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| Author : | Danny C Santucci, JD |
| Course Length : | Pages: 0 ||| Word Count: 14,0109 ||| 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 326 |
| Description : | 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 : | 18095 |
| Release : | 2024 |
| Version : | 1.0 |
| Prerequisites : | General understanding of federal income taxation. |
| Experience Level : | Overview |
| Additional Contents : | Complete, no additional material needed. |
| Additional Links : |
Corporate Tax: Definition, Deductions, How It Works
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| Advance Preparation : | None. |
| Delivery Method : | QAS Self Study |
| Intended Participants : | Anyone needing Continuing Professional Education (CPE). |
| Revision Date : | 10-Aug-2024 |
| 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 - 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 SUBJECTChapter 1 Structure, Reporting & Accounting At the start of Chapter 1, participants should identify the following topics for study:
* Partnerships * Regular corporations * Recordkeeping * Kinds of records to keep * Business transactions * Bookkeeping systems * How long to keep records * Accounting periods & methods * Inventories 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:
* Interest * Discharge of debt income * Dividends * Recoveries * 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 * Amortization * Depletion -§613 * Business bad debts * Depreciation 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 * Restrictions on entertainment & facilities * Employee expense reimbursement & reporting * Self-employed persons * Employers After reading Chapter 6, participants will be able to:
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. Identify the §264 interest disallowance rule and specify the COBRA continuance of group health benefits. 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 * Redemptions * 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 Introduction Entity Tax Divide Passthrough Entities - 20% Deduction Limitations Deduction Amount Qualified Trade Or Business Corporations - 21% Rate Types of Business Organizations Sole Proprietorships Schedules C & Former C-EZ Self-Employment Taxes Estimated Tax Payments Advantages Disadvantages Partnerships Agreement General Tax Aspects Form 1065 Limited Partnerships Passive Presumption At-Risk Rules - §465 Financing Passive Loss Limitations - §469 Active/Passive Determination Triggering Suspended Losses Regular Corporations Electronic Federal Tax Payment System (EFTPS) Form 1120 - Corporate Income Tax Return Which Form To File Penalty for Late Filing of Return Penalty for Late Payment of Tax Limit on Deduction for Dividends Effect on Net Operating Loss At-Risk Rules for Closely Held Corporations Alternative Minimum Tax for Corporations Reinstatement of AMT for Larger Corporations - §55(b)(2) Tax Rate - 21% Advantages Disadvantages Qualified Personal Service Corporation S Corporations Advantages Disadvantages Limited Liability Company Advantages Disadvantages Record keeping Why Keep Records? Monitor the Progress of a Business Prepare Financial Statements Identify Source of Receipts Keep Track Of Deductible Expenses Prepare Tax Returns Support Items Reported On Tax Returns Kinds of Records to Keep Supporting Documents Gross Receipts Purchases Expenses Assets Business Transactions Basic Recordkeeping Business Checkbook Reconciling the Checking Account Bookkeeping Systems Single-Entry Double-Entry Computerized System Microfilm Electronic Storage System How Long To Keep Records Employment Taxes Assets Records for Nontax Purposes Accounting Periods & Methods Tax Year Section 444 Election Business Purpose Changes in Accounting Periods Accounting Method Changing a Business’s Method of Accounting Inventories Identification Methods Specific Identification Method FIFO Method LIFO Method Valuation Methods Cost Method Uniform Capitalization Rules - §263A Lower of Cost or Market Method Chapter 2 - Business Income, Credits & Assets Business Income Overview Types of Income Barter Information Returns Rental Income Individual Lessors Advance Rent Lease Bonus Security Deposits Payment for Canceling a Lease Payments to Third Parties Settlement Payments Interest Uncollectible Loans Below-Market Loans Installment Sales Interest on Insurance Dividends Discharge of Debt Income Exceptions from Income Inclusion Reduction of Tax Attributes Order of Reductions Sale of Products or Services Dividends Ordinary Dividends Money Market Funds Dividends on Capital Stock Dividends Used to Buy More Stock Qualified Dividends Tax on Net Investment Income - §1411 Recoveries Itemized Deduction Recoveries Recovery Limited to Deduction Recoveries Included in Income Non-Itemized Deduction Recoveries Amounts Recovered for Credits Tax Benefit Rule Recapture of Depreciation Sale Or Exchange Of Depreciable Property Listed Property Section 179 Property Sole Proprietorship Income Partnership Income Partnership Agreement Partnership Return Partner’s Return Corporate Income S Corporation Income S Corporation Return Shareholder’s Return Distributions Alternative Minimum Tax Income Business & Investment Credits Business Credit Carryback & Carryforward Rules - §39(a) NOL Comparison Disposition of Business Assets Amount Realized Basis of Assets Unstated Interest Allocation of Purchase Price Asset Types Section 1231 Assets Character of Gain or Loss 5 Year Averaging Like-Kind Exchanges Qualified Property Requirement Like-kind Requirement Like-kind Exchanges Limited to Real Property Goodwill Prohibition Chapter 3 - Selected Business Expenses Section 162 Cost of Goods Sold Capital Expenses - §263 Cost Recovery Depreciation - §168 Personal vs. Business Expenses At-Risk Amounts - §465 Passive Losses - §469 Net Operating Loss - §172 Creation of an NOL Individual NOLs Carryovers Farming Corporate NOLs Timing of Expense Deduction Economic Performance - §461 Prepayment of Expenses Contested Liability Related Person - §267 Expenses of Not-for-Profit Activities - §183 Presumption of Profit Using The Presumption Later Limit on Deductions Partnerships & S Corporations More Than One Activity Rent Expenses Rent Paid In Advance Lease vs. Sale Leveraged Leases Leveraged Leases Of Limited-Use Property Leases over $250,000 - §467 Taxes on Leased Property Cost of Getting a Lease Options To Renew Cost Of A Modification Agreement Commissions, Bonuses, & Fees Loss On Merchandise & Fixtures Leasehold Improvements - §168 Assignment of a Lease Capitalizing Rent Expenses - §263A Interest Expense - §163 Business Interest - §162 Interest Paid In Advance Mortgage Interest Prepayment Penalty Points - §461 Expenses to Obtain a Mortgage Interest on Installment Purchases - §483 & §1271 Investment Interest - §212 Investment Property Limit on Deduction Net Investment Income Investment Income Capital Gain Inclusion Election Investment Expenses Losses from Passive Activities Carryover When to Deduct Investment Interest Form 4952 Interest on Margin Accounts Interest on a Market Discount Bond Nondeductible Interest Interest on Income Tax Owed Penalties Commitment Fees & Service Charges Capitalized Interest Production Period Traced Debt Avoided Cost Debt When Interest Is Paid or Incurred Partnerships & S Corporations Interest Related To Tax-Exempt Income - §265 Interest on Insurance Policy Loans - §264 Single Premium Life Insurance Systematic Plan of Borrowing Key Person Insurance Deductibility of Premiums & Interest on Life Insurance Existing Interest on Purchase Corporate Acquisition Interest Interest Allocation Rules for Multi-Purpose Loans Allocation period Proceeds Not Disbursed To Borrower Proceeds Deposited In Borrower's Account Order Of Funds Spent Payments From Checking Accounts Amounts Paid Within 30 Days Optional Method For Determining Date Of Reallocation Interest On A Separate Account Accrued Interest Accrued Interest Before Debt Proceeds Are Received Loan Repayment Continuous Borrowings Loan Refinancing Special Rules for Partnerships & S Corporations Debt-Financed Acquisitions Reallocation How to Report Debt-Financed Distributions