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| Author : | Danny C Santucci, JD |
| Course Length : | Pages: 227 ||| Word Count: 12,3387 ||| Review Questions: 150 ||| Final Exam Questions: 118 |
| CPE Credits : | 23.5 |
| IRS Credits : | 23 |
| Price : | $143.50 |
| 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 2450 |
| Description : | Designed to make the practitioner comfortable with “high traffic” issues, this program enables participants to discuss and handle individual tax essentials. The course examines and explains the practical aspects of return preparation and individual planning, bridging the gap between theory and application. Significant new developments are summarized with an emphasis on tax savings ideas. Practical applications and illustrations are used to systematically explore tax deferral, reduction, and elimination opportunities accompanying return preparation. For example, the analysis of gross income is discussed together with income-splitting techniques; property transactions are examined alongside like-kind exchanges and involuntary conversions. The result is an extraordinary blend of the latest developments affecting individual returns and their related planning ideas. Please Note: This course covers tax issues applicable to 2023 income reported in the 2024 tax season. |
| Usage Rank : | 56000 |
| Release : | 2025 |
| Version : | 1.0 |
| Prerequisites : | General understanding of federal income taxation. |
| Experience Level : | Overview |
| Additional Contents : | Complete, no additional material needed. |
| Additional Links : |
About Form 1040, U.S. Individual Income Tax Return
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| Advance Preparation : | None. |
| Delivery Method : | QAS Self Study |
| Intended Participants : | Anyone needing Continuing Professional Education (CPE). |
| Revision Date : | 13-Jan-2025 |
| 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 - 2450 |
| Keywords : | Taxes, 1040, Tax, Workshop, 2025, 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 Individual Tax Elements At the start of Chapter 1, participants should identify the following major topics for study:
* Filing status * Gross income * Dividends and distributions * Discharge of debt income * Exclusions from income * Nonbusiness and personal deductions * Education and medical expenses * Casualty and theft losses * Tax credits After reading Chapter 1, participants will be able to:
2. Specify the various filing statuses and their filing requirements recognizing the advantages and disadvantages of each. 3. Determine what constitutes gross income under §61 stating the tax treatment of fringe benefits, rental income, prizes, and a child’s income, and specify how debt discharge and foreclosure can result in taxable income. 4. Identify the mechanics of income exclusions such as education-related exclusions, insurance, and personal injury awards. 5. Recognize income tax deductions and their use to reduce tax liability by identifying interest related to businesses, investments, qualified residences, and deductions for medical expenses, charitable contributions, casualty losses, and moving expenses. 6. Determine distinctions among several types of tax credits for children and education identifying amounts and eligibility requirements. Chapter 2 Expenses, Deductions & Accounting At the start of Chapter 2, participants should identify the following major topics for study:
* Health insurance costs * Home office deduction * Travel and entertainment expenses * Employee expense reimbursement and reporting * Automobile deductions * Fringe benefits * Methods of accounting * Expensing and depreciation * Amortization After reading Chapter 2, participants will be able to:
2. Identify the application of the hobby loss rules to a business, determine deductible expenses, recognize the requirements of the home-office deduction, and specify self-employment taxes. 3. Determine how to properly deduct travel by identifying deductible domestic and foreign business travel expenses, a taxpayer’s tax home, if any, and work locations; specify the “away from home” and convention rules; and define the adequate substantiation methods. 4. Differentiate accountable and nonaccountable plans including the requirements for an accountable plan particularly adequate accounting using per diem rates for non-related employees. 5. Determine what constitutes local personal commuting and deductible travel to temporary work sites. 