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| Author : | Danny C Santucci, JD |
| Course Length : | Pages: 0 ||| Review Questions: 0 ||| Final Exam Questions: 120 |
| CPE Credits : | 24.0 |
| IRS Credits : | 24 |
| Price : | $145.95 |
| Passing Score : | 70% |
| Course Type: | NASBA QAS - Text - NASBA Registry - IRS Enrolled Agents |
| Technical Designation: | Technical |
| Primary Subject-Field Of Study: | Taxes - Taxes for Course Id 1082 |
| Description : | Updating practitioners on current developments, this core program examines and explains the practical aspects of travel and entertainment deductions. Fundamentals are reviewed and planning opportunities identified. Creative strategies are discussed and evaluated along with traditional approaches. Taxpayers are once again looking to their tax professional for guidance and planning related to travel and entertainment expenses. The goal of this course is to understand and solve problems. Participants will learn to master the proper administration of these complex and often cumbersome provisions in a humorous and entertaining format. |
| Usage Rank : | 0 |
| Release : | 2016 |
| Version : | 0.0 |
| Prerequisites : | General understanding of federal income taxation. |
| Experience Level : | Overview |
| Additional Contents : | Complete, no additional material needed. |
| Additional Links : |
Social Media Workshop May62010 Cpethink com
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| Advance Preparation : | None. |
| Delivery Method : | |
| Intended Participants : | Anyone needing Continuing Professional Education (CPE). |
| Revision Date : | 19-Jul-2016 |
| NASBA Course Declaration : | Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam. |
| Approved Audience : | NASBA QAS - Text - NASBA Registry - IRS Enrolled Agents - 1082 |
| Keywords : | Taxes, Travel, Entertainment, Auto, Rules, from, Tax, PerspectiveBlowout, cpe, cpa, online course |
| Learning Objectives : |
As a result of studying each assignment, you should be able to meet the objectives listed below each assignment. ASSIGNMENT SUBJECTChapter 1 Travel Expenses At the start of Chapter 1, participants should identify the following topics for study:
* Travel expenses of investors * Transportation expenses * Business purpose requirement * Circuit Court test for “tax home” * IRS test for “tax home” * No tax home * Two work locations * Away from home requirement * Temporary & indefinite assignments After reading Chapter 1, participants will be able to:
2. Specify deductible travel costs to find a new job, identify investor travel expenses, and determine deductible transportation. 3. Identify the business purpose requirement noting the complications of mixed business and personal travel noting the costs at a destination. 4. Recognize the IRS’s and Circuit Courts’ definition of “tax home”, identify when a taxpayer lacks a tax home, and specify the “away from home” requirement including the sleep and rest rule. 5. Identify temporary and indefinite job assignments recognizing the critical factor in distinguishing the two job assignments. Chapter 2 Categories of Business Travel Expense At the start of Chapter 2, participants should identify the following topics for study:
* Point-to-point rules * Extended stay or side trip rule * Foreign business travel * Conventions & meetings * Conventions outside the North American area * Cruise ship conventions * Luxury water travel * Spousal & companion travel expenses * Aides to sick & handicapped individuals After reading Chapter 2, participants will be able to:
2. Specify the “point-to-point” rule for different modes of transportation and which expenses incurred on a business trip with an extended stay or side trip are deductible. 3. Identify the rules for foreign business travel by:
b. Determining the allocation of expenses incurred in traveling on a foreign side trip and specifying exceptions to the general rule.
b. Identifying the availability of the convention and meeting deduction to professional groups, self-employed persons, and employees noting the videotaped lecture rule; and c. Determining the differences between foreign conventions and foreign travel and citing convention expenses permitted under §274(h) Chapter 3 Local Transportation At the start of Chapter 3, participants should identify the following topics for study:
* Trips to union hall * Commuting & economic hardship * Irregular work site assignments * Home office * Hauling tools & equipment * Transportation between different sites * Transportation between different jobs After reading Chapter 3, participants will be able to:
2. Identify the regular/irregular rule, determine a temporary work site under R.R. 90-23, recognize the impact of R.R. 94-47 and R.R. 99-7 on transportation between a taxpayer’s residence and workplace, specify the §280A home office requirements noting its impact on business transportation, and identify the hauling tool rule. Chapter 4 Automobiles At the start of Chapter 4, participants should identify the following topics for study:
* Deduction limitations using actual cost method * Expensing - §179 * Predominate business use rule * Auto leasing * Standard mileage method * Auto trade-in vs. sale * Employer-provided automobile * Nonpersonal use vehicle * Reporting of employer-provided automobile After reading Chapter 4, participants will be able to:
b. Identifying the automobile costs that are generally deductible and nondeductible and their exceptions.
b. Identifying depreciation methods and conventions under the modified cost recovery system (MACRS) and citing the depreciation caps that apply to different vehicles. 4. Specify the impact of the §280F predominate business use rule, as established by the Tax Reform Act of 1984, on depreciation, excess deductions, and the former investment tax credit. 5. Determine automobile leasing elements noting vehicle purchase differences, specify various leasing terminology including closed-end and open-end, identify monthly lease payments and income inclusion amounts, and cite the leasing deduction restrictions. 6. Identify the mechanics of the standard mileage method including the ability to switch methods, deduct charitable and medical transportation, and MACRS depreciation limitations. 7. Recognize the differences between trading and selling a vehicle noting employer-provided vehicles as §132 fringe benefits by:
Chapter 5 Entertainment At the start of Chapter 5, participants should identify the following topics for study:
* Allocation – business & nonbusiness persons * Directly related test * Associated test * Statutory exceptions * Quiet business meals & drinks * Ticket purchases * Percentage reduction for meals & entertainment * Entertainment facilities * Business gifts After reading Chapter 5, participants will be able to:
b. Identifying the stepped process of determining qualifying allowable entertainment expenses and how to allocate and prorate entertainment expenses including meals; and c. Specifying the elements of the ordinary and necessary requirement under §162.
b. Determining the meaning of “associated with” in finding whether expenses have a business purpose; and c. Specify statutory exceptions to §274 identifying the tenth repealed exception. 4. Recognize the 50% reduction for meals and entertainment and related expenses noting exceptions. 5. Determine what constitutes an entertainment facility specifying excluded facilities types and costs and recognize the effect of OBRA ’93 on club dues. 6. Identify the tax benefits and substantiation requirements for business gifts, employee achievement awards, and sales incentive awards by:
b. Recognizing the tax treatment of joint spousal gifts and exclusions to the annual limitation; and c. Citing conditions that must be met for costs from a §74 qualified plan award program to be deductible. Chapter 6 Substantiation At the start of Chapter 6, participants should identify the following topics for study:
* Separate expenses * Adequate records method of substantiation * Sufficiently corroborated statements method of substantiation * Exceptional circumstances method of substantiation * Written policy statements * Treating vehicle as 100% personal * Exempt vehicles * Farming vehicles * Additional information requirements After reading Chapter 6, participants will be able to:
2. Cite ways to substantiate travel and entertainment expenses noting required records by:
b. Selecting a sampling of the use of listed property for portions of a taxable year; and c. Identifying documentary evidence. Chapter 7 Reporting & Reimbursement of T&E Expenses At the start of Chapter 7, participants should identify the following topics for study:
* Accountable plans * Adequate accounting * Non-accountable plans * Self-employed persons * Meal & entertainment expenses for self-employed * When an employer can deduct expenses * Meals and employer-provided autos * Disclosure of business use of automobiles * Disclosure of business use of other listed property After reading Chapter 7, participants will be able to:
2. Determine how to adequately account for travel and other employee business expenses by:
b. Identifying incidental expenses under R.R. 2002-63 for accounting purposes and specifying the meal break out and 50% limitation; and c. Recognizing accountable plans and nonaccountable plans noting their correct reporting of employee reimbursements. |
| Course Contents : | Chapter 1 - Travel Expenses Transportation and Travel Distinguished Travel Expenses Deductible Travel Expense Examples New Business Travel - §165 & §195 Job Hunting Travel Itemized Deduction & AGI Limit - §67 Transportation & Travel Exception - §62 Mileage Outplacement Services Exclusion Travel Expenses of Investors - §212 Two Percent Limitation - §67 Investment Seminar Travel Limitation - §274(h)(7) Travel Related to Rent or Royalty Producing Property Travel to Search for New Property - Capitalization Transportation Expenses Business Purpose Requirement Solely for Business Mixed Business & Personal Travel Costs All or Nothing for Travel Costs Costs at Destination Business Relationship Definition of “Tax Home” Circuit Court Test Rosenspan Case - 2nd Circuit Harvey Case - 9th Circuit IRS Test Family