Couple Denied Deduction for Qualified Conservation Contribution for Real Property Interest; Property Donated Did Not Include Restriction Granted in Perpetuity on Use (Belk, TC)

A couple was denied a charitable contribution deduction for a qualified conservation contribution of a golf course because they did not donate a qualified real property interest. The taxpayers failed to satisfy the requirement that the conservation purpose of the conservation easement be protected in perpetuity.

read more

Returns Claiming Education Credits to Be Accepted by IRS by Mid-February (IR-2013-10)

The IRS has announced that processing of tax returns claiming education credits on Form 8863, Education Credits, will begin by the middle of February. Form 8863 is used to claim both the American Opportunity Tax Credit and the Lifetime Learning Credit. The IRS has determined that processing modifications are needed to accurately process Form 8863, which is the reason for the delay.

read more

New York ~ Sales and Use Tax: Online Driver Education Training Course Not Taxable

A taxpayer’s sale of its online driver education training course is not subject to New York sales tax. Provision of access to online educational materials that involves the transfer of prewritten software can constitute the licensing of taxable software. However, the provision of an online education course can constitute a nontaxable educational service if the product extends beyond the use of software. While the taxpayer’s presentation of the program may entail the employment of software, the only control that the student has over the presentation of the course is that he or she can determine the order in which course segments are presented and can stop and restart the course.

read more

Kansas ~ Personal Income, Sales and Use Taxes: Bill Would Further Reduce Income Taxes; Freeze Sales Tax Rate

A bill has been introduced in the Kansas Senate that would implement many of the goals recommended by Kansas Gov. Sam Brownback in his State of the State address delivered on January 15, 2013 (TAXDAY, 2013/01/17, S.12 ), including further reducing the state’s personal income tax and freezing the state’s sales and use tax rate at the current rate of 6.3%. If enacted, the legislation would reduce the state’s bottom rate of 3.0% to 2.5% in tax year 2014 and then further reduce the rate to 1.9% in tax year 2016. The current top rate of 4.9% would be reduced to 3.5% in tax year 2017.

read more