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| Author : | Danny C Santucci, JD |
| Course Length : | Pages: 224 ||| Review Questions: 200 ||| Final Exam Questions: 195 |
| CPE Credits : | 39.0 |
| IRS Credits : | 39 |
| Price : | $176.95 |
| Passing Score : | 70% |
| Course Type: | NASBA QAS - Text - Technical - NASBA Registry - IRS Enrolled Agents |
| Primary Subject-Field Of Study: | Taxes - Taxes for Course Id 199 |
| Description : | While accounting and the practice of law are separate professions, the accountant must be conversant with essential legal concepts. Modern accounting practice requires familiarity with corporate legal structure, business entities, partnership operations, contracts, property rights, employment law, divorce, consumer protection, will & trusts, and even bankruptcy law. This course explores these specific areas with an emphasis on business and accounting issues. This informal and clear guide to the basic concepts of business law provides accountants with an excellent review of legal concepts that arise in any tax professional’s practice. The attendees will gain the ability to recognize and discuss general legal concepts with both client and their counsel. Knowledge is power and nowhere is that truer than in the field of law. To gain such a working knowledge of law, readily understandable explanations are given to essential and related business law subjects. The accountant is guided through the complex maze of literally hundreds of legal principles from acceptance to zoning. |
| 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 : |
Tax Laws
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| Advance Preparation : | None. |
| Delivery Method : | QAS Self Study |
| Intended Participants : | Anyone needing Continuing Professional Education (CPE). |
| Revision Date : | 18-Oct-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 - 199 |
| Keywords : | Taxes, Essential, Legal, Concepts, Tax, Analysis, 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 Asset Protection At the start of Chapter 1, participants should identify the following topics for study:
* Types of creditors * Fraudulent transfers * Preparation for asset protection * Types of insurance * Buy-sell agreements * Individual ownership and corporate ownership * Asset protection aspects of trusts * Co-tenancy and partnerships * Divorce After reading Chapter 1, participants will be able to:
b. Specifying sources of lawsuits and the author's concept of exploding and imploding liability; and c. Determining asset protection using the primary concepts of insurance, asset placement, and statutory protections. 3. Specify the fraudulent transfer laws and badges of fraud, define statutes of limitation, criminal penalties, and permissible asset transfers. 4. Identify the degree and necessity of asset protection using net worth and asset values under a balance sheet and the various ways that insurance and buy-sell agreements can offer asset protection. 5. Recognize the asset protection advantages and disadvantages of ownership formats and entities by:
b. Identifying testamentary trusts, living trusts, and subcategories of trusts recognizing their asset protection elements; c. Specifying the various types of co-tenancy, identifying their asset protection dangers, and several types of partnerships citing their variation from limited liability companies; and d. Recognizing the unique asset protection qualities of retirement plans, custodianship, and estates as asset protection tools. Chapter 2 Alimony & Child Support At the start of Chapter 2, participants should identify the following topics for study:
* Pre- and post-1984 alimony requirements * Deducting pre-2019 alimony paid & reporting alimony received * Recapture of alimony for types A & B agreements * Alimony substitution trusts & annuities * Alimony paid by an estate * Child support * COBRA coverage * Qualified medical child support orders After reading Chapter 2, participants will be able to:
2. Specify the types of §71 “divorce or separation instruments” and determine how having an invalid decree, an amended instrument, or a premarital agreement impacts such an instrument. 3. Identify the alimony and child support tax provisions that currently apply from those that applied to instruments executed prior to 1985 by:
