Pumping the Brakes on Vehicle Depreciation - What to Know about Listed Property

Imagine this – a husband and wife own a sales company and they purchase two passenger automobiles to be used in the course of business. The automobiles are available for personal use, but the husband and wife claim that they are primarily used to transport and entertain clients that are in town. While this fact pattern points to a valid business deduction for the automobiles, the IRS disagreed. This was part of a larger case that went to US Tax Court (Brent Mcminn and Lynette Mcminn v. Commissioner), which disallowed the deduction on the grounds that the automobiles were listed property and business use could not be substantiated.

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Do You Have to Pay the Net Investment Income Tax (NII) Tax?

As the deadline for filing 2016 tax returns approaches, some taxpayers are still struggling with the rules for the 3.8% tax on “net investment income” (NII). The tax law provision authorizing this special tax was included in the Affordable Care Act (ACA), the law known as Obamacare. Although the ACA may be repealed by the new Trump administration, it would not likely be retroactive to 2016.

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