6. Identify the apportionment of automobile expenses between personal and business use, the actual cost and standard mileage methods, medical & charitable mileage, and depreciation. 7. Specify the various types of excluded fringe benefits that can increase employers’ deductions and incentive-based compensation of employee. 8. Recognize the cash, accrual, and other methods of accounting, select available accounting periods specifying their impact on income and expenses, and identify expensing and amortization. Chapter 3 Property Transfers & Retirement Plans At the start of Chapter 3, participants should identify the following major topics for study:
* Home sale exclusion * Installment sales * Repossession * Involuntary conversions * At-risk rules * Like-kind exchanges * Retirement plans After reading Chapter 3, participants will be able to:
2. Identify the application elements of the §121 home sale exclusion specifying the ownership and use requirements. 3. Recognize the §453 installment method requirements, the residential lot exception, and the pledging rule limitation. 4. Identify the elements necessary for a §1038 repossession, the different rules for real property and personal property repossessions, and calculating basis and gain on repossession. 5. Specify the tax treatment of a §1033 involuntary conversion on condemnation or threat of condemnation; differentiate between condemnation awards and severance damages; and identify replacement periods needed to postpone gain. 6. Recognize the scope of the §465 at-risk rules and their effect on property depreciation, and identify the requirements, taxation, and types of §1031 like-kind exchanges. 7. Identify planning considerations for benefit planning and funding a qualified retirement plan; determine the compensation base used for funding calculations and the impact of PBGC insurance in assuring benefits. 8. Identify the requirements of the basic forms of qualified pension plans permitting clients to compare and contrast such plans. 9. Differentiate defined contribution and defined benefit plans; specify the types of defined contribution plans particularly Keogh plans and IRAs identifying their effect on retirement benefits. 10. Identify how self-employed plans differ from qualified plans for other business types and owners; and specify the requirements of IRAs and the Roth IRAs recognizing their contribution, rollover, and RMD requirements and restrictions. Chapter 4 Losses, AMT & Compliance At the start of Chapter 4, participants should identify the following major topics for study:
* Suspension of disallowed losses under §469 * Computing the alternative minimum tax * Minimum AMT tax credit * Reporting compliance rules and provisions * Accuracy related penalties * Information reporting penalty final regulations * Penalty for unrealistic position * Statute of limitations for assessments * Examination of returns After reading Chapter 4, participants will be able to:
2. Specify differences between the regular and alternative minimum tax recognizing the impact of tax preferences and adjustments. 3. Identify the reporting requirements for employers, real estate transactions, independent contractors, and cash reporting. 4. Recognize types of accuracy-related and valuation overstatement penalties including the substantial authority defense for reporting positions, and specify the IRS's examination of returns policy and assessment process including applicable statute of limitations. |
| Course Contents : | Chapter 1 - Individual Tax Elements Federal Income Taxes: A Description Application of U.S. Individual Income Tax Gross Income Adjusted Gross Income (AGI) Taxable Income Standard Deduction Itemized Deduction Personal Exemptions Filing Status Rates & Tax Liability Tax Credits Rates, Tables, & Statutory Amounts Income Tax Rates - §1 Marriage Penalty - Mostly Gone Standard Deduction - §63 Dependent Limit - §63(c)(5) Personal & Dependency Exemptions (Suspended) - §151 Deemed Personal Exemption for Related Incorporating Provisions $500 (Family Tax) Credit for Certain Dependents - §24(h)(4)(A) Limitation on Itemized Deductions (Suspended) - §68 Itemized Deductions Subject to 2% Floor (Suspended) - §62 Earned Income Tax Credit - §32 Disqualified (Excessive Investment) Income - §32(i) Means-Tested Programs Social Security & Self-Employment Earnings Base Standard Mileage Rate Qualified Transportation Fringes