|Author :||Danny C Santucci, JD|
|CPE Credits :||24.0|
|IRS Credits :||24|
|Passing Score :||70%|
|Course Type:||NASBA QAS - Text - Technical - NASBA Registry - IRS Enrolled Agents|
|Primary Subject-Field Of Study:||
Taxes - Taxes for Course Id 326
Americans who want to be their own boss are not entirely on their own. They have a rich uncle - Uncle Sam - who is there to help, as well as to make demands. The nation's tax laws are intended to encourage people to start new businesses and are chock full of incentives and tax breaks, as well as sometimes onerous reporting requirements.
This course is a fast-paced and entertaining guide through tax issues affecting business entities and their owners. The focus of this class is on tax devices and techniques available to the small-business owner. Emphasis will be given to operational deductions, fringe benefits, compensation, family income splitting, retirement plans, and estate planning.
|Usage Rank :||0|
|Prerequisites :||General understanding of federal income taxation.|
|Experience Level :||Overview|
|Additional Contents :||Complete, no additional material needed.|
|Additional Links :|
|Advance Preparation :||None.|
|Delivery Method :||QAS Self Study|
|Intended Participants :||Anyone needing Continuing Professional Education (CPE).|
|Revision Date :||04-Oct-2021|
|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 - 326
|Keywords :||Taxes, Business, Taxation, 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 SUBJECT
Chapter 1 Structure, Reporting & Accounting
At the start of Chapter 1, participants should identify the following topics for study:
* Regular corporations
* Kinds of records to keep
* Business transactions
* Bookkeeping systems
* How long to keep records
* Accounting periods & methods
After reading Chapter 1, participants will be able to:
2. Identify how choice of entity relates to the type of records to keep, listing issues related to substantiation and documentation.
3. Specify available accounting periods and methods and the methods for identifying and valuing inventory items.
Chapter 2 Structure, Business Income, Credits & Assets
At the start of Chapter 2, participants should identify the following topics for study:
* Discharge of debt income
* Depreciation recapture
* Partnership income
* Business & investment credits
* Asset types
* Non-recognition transfers
After reading Chapter 2, participants will be able to:
2. Specify the existing basic business and investment tax credits, naming their tax requirements, and business asset types that affect the character of gain or loss, and recognize the tax treatment on the disposition of business assets, including non-recognition transfers and §1231 assets.
Chapter 3 Selected Business Expenses
At the start of Chapter 3, participants should identify the following topics for study:
* Expenses of not-for-profit activities
* Rent expenses
* Interest expense
* Deductible taxes
* Other selected deductible costs
* Depletion -§613
* Business bad debts
After reading Chapter 3, participants will be able to:
2. Identify conditional sales contracts, leveraged leases, and true leases, and determine how to qualify for rent expense deductions including through leasehold improvements.
3. Specify the various forms of interest expense under §163(a) recognizing related reporting and filing issues, and identify the distinctions between deductible and nondeductible interest.
4. Recognize deductions for real estate, state, and local taxes and list deductions for home office use, research and experimentation costs, barrier removal, and mine development.
5. Identify the various forms of tax treatment under the concepts of depreciation and amortization, including the effect on amortization of §197.
6. Determine the differences between cost depletion and percentage depletion as a means of accounting for the reduction of a product’s reserves.
7. Specify the types of bad debt and their effect on accounting and the various methods for dealing with bad debt.
8. Recall MACRS classifications, cite the recapture provisions and exceptions, and identify the alternative depreciation system.
Chapter 4 Employee Compensation & Benefits
At the start of Chapter 4, participants should identify the following topics for study:
* Tests for deducting pay to employees
* Selected types of compensation
* Payroll taxes
* Selected fringe benefits
* Interest-free & below-market loans
* Equity participation
* Advantages of nonqualified deferred compensation
* Funded company account plans
* Segregated asset plans
After reading Chapter 4, participants will be able to:
2. Identify the tests for wages to be deductible and how excluded fringe benefits can result in more employer deductions and incentive-based compensation to employees.
3. Recognize the use of deferred compensation agreements including the basic types of nonqualified deferred compensation, and the tax consequences related to these plans.
Chapter 5 Automobiles
At the start of Chapter 5, participants should identify the following topics for study:
* Deduction limitations using the 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 an employer-provided automobile
After reading Chapter 5, participants will be able to:
2. Recognize personal auto leasing, its advantages and disadvantages, and the various kinds of leasing arrangements that can be used, such as closed-end or open-end leases.
3. Recall the standard mileage method listing its limitations and identify the various working condition fringe benefits including their impact on the gross income of employees.
4. Identify the various valuation methods used in determining the actual value of an employee’s personal use of an automobile specifying the reporting options available to the employer.
Chapter 6 Business Travel & Entertainment
At the start of Chapter 6, participants should identify the following topics for study:
* Definition of “tax home”
* Temporary & indefinite assignments
* Business purpose requirement for business travel
* Conventions & meetings
* Statutory exceptions of the ordinary & necessary requirement
* Post-2018 restrictions on entertainment & facilities
* Employee expense reimbursement & reporting
* Self-employed persons
After reading Chapter 6, participants will be able to:
b. Recalling IRS definitions of a taxpayer's tax home for travel and transportation purposes;
c. Recognizing how time acts as a critical factor in distinguishing a temporary from an indefinite job assignment; and
d. Specify the distinctions between business and nonbusiness days.
3. Identify the applicable federal per diem rate from any one of several methods and the different reporting and income inclusion treatments given to self-employed persons or reimbursed employees.
Chapter 7 Retirement Plans
At the start of Chapter 7, participants should identify the following topics for study:
* Basic requirements of a qualified pension plan
* Basic types of corporate plans
* Types of defined contribution plans
* Self-employed plans – Keogh
* Distribution & settlement options of IRAs
* Tax-free rollovers for IRAs
* Roth IRAs
* Simplified employee pension plans (SEPs)
* SIMPLE Plans
After reading Chapter 7, participants will be able to:
b. Specifying trust requirements and tests associated with these requirements, such as the ratio test; and
c. Identifying three classes of vesting listing how the vesting standards affect retirement plans.
3. Identify Keogh Plans, traditional and Roth IRAs, and SIMPLE 401(k) plans by specifying their characteristics and determining how and when they may and may not be appropriate.
Chapter 8 Insurance
At the start of Chapter 8, participants should identify the following topics for study:
* Group term life insurance
* Retired lives reserve
* Split-dollar life insurance
* Medical & dental insurance
* Disability income insurance
* Interest limitation on policy loans
* Self-employed health insurance deduction
* Capitalized insurance
* Health savings account
After reading Chapter 8, participants will be able to:
2. Specify the requirements that determine insurance premium deduction and, identify the interest disallowance rule, the uniform capitalization rules citing their relation to production or resale activity costs.
Chapter 9 Estate Planning
At the start of Chapter 9, participants should identify the following topics for study:
* Simple will
* Types of trusts
* Charitable trusts
* Family documents
* Private annuities
* Business valuation
* Lifetime dispositions
* Installment payment of federal estate taxes
After reading Chapter 9, participants will be able to:
2. Identify the primary dispositive plans, such as simple wills, the various types of trusts, annuities, related family documents, and conservatorships.
3. Specify the various special business issues related to estate planning, such as methods of business valuation, the implications of important revenue rulings, the use of estate planning tools recognizing buy-sell agreements and, deferred compensation agreements.
|Course Contents :||
Chapter 1 - Structure, Reporting & Accounting
Schedules C & Former C-EZ
Chapter 2 - Business Income, Credits & Assets
Chapter 3 - Selected Business Expenses
Chapter 4 - Employee Compensation & Benefits
Chapter 5 - Automobiles
Depreciation “Caps” - §280F(a)
Passenger Auto Depreciation Safe Harbor Method - R.P. 2019-13
No Separate Depreciation Caps for Trucks & Vans
Optional Fleet-Average Valuation Rule (FAVR)
Chapter 6 - Business Travel & Entertainment
Chapter 7 - Retirement Plans
Chapter 8 - Insurance
Chapter 9 - Estate Planning