0
| Author : | Danny C Santucci, JD |
| Course Length : | Pages: 214 ||| Review Questions: 200 ||| Final Exam Questions: 140 |
| CPE Credits : | 28.0 |
| IRS Credits : | 28 |
| Price : | $155.95 |
| Passing Score : | 70% |
| Course Type: | NASBA QAS - Text - Technical - NASBA Registry - IRS Enrolled Agents |
| Primary Subject-Field Of Study: | Taxes - Taxes for Course Id 1950 |
| 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 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. NOTE: For the 2022 tax year. |
| Usage Rank : | 0 |
| Release : | 2022 |
| 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
|
| Advance Preparation : | None. |
| Delivery Method : | QAS Self Study |
| Intended Participants : | Anyone needing Continuing Professional Education (CPE). |
| Revision Date : | 09-Feb-2022 |
| 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 - Technical - NASBA Registry - IRS Enrolled Agents - 1950 |
| Keywords : | Taxes, 1040, Tax, Workshop, 2022, 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 compensation, fringe benefits, rental income, Social Security benefits, alimony, prizes, and awards, identify dividend and distribution types and their tax differences, and specify how debt discharge can result in taxable income. 4. Identify the mechanics of income exclusions such as education-related exclusions, gift and inheritance exclusions, insurance, personal injury awards, interest on state and local obligations, and the foreign earned income exclusion. 5. Recognize income tax deductions and their use to reduce tax liability by:
b. Specifying the deductibility of §163 interest categories, §162 educational expenses, pre-2018 §217 moving expenses, pre-2018 §165 casualty & theft losses, and §164 taxes stating their proper reporting and substantiation; c. Determining variables that impact the deductibility of charitable contributions, and identifying qualified organizations, permissible contributions contribution limitations, their tax treatment, and substantiation requirements; d. Identifying the deductibility of medical care expenses including medical insurance, meals and lodging, transportation, home improvements, and lifetime care payments recognizing the impact of Medicare; e. Specifying deductions that are subject to the pre-2018 2% of AGI limitation, deductions not subject to the 2% limit, and nondeductible expenses. 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 health insurance costs and the requirements of the home-office deduction, and specify self-employment taxes and available business and investment credits. 3. Determine how to properly deduct travel and pre-2018 entertainment expenses by:
b. Specifying the key elements of deductible domestic and foreign business travel costs recognizing the Reg. §1.162 deduction of convention and meeting expenses; c. Identifying §274 pre-2018 entertainment deductibility tests, determining the limits on home entertaining, ticket purchases, and meals and entertainment stating the eight exceptions to the percentage reduction rule; and d. Recognizing the substantiation requirements associated with business gifts, employee achievement awards, and sales incentive awards. 5. Determine what constitutes local transportation and commuting including how nondeductible personal commuting relates to local business transportation expenses. 6. Identify the apportionment of automobile expenses between personal and business use, the actual cost and standard mileage methods, and the gas guzzler tax. 7. Specify the various types of excluded fringe benefits that can increase employers’ deductions and incentive-based compensation of employees listing examples of each. 8. Recognize the cash, accrual, or other methods of accounting, select available accounting periods specifying their impact on income and expenses and identify expensing depreciation, 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 * IRAs * SIMPLEs After reading Chapter 3, participants will be able to:
2. Identify the application elements of the §121 home sale exclusion specifying the associated safe harbor regulations. 3. Recognize the importance of the installment method and §453 requirements, and specify the §453 basic terminology. 4. Identify the variables that determine which §1038 rules apply recognizing distinctions among the rules, calculations, and effects of repossessions of personal property and repossessions of real property, and recognize when a bad debt deduction may be taken on a repossession. 5. Specify the tax treatment of a §1033 involuntary conversion by:
b. Identifying gain or loss from condemnations recognizing the reporting of payments associated with involuntary conversions; and c. Determining whether clients can postpone gain on condemned, damaged, destroyed, or stolen property and specifying the related party rule. 7. Identify qualified deferred compensation plans and nonqualified plans by:
b. Recognizing the current and deferred advantages and the disadvantages of corporate plans stating fiduciary responsibilities and prohibited transactions. 9. Determine the distinctions between defined contribution and defined benefit plans, specify the types of defined contribution plans, and identify 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 special requirements of Roth IRAs. 11. Determine what constitutes SEPs and SIMPLEs recognizing the mechanics and eligibility requirements of each type of plan.
b. Listing the current and deferred advantages and disadvantages of corporate plans while defining fiduciary responsibilities and prohibited transactions. 9. Define defined contribution and defined benefit plans, name the five types of defined contribution plans, and show their effect on retirement benefits. 10. Show the differences between self-employed and qualified plans used by other business types identifying key choice of entity factors, and list the requirements of IRAs and Roth IRAs. 11. Define SEPs and SIMPLEs identifying the mechanics and eligibility requirements of each. 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 application tax preferences and adjustments, and determine the life of assets under ADS, alternative minimum taxable income, passive losses under the AMT, and what constitutes ACE. 3. Identify the reporting requirements for real estate transactions, independent contractors, and cash reporting. 4. Recognize types of accuracy-related and unrealistic position penalties, 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 Exemptions & Phaseout (Suspended) - §151 Limitation on Itemized Deductions - §68 Earned Income Tax Credit - §32 Disqualified 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 - §3111 & §3121 Temporary Employee OASDI Cut SECA - §1401 Temporary Sole Employer OASDI Cut Wage Base Additional Hospital Insurance Tax On Certain High-Income Individuals Final Regulations – TD 9645 FUTA - §3301 & §3306 Filing Status Marital Status Single Taxpayers Divorced Persons Sham Divorce Annulled Marriages Married Taxpayers Same-Sex Marriage Marriage Penalty - Mostly Gone 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 Alimony & Spousal Support Restrictions & Requirements Prior to 2019 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 Mortgage Relief Act of 2007 Principal Residence Qualified Principal Residence Indebtedness Acquisition Indebtedness 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 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 Limitation MAGI Notice 90-7 Education Expenses Excludable Interest Forms 8818 & 8815 Scholarships & Fellowships - §117 Definitions Work Learning Service Programs Scholarship Prizes Education Expenses Education Assistance Programs - §127 Employer Educational Trusts - §83 Qualified Tuition Programs (QTP) - §529 Gift & Inheritance Exclusion Subsequent Income Divorce Business Gifts Employees Insurance Exceptions Purchase for Value Installment Payments Specified Number of Installments Specified Amount Payable Installments for Life Personal Injury Awards - §104 Personal Injury Emotional Distress Punitive Damages Tax Benefit Rule - §111 Interest 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 Deemed Personal Exemption for Related Incorporating Provisions Personal Exemptions Dependency Exemptions Dependency Before 2005 Dependency After 2004 & Before 2018 Suspension Residency Test Citizenship Relationship Test Age Test Joint Return Prohibition Exception Phaseout of Exemptions Interest Expense - §163 Personal Interest - §163(h)(1) Definition Deductibility Investment Interest - §163(d) Definitions Net Investment Income Limitation Qualified Residence Interest - §163(h)(3) [Form 8598] Definitions Limitations Acquisition Indebtedness Modified Home Equity Indebtedness Restricted Refinancing Home Improvements Timing Alternative Minimum Tax Co-ordination Points Home Purchase & Improvement Exception Refinancing Huntsman Case Mortgage Interest Statement Business Interest - §163(j) Allocation of Interest Expense Education Expenses Work-Related Education Prior to 2018 Educational Transportation Educational Travel Meal Expenses Work-Related Education After 2018 Higher Education Expense Deduction (Repealed) - §222 Dollar Limitation & Phase Out 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 Expenses of Transportation 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 ABLE Accounts - §529A Contributions 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 Repealed 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 Loss Type Property Vehicle Donations Fractional Interests Other Types of Contributions Charitable Distributions from IRAs - §408 Substantiation Cash Contributions Contributions Less Than $250 Contributions of $250 or More 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 Deduction for Taxes - §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 Suspended - §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] Deductions - Subject to 2% Limit Deductions Not Subject To 2% Limit Nondeductible Expenses Moving Expenses Suspended - §217 Distance Test Time Test Time Test for Employees Time Test for Self-employment Deductible Expenses Travel Expenses Travel by Car Location of Move Reporting Reimbursements Credits 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] Persons with Qualifying Children Persons without a Qualifying Child Computation Phaseout Disqualified Income - §32(i) Means-Tested Programs Adoption Credit - §23 & §137 Qualified Adoption Expenses Exclusion from Income for Employer Reimbursements - §137 Child Tax Credit - §24 Credit Amount Qualifying Child $500 Credit for Certain Dependents - §24(h)(4)(A) Phase-out Refundable Child Care Credit Amount AMT & Child Tax Credit American Rescue Plan Act Of 2021 (ARPA) Temporary Provisions Phaseout Advance Payments Hope & Lifetime Learning Credits - §25A Lifetime Learning Credit - §25A(c) Phase Out - §25A(d)(1) Hope (with American Opportunity modifications) Credit Phase Out - §25A(d)(2) Refundable 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's Rental Expense Reporting Rental Property Expenses (Repealed) - §6041 Repairs & Improvements Repairs Improvements 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 Change in Accounting Method & Form 3115 Salaries & Wages Rental Payments for Property & Equipment Insurance Premiums Local Benefit Taxes & Service Charges Travel & Local Transportation Expenses Tax Return Preparation Other Expenses Tenant's Rental Expense 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 Percentage 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 Residential Phone Service Allocations Room v. Square Footage R.P. 2013-13 Safe Harbor Limitations Expanded Principal Place of Business Definition Business & Investment Credits Business Credit Carryback & Carryforward Rules - §39(a) NOL Comparison - §172 Travel & Entertainment Travel Expenses Determining a Tax Home - Travel Expenses Tax Home Regular Place of Abode in a Real & Substantial Sense Two Work Locations Temporary Assignment Rigid One-Year Rule Away From Home - Travel Expenses Sleep & Rest Rule Substantial Period Business Purpose - Travel Expense Categories of Expense Travel Costs Costs at Destination All or Nothing Time 51/49 Rule Foreign Business Travel Personal Pleasure Primarily Business Full Deduction Exception Limitations - Travel Expenses Meals & Lodging Domestic Conventions & Meetings Foreign Conventions & Meetings Cruise Ship Convention Entertainment Expenses Repealed Former Test #1 - "Directly Related" Former Test #2 - "Associated With" Statutory Exceptions Still Good - §274(e) Expense for Spouses Of Out Of Town Business Guests Entertainment Facilities Home Entertainment Expenses Business Meals Percentage Reduction for Meals - §274(n)(1) Temporary 100% Deduction for Meals & Beverages - §274(n)(2)(D) Eating Facilities Exceptions Ticket Purchases - Former Face Value Limit & Repeal Former Exception for Charitable Sports Events Skyboxes - Repealed One Event Rule Related Parties Food & Beverages Substantiation - §274(d) Travel Expense Substantiation Meal & Pre-2018 Entertainment 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 TRA '86 - Unreimbursed Expenses Become Itemized Deductions Family Support Act - Reimbursement Without Accounting Is Income Accountable Plans Reasonable Period of Time Fixed Date Safe Harbor - #1 Period Statement Safe Harbor - #2 Adequate Accounting Per Diem Allowance Arrangements Federal Per Diem Rate Related Employer Restriction Partial Days of Travel Unproven or Unspent Per Diem Allowances Reporting Per Diem Allowances Reimbursement Not More Than Federal Rate Reimbursement More Than Federal Rate Nonaccountable Plans Unreimbursed Employee Expenses Local Transportation Assignments within Work Area Old Revenue Ruling 90-23 (Superseded) Temporary Work Site Definition Reserve Units Revenue Ruling 99-7 Automobile Deductions Eligible Expenses Apportionment of Personal & Business Use Actual Cost Method Depreciation & Expensing Placed in Service Half-year Convention Quarterly Convention Exception MACRS Double Declining Balance Method Depreciation "Caps" Bonus (or Additional First-year) Depreciation - §168 $25,000 SUV Limit Expensing Limit Predominate Business Use Rule Qualified Business Use More Than 50% Use Test Limitations Recapture ITC Recapture Excess Depreciation Recapture Leasing Restrictions Standard Mileage Method Limitations Alternating Use Switching Methods Charitable Transportation Medical Transportation Gas Guzzler Tax - §4064 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 Partnerships & S Corporations - R.R. 91-26 Health Insurance & FICA - Announcement 92-16 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(e) Employer-Provided Automobile Cents Per Mile Method Commuting Value Method Annual Lease Value Method Methods of Accounting - §446 Cash Method Constructive Receipt 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 - §263A Annual Sales Limit Artist Exception Classification of Property Costs Self Constructed Assets Allocation Method Manufactured Products Interest Change in Accounting Method Accounting Periods Definitions Taxable Years 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 Section 1245 Property Qualified Real Property Property Used Primarily for Lodging Purchase Restrictions Deduction Limit Maximum Dollar & Investment Limits Taxable Income Limit Carryover of Unallowable Deduction Married Taxpayers Filing