New Tax Developments

Recently, there have been some clarifications made by the IRS and court systems concerning tax law, a portion of these rulings deal with individual tax returns. A few examples of these rulings include:
– Taxation of “emotional distress” settlement payments, as they are not a physical injury or sickness
– Clarification on when Self Employed Health Insurance Premiums may be deducted
– Specification on the rules used to determine if an activity is not engaged in for profit (hobby) or is a for profit business
– Determination that medical marijuana dispensaries still may not deduct any of their expenses as they are engaging in the sale of illegal drugs under federal law, expenses also cannot be deducted by additional companies selling medical marijuana on the producers behalf

For more information on these developments please visit: The Tax Adviser.