Optional Method How to Report Deductible Taxes Tax Refunds Change in Date of Tax Accrual Real Estate Taxes Local Benefits Real Estate Taxes on Purchase Or Sale Choosing To Ratably Accrue Separate Choices Making the Choice Form 3115 State & Local Income Taxes Foreign Income Taxes States & Local Sales Tax for Individuals Employment Taxes Unemployment Fund Taxes Self-employment Tax Other Taxes Business Casualty & Theft Losses - §16 Proof of Loss Amount of Loss Limitations Dividends Received Deduction - §243 Dividends from Domestic Corporations 65% Exception Ownership Limitation Other Selected Deductible Costs Home-Office Deduction - §280A Requirements - §280A Non-Exclusive Use Exceptions Income Limitation Administrative or Management Activities Research & Experimental Costs Deduction Repealed - §174(a) Business Start-Up & Organizational Costs – §195 How To Make The Choice Carrying Charges Intangible Drilling Costs Exploration Costs Partnerships Reduced Corporate Deductions For Exploration Costs Recapture Of Exploration Expenses Mine Development Costs Circulation Costs Reforestation Costs Retired Asset Removal Costs Barrier Removal Costs Deduction Limit Partners & Partnerships Qualification Standards Other Barrier Removals How To Make The Choice Amortization Deducting Amortization Start-Up Costs - §195 Amortization Period Qualifying Costs Purchasing An Active Trade Or Business Corporate Organizational Costs - §248 Qualifying Costs Nonqualifying Costs Partnership Organizational Costs - §709 Qualifying Costs Nonqualifying Costs Partnership Liquidation Costs of Obtaining a Lease Intangibles - §197 Cost Attributable To Other Property Section 197 Intangibles Defined Goodwill Going Concern Value Workforce In Place, Etc. Business Books And Records, Etc. Patents, Copyrights, Etc. Customer-Based Intangible Supplier-Based Intangible Government-Granted License, Permit, Etc. Covenant Not To Compete Franchise, Trademark, Or Trade Name Professional Sports Franchise Contract for the Use of, or a Term Interest in, a §197 Intangible Assets That Are Not §197 Intangibles Computer Software Computer Software Defined Rights Of Fixed Duration Or Amount Safe Harbor for Creative Property Costs Anti-Churning Rules Disposition of §197 Intangibles Nondeductible Loss Covenant Not To Compete Nonrecognition Transfers Research & Experimental Cost Amortization - §174(f) Definitions – Reg. §1.174-2 Product Costs Not Included Interaction with Research & Development Credit - §41 & §280 Depletion - §613 Cost Depletion Basis For Depletion Total Recoverable Units Number Of Units Sold Determining The Cost Depletion Deduction Percentage Depletion Gross Income Taxable Income Limit Partnerships & S Corporations Partner’s or Shareholder’s Adjusted Basis Records Reporting the Deduction Mines & Geothermal Deposits Gross Income From The Property Excise Tax Extraction Treatment Processes Transportation Of More Than 50 Miles Lessor’s Gross Income Bonuses & Advanced Royalties Timber Business Bad Debts - §166 Credit Transactions Income Inclusion Accrual Method Taxpayers Cash Method Taxpayers Former Business Debt Acquired from a Decedent Political Debts Insolvency of Partner Business Loan Guarantees Reporting Methods of Treating Bad Debts Specific Charge-Off Method Partly Worthless Debts Deduction Disallowed Totally Worthless Debts Recovery of Bad Debt Property Received for a Debt Bankruptcy Claim Sale of Mortgaged Property Net Operating Loss Nonaccrual-Experience Accounting Method Performing Services Interest & Late Charges Energy Alternative Fuel Refueling Property - §30C Clean Vehicle Credit - §30D Production Tax Credit (PTC) - §45 Carbon Capture & Sequestration Credit Enhancements - §45Q Clean Hydrogen Production Tax Credit - §45V Qualified Commercial Clean Vehicles - §45W Advanced Manufacturing Production Credit - §45X Clean Electricity Production Credit - §45Y Clean Fuel Production Credit - §45Z Investment Tax Credit (ITC) - §48 Advanced Energy Project Credit - §48C(e) Advanced Manufacturing Investment Credit - §48D Clean Electricity Investment Credit - §48E Energy Efficient Commercial