Separate Returns Passenger Automobiles Partnerships S Corporations Cost Election Records Revocation of Election Figuring the Deduction Recapture of §179 Deductions Dispositions Installment Sales Depreciation & Cost Recovery - §167 & §168 Personal Property ACRS - §168 Applicable Percentage Straight-line Election 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 Real Property ACRS MACRS Prior Law Leasehold Improvement, Retail Improvement & Restaurant Property - §168 Qualified 15-Year Leasehold Improvement Property - §168(e)(3)(E)(iv) Qualified Leasehold Improvement Property Qualified 15-Year Retail Improvement Property - §168(e)(E)(ix) Qualified Retail Improvement Property 15-Year Restaurant Improvement Property - §168(e)(3)(E)(v) Qualified Restaurant Property Expensing & Bonus Depreciation Permitted Expensing - §179 Bonus Depreciation - 168 Recapture Considerations - §1245 & §1250 2018 & Later 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 Trademarks & Trade Names - §167(r) 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 Sale 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 Basis of Property Basis Adjustments 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 Tacking of Prior Holding Period Prorata Exception Limitations 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 Parties - §453(e) Disposition of Installment Notes - §453B Determining Installment Income Pledge 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 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 Amount At Risk Qualified Nonrecourse Financing Taxpayers Affected Closely Held Corporation Qualified Corporation Exception Partner & S CorporationSharehholders Partner S Corporation Shareholder Section 1031 Like-Kind Exchanges Statutory Requirements & Definitions Qualified Transaction - Exchanges v. Sales Held for Productive Use or investment Investment Purpose Statutory Exclusions from §1031 Like-Kind Property Nature or Quality of Property Like-Kind Status for Personal Property Repealed Real v. Personal 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 Revenue Ruling 72-456 & Commissions Gain or Loss on Boot Basis on Tax-Deferred Exchange Allocation of Basis Installment Reporting of Boot Exchanges Between Related Parties Reporting an Exchange Types of Exchanges Two-Party Exchanges Three-Party “Alderson” Exchange Three-Party “Baird Publishing” Exchange Delayed Exchanges 45-Day Rule Method of Identification 180-Day Rule Final Regulations for Delayed (Deferred) Exchanges Deferred (Delayed) Exchange Definition Identification Requirements Identification & Exchange Periods Method of Identification Property Description Revocation Substantial Receipt Multiple Replacement Properties Actual & Constructive Receipt Rule Four Safe Harbors Safe Harbor #1 - Security Safe Harbor #2 - Escrow Accounts & Trusts Safe Harbor #3 - Qualified Intermediary Safe Harbor #4 - Interest Exchanges of Partnership Interests Retirement Plans Qualified Deferred Compensation Qualified v. Nonqualified Plans Major Benefit Current Deduction Timing of Deductions Part of Total Compensation Compensation Base Salary Reduction Amounts Benefit Planning Pension Protection Act of 2006 Corporate Plans Advantages Current Deferred Disadvantages Employee Costs Comparison with IRAs & Keoghs Basic ERISA Provisions ERISA Reporting Requirements Fiduciary Responsibilities Bonding Requirement Prohibited Transactions Additional Restrictions Fiduciary Exceptions Loans Employer Securities Excise Penalty Tax PBGC Insurance Sixty-Month Requirement Recovery Against Employer Termination Proceedings Plans Exempt from PBGC Coverage Basic Requirements of a Qualified Pension Plan Written Plan Communication Trust Requirements Permanency Exclusive Benefit of Employees Highly Compensated Employees Reversion of Trust Assets to Employer Participation & Coverage Age & Service Coverage Percentage Test Ratio Test Average Benefits Test Numerical Coverage Related Employers Vesting Full & Immediate Vesting Minimum Vesting Diversification Rights Nondiscrimination Compliance 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 Basic Types of Corporate Plans Defined Benefit Mechanics Defined Benefit Pension Defined Contribution Mechanics Discretion Favorable Circumstances Types of Defined Contribution Plans Profit-sharing Requirements for a Qualified Profit-sharing Plan Written Plan Eligibility Deductible Contribution Limit Substantial & Recurrent Rule Money Purchase Pension Cafeteria Compensation Plan Thrift Plan Section 401(k) Plans Death Benefits Defined Benefit Plans Money Purchase Pension & Target Benefit Plans Employee Contributions Non-Deductible Life Insurance in the Qualified Plan Return Universal Life Compare Plan Terminations & Corporate Liquidations 10-Year Rule Lump-Sum Distributions Asset Dispositions IRA Limitations Self-Employed Plans - Keogh Contribution Timing Controlled Business General Limitations Effect of Incorporation Mechanics Parity with Corporate Plans Figuring