Recent Court Cases of Interest
Gambling Loss Not Deductible as Casualty Loss The Ninth Circuit Court of Appeals has ruled that the taxpayer’s gambling losses did not qualify as deductible casualty losses. The taxpayer gambled occasionally, but only small amounts, and... TheTaxBook
A Primer on the New Excise Tax on Nonprofit Compensation
As a result of the Tax Cuts and Jobs Act, passed at the end of 2017, many nonprofits found themselves facing a significant tax on both the compensation of certain employees and any separation payments, often called “parachute payments,” paid to highly-compensated employees, u... Joan Vines, CPA, Norma Sharara
Does a Tax Treaty Govern the Taxability of Unemployment Compensation?
Pei Fang Guo, Petitioner v. Commissioner of Internal Revenue, Respondent 149 T.C. No. 14 Filed October 2, 2017 By Steven R. Diamond, CPA The United States has income tax treaties with many foreign countries. These treaties provide that residents of foreign countries may be taxed at a lower rate or may be exe... Steven R. Diamond, CPA