Surgent

By Anthony P. Curatola, Ph.D Section 163(h) of the Internal Revenue Code (IRC) provides, in part, that no deduction shall be allowed for personal interest paid or accrued during the taxable year by a taxpayer other than a corporation (i.e., an individual taxpayer). Thus, individual taxpayers can’t deduct interest paid on their credit cards, auto loans, or personal loans, to name a few. But there are exceptions to the rule that make some interest deductible for an individual. Specifically, interest associated with a trade or business, investment interest, qualified residence interest, and ed...

As people increasingly interact with individuals and businesses in other countries, tax preparers in the United States are undoubtedly becoming better acquainted with international tax issues. For example, most are aware that individuals who have a financial interest in or signature authority over a foreign financial account must comply with the Report of Foreign Bank and Financial Accounts (FBAR). But international issues go beyond FBAR. Sometimes, as in the case of gifts and inheritances received from individuals or entities outside the U.S., they might challenge common perceptions. Ge...