b. Recalling the tax treatment of housing costs for the family residence showing the impact of ownership when the nonoccupying spouse owns the home and when the occupying spouse owns the home; c. Identifying what rent or resident cost payments can be alimony when a family residence is jointly owned and occupied by a spouse or a taxpayer is required to make rent payments for a spouse; d. Recognizing the tax treatment of life insurance premium payments, voluntary payments, and payments to a remarried spouse along with the advantages and disadvantages to each spouse; e. Determining how to recharacterize otherwise deductible pre-2019 alimony payments as nondeductible, identifying whether spouses are members of different households, and identifying the alimony pitfall of being required to make payments after a former spouse’s death; f. Specifying the differences between child support and alimony and thereby avoid reporting errors; g. Citing the pre-1985 alimony requirements and periodic payments; and h. Determining marital relationship and the similarities and differences in the treatment of child support under current and previous law. 5. Specify the pre-2019 alimony recapture rule for various marital agreements and its impact on the tax treatment of past payments. 6. Recognize the use of alimony trusts to realize tax advantage and security, determine the use of annuity contracts, and specify the proper tax treatment of alimony paid by an estate to a former spouse of a decedent. 7. Recall the tax treatment of child support, identify two circumstances where a payment will be fixed as child support, and specify six events that determine whether a contingency is clearly child-related and how to rebut this presumption of child support. 8. Recall the COBRA and qualified medical child support order rules so as to maximize the use of health care coverage plans by:
b. Determining what constitutes “qualified medical child support orders” recognizing differences with other similar orders and identifying the procedures, requirements, and jurisdiction of QMCSOs. Chapter 3 Bankruptcy At the start of Chapter 3, participants should identify the following topics for study:
* Bankruptcy types * Automatic stay * Preferences * Priorities * Debt discharge * Individual bankruptcy estate * Individual debtor * Corporate bankruptcy * Homesteading & garnishment After reading Chapter 3, participants will be able to:
2. Specify the rules for automatic stay and levy along with their impact on “freezing” creditor activity, tax assessment, and collection. 3. Identify the differences between preferential and nonpreferential payments together with the priority of creditor claims. 4. Recognize when debt is discharged under various bankruptcy types and identify how to establish an individual bankruptcy estate determining its taxable income and filing requirements. 5. Identify partnership and corporate bankruptcies, specify debts covered under homesteading, and determine permissible garnishment amounts and special garnishment rules. Chapter 4 Divorce Settlements & Divisions At the start of Chapter 4, participants should identify the following topics for study:
* Application of §1041 * Incident to divorce * Property basis * Purchase of residence between spouses * Purchase of business & investment property between spouses * Division of corporate business interests * Division of partnership business interests * Deferred v. present division of benefits * Individual retirement arrangements After reading Chapter 4, participants will be able to:
2. Cite the position of U.S. v. Davis on interspousal transfers and the changes made by §1041 and, specify the requirements of §1041 and the scope of its application. 3. Identify factors that determine when a property transfer is incident to divorce and how to meet these factors or avoid §1041 altogether when desired and recognize the application of §1041 to transfers in trust under §1041(e) and to third-party transfers on behalf of a spouse or former spouse. 4. Determine deferred tax liability and property basis for the transferor spouse and transferee spouse under §1041 after a property settlement. 5. Recognize the application of §1041 to property transfers where the transferee assumes liabilities encumbering the property, and identify with appropriate records the holding period for an asset transferred between spouses or former spouses incident to divorce. 6. Identify the dangers of purchasing a former spouse's interest in property particularly a marital residence including its tendency to create deferred tax liability, specify the effects of purchasing an interest in personal or real property used in a business or held for investment, recognize potential recapture and identify the use of an exchange to dispose of low-basis property received in a §1041 transfer. 7. Recognize sale, redemption, recapitalization, liquidation, and third-party transfers as methods of dividing a business in a marital settlement citing unique provisions under §302, §368, §736, and §754. 8. Identify an overall tax and economic strategy for the division of pension benefits in a marital settlement by:
b. Determining what constitutes a “qualified domestic relations order” along with specific information to be included in such an order and the tax consequences of QDRO distributions; c. Recognizing the pros and cons of deferred, present, and alternate property division arguments; d. Specifying the treatment of IRAs at divorce considering the IRA deduction limit and rollovers; and e. Locating military pensions and civil service pensions that may be available to a former spouse. Chapter 5 Employment At the start of Chapter 5, participants should identify the following topics for study:
* Unemployment compensation * Workers’ compensation * Overall limitation of unreasonable compensation * Unreasonable compensation factors * Social security retirement benefits * Social security tax * Medicare * Disability * Americans with Disabilities Act of 1990 After reading Chapter 5, participants will be able to:
2. Recognize the mechanics of the Social Security system allowing better retirement planning by:
c. Locating clients’ retirement benefits following a multi-step process. 4. Determine Medicare Part A and Medicare Part B differences and what is needed to qualify, and identify the eligibility requirements of Social Security disability and survivors’ benefits. Chapter 6 Entities & Title At the start of Chapter 6, participants should identify the following topics for study:
* Corporations * Trusts holding title & business trusts * Co-tenancy taxation, percentage interests & partition * Partnership taxation & recapitalization * Family partnerships * Limited liability companies * Retirement plans * Custodianship * Estate After reading Chapter 6, participants will be able to:
b. Specifying the C corporations groups including the estate-planning problems associated with each; and c. Recognizing the advantages that partnerships may have over corporations. 3. Specify the title holding benefits of trusts, co-tenancy, partnerships, and limited liability companies and the tax characteristics of each, identify the types of retirement plans used to provide lifetime benefits to a business owner and to employees, determine how title can be held on behalf of minors and the tax treatment of custodianships, and specify the tax treatment of a probate estate. Chapter 7 Insurance At the start of Chapter 7, participants should identify the following topics for study:
* Life insurance * Annuities * Buy-sell agreements * Entity & cross-purchase agreements * Purchase price & terms * Community property * Professional corporations * S corporations * Sole shareholder planning After reading Chapter 7, participants will be able to:
2. Specify persons in which rights are placed by life insurance and reasons to purchase life insurance and the benefits, uses, and types of life insurance, identify variables that influence when life insurance is taxable for federal estate tax purposes, and cite reasons for establishing an irrevocable life insurance trust in order to achieve several estate tax planning advantages. 3. Determine what constitutes an annuity and the types and characteristics of annuities along with their tax advantages and disadvantages. 4. Identify entity purchase and cross-purchase agreements specifying tax and legal advantages and pitfalls. Chapter 8 Property Dispositions At the start of Chapter 8, participants should identify the following topics for study:
* Home sales * Installment method * Contingent payments or price * Section 1031 like-kind exchanges * Delayed exchange regulations * Actual & constructive receipt rule * Foreclosure * Repossession * Condemnations After reading Chapter 8, participants will be able to:
2. Cite the elements of the §121 home sale exclusion and the application and safe harbor regulations associated with the exclusion. 3. Recognize the installment method rules and regulations related to using this method by:
b. Determining related party and contingent payment rules, §483 imputed interest, and §§1271 through 1274 original issue discount.
b. Specifying related parties and conditions where they may sell or dispose of properties; c. Determining the multiple property regulations and the general rule for netting liabilities; and d. Recognizing a delayed exchange using the identification requirements, specify safe harbors to avoid actual or constructive receipt and identifying the “look thru” treatment of partnership interests according to the latest amendments to §1031. 6. Recognize the differences between personal property and real property repossessions, and identify when a bad debt deduction may be taken if the seller repossesses real property. 7. Identify the tax treatment of an involuntary conversion by:
b. Locating gain or loss from condemnations and recognizing the proper reporting of payments associated with involuntary conversions; c. Determining when clients can postpone gain on condemned, damaged, destroyed, or stolen property; and d. Citing the related party rule under §1033. Chapter 9 Retirement & Employee Benefits At the start of Chapter 9, participants should identify the following topics for study:
* Individual retirement accounts * Tax-deferred annuities * Fringe benefit provisions * Employee achievement awards * Cafeteria plans * Self-insured medical reimbursement plans * Employer-provided automobile * Interest-free & below-market loans * Insurance After reading Chapter 9, participants will be able to:
2. Identify qualified corporate plans, SIMPLE plans, self-employed plans, IRAs, tax-deferred annuities, and SEP plans, how to build up investment funds, variables in a current investment plan, and participant loan regulations under §4975. 3. Determine the differences between nonstatutory and statutory fringe benefits, identify no-additional-cost services, qualified employee discounts, working condition fringes, and de minimis fringes specifying which property or services qualify under each benefit, and §79 group term life insurance. 4. Cite the §129 requirements and limits, identify a §125 “cafeteria plan,” recognize the §119 meals and lodging exclusion, determine the mechanics of §105 medical reimbursement plans, and cite the requirements and limits §127 programs. 5. Determine valuation methods for employer-provided automobiles, recognize interest-free and below-market loans, cite the requirements and limitations on a number of other fringe benefits under §§217, 132, 67 212, 132(h)(5) and 280A, identify the limited S corporation fringe benefits, and specify ERISA compliance requirements. Chapter 10 Torts & Personal Injuries At the start of Chapter 10, participants should identify the following topics for study:
* Unintentional torts * Business torts * Damages * Personal injury back pay * Personal injury installment payments * Nonphysical personal injury * Punitive damages * Wrongful death * Interest & legal fees After reading Chapter 10, participants will be able to:
2. Recognize the personal injury exclusion to ensure proper reporting of damages received because of injury, and determine how to report punitive damages, interest on injury awards, and legal fees as determined according to case law. Chapter 11 Wills & Probate At the start of Chapter 11, participants should identify the following topics for study:
* Requirements of wills * Executors and guardians * Types of wills * Title implications * Changes to a will * Advantages of a will * Simple will * Probate pros and cons * Probate avoidance After reading Chapter 11, participants will be able to:
2. Identify advantages of a properly drafted will, determine the distribution flow of simple wills, and specify the pros and cons of probate proceedings. Chapter 12 Trusts At the start of Chapter 12, participants should identify the following topics for study:
* Common elements of trusts * Types of trusts * Living trusts * Income tax & trusts * Gift tax & trusts * Estate tax & trusts * Identification, recital & property transfer clauses * Income and principal & revocation and amendment clauses * Trustee and trust termination clauses After reading Chapter 12, participants will be able to:
2. Specify recommended living trust provisions, identify the application of gift and income tax including the use of a grantor trust and an unlimited marital deduction, and determine what constitutes an “A-B” and “A-B-C” trust format. |
| Course Contents : | Chapter 1 - Asset Protection Why Asset Protection? Situations That Create Danger Sources of Lawsuits Types of Liability Basic Protection Concepts Types of Creditors Evading Creditors Fraudulent Transfers Badges of Fraud Statute of Limitations Criminal Penalties Permissible Asset Transfers Asset Protection Goals Preparation Insurance Homeowners Insurance Automobile Insurance Disability Insurance Life Insurance Life Insurance Trust Buy-Sell Agreements Definition Asset Protection Aspects of Common Entities Individual Ownership Sole Proprietorship Corporate C Corporation No Pass-Through The S Corporation - §1361 Trusts Types of Trusts Revocable Trust Land Trusts Irrevocable Trusts Testamentary Trust Business Trusts Foreign Trusts - §679 Asset Protection Trusts - APTs Foreign Jurisdictions Alternatives Income Taxation Estate & Gift Tax Creditor Protection Family Trusts Medicaid Trust Grantor Retained Income Trust Co-Tenancy Tenancy in Common Varying Percentages No Survivorship Joint Tenancy with Right of Survivorship