Nice Summary of new Consumer Tax Issues from Cathy Moran

Yikes!  Cathy’s article is here. 

“Under the new tax law,  any damage award a consumer recovers stands to go in large part to the IRS.

So even if you are successful in court in vindicating your legal rights, the expenses of getting the award aren’t deductible from the gross award. The taxing authorities end up getting a large hunk of the total recovery.

Welcome to tax ‘reform.’”

One Reply to Nice Summary of new Consumer Tax Issues from Cathy Moran

  1. This is the craziest thing I have seen. I am very confused about my ethical duties to my clients:

    IRC Section 67

    (g) Suspension for taxable years 2018 through 2025
    Notwithstanding subsection (a), no miscellaneous itemized deduction shall be allowed for any taxable year beginning after December 31, 2017, and before January 1, 2026.

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