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Friday, May 14, 2021

14th Anniversary of the 21st Century Taxation Blog

I started this blog 14 years ago today as a way to share ideas and hopefully engage discussion on how to improve our tax systems to meet principles of good tax policy and reflect the ways we live and do business today. It's been enjoyable and I appreciate everyone who reads and comments on my posts!

A few thoughts of areas that need attention that we don't hear enough about (some I have blogged on):

  • Repeal the kiddie tax - too much complexity and not needed. When an asset is truly given to someone else, that person pays taxes on it at their own tax rate.
  • Repeal the rental revenue exclusion for renting out your home for less than 15 days (§280A(g)). Not needed and mostly benefits higher income with the home by the nice golf course where some tournament will be played.
  • Fix the personal income tax to allow deductions tied to production of taxable income without any 2% of AGI limitation.  This is a basic feature of a personal income tax and we have continuted to move away from it since the Tax Reform Act of 1986 meanwhile while adding special rules that are not part of a basic income tax.
  • Virtual meetings and meals are likely to stay. Let's get guidance on whether that meal delivered to your client or employee is still deductible (client one should be, but not clear about the employee; if given a gift card, likely taxable).
  • Update Section 197 on amortization of intangibles to include URLs and social media assets.

And, of course, there are more areas in need of improvement.

What do you think?

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