‘Restaurant’ defined for 100% deductible business meals in 2021 and 2022

By Sally P. Schreiber, J.D. July 1, 2021 Editor: Paul Bonner   The IRS released guidance explaining when the temporary 100% deduction for restaurant meals is available and when the 50% limitation on the deduction for food and beverages continues to apply for Sec. 274 purposes (Notice 2021-25). Under Sec. 274(n)(1), a deduction for any expense for food or beverages …

Tax treatment of COVID-19 homeowner relief payments clarified

By Paul BonnerNovember 9, 2021 Homeowners who receive or benefit from payments from a federal homeowner assistance fund were given an optional IRS safe harbor Monday for computing their itemized deductions for mortgage interest and real property taxes. The guidance, in Rev. Proc. 2021-47, is intended to allow taxpayers to compute their itemized deductions for mortgage interest and real property …

New FAQs cover interplay of unemployment income exclusion and credits

By Paul BonnerNovember 15, 2021 Taxpayers whose 2020 income tax returns were revised by the IRS to exclude unemployment benefits from gross income may be eligible for the additional child tax credit or earned income tax credit as a result, the IRS advised in two frequently asked questions (FAQs) it added Friday to its 2020 Unemployment Compensation Exclusion FAQs webpage. …

Advance child tax credits

Editor: Valrie Chambers, CPA, Ph.D. By Kelly Ward, CPA, CGMA, Fairbanks, Alaska. October 1, 2021 With the enactment of the American Rescue Plan Act (ARPA), P.L. 117-2, in March 2021, important changes were introduced to the child tax credit (CTC). These included that the amount increased for certain taxpayers, the definition of qualifying children expanded, the credit became fully refundable, …