Passenger Automobile Depreciation Limits (“CAPS”) Expensing Deduction - §179 Self-Employed Health Insurance Deduction Corporate Income Tax Rates 1993 Through 2017: 2018 & Later: 21% Withholding & Estimated Tax Estimated Tax - §6654 Social Security, Medicare & FUTA (or Payroll) Taxes FICA - §3101, §3111 & §3121 SECA - §1401 Wage Base Additional Hospital Insurance Tax On Certain High-Income Individuals FUTA - §3301 & §3306 Employee Retention Credit Audits - §3111 Filing Status Marital Status Single Taxpayers Divorced Persons Sham Divorce Annulled Marriages Married Taxpayers Spouse’s Death Married Persons Living Apart Filing Jointly Joint Liability Innocent Spouse Exception Nonresident Alien Filing Separately Special Rules Joint Return after Separate Returns Separate Returns after Joint Return Exception Head of Household Advantages Requirements of §2(b) Considered Unmarried Keeping Up a Home Qualifying Person Summary Qualifying Widow(er) With Dependent Child Gross Income Compensation Fringe Benefits Rental Income Advance Rent Security Deposits Payment for Canceling a Lease Social Security Benefits Taxability of Benefits – Old & New Blended Application Alimony & Spousal Support Alimony Restrictions & Requirements Pre 2019 Decrees 2019 & Later Decrees Pre-2019 Recapture Child Support Prizes & Awards - §74 & §274 Dividends & Distributions Ordinary Dividends Money Market Funds Dividends on Capital Stock Dividends Used to Buy More Stock Qualified Dividends Capital Gain Distributions Undistributed Capital Gains Form 2439 Basis Adjustment Real Estate Investment Trusts (REITs) Nontaxable Distributions Return of Capital Basis Adjustment Liquidating Distributions Distributions of Stock and Stock Rights Taxable Stock Dividends and Stock Rights Discharge of Debt Income Exceptions from Income Inclusion Reduction of Tax Attributes Order of Reductions Foreclosure Nonrecourse Indebtedness Recourse Indebtedness Residential Mortgage Debt Relief - §108 Bartering Barter Exchange Backup Withholding Recoveries Itemized Deduction Recoveries Recovery Limited to Deduction Recoveries Included in Income Non-Itemized Deduction Recoveries Amounts Recovered for Credits Tax Benefit Rule Children's Income - §63, §73 & §6012 Earned Income - §73 Unearned Income "Kiddie" Tax - §1(g) Application, Threshold & Impact Election to Report on Parents’ Return - §1(g)(7)(A) [Form 8814] Election Situations Definitions AMT Exemption for Children - §59(j) Exclusions from Income Educational Savings Bonds - §135 Income Exclusion Phase Out Limitation MAGI Notice 90-7 Education Expenses Excludable Interest Forms 8818 & 8815 Scholarships & Fellowships - §117 Definitions Work Learning Service Programs - §117(c)(2)(C) Scholarship Prizes Education Expenses Education Assistance Programs - §127 Employer Educational Trusts - §83 Qualified Tuition Programs (QTP) - §529 Gift & Inheritance Exclusion - §2503 Subsequent Income - §61 Divorce - §1041 Business Gifts - §274(b)(1) Nominal Transfers to Employees - §132(e) Insurance - §101(a) Exceptions Purchase for Value Inclusion - §101(a)(2) Installment Payments - §61 Specified Number of Installments Specified Amount Payable Installments for Life Personal Injury Awards - §104 Personal Injury Emotional Distress or Mental Anguish Lost Wages or Lost Profits Punitive Damages Interest on a Personal Injury Award Tax Benefit Rule - §111 Interest on State & Local Obligations - §103 Foreign Earned Income Exclusion - §911 Nonbusiness & Personal Deductions Itemized Deductions Limitation on Itemized Deductions Suspended - §68 Personal & Dependency Exemptions Suspended - §151 Former Personal Exemptions Former Dependency Exemptions Former Phaseout of Exemptions Interest Expense - §163 Personal Interest - §163(h)(1) Definition Deductibility Investment Interest - §163(d) Definitions Net Investment Income Limitation Qualified Residence (or Mortgage) Interest - §163(h)(3) [Form 8598] Definitions Limitations Acquisition Indebtedness Modified Home Equity Loan Refinancing Home Improvements Timing – 24 Months or 90 Days Alternative Minimum Tax Co-ordination - §55 Points - §461 Home Purchase & Improvement Exception Refinancing Huntsman Case Mortgage Interest Statement – Form 1098 Business Interest - §163(j) Allocation of Interest Expense Education Expenses Work-Related Education Educator Expenses - §62 Medical Expense Deductions - §213 [Schedule A] Items Deductible Items Not Deductible Medical Insurance Premiums Medicare