Rapid-Fire Accounting News: Student Loan Forgiveness, Cryptoassets on 1040, and the 150-Hour Rule

Rapid-Fire Accounting News for Busy CPA Candidates

1. Some States Could Tax Student Loan Forgiveness

Kiplinger: “You won’t pay federal income taxes on canceled student loan debt through 2025, but there are some states that could potentially tax your student loan forgiveness.”

2. AICPA recommends changing cryptoasset question on Form 1040

Journal of Accountancy: “The AICPA submitted comments and recommendations to the IRS Monday regarding further guidance on the tax treatment of cryptoassets and the question about them that individual income tax returns now carry.”

3. Working from Home & State Income Tax Complications

The CPA Journal: “The coronavirus (COVID-19) pandemic triggered an exodus of workers from their comfortable offices to the safety of their homes and other remote locations. For some, this displacement is temporary and will end when the pandemic subsides; for others, the ability to work remotely represents a paradigm shift that may be felt for many years to come. This article explores some of the state income tax issues created by the relocation of workers.”

4. Buying a Solo Accounting Practice

CPA Trendlines: “The approach to orchestrating a merger differs depending on the nature of the transaction. Is there a true survivor? In substance, not form, is the deal more an acquisition than a true merger?”

5. Next CPA Exam Score Release: September 15

The next CPA score release for August 16 – September 7 exams is September 15.

6. Illinois Will Soon Let You Sit for the CPA Exam With 120 Units, Should All States?

Going Concern: “Fewer people are pursuing accounting degrees and the ones that are have been less and less interested in taking the CPA exam as time goes on. But as they say, the genie can’t be put back into the bottle. 150 hours is the rule and accounting is nothing if not a pile of rules.”

7. Biden's Student Loan Forgiveness Proposal Means Lower Quality Education

Foundation for Economic Education: “The third law of demand offers some unexpected insights for Biden's loan forgiveness.”