Building Deduction - §179D Depreciation - §168 Personal Property MACRS Elections Bonus (or Additional First-year) Depreciation - §168(k) MACRS Conventions Mid-quarter Convention Exception Recapture - §1245 Real Property MACRS 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 Chapter 4 - Employee Compensation & Benefits Wages, Salary & Pay Employee vs. Contractor Status Factors Tests for Deducting Pay to Employees Test #1 - Reasonableness Overall Limitation Allowance of Deduction Publicly Traded Corporation Limitation Limitation on Accrual Deduction Employment Contracts Scope of Examination Officer’s Compensation Factors Employee’s Qualifications Size of the Business Employee’s Compensation History Unreasonably Low Salaries Past Service Reasonable Dividends Bonuses as Constituting Dividends Payback Agreements Miscellaneous Factors Test #2 - For Services Performed Employee-Shareholder Salaries Selected Types of Compensation Awards Bonuses Employee Gifts of Nominal Value Education Expenses Fringe Benefits Life Insurance Coverage Welfare Benefit Funds Loans or Advances Property Restricted Property Sick & Vacation Pay Payroll Tax Withholding & Reporting Form 941 Deposit Rules Lookback Period Monthly Depositor Semi-Weekly Depositor One-Day Rule Forms 940, 943, 944, and 945 Form W-4 Form W-2 Form W-3 Social Security’s Payroll Tax or FICA - §3111 & §3121 Rates FUTA - §3301 & 3306 Form 940 Selected Fringe Benefits No-Additional-Cost Services - §132(b) Covered Employees Line of Business Requirement Definition Qualified Employee Discounts - §132(c) Manner of Discount Real Estate & Investment Property Exclusion Amount of Discount Working Condition Fringes - §132(d) Covered Employees Exceptions Substantiation De Minimis Fringes - §132(e) Subsidized Eating Facilities Discrimination Employee Achievement Awards - §74(c) & §274(j) Exclusion Definition of Employee Achievement Awards Qualified Plan Award Employer Deduction Limits Aggregation Limit Special Partnership Rule Employee Impact Group Term Life Insurance - §79 Dependent Care Assistance - §129 Amount of Assistance Requirements Conflict with Dependent Care Cafeteria Plans - §125 Definition Qualified Benefits Non-Qualified Benefits Controlled Group Rules Salary Reduction Plans Nondiscrimination Meals & Lodging - §119 Income Exclusion Convenience of Employer Self-Insured Medical Reimbursement Plans - §105 Allowable Expenses Requirements Benefits Exposure Employee Educational Assistance Programs - §127 Employer-Provided Automobile - §61 & §132 General Valuation Method Annual Lease Value Method Computation Cents Per Mile Method Commuting Value Method Interest-Free & Below-Market Loans - §7872 Permissible Discrimination Employee Needs Imputed Interest - §7872 Types of Loans Demand Loans Term Loans Application of §7872 and Rate Determinations Summary Moving Expense Reimbursement - §217 Family & Medical Leave - §45S Qualified Transportation - §132(f) Employer-Provided Retirement Advice & Planning - §132 Financial Planning - §67 & §212 Popularity Taxation Tax Planning - §67 & §212 Taxation Estate Planning - §67 & §212 On-premises Athletic Facility - §132(j)(4)(B) ERISA Compliance Welfare Plans Additional Requirements Equity Participation Stock Transfers or Equity Grants Stock Sales or Unrestricted Stock Plan Stock Plans Stock Bonus ESOT Phantom Stock Advantages Comparison with Profit-Sharing Plans Repurchase or Restricted Stock Agreement Stock Options Section 83 Risk of Forfeiture Election Stock Appreciation Rights Plans Tandem Plans Qualified Incentive Stock Option Requirements Nonqualified Deferred Compensation Postponement of Income Advantages IRS Scrutiny & Approval Nondiscrimination ERISA Funding No Immediate Cash Outlay Annual Report Notice Requirement Purposes Benefit Formula Incentive Deferred Bonuses Tax Status Service’s Position Rationale Constructive Receipt Beyond Actual Receipt Simple Set-Asides Are Not Possible Revenue Ruling 60-31 Regulations Time & Control Concept Control Timing Economic Benefit Has Something of Value Been Transferred? Insurance Coverage Has a Calculable Value Segregated Funds Have Immediate Economic Value General Principles Unfunded Bare Contractual Promise Plan - Type I Risk Funded Company Account Plan - Type II Ownership & Segregation Bookkeeping Reserve or Separate Account Employee Bears Economic Risk Limited Protection Investment of Deferred Amounts Life Insurance Premiums Third Party Guarantees Segregated Asset Plan - Type III Section 83 Approach Tight Rope Format Transferable or Not Subject To A Risk of Substantial Forfeiture Substantial Restrictions Redemption or Forfeiture Condition Related to a Purpose of the Transfer Noncompetition Consultation Time Alone is Not Enough Realization & Taxation 30-Day Election Period Deduction Allowed Timing Withholding Tax Consequences Reciprocal Taxation/Deduction Rule No Difference between Cash or Accrual Separate Accounts for Two or More Participants Income Tax on Employer Held Assets Inclusion in Income Under §409A Chapter 5 - Automobiles Apportionment of Personal & Business Use Car Pool Fines Parking Fees Interest Deduction Limit for Individuals Self-Employed Exception Property Taxes Sales Taxes Former 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” - §280F(a) Passenger Auto Depreciation Safe Harbor Method - R.P. 2019-13 No 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. Sale Working Condition Fringe Benefits Qualified Transportation - §132(f) Employer-Provided Automobile General Hypothetical Valuation Method Special Method #1 - Lease Value Annual Lease Value - For Entire Calendar Year Fair Market Value Safe Harbor 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 Optional Fleet-Average Valuation Rule (FAVR) 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 6 - Business Travel & Entertainment Business Travel Transportation & Travel Distinguished Travel Expenses Transportation Expenses Determining a Tax Home Regular Place of Abode in a Real & Substantial Sense Two Work Locations Itinerant Worker - No Tax Home Assignments Temporary vs. Indefinite Assignments One-Year Expectation Rule Away From Home Requirement Sleep & Rest Rule Substantial Period Business Purpose Requirement Categories of Expense Travel Costs to and from the Destination Costs at Destination All or Nothing Primarily for Business Test Time Other Factors 51/49 Percent Test Domestic Business Travel Foreign Business Travel Personal Pleasure – At Destination Only Primarily Business - Partial Deduction Travel Considered Entirely for Business - Full Deduction Definition of Business Day Meals – 50% Reduction Standard Meal Allowance Lodging Conventions & Meetings Agenda Test Foreign Conventions Factors North American Area Allowable Expenses Cruises Ship Conventions Deduction Limitation Reporting Statements Luxury Water Travel Exceptions Family Member Travel Expenses Business Entertainment Statutory Exceptions - §274(e) Food and Beverages for Employees Expenses Treated as Compensation Reimbursed Expenses Recreational Expenses for Employees Employee, Stockholder and Business Meetings Trade Association Meetings Items Available to Public Entertainment Sold to Customers Expenses Includible in Income of Non-employees Business Meals Percentage Reduction for Meals - §274(n)(1) Application of Reduction Rule Eating Facilities Exceptions - §274(n)(2) Entertainment Facilities Exceptions Covered Expenses Club Dues Sales Incentive Awards Substantiation & Record Keeping - §274(d) Travel Expense Items to be Substantiated Meal Expense Items to be Substantiated Business Gifts Expense Substantiation Substantiation Methods Adequate Records Exceptions to Documentary Evidence Requirement Sufficiently Corroborated Statements Exceptional Circumstances Retention of Records Exceptions to Substantiation Requirements Payback Agreements 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 Federal Per Diem Rate Related Employer Restriction Reporting Per Diem Allowances Reimbursement Not More Than Federal Rate Reimbursement More Than Federal Rate Nonaccountable Plans Self-Employed Reimbursement & Reporting Expenses Related to the Self-Employed's Business Reimbursed Expenses Incurred on Behalf