111-147, the Hiring Incentives to Restore Employment Act, which was passed in 2010, the Joint Committee on Taxation estimated it would bring in an additional $8.7 billion in revenues over the following 10 years, when it was passed in 2010. So the IRS […]

TAXING BILLIONAIRES TO FIGHT COVID

Taxing billionaires to fight covid. The idea of taxing the ultra-wealthy to cover the immense cost of fighting the coronavirus pandemic has gained steam in recent weeks. Not only would a wealth tax have to get through both Houses of Congress–it would have to withstand a battle in front of the Supreme Court. The IRS […]

2019 EXPENSES THAT ARE DEDUCTIBLE ?

2019 expenses that are deductible ? The Tax Cuts and Jobs Act changed the way individuals and businesses were able to deduct certain expenses on their income tax returns. Some items are no longer deductible and some are still allowed. Here is a partial list of those expenses. 2019 expenses that are deductible ? Medical […]

RULES FOR CLOUD AND DIGITAL CONTENT

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Rules for cloud and digital content. The IRS proposed regulations 130700-14, to clarify how to classify transactions involving digital content and cloud computing. The new rules are designed to help taxpayers decide whether an electronic commerce transaction is a sale, lease, license, or provision or services when applying various international provisions of the Code, such […]

ONE OF THE MOST HATED TAX BREAKS IN AMERICA

One of the most hated tax breaks in america. One of private equity and hedge fund managers most prized tax breaks is again in politicians cross hairs, but Democrats would need to sweep the 2020 elpection if they want to pull the trigger to end the option. President Donald Trump said in may that he […]