The Tax Professionals Blog

When must a home purchase, construction cost or home improvement expenditures be made in order for a loan to be treated as acquisition debt?  The answer can be found In Notice 88-74 and here is what the Notice has to say on the issue:1. Acquisition - In the case of the acquisition of a residence, debt may be treated as incurred to acquire the residence to the extent of expenditures to acquire the residence made within 90 days before or after the date that the debt is incurred. 2. Construction or Substantial Improvement - In the case of the construction...

A question was raised as to whether a home office can be included in the total of qualified property used in determining QBI when using the section 199A(b)(2)(B)(ii) 2.5% of unadjusted basis of qualified property (UBIA) limitation.

One of our ClientWhys forum members asked what the options were where a client had changed jobs and total contributions to the 401(k) plans of the two employers exceeded the maximum allowable 401(k) contributions for the year. The client was aware of the excess and reported it to the plan administrator prior to April 1st (the plan’s due date for reversing additional contributions) expecting the plan administrator to distribute the excess prior to the April 15th deadline for making a corrective distribution. However, the plan administrator failed to make the corrective distribution by April 15. So now what happens? Finding...

Recently an interesting question arose whether a loan must be obtained simultaneously with the close of an escrow for the purchase of property to be treated as acquisition debt?