of a Client With Adequate Accounting Without Adequate Accounting Chapter 7 - Retirement Plans Deferred Compensation 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 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 Unified Vesting 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 Mechanics Contribution Timing Controlled Business General Limitations Effect of Incorporation Design Parity with Corporate Plans Types of Keogh 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 - §408A(c)(3) 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 an IRA 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 Roth IRA - §408A Eligibility Contribution Limitation Roth IRAs Only Roth IRAs & Traditional IRAs Conversions 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 8 - Insurance Company Paid Insurance Popularity Types of Life Insurance Group Term Life - §79 Requirements “Key Employee” Defined Cost Of Group-term Life Insurance Ten Employee Rule Retired Lives Reserve Revenue Ruling 68-577 Taxation Advantages Split-Dollar Life Low-Cost Term Insurance Regulatory Requirements Taxation Business Travel Accident Insurance Medical & Dental Insurance Premiums Disability Income Insurance Interest Limitation on Policy Loans - §264A Disallowance of Interest Deduction Impact Limit on Deductibility of Premiums & Interest Interest Limitation for Tax-Exempt Interest Income Key Person Life Insurance Closely Held Corporations Sole Shareholder Applications Other Selected Insurances Self-Employed Health Insurance Deduction Long-Term Care Premiums Capitalized Insurance Health Savings Accounts COBRA Affected Employers Small Business Health Insurance Expense Tax Credit - §45R Chapter 9 - Estate Planning Unlimited Marital Deduction Outright To Spouse Marital Deduction Trust Qualified Terminable Interest Property Trust Applicable Exemption (or Exclusion) Amount Spousal Portability of Unused Exemption Amount - §2010(c)(2) Stepped-up Basis Basic Estate Planning Goals Primary Dispositive Plans Simple Will Danger for Larger Estates Probate Assets Not Subject to a Will Assets Subject to a Will Trusts Types of Trusts Living Trusts Testamentary Trusts Revocable & Irrevocable Living “A-B” Revocable Trust Living “A-B-C” (QTIP) Trust Impact of Spousal Portability on Trust B under TUIRJCA Charitable Trusts Charitable Remainder Trusts Charitable Income Trusts Insurance Trusts Family Documents Living Will Property Agreement & Inventory Durable Power Of Attorney Power of Attorney for Health Care Conservatorship Funeral Arrangements Anatomical Gifts Private Annuity Advantages to the Transferor Disadvantages to the Transferor Advantages to the Transferee Disadvantages to the Transferee Business Valuation Relevant Facts Revenue Ruling 59-60 Tangible Assets Special Real Estate Election - §2032A Limitations Related Party Cash Lease Intangible Assets & Goodwill R.R. 68-609 Land Subject To Conservation Easement - §2032A(c)(8) Family Member Indirect Ownership of Land Qualified Conservation Easement Qualified Real Property Interest Qualified Organization Conservation Purpose No Additional Income Tax Deduction Valuation Discounts Minority Interests Special Valuation plus Minority Discount Fractional Interests Lack of Marketability Swing Vote Premium Buy-Sell Agreements Redemptions Under §303 Requirements Corporate Accumulation For §303 Redemption Accumulation in Anticipation of Shareholder’s Death Death of a Spouse Bypass Trust Lifetime Dispositions Gifts Stock Redemptions Under §302 Substantially Disproportionate Redemption - 80/50 Rule Redemptions Not Essentially Equivalent to a Dividend Complete Redemptions Constructive Ownership - §318 Double Attribution Stock Attribution in Complete Redemptions Stock Recapitalization Section 306 Taint Deferred Compensation Agreements Installment Payment of Federal Estate Taxes - §6166 Computation Eligibility & Court Supervision Closely Held Business Acceleration of Payment Glossary |
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The Charitable Payraise- A Strategy for Better Retirements and Lasting Legacies (Video) (1 Hrs)