Part A Medicare Part B Medicare Part D Prepaid Insurance Premiums Meals & Lodging Transportation Expenses Permanent Improvements Spouses, Dependents & Others Reimbursement of Expenses Long-Term Care Provisions Long-Term Care Payments - §7702B(d)(4) Long-Term Care Premiums - §213(d)(10) IRA Withdrawals for Certain Medical Expenses – 72(t)(2)(B) ABLE Accounts - §529A Eligible Individual Qualified ABLE Program Contributions Investment Direction Distributions Charitable Contributions - §170 [Schedule A] Requirements for Deductibility Qualified Organizations Limitations on Contributions Five-year Carryover Contributions of Cash Benefits Received Benefit Performances Athletic Event Seating Rights Raffle Tickets, Bingo, Etc. Dues, Fees, or Assessments Contribution of Property Clothing & Household Goods Ordinary Income or Short-Term Capital Gain Type Property Exception Capital Gain Type Property Exceptions Conservation Easements - §170(b) Loss Type Property Vehicle Donations Fractional Interests Other Types of Contributions Qualified Charitable Distributions from IRAs - §408(d)(8)(A) Substantiation - §170 Cash Contributions Contributions Less Than $250 - §170 Contributions of $250 or More - §170(f)(8)(A) Payroll Deduction Records Noncash Contributions Deductions of Less Than $250 Additional Records Deductions of At Least $250 But Not More Than $500 Deductions Over $500 But Not Over $5,000 Deductions over $5,000 Contributions over $75 Made Partly for Goods or Services State and Local Tax (SALT) Deduction - §164 [Schedule A] Income Taxes Real Property Tax Accrual Method Taxpayers State & Local Sales Tax Deduction - §164 Personal Property Tax Other Deductible Taxes Examples of Non-Deductible Taxes Casualty & Theft Losses - §165 [Schedule A] Definitions Proof of Loss Amount of Loss Insurance & Other Reimbursements Limitations Allocation for Mixed Use Property 2% Itemized Deductions Suspended - §67 [Schedule A] Moving Expenses - §217 Credits Child or Dependent Care Tax Credit - §21 [Form 2441] Eligibility Employment Related Expenses Qualifying Out-of-the-home Expenses Payments to Relatives Allowable Amount Dependent Care Assistance - §129 Reporting Earned Income Tax Credit - §32 [Form 1040] Adoption Credit - §23 & §137 Qualified Adoption Expenses Exclusion from Income for Employer Reimbursements - §137 Child Tax Credit - §24 Credit Amount Qualifying Child Phase-out Refundable Child Care Credit Amount AMT & Child Tax Credit $500 Credit for Certain Dependents - §24(h)(4)(A) American Opportunity Tax (former Hope) & Lifetime Learning Credits - §25A American Opportunity Tax Credit - §25A(b)(1) Phase Out - §25A(d)(2) Refundable Portion Lifetime Learning Credit - §25A(a)(1) Phase Out - §25A(d)(2) Ministers & Military - §107 Clergy Rental Value of a Home Members of Religious Orders Military & Veterans Wages - §61 Nontaxable Income - §134 Veterans’ Benefits - §134 Chapter 2 - Expenses, Deductions & Accounting Landlord Rental Expenses - Schedule E Repairs Versus Improvements Repairs - §162 Improvements - §263(a)(1) Final Repair Regulations - Reg. §1.263(a)-3 Application De Minimis Safe Harbor Election Making the Safe Harbor Election Analytical Framework for Repairs vs. Improvement Alternatives To The Facts & Circumstances Analysis Safe Harbor Election For Small Taxpayers Safe Harbor For Routine Maintenance Election To Capitalize Repair & Maintenance Costs Salaries & Wages - §162 Rental Payments for Property & Equipment - §162 Insurance Premiums Local Benefit Taxes & Service Charges Travel & Local Transportation Expenses Tax Return Preparation Other Expenses Tenant Rental Expense - §162 Rent Paid in Advance Lease or Purchase Determining the Intent Taxes on Leased Property Cash Method Accrual Method Cost of Acquiring a Lease Option to Renew - 75% Rule Cost of a Modification Agreement Commissions, Bonuses, & Fees Loss on Merchandise & Fixtures Improved Leased Property Construction Allowances Provided To Lessees - §110 Assignment of a Lease Capitalizing Rent Expenses Health Insurance Costs of Self-Employed Persons - §162(l) [Schedule C] Requirements for Eligibility Amount Deductible Hobby Loss Rules - §183 [Schedule C] Allowable Deductions Limited Deductions Profit Motive Presumptions Special Rule for Horse Breeding Other Factors Self-Employment Taxes - §3111 & §3121 Home Office Deduction - §280A [Schedule C] Requirements Deductible Expenses Employee's Home Leased To Employer Calculation Allocation Depreciation