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CCH Books of the Month
For the month of August, purchase the following titles at 40 percent off.
"U.S. Master Tax Guide," 2014
Regular price: $93.50
In August: $56.10
"Multistate Corporate Tax Guide, Mid-Year Edition," 2014
Regular price: $328.75
In August: $197.25
"GAAP Guide," 2014
Regular price: $372.00
In August: $223.20
Click here to purchase titles at the discounted rate.
Federal Tax Update — July
By David S. De Jong, Esq., CPA, Stein Sperling
In Schumann v. Commissioner, the tax court determined that an individual who made in excess of $6 million in wages over two years could not be a qualified real estate professional, although he owned two commercial rental properties, 12 residential rental properties, an airplane hangar and two apartments on a cruise ship. The taxpayer claimed that he did little work for the businesses from which he was paid.
Advertising Expense and Tax Reform: How Not to Broaden the Base
By Annette Nellen, Esq., CPA via AICPA Corporate Taxation Insider
In February, Rep. David Camp, R-Michigan, introduced the Tax Reform Act of 2014 — a detailed proposal on how to broaden the tax base — to lower the corporate and individual tax rates in a revenue-neutral manner. One of the methods to broaden the base would stretch out advertising deductions for large businesses. This article explains this proposal and analyzes whether it is good tax policy.
Banks Cash in on Inversion Deals Intended to Elude Taxes
The New York Times
Jamie Dimon, the CEO of JPMorgan Chase, recently said, "I love America." Lloyd Blankfein, the CEO of Goldman Sachs, wrote an opinion article saying, "Investing in America still produces the best return."
Yet guess who's behind the recent spate of merger deals in which major United States corporations have renounced their citizenship in search of a lower tax bill? Wall Street banks, led by JPMorgan Chase and Goldman Sachs.
How to Keep Your Nanny Tax Clients Happy
CPA Practice Advisor
If you have household employment clients, you know how much extra work goes into making sure their taxes are in order. For those unfamiliar with this part of the tax code, household employers have a "casual babysitting exemption" when they pay an individual less than $1,900 in a calendar year.
Unpaid Tax Debts Surprisingly Frequent Among Those With US Security Clearances
The Center for Public Integrity
Anyone who applies for a federal security clearance has some tough questions to answer. The questionnaire is 120 pages long, and among its demands is whether an applicant has any financial problems that might create a security vulnerability. Did the applicant file tax returns and make required payments? Does he or she have any tax debts?
Senators Introduce Bill to Prevent Tax Refund Theft
Leaders of the Senate Committee on Finance have introduced bipartisan legislation to improve protection for taxpayers against fraudulent tax refund claims made with stolen identities.
Sen. Orrin Hatch, R-Utah, ranking member of the Senate Committee on Finance, and Sen. Ron Wyden, D-Oregon, who chairs the Senate Committee on Finance, introduced the Tax Refund Theft Prevention Act of 2014.
How REIT Spinoffs Will Further Erode the Corporate Tax Base
While Congress has been obsessing about tax inversions, it turns out another — potentially more important — tax avoidance technique is getting increased attention from the business community: spinning off tangible assets into real estate investment trusts.
If these deals become widespread, they'd be another nail in the coffin of the corporate income tax.
Activist Investors Pushing for Tax-Inversion Deals
Tax inversions have piqued the interest of activist investors who see more shareholder value by slicing tax bills.
Activist investors are pushing for more tax inversion deals, looking to build a company's value by trading the U.S. corporate tax rate from a lower one abroad.
Missed last week's issue? See which articles your colleagues read most.
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