Stidger Case Tax Home Area No Tax Home Regular Place of Abode Itinerant Worker Two Work Locations “Principal” Factors Away From Home Requirement Sleep & Rest Rule Substantial Period Correll Case Temporary & Indefinite Assignments Time - The Critical Factor Prior Law Presumptions One Year or More IRS Presumption Less than Two-Year Exception Regular Home Temporary Job That Became Permanent Current Law - One-Year Rigid Time Rule R.R. 93-86 - The Flexible Rigid Rule? Return Trips from Temporary Assignment - Homesick Rule Family Presence Shows Indefinite Assignment Probationary Job - Always Indefinite Armed Forces Member Chapter 2 - Categories of Business Travel Expense Domestic Business Travel Primarily For Business Time 51/49 Percent Test Point-To-Point Rules Public Transportation - Scheduled Stop Method Private Car - Any Travel within Private Plane - Take Off to Landing Method Extended Stay or Side Trip Rule Foreign Business Travel All Business Foreign Travel - Full Deduction Primarily Personal Foreign Travel - No Travel Deduction Primarily Business Foreign Travel - Allocation Rule Allocation Formula Foreign Enroute Personal Activity Limitation Foreign Side Trip Allocation Exception to General Allocation Rule - Full Deduction Conventions & Meetings Agenda Test - Predominant Business Relationship Videotaped Lectures Availability Conventions outside the North American Area Reasonableness Factors Definition of North American Area Beneficiary Country Current Beneficiary Countries in the North American Area Allowable Expenses Cruise Ship Conventions Deduction Limitation Reporting Statements Luxury Water Travel Meals & Entertainment Separately Stated Exceptions to Luxury Water Travel Limitations Spousal & Companion Travel Expenses - §274(m) Additional Cost Rule Employee Exclusion of Spousal Travel Reimbursements - §132 Aides to Sick and Handicapped Individuals Direct Deduction Chapter 3 - Local Transportation Commuting Parking Fees Trips to Union Hall Commuting & Economic Hardship Irregular Work Site Assignments R.R. 90-23 & the Regular/Irregular Rule Temporary Work Site Definition Reserve Units R.R. 94-47 & Walker Case Revenue Ruling 99-7 Home Office Principal Place of Business Requirement Hauling Tools & Equipment Same Mode Exception Security Transportation between Two Jobs Different Sites Different Jobs Chapter 4 - Automobiles Apportionment of Personal & Business Use Car Pool Fines Parking Fees Interest Deduction Limit for Individuals Self-Employed Exception Property Taxes Sales Taxes 2009 Sales Tax Deduction for Qualified Vehicles (Expired) - §164 Actual Cost Method Deduction Limitations Definition of Car Depreciation and Expensing Basis Trade-In of Old Car for New Placed in Service Conversion to Business Use - “Lesser of” Rule MACRS - 5 (Actually 6) Years 200%Double Declining Balance Method 150% Declining Balance Method Election Straight-Line Method Election Half-Year Convention Mid-Quarter Convention Depreciation “Caps” Separate Depreciation Caps for Trucks & Vans Post-Recovery Period Depreciation - Max Reduction Rule Partial Business Use Improvements Bonus (or Additional First-year) Depreciation - §168(k) Expensing - §179 Cost of Car Basis Reduction Making the §179 Election Business Use Reduction SUV Limitation Predominate Business (More Than 50%) Use Rule Qualified Business Use Exclusions Change From Personal to Business Use Employee Use of Their Own Car Failure to Meet Predominate Business Use Rule Later Reduction in Qualified Use ITC Recapture - Highly Unlikely Straight-line Depreciation Excess Depreciation Recapture Short Tax Year Depreciation Reduction Auto Leasing Pros & Cons Leasing Terminology Closed-End vs. Open-End Lease Formula for Monthly Payments Leasing Deduction Restrictions Income Inclusion Amount Separate Lease Inclusion Table for Trucks & Vans Cars Leased For 30 Days or More After 1986 Computation of Inclusion Nine-Month Following Year Rule Buying v. Leasing Standard Mileage Method Limitations on Standard Mileage Method Use, Ownership & Prior Depreciation Switching Methods Charitable Transportation Medical Transportation Auto Trade-In vs. Working Condition Fringe Benefits Qualified Transportation - §132(f) Exclusion Limits Employer-Provided Automobile General Hypothetical Valuation Method Special Method #1 - Lease Value Annual Lease Value - For Entire Calendar Year Fair Market Value Items Included in Annual Lease Value Table Prorated Annual Lease Value - For 30 Days or More Daily Lease Value - For Less Than 30 Days Special Method #2 - Cents per Mile Regular Use - 50% Business Mileage Rule - 10,000 Miles Items Included In Cents-Per-Mile Rate Special Method #3 - Commuting Value Control Employee Employer-Provided Transportation in Unsafe Areas Qualified Employee Nonpersonal Use Vehicles - 100% Excludable Clearly Marked Police or Fire Vehicles Unmarked Law Enforcement Vehicles Law Enforcement Officer Trucks & Vans Pickup Truck Guidelines Van Guidelines Qualified Automobile Demonstration Use Full-time Automobile Salesperson Restrictions on Personal Use Reporting by Employer Election Not to Withhold for Income Taxes Value Reported Accounting Period Special Accounting Period - Pour Over Method Chapter 5 - Entertainment Definition Objective Test with Subjective Considerations Entertainment Presumption on “Close Calls” Gift Exception Travel Facility Exception Meals as Entertainment No Double Deduction Allocation - Business & Nonbusiness Persons Proration Deduction Process Ordinary & Necessary Requirement - §162 Three Tests of §274 Directly Related Test Clear Business Setting Presumption Services Performed & Prizes Presumption Associated Test Expenses for Closely Connected Persons & Spouses Substantial Business Discussion Timing Meetings at Conventions Statutory Exceptions Food and Beverages for Employees - §274(e)(1) Expenses Treated as Compensation - §274(e)(2) Reimbursed Expenses - §274(e)(3) Recreational Expenses for Employees - §274(e)(4) Definition of Highly Compensated Employee Employee, Stockholder and Business Meetings - §274(e)(5) Trade Association Meetings - §274(e)(6) Items Available to Public - §274(e)(7) Entertainment Sold to Customers - §274(e)(8) Expenses Includible in Income of Non-employees - §274(e)(9) Quiet Business Meals & Drinks Taxpayer’s (or Employee’s) Presence Packaged Food & Beverage Items Independent Contractor Home Entertainment Ticket Purchases - Face Value Limit Exception for Charitable Sports Events Special Limitation for Skyboxes - More Than One Event Rule One Event Rule Related Parties Food & Beverages Separately Stated Goodwill Entertaining Percentage Reduction for Meals & Entertainment Related Expenses Application of Reduction Rule Exceptions to Percentage Reduction Regulations - 50% Disallowance Rule Entertainment Facilities What is an Entertainment Facility? What Isn’t an Entertainment Facility? Covered Expenses Country Club, Social, Athletic, and Sporting Clubs 50% Test Days of Business Use Membership Fees OBRA ‘93 Changes Club Definition - Principal Purpose Test Club Dues as Working Condition Fringes Disposition of an Entertainment Facility Professional Organizations and Luncheon Clubs Business Gifts - §274(b) & §102 Incidental Costs Excludable Partnership & Joint Returns Exclusions Employee Achievement Awards - §274(j) Qualified Plan Sales Incentive Awards Chapter 6 - Substantiation Detailed Substantiation Categories Exceptions to Substantiation Requirements Elements to Be Substantiated Travel Expense Substantiation Entertainment & Meal Expense Substantiation Additional Requirements for Clubs & Other Entertainment Facilities Business Gifts Expense Substantiation Listed Property Expense Substantiation Separate Expenses Aggregation Repetitious Expenses Substantiation Methods Adequate Records - Method #1 Timing of Record Entries Sampling Documentary Evidence Canceled Check or Charge Slip Account Statement Business Purpose Employee Expense Statements When is Documentary Evidence Required? Sufficiently Corroborated Statements - Method #2 Direct Evidence Requirement Exceptional Circumstances Destroyed Records Special Substantiation for Listed Property Special Method #1: Written Policy Statements No Personal Use Policy No Personal Use Except for Commuting Special Method #2: Treating Vehicle as 100% Personal Special Method #3: Exempt Vehicles Pickup Trucks & Vans Special Method #4: Farming Vehicles - 75% Presumption Additional Information Requirements Retention of Records Chapter 7 - Reporting & Reimbursement of T&E Expenses Employees When an Employee Needs to File Form 2106 Employee Expense Reimbursement & Reporting Family Support Act of 1988 Remaining Above-The-Line Deduction Accountable Plans Reasonable Period of Time Fixed Adequate Accounting Per Diem Allowance Arrangements Federal per Diem Rate Related Employer Restriction Incidental Expense Definition Meal Break Out & 50%Limitation Reporting Per Diem Allowances Reimbursement Not More Than Federal Rate Reimbursement More Than Federal Rate Non-Accountable Plans Self-Employed Persons Expenses Related to Taxpayer's Business Expenses Incurred on Behalf of a Client & Reimbursed Meal & Entertainment Expenses With Adequate Accounting Without Adequate Accounting Non-Entertainment Expense Deduction Employers When Can an Expense Be Deducted? Economic Performance Rule Corporation Nondeductible Meals Employer Provided Auto Disclosures Required on Tax Returns Business Use of Automobiles Business Use of Other Listed Property Glossary |
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