Limitations Principal Place of Business Administrative or Management Activities A&M Activities Performed at Other Locations A&M Definition Place To Meet Patients, Clients, or Customers Separate Structure Storage of inventory or product samples. Business & Investment Credits Business Credit Carryback & Carryforward Rules - §39(a) NOL Comparison - §172 Travel & Entertainment Travel Expenses Determining a Tax Home Regular Place of Abode in a Real & Substantial Sense Two Work Locations Temporary Assignment One-Year Expectation Rule Away From Home - Travel Expenses Sleep or Rest Substantial Period Business Purpose - Travel & At Destination Expenses Categories of Expense Travel Costs to and from the Destination Costs at Destination All or Nothing Time 51/49 Rule for Domestic Travel Foreign Business Travel Personal Pleasure Primarily Business Counting Business Days Calculation of Deductible Amount Travel Considered Entirely for Business Limitations - Travel Expenses Meals & Lodging Domestic Conventions & Meetings Foreign Conventions & Meetings Cruise Ship Convention Entertainment Activities & Facilities Deduction Repealed - §274 Facilities Final Regulations on Meal & Entertainment Deductions - TD 9925 Exceptions to Disallowance - §274(e) Business Meals Percentage Reduction for Meals - §274(n)(1) Eating Facilities Exceptions Substantiation - §274(d) Travel Expense Substantiation Meal Expense Substantiation Business Gifts Expense Substantiation Substantiation Methods Adequate Records Sufficiently Corroborated Statements Exceptional Circumstances Retention of Records Exceptions to Substantiation Requirements Employee Expense Reimbursement & Reporting Unreimbursed Employee Expenses Reimbursed Employee Expenses Accountable Plans Business Connection Reasonable Period of Time Fixed Date Safe Harbor - #1 Periodic Statement Safe Harbor - #2 Adequate Accounting Per Diem Allowance Arrangements Nonaccountable Plans Local Transportation Commuting Expenses Miscellaneous Personal Usages & Items Transportation to Temporary Work Locations Temporary Work Location Transportation When Residence is Principle Place of Business No Regular Place of Work Two Places of Work Automobile Deductions & Credits Record Keeping Apportionment of Personal & Business Use Actual Cost Method Eligible Expenses Depreciation & Expensing Placed in Service Half-year Convention Quarterly Convention MACRS 200% Declining Balance Method 150% Declining Balance Method Vehicle Depreciation “Caps” - §280F(a) Vehicle Bonus (or Additional First-year) Depreciation - §168(k) $25,000 SUV Limit - §179(b)(5)(A) Expensing Limit Standard Mileage Method Choosing the Standard Mileage Method Limitations Alternating Use Switching Methods Mileage Rates Leased Auto Deduction & Inclusion Amount Clean Vehicle Credit - §30D Credit Amount Battery Components Requirement - §30D(b)(3) & §30D(e)(2)(A) Critical Minerals Requirement - §30D(b)(2) & §30D(e)(1)(A) Credit for Used Clean Vehicles - §25E Transfer to Dealership – R.P. 2023-33 Gas Guzzler Tax - §4064 [Form 6197] Automobiles Limousines Vehicles Not Subject To Tax Fringe Benefits Excluded Fringe Benefits Prizes & Awards - §74 Group Life Insurance Premiums - §79 Personal Injury Payments - §104 Employer Contributions to Accident and Health Plans - §106 & §105 Meals & Lodging - §119 Cafeteria Plans - §125 Educational Assistance Programs - §127 Dependent Care Assistance - §129 No-Additional-Cost Services - §132(b) Qualified Employee Discounts - §132(c) Working Condition Fringe Benefits - §132(d) Transportation in Unsafe Areas - Reg.§1.132-5(m) De Minimis Fringe Benefits - §132(a)(4) Employer-Provided Automobile General Valuation Rule Cents-Per -Mile Method Commuting Value Method Annual Lease Value Method Methods of Accounting - §446 Cash Method Constructive Receipt - §451 Accrual Method Advance Payments Accrual Method Required Other Methods of Accounting Hybrid Methods Long-Term Contracts - §460 Percentage of Completion Percentage of Completion - Capitalized Cost Method Look-back Rule Uniform Capitalization Rules - §263A Annual Sales Limit Artist Exception Classification of Property Costs Self Constructed Assets Allocation Method Manufactured Products Interest Change in Accounting Method – Form 3115 Accounting Periods Definitions No Books Kept New Taxpayer Partnership S Corporations Personal Service Corporations C Corporations Business Purpose Exception Section 444 Election Partnerships & S Corporations Personal