The Tax Reform Act of 1986 has brought faculty lower tax rates, but they have lost many tax deductions to which they were accustomed. The impact on higher education, the 80% limitation for meals and entertainment, travel, and the 2% adjusted gross income (AGI) floor for miscellaneous itemized deductions are discussed. (MLW)

Many universities seeking to upgrade their faculties are willing to offer educational assistance scholarships, loans, and grants to current faculty. This permits a university to retain and upgrade desirable faculty while encouraging them to increase their academic credentials. Ways to minimize the tax consequences are explored.(MLW)