Retirement Plan Deductions For Self-Employed Self-Employed Rate Determining the Deduction Individual Plans - IRAs Deemed IRA Mechanics Phase-out Special Spousal Participation Rule - §219(g)(1) Spousal IRA Eligibility Contributions & Deductions Employer Contributions Retirement Vehicles Distribution & Settlement Options Life Annuity Exemption Minimum Distributions Required Minimum Distribution Definitions Required Minimum Distributions during Owner’s Lifetime Required Minimum Distributions in Year of the Owner's Death Beneficiaries - Distributions after Owner’s Death Estate Tax Deduction Charitable Distributions from IRAs - §408 Post-Retirement Tax Treatment of IRA Distributions Income In Respect of a Decedent Estate Tax Consequences Losses on IRA Investments Prohibited Transactions Effect of Disqualification Penalties Borrowing on an Annuity Contract Tax-Free Rollovers Rollover from One IRA to Another Waiting Period between Rollovers Partial Rollovers Rollovers from Traditional IRAs into Qualified Plans Rollovers of Distributions from Employer Plans Withholding Requirement Waiting Period between Rollovers Conduit IRAs Keogh Rollovers Direct Rollovers from Retirement Plans to Roth IRAs Rollovers of §457 Plans into Traditional IRAs Rollovers of Traditional IRAs into §457 Plans Rollovers of Traditional IRAs into §403(B) Plans Rollovers from SIMPLE IRAs Nonspouse Rollovers Roth IRA - §408A Eligibility Contribution Limitation Roth IRAs Only Roth IRAs & Traditional IRAs Conversions AGI Limit Exception Repealed Recharacterizations Reconversions Taxation of Distributions No Required Minimum Distributions Simplified Employee Pension Plans (SEPs) Contribution Limits & Taxation SIMPLE Plans SIMPLE IRA Plan Employee Limit Other Qualified Plan Set up Contribution Limits Salary Reduction Contributions Employer Matching Contributions Deduction of Contributions Distributions SIMPLE §401(k) Plan Chapter 4 - Losses, AMT & Compliance Passive Losses Prior Law Passive Loss Rules Application Active Losses Credits Calculating Passive Loss Categories of Income & Loss Passive Portfolio Material Participation Self-Charged Interest Regulations Passive Deduction - Portfolio Income Regulations Suspension of Disallowed Losses Fully Taxable Disposition Abandonment & Worthlessness Related Party Transactions Credits Disallowance Increase Basis Election 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 Capital Loss Limitation Carryforwards Allocation of Suspended Losses Taxpayers Affected Noncorporate Taxpayers Regular Closely Held Corporations Personal Service Corporations Definition Real Estate Professionals Activities Facts & Circumstances Test Relevant Factors Rental Activities Limited Partnership Activities Partnership & S Corporation Activities Consistency Regrouping Partial Dispositions Alternative Minimum Tax - §55 Computation Tentative Minimum Tax AMT Exemption Amounts - §55(d) AMT Exemption Phaseout Regular Tax Deduction - §55(c) Tax Preferences & Adjustments 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 Alternative Depreciation System (ADS) ADS Recovery Periods Asset Placed in Service After 1998 Mining Exploration and Development Costs Basis Election Long-Term Contracts Home Construction Contracts Pollution Control Facilities Installment Sales Circulation Expenditures Incentive Stock Options Credit for Prior Year Minimum Tax & ISOs Research & Experimental Expenditures Passive Farm Losses Definition Loss Disallowance Allocation Same Activity Suspension Passive Activity Losses Corporate Business Untaxed Reported Profits (Pre-1990) Corporate ACE Adjustment (1990 to 2018) Adjusted Current Earnings Regulations Tax Preferences - §57 Depletion Intangible Drilling Costs Excess Drilling Costs Accelerated Depreciation Real Property Personal Property Private Activity Bond Interest Alternative Tax NOL Deduction Carrybacks & Carryovers Alternative Minimum Foreign Tax Credit Foreign Tax Credit Carryback or Carryover Tentative Minimum Tax Minimum Tax Credit Regular Income Tax Reduced Carryforward of Credit Other Credits Compliance Reporting Requirements Real Estate Transactions [Form - 1099S] Independent Contractors Cash Reporting [Form 8300] Exceptions Recipient’s Knowledge Cash Reporting Rules - Attorneys Sale of Certain Partnership Interests (Form 8308) Tax Shelter Registration Number [Form 8271] Asset Acquisition Statement [Form 8594] Accuracy-Related Penalties Negligence Substantial Understatement of Income Tax Penalty on Carryover Year Return Substantial Valuation Overstatements Substantial Estate & Gift Tax Valuation Understatements Final Regulations Negligence or Disregard of Rules Substantial Understatement Penalty Adequate Disclosure Information Reporting & Penalties - §6721 et al Corrections Resulting in Reduced Penalties Small Businesses Reasonable Cause Penalty for Unrealistic Position Realistic Possibility Standard Adequate Disclosure Form 8275-R 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 |
Login/Register