Equal Percentages Tenants by the Entirety Right of Partition Partnership Family Partnerships Charging Orders Phantom Income to Creditor Tax Issues Estate Savings Income Tax Savings Limited Liability Company Retirement Plan Retirement Fund Protection in Bankruptcy Custodianship Estate Divorce Premarital Agreements Uniform Premarital Act - The California Example Permitted Items of Agreement Unenforceable Items Retirement Equity Act of 1984 Benefits of a Premarital Agreement Post-Nuptial Agreements Chapter 2 - Alimony & Child Support Spousal Support - aka Alimony Divorce or Separation Instrument Invalid Decree Amended Instrument Premarital Agreements Alimony Rules Requirements Payment Must Be In Cash Payments to a Third Party Written Requests, Consents, or Ratifications Payments for Family Residence Taxpayer-Owned Home Spouse-Owned Home Jointly-Owned Home Rent On Property Owned by a Third Party Payments for Life Insurance Contingent Interest Voluntary Payments Payments to Remarried Spouse Designating Payments as Not Alimony Members of Different Households Exception Termination at Death Substitute Payments Child Support Past Due Child & Spousal Support Payments Joint Return Prohibited Minimum Term Rule for 1985 & 1986 Instruments Exception Instruments Executed Before 1985 - A Historical Perspective Old Requirements - Long, Long Ago in a Galaxy Far Away Periodic Payments Exception for Installment Payments Mixed Payments Marital or Family Relationship Property Settlement Child Support Tax Treatment of Alimony Instruments Executed Before 2019 Alimony Paid - Deductible Reporting Alimony Received - Income Alimony as Compensation Recapture of Alimony for Type A & B Agreements Exceptions to Recapture Including the Recapture in Income Deducting the Recapture TRA ‘84 Recapture - 1985 & 1986 Instruments TRA ‘86 Recapture - After 1986 Instruments Exceptions Computation Alimony Substitution Trusts & Annuities Advantages of Alimony Trust Disadvantages of Alimony Trust Annuities Alimony Paid by an Estate Instruments Executed After 2018 Child Support Contingency Relating To the Child Clearly Associated With a Contingency Heller Case Rebuttable Presumptions COBRA Coverage Coverage Termination Notice Election Choice of Coverage Cost Deductibles Qualified Medical Child Support Orders Definition Procedures & Duties Jurisdiction Chapter 3 - Bankruptcy Federal Bankruptcy Means Testing Median State Income Test Means Test Credit Counseling Tax Law Changes Chapter 13 "Superdischarge" Subordination Of Ad Valorem Tax Liens Interest on Tax Claims Tax Returns Bankruptcy Types Chapter 7 - Liquidation Exempt Assets Availability Trustee Appointment Chapter 11- Reorganization Availability Creditors’ Committee Reorganization Plan Chapter 13 - Wage-Earner Plan Availability Repayment Plan Trustee Appointment Automatic Stay Tax Assessment Suspension of Statute of Limitation Immediate Assessment Levy Tax Court Tax Court Petition Preferences Trust Fund Taxes Allocation of Tax Payments Priorities Super Priority Claims Secured Claims Federal Tax Liens Priority Claims Tax Claim Determination Refunds Priority of Tax Claims Second Priority Tax Claims Third Priority Tax Claims Four Generates Priority Eight Tax Claims Eighth Priority Tax Claims Debt Discharge Chapter 7 Discharge Chapter 11 Discharge Chapter 13 Discharge Discharge of Taxes Tax Liens Individual Bankruptcy Estate Separate Entity Tax Attribute Carryovers Termination of the Estate Filing Requirements Disclosure of Return Information Taxable Income Taxable Year Gross Income Deductions & Credits Administrative Expenses Net Operating Loss Carryback Transfers to Debtor Partnership & S Corporation Interests Request for Prompt Determination of Liability Tax Liability Individual Debtor Tax Year Election Annualizing Taxable Income Making the Election Later Bankruptcy of Spouse Election Considerations Transfers between Debtor & Estate Net Operating Loss Carryback Limitation Partnership Bankruptcy No Separate Estate Discharge of Debts Corporate Bankruptcy Exemption Return Filing Personal Holding Company Tax Tax-Free Reorganizations §354, §355, & §356 Corporate Liquidations under Chapter 7 Carryover of Tax Items - §381 & 382 Bankruptcy Exception Reduction of Carryforwards Section 269 Presumption Homesteading Types of Homesteads Property & Equity Covered Who Can Homestead? Excluded Debts Garnishment Chapter 4 - Divorce Settlements & Divisions Premarital Agreements Uniform Premarital Act - The California Example Permitted Items of Agreement Unenforceable Items Retirement Equity Act of 1984 Benefits of a Premarital Agreement Post-Nuptial Agreements Divorce Settlements - The Tax Trap Section 1041 Application of §1041 Mandatory Scope Property vs. Income Savings Bonds Receivables Interest Imputed Interest Incident to Divorce Related To Termination Rebuttable Presumption Divorce or Separation Instrument Transfers in Trust Third Party Transfers Property Basis Gift Variation Passive Activity Loss Property Property Transferred In Trust Basis in U.S. Savings Bonds Negotiated Property Divisions Adjudicated Property Divisions Caselaw General Rule - Immediate & Specific Liabilities Holding Period Notice & Record Keeping Purchases Between Spouses Residence Home Mortgage Interest Deferral & Exclusion of Gain Business & Investment Property Recapture Section 1031 Exchange Installment Sale of Assets Selected Asset Divisions Installment Obligations Business Interests Corporations Section 302 Redemption Recapitalization Partnerships Section 736(a) Payments Effect on Recipient Section 736(b) Payments Effect Exclusions From §736(b) Treatment Liabilities Series of Payments Section 754 Election Insurance Policies Pension Benefits Qualified Domestic Relations Order Taxation of Distributions Deferred v. Present Division of Benefits Deferred Division Arguments Present Division or Alternate Property Arguments Individual Retirement Arrangements IRA Deduction Limit Rollovers Divorce Distributions Amounts Not Rolled Over Military & Civil Service Pensions Chapter 5 - Employment The Employment Relationship Employee v. Independent Contractor Common Law Rules Used by IRS Factors Statutory Employees Real Estate Agents Reporting Requirements Penalties Section 530 Relief Unemployment Benefits Federal Unemployment (FUTA) Tax - §3302 Depositing FUTA Tax Unemployment Compensation Withholding Temporary Extensions & Exclusions Workers’ Compensation Tax Exemption Unreasonable Compensation Overall Limitation Allowance of Deduction Limitation on Accrual Deduction Employment Contracts Scope of Examination Factors Employee’s Qualifications Size of the Business Employee’s Compensation History Unreasonably Low Salaries Services Performed by the Employee Past Service Reasonable Dividends Bonuses as Constituting Dividends Payback Agreements Miscellaneous Factors Social Security How Social Security Works Social Security Participants Social Security Benefits Retirement Benefits Qualification Calculation Average Indexed Monthly Earnings (AIME) Primary Insurance Amount (PIA) Cost of Living Adjustment Using Dollar Bend Points Adjustment for Retirement Date Early Retirement Effect of Late Retirement Earnings Reduction Formula Annual Report of Earnings Special Monthly Rule Personalized Benefit Estimate Impact of Private Pension Direct Deposit Social Security’s Payroll Tax or FICA - §3111 & §3121 Rates Covered Earnings Multiple Employers Covered Employment Self-Employment Tax after Retirement Survivors Benefits Divorce Medicare Who Is Eligible For Hospital Insurance (Part A)? Who Can Get Medical Insurance (Part B)? Prescription Drug Coverage (Part D) How Do You Get Medicare? What Does Medicare Pay For? What Medicare Does Not Pay For? Medigap Insurance Disability Social Security Disability Benefits Family Members HIV & AIDS Children Qualification General Disability Benefits Americans with Disabilities Act of 1990 Disabled Access Credit - §44 Eligible Small Business Eligible Access Expenditures Credit Amount Architectural & Transportation Barrier Removal - §190 Chapter 6 - Entities & Title Basic Entity Formats Individual & Sole Proprietorship Marital Property Timing & Domicile Corporate Categories of C Corporations Personal Holding Company - §541 Attribution Rules Penalty Tax Regular C Corporation Corporate Tax Rate No Pass-Through Getting Money Out of the C Corporation Passive Loss Restrictions Partnership vs. Corporation Personal Service Corporation - §269A S Corporation - §1361 Minors as Shareholders Bequests & Estate Ownership Trusts as Shareholders S Corporation Assets Built-In Gains Tax - §1374 Incorporation of a Farm Land Partnership Advantage Leasebacks Trusts Title Holding Business Trusts Co-Tenancy Taxation Percentage Interests Partition Partnership Partnership Taxation Allocation of Income & Deduction Partnership Recapitalization Two Class Format Valuation Guaranteed Payment Control & Management Estate Issues Family Partnerships Estate Savings Income Tax Savings Family Partnership Requirements Recognizing a Partner Control Transferability Donee as a Partner Trusts as Partners Minor as a Partner Purchased Interests Capital Interest in the Partnership Capital as a Material Income-Producing Item Source of Capital Family Partnerships Not Within §704(e) Real Estate Family Partnerships Business Family Partnerships Structuring the Family Partnership Limited Liability Company Outside Basis & Debt Share Advantage Substantial Economic Effect Rules Discharge of Indebtedness Income Suggested Uses Professional Firms Joint Ventures Substitute for Family Limited Partnership Retirement Plan Employer Costs Profit-Sharing Plan Money Purchase Pension Plan Defined Benefit Pension Plan Custodianship Estate Chapter 7 - Insurance Homeowners Insurance Automobile Insurance Disability Insurance Life Insurance Purpose Tax Overview Income Tax Transfer for Value Rule Employee Death Benefit - §101(b) Repealed Premiums Lifetime Benefits Section 72 Estate Taxes - §2042 & §2035(a) Ownership Gift Taxes Community Property Gift Danger Life Insurance Trust Considerations Annuities Deferred Annuity Private Annuity Unsecured Promise Regulations Restrict Private Annuities Buy-Sell Agreements Definition Contractual Format Funding Life Insurance Funding Term vs. Whole Life Policy Ownership & Premium Payment Entity & Cross-Purchase Agreements Tax Consequences - Cross-Purchase Agreements Non-Deductible Premiums No Dividend Danger Tax Consequences - Entity Purchase Agreements Non-Deductible Premiums Dividend Danger - §302 Exception to Dividend Treatment Constructive Ownership (Attribution) Rules “Estate/Beneficiary” Rule “Family/Trust/Corporation” Rule No Gain on Sale Estate Tax Valuation Using the Buy-Sell Agreement to Set Value Buy-Sell Agreements - §2703 Exceptions to §2703 Arms-Length Bargain Substantial Modifications Exceptions Purchase Price & Terms Valuation Community Property Professional Corporations Marketability Problems Controlled Disposition S Corporations Sole Shareholder Planning Complete Liquidations Alternative Dispositions Use of Life Insurance Estate Valuation One-Way Buy-Outs Chapter 8 - Property Dispositions Capital Gains Rates - §1 28% Rate Group 25% Rate Group - Unrecaptured §1250 Gain 15% (or sometimes 20%) Rate Group - Adjusted Net Capital Gain Tax on Net Investment Income - §1411 Former 18% & 8% Rate Group (Repealed) Deemed Sale Election (Repealed) AMT Small Business Stock Netting of Capital Gains & Losses Analysis Home Sales - §121 Two-Year Ownership & Use Requirements Tacking of Prior Holding Period Prorata Exception Limitations on Exclusion Installment Method Requirements Formula Definitions Mortgage in Excess of Basis Wrap-around Indebtedness Professional Equities Decision Recapture Related Party Resale Rule Related Persons Exceptions Depreciable Property Contingent Payments or Price Installment Sales Revision Act of 1980 Contingent Payment Sale Maximum Selling Price Transactions Recomputation Fixed Payment Term Transactions Losses Transactions with Neither Maximum Selling nor Fixed Payment Term Losses Income Forecast Method Election Calculation Special Rules Qualification Repeal of Installment Treatment for Dealer Dispositions Definition Residential Lot & Timeshare Exception Interest Computation Qualification Installment Obligations in Excess of $5 Million Computation of Interest Definitions Pledging Disposition of Installment Obligations Gain or Loss Exceptions Substitution Tax-Free Transfers Imputed Interest & OID Complexity Sale at a Loss Section 483 - Imputed Interest Exemptions Imputed Interest Rates Small Transaction Exception Intra-family Land Exception Timing Sections 1271-1274 & OID OID Rates Timing Cash Method Debt Instrument Exception Computation of OID Personal Use Property - Buyer’s Deduction of Imputed Interest Section 1031 “Like Kind” Exchanges Exchange Advantage Importance of Deferral Three Elements Exchange Requirement Two-Party Exchanges Multi-party Exchanges Alderson Baird Delayed Exchanges Qualified Property Requirement Like-Kind Requirement Rules of Boot Related Party Exchanges Definition of Related Party Exceptions to the Two Year Rule Contractual Protection Transactions Between a Partner & Partnership Foreign Real Property Exchanges Qualified §1031 Exchange of Personal Property Repealed Requirements for Personal Property - Prior to 2018 Like-Kind or Like-Class Like-Kind Personal Property - Identical Like Class Personal Property - General Asset or Product Class Five, Four, Then Six Digit Product Classes Other Personal Property Multiple Asset Exchanges Exchange Groups Aggregation & Allocation Delayed (Deferred) Exchange Regulations Deferred (Delayed) Exchange Definition Identification Requirements Identification & Exchange Periods Application of §7503 Method of Identification Property Description Incidental Property - 15% Rule Revocation Substantial Receipt Multiple Replacement Properties Actual & Constructive Receipt Rule Four Safe Harbors Safe Harbor #1 - Security Safe Harbor #2 - Escrow Accounts & Trusts Disqualified Person Who Is An Agent? Safe Harbor #3 - Qualified Intermediary Who Is A Qualified Intermediary? Direct Deeding Assignