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I 'll throw an example where it's not deductible - Donation of your Airline Miles to a charity - no deduction.

I remember reading George Orwell's book "1984" in Jr High in the 70's and thinking this can never happen in the United States. Guess I was wrong.

No basis - no deduction. Although an entirely different situation, I believe the net metering ends up in the same boat. Case law has held that most consumer "points", rewards etc.... are not taxable income, therefore there is no basis to deduct. In the case of the net metering, the taxpayer also does not recognize income by producing more energy than he/she produces but receives a credit instead. It sounds like the only options are: use it, lose it, or give it away. If the taxpayer had an option to receive cash, the excess electricity produced could generate taxable income and a 1099. In that case the taxpayer would have a basis to deduct. So it appears to me without a basis there is no deduction.

I have clients that like to pay me via PayPal and Venmo plus credit cards I process via Intuit. I would receive Forms 1099-K from all three of those. The Intuit payments land in my biz checking account, and I move all the Venmo and most of the PayPal to my biz checking account. Under Biden, my biz checking account will issue me Form 1099-whatever on those transfers. The same income will get reported twice. My disbursements from PayPal and from my biz CC and from my biz checking account will NOT be reported twice. My net profit will look waaay too high! I can't imagine the time it will take to argue my own situation with the IRS, let alone argue for all my clients!

If he took distributions, you could claim a bookkeeping error and reclass those distributions as net wages. Of course there will be late payment of payroll tax penalties.

FTB must dig "Hotel California": "We are programmed to receive. You can check out any time you like. But you can never leave!"

CA FTB has had a reputation of being very aggressive for many years.

The tax credit allowed is related to the ratio of foreign and domestic income and tax. Just follow the lines on page 2 of the 1116. It's pretty straightforward, assuming the page 1 entries are accurate.

That sounds about right to me!

When I call tax department, I felt people from outside NY always more nicer except CA.

hey Pizza Hut is paying drivers $20/hr - my staff discussed it but decided late nights and probably had to pay for their own gas - here might be better - more flexible hours.. Dear Possi - can I "talk" to you about how you sold your business? d

Wait until they receive a penalty letter and then try this: ABC qualifies for an exception to the penalty you charged under IRC Section 6698(a)(1), because all two (2) partners, XZ, 222-22-2222, and YZ, 333-33-3333, reported all their shares of income and deductions timely on their joint 2019 income tax return Form 1040. Therefore, the partnership meets the criteria specified in Rev. Proc. 84-35, which says in part: “A domestic partnership composed of 10 or fewer partners and coming within the exception outlined in section 6231(a)(1)(B) of the Code will be considered to have met the reasonable cause test and will not be subject to the penalty imposed by section 6698 for the failure to file a complete or timely partnership return, provided that the partnership, or any of the partners, establishes, if so required by the Internal Revenue Service, that all partners have fully reported their shares of the income, deductions, and credits of the partnership on their timely filed income tax returns.” We trust that you will remove the penalty due to reasonable cause for small companies.