Practice Management

Just in time for the summer, the U.S. Tax Court denied the like-kind exchange treatment for vacation homes that are not strictly held for investment purposes.In a memo issued Wednesday, the court said that a Georgia couple's exchange of vacation homes did not qualify for the treatment according to Section 1031(a) of the tax code -- finding that the holding of any residence, even if motivated in part by an expectation that the property will appreciate in value, is insufficient to justify the classification of that property as being held for investment.

Taking over the helm of Deloitte Touche Tohmatsu today, chief executive James Quigley and a new leadership team announced their plans to become the largest professional services network within the next two years.Quigley plans to bring a new focus on the Deloitte brand, as well as to build a stronger commitment to the firm’s people. He also wants to strengthen the connection between Deloitte member firms across regions, increase the number of professionals in key markets in Europe and Asia, and showcase the firms’ consulting capabilities as a market differentiator.

Education provider Kaplan Inc. has acquired the Canadian test preparation firm U.S. CPA Success, based in Toronto, Ont.Financial terms of the transaction were not disclosed.

The Canada Revenue Agency will appoint a new independent tax ombudsman by the fall -- creating a post similar to the Internal Revenue Service’s National Taxpayer Advocate for the first time.

A memo issued by the Internal Revenue Service’s Office of Chief Counsel could possibly eliminate a tax-saving strategy used by some investors with brokerage accounts.Wrap accounts charge a flat percentage fee instead of a commission, and for tax purposes, the annual fees that investors pay are often treated as miscellaneous itemized deductions. But under a provision, some taxpayers can instead opt to add the fees to the cost basis of the securities, which could reduce potential capital-gains taxes (or enhance potential losses).

The Free File Alliance has sent a letter to the Senate Finance Committee, expressing concerns about a proposed government-funded Web portal that the alliance says is aimed at eventually providing tax preparation and e-filing services.

The supplemental budget legislation signed into law on May 25 did more than just give the green light to funding for the ongoing war effort in the Middle East.

Two bills circulating on Capitol Hill are looking at different ways to generate tax revenue from the Internet.

The Federal Reserve has proposed rules to simplify the disclosure of credit-card terms to consumers.

A pair of Michigan accounting firms -- Lewis & Knopf in Mundy Township and Rachor, Purman & Tucker of Flint Township -- have merged.Financial terms of the deal were not disclosed. The combined firm will operate under the name Lewis & Knopf CPAs.