Service Corporations Tiered Structures Expensing - §179 Placed In Service Qualifying Property Eligible §1245 Property Qualified §179 Real Property Purchase Restrictions Deduction Limit Maximum Dollar & Investment Limits Taxable Income Limit Carryover of Unallowable Deduction Partnerships S Corporations Cost Election Records Revocation of Election Recapture of §179 Deductions Dispositions Installment Sales Depreciation & Cost Recovery - §167 & §168 Personal Property MACRS Elections MACRS Conventions Mid-quarter Convention Exception Recapture - §1245 Bonus (or Additional First-year) Depreciation - §168 Qualified Property - §168(k)(2) Depreciation Limits on Business Vehicles - §168(k)(2)(F)(iii) Nonqualified Property Tables Real Property MACRS Qualified Improvement Property - §168(e)(6)(A) Recovery Period & Depreciation Method - §168(b)(3)(G) Qualified Improvement Property - §168(e)(6)(A) Recapture - §1250 & §1245 Section 1245 Full Recapture Section 1250 Partial Recapture MACRS Recapture Exception for Real Property Alternative Depreciation System - §168(g) Mandatory Application Method Amortization Costs Eligible for Amortization Methods & Periods for Amortization Partnership & Corporate Organization Costs - §709 & §248 Business Start-Up Costs - §195 Depletion - §613 Other Assets Chapter 3 - Property Transfers & Retirement Plans Sales & Exchanges of Property Conditional Sales Contract or Lease Easements Capital Gains & Losses Capital Assets - §1221 Capital Gains & Qualified Dividends Rate – §1(h) Holding Periods - (§1222 & §1223) Capital Losses - §1211 Business Property - §1231 Basis of Property Adjusted Basis Property Received as a Gift Property Received by Inheritance Changes in Property Usage Stocks & Bonds Sale of Personal Residence - §121 Two-Year Ownership & Use Requirements Prorata Exception Limitations & Criteria on Exclusion Reduced Home Sale Exclusion for Periods of Nonqualified Use Computation Nonqualified Use Post-May 6, 1997 Depreciation Surviving Spouse Home Sale Exclusion Installment Sales - §453 General Rules Dealer Sales Unstated Interest Related Party Two-Year Rule - §453(e) Disposition of Installment Notes - §453B Determining Installment Income Pledging Rule Escrow Account Depreciation Recapture Like-Kind Exchange Repossessions - §1038 Personal Property Non- Installment Method Sales Basis of Installment Obligation Gain or Loss on Repossession Installment Method Sales - §453 Basis of Installment Obligation Gain or Loss on Repossession Basis of Repossessed Personal Property Bad Debt Real Property Conditions Figuring Gain on Repossession Limit on Taxable Gain Repossession Costs Indefinite Selling Price Character of Gain Basis of Repossessed Real Property Holding Period for Resales Bad Debt Seller’s Former Home Exception Involuntary Conversions - §1033 Condemnations Threat of Condemnation Reports of Condemnation Property Voluntarily Sold Easements Condemnation Award Amounts Withheld From Award Net Condemnation Award Interest on Award Payments to Relocate Severance Damages Treatment of Severance Damages Expenses of Obtaining an Award Special Assessment Withheld from Award Severance Damages Included in Award Gain or Loss from Condemnations How to Figure Gain or Loss Part Business or Part Rental Postponement of Gain Choosing to Postpone Gain Cost Test Replacement Period Condemnation Replacement Property Acquired Before the Condemnation Extension Time for assessing a deficiency At-Risk Limits for Real Estate - §465 [Form 6198] Amount At Risk Qualified Nonrecourse Financing Qualified Person Taxpayers Affected Closely Held Corporation Qualified Corporation Exception Partner & S Corporation Shareholders Partner S Corporation Shareholder Like-Kind Exchanges - §1031 [Form 8824] Statutory Requirements & Definitions Qualified Transaction - Exchanges v. Sales Held for Productive Use or investment Statutory Exclusions from §1031 Like-Kind Property The Concept of “Boot” Realized Gain Recognized Gain Limitation on Recognition of Gain under §1031 The Definition of “Boot” The Rules of “Boot” Property Boot Mortgage Boot Netting “Boot” - The Rules of Offset Property Boot Given Offsets Any Boot Received Mortgage Boot Given Offsets Mortgage Boot Received Mortgage Boot Given Does Not Offset Property Boot Received Gain or Loss on Boot Basis on Tax-Deferred Exchange Allocation of Basis Installment Reporting of Boot - §453(f)(6) Exchanges Between Related Parties Reporting an Exchange Types of Exchanges Two-Party Exchanges Multiple-Party Exchanges Delayed (or Deferred) Exchanges Time Requirements Qualified Intermediary Disqualified Person Retirement Plans Qualified Deferred Compensation Qualified v. Nonqualified Plans Major Benefit Current Deduction Timing of Deductions Part of Total Compensation Compensation Base ERISA Regulatory Requirements & PBGC Insurance Basic ERISA Provisions Fiduciary Responsibilities Bonding Requirement Prohibited Transactions Additional Restrictions Loans Employer Securities Excise Penalty Tax PBGC Insurance Sixty-Month Requirement Plans Exempt from PBGC Coverage Basic Requirements for a Qualified Retirement Plan Written Plan Trust Permanency Exclusive Benefit for Employees Reversion of Trust Assets to Employer Participation & Coverage Age & Service Coverage Vesting Minimum Vesting Contribution & Benefit Limits Defined Benefit Plans (Annual Benefits Limitation) - §415 Defined Contribution Plans (Annual Addition Limitation) - §415 Limits on Deductible Contributions - §404 Assignment & Alienation Miscellaneous Requirements Types of Qualified Retirement Plans Defined Benefit Plans Defined Contribution Plans Types of Defined Contribution Plans Profit-sharing Money Purchase Pension Section 401(k) Plans Self-Employed Keogh or HR10 Plan Self-Employed Rate Determining the Deduction Individual Retirement Accounts - IRAs Employer IRA 10% Distribution Penalty Simplified Employee Pension Plans (SEPs) SIMPLE Plans SIMPLE IRA Plan SIMPLE §401(k) Plan Roth IRA - §408A Required Minimum Distributions (RMDs) Calculating RMDs Designated Beneficiary Date the Designated Beneficiary Is Determined Required Minimum Distributions during Owner’s Lifetime Sole Beneficiary Spouse Who Is More Than 10 Years Younger Required Minimum Distributions in the Year of the Owner's Death Distributions after Owner’s Death to Beneficiaries – “10-year Rule” Stretching Required Distributions Beneficiary Is an Individual - Designated Beneficiary Exists Multiple Individual Beneficiaries Surviving Spouse Sole Designated Beneficiary Non-Spouse Beneficiary Beneficiary Is Not an Individual - No Designated Beneficiary Trust as Beneficiary Conduit Trusts Accumulation Trusts Estate Tax Deduction Post-Retirement Tax Treatment of Distributions Divorce Losses on IRA Investments Estate Tax Consequences Income In Respect of a Decedent Tax-Free Rollovers Penalty Tax on Premature Distributions Prohibited Rollovers - §402(c) Waiting Period Between Rollovers Partial Rollovers Withholding Requirement Conduit IRAs Miscellaneous Rollovers Contribution Limits Defined Benefit Plans - §415(b)(1)(A) Defined Contribution Plans - § 415(c)(1)(A) Compensation Limit - §401, §404 & §408 IRA Contribution Limit - §219 Catch-up Contribution - §219(b)(5)(B) IRA AGI Phaseout Limits - §219 Individual Taxpayer is an Active Plan Participant Spouse is an Active Plan Participant Roth Contribution Limit - §408A(c)(2) & §219 Roth AGI Phaseout Limits - §408A(c)(3) §401(k), §403(b) & §457 Elective Deferral & Catch-up Limits Roth Treatment of Catch-up Contributions – Secure Act §603 “Rothification” Rules SIMPLE Plans Simplified Employee Pensions (SEPs) Contribution Limit Compensation Limit Chapter 4 - Losses, AMT & Compliance Passive Losses Prior Law Passive Loss Rules - §469 Application Active Losses Credits - §469(a)(1)(B) Calculating Passive Loss Categories of Income & Loss Passive - §469(c) Portfolio - §§469(e)(1)(A) & (B) Material Participation - §469(h)(1) Self-Charged Interest Regulations?*** Passive Deduction - Portfolio Income Regulations Suspension of Disallowed Losses - §§469(g) & (b) Fully Taxable Disposition Abandonment & Worthlessness Related Party Transactions - §469(g)(1)(B) Credits Disallowance Increase Basis Election - §469(j)(9) Entire Interest Partnership Grantor Trust Other Transfers Transfer By Reason Of Death - §469(g)(2) Transfer by Gift - §469(j)(6) Installment Sale - §469(g)(3) Activity No Longer Treated As Passive Activity - §469(f)(1) Closely Held To Nonclosely Held Corporation - §469(f)(2) Nontaxable Transfer Ordering of Losses on Disposition of an Entire Interest - §469(g) Capital Loss Limitation - §1211 Carryforwards - §469(b) Allocation of Suspended Losses - §469(j)(4) Taxpayers Affected - §469(a)(2) Noncorporate Taxpayers Regular Closely Held Corporations Personal Service Corporations Definition Real Estate Professionals - §469(c)(7) Activities – Reg. §1.469-4 Facts & Circumstances Test – Reg. §1.469-4(c)(2) Relevant Factors Rental Activities - Reg. §1.469-4(d)(1) Limited Partnership Activities - Reg. §1.469-4(d)(3) Partnership & S Corporation Activities - Reg. §1.469-4(d)(5) Consistency - Reg. §1.469-4(e) Regrouping - Reg. §1.469-4(e)(2) Partial Dispositions - Reg. §1.469-4(g) Alternative Minimum Tax - §55 Computation Tentative Minimum Tax AMT Exemption Amounts - §55(d) AMT Exemption Phaseout - §55(d) & §59(j) Regular Tax Deduction - §55(c) Tax Preferences & Adjustments - §§56 & 57 Preferences & Adjustments for All Taxpayers Preferences & Adjustments for Noncorporate Taxpayers Only Preferences & Adjustments for Corporations Only Prior to 2018 Adjustments - §56 Itemized Deductions Medical Expenses Taxes Interest Depreciation Adjustment Alternative Depreciation System (ADS) ADS Recovery Periods AMT Recovery Periods Conformed to Regular Recovery Periods Mining Exploration and Development Costs - §56(a)(2) Basis Long-Term Contracts - §56(a)(3) Home Construction Contracts Pollution Control Facilities - §56(a)(5) Installment Sales Circulation Expenditures - §56(b)(2) Research & Experimental Expenditures - §56(b)(2) Incentive Stock Options - §56(b)(3) Passive Farm Losses - §58(a)(2) Definition Loss Disallowance Allocation Same Activity Suspension Passive Activity Losses Former Corporate Untaxed Reported Profits & ACE Adjustments Tax Preferences - §57 Depletion - §57(a)(1) Intangible Drilling Costs- §57(a)(2) Excess Drilling Costs Private Activity Bond Interest- §57(a)(5)(C) Alternative Tax NOL Deduction - §56(a)(4) Carrybacks & Carryovers - §172 Alternative Minimum Foreign Tax Credit - §59 Foreign Tax Credit Carryback or Carryover - §904(c) Tentative Minimum Tax Minimum Tax Credit - §53 Regular Income Tax Reduced Carryforward of Credit Other Credits AMT for Large Corporations - §55 Adjusted Financial Statement Income Application of Tax Compliance Reporting Requirements Reporting Digital Assets Transactions – [Form 8949] Real Estate Transactions [Form - 1099S] Sales of a Principal Residence Wage and Tax Statement [Form W-2] Nonemployee Compensation [1099-NEC] Employee Status Miscellaneous Information [Form 1099-MISC] Payment Card & Third Party Network Transactions [Form 1099-K] Interest Income [Form 1099-INT] Dividends and Distributions [Form 1099-DIV] Payments from Qualified Education Programs [Form 1099-Q] Distributions From Retirement Plans [Form 1099-R] Mortgage Interest Statement [Form 1098] Cash Reporting – §6050I [Form 8300] Notification Statement Definitions Exceptions Recipient’s Knowledge Cash Reporting Rules - Attorneys Sale of Certain Partnership Interests - §751(a) [Form 8308] Tax Shelter Registration Number - §6111 [Form 8271] Asset Acquisition Statement - §1060 [Form 8594] Accuracy-Related Penalties - §6662 Negligence or Disregard - §6662(b)(1) Adequate Disclosure Penalty Substantial Understatement of Income Tax - §6662(d) Adequate Disclosure Penalty Substantial Valuation Misstatement - §6662(e) Penalty Substantial Overstatement of Pension Liabilities - §6662(f) Penalty Substantial Estate & Gift Tax Valuation Understatement - §6662(g) Penalty Understatement Due to Unreasonable Position - §6694(a) Reasonable Position – “More Likely Than Not Standard” - §6694(a)(2)(C) Reasonable Position - Substantial Authority Standard - §6694(a)(2)(A) Adequate Disclosure - §6694(a)(2)(B) Form 8275-R Information Reporting & Penalties - §6721 et al Corrections Resulting in Reduced Penalties Small Businesses Reasonable Cause Failures Failure to Furnish Copy of Return to Taxpayer - §6695(a) Failure to Sign Return - §6695(b) Failure to Furnish Identifying Number - §6695(c) Failure to Retain Copy or List - §6695(d) Failure to File Partnership Return - §6698 Failure to File S Corporation Return - §6699 Disclosure or Use of Information - §6713 Statute of Limitations for Assessments Three-Year Assessment Periods Six-Year Assessment Period No Statute Of Limitations Extension of Statute Of Limitations Examination of Returns How Returns Are Selected Arranging the Examination Transfers Representation Recordings Repeat Examinations Changes to Return Appealing Examination Findings Appeals Office Appeals to the Courts Court Decisions Recovering Litigation Expenses Other Remedies Claims for Refund Cancellation of Penalties Reduction of Interest Glossary |
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The Charitable Payraise- A Strategy for Better Retirements and Lasting Legacies (Video) (1 Hrs)