Tax Headlines

1827

Guidance Provided on Deductibility of Charitable Contributions to Domestic Disregarded Entities (Notice 2012-52)

The IRS has issued guidance on the deductibility of contributions to domestic single-member limited liability companies (SMLLC) that are wholly owned and controlled by U.S. charities described in Code Sec. 170(c)(2) and for federal tax purposes are disregarded as entities separate from their owners under Reg. §301.7701-2(c)(2)(i) .

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IRS Issues Final Regulations Governing Deductions for Entertainment Use of Business Aircraft (T.D. 9597)

The IRS has issued final regulations under Code Sec. 274 , relating to the use of business aircraft for entertainment. These final regulations apply to tax years beginning after July 31, 2012, to taxpayers that deduct expenses for entertainment, amusement or recreation provided to specified individuals. Proposed regulations were initially released in June 2007; the proposed regulations (NPRM REG-147171-05 ) were adopted as amended after consideration of the comments received.

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Minnesota ~ Personal Income Tax: Apportionment Dispute Not Determined by Summary Judgment

The Minnesota Tax Court declined to issue summary judgment in a personal income tax case involving the ability of the state to apportion and tax the income of nonresidents based on two sales of a Subchapter S corporation’s assets because there were material facts in dispute. Under the facts presented, the taxpayers were the sole shareholders of a corporation incorporated in Illinois that was treated as a Subchapter S corporation for tax purposes.

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Divided House Set to Vote on Extension of Bush Tax Cuts

With the month-long August recess set to begin shortly, House lawmakers remain divided along party lines over the fate of the 2001 and 2003 tax cuts that expire at the end of 2012. President Obama and congressional Democrats are intent on extending current tax law only to those earning no more than $250,000, according to House Ways and Means Committee ranking member Sander M. Levin, D-Mich. He told reporters on July 30 that, as long as Republicans are unwilling to compromise, there would be no resolution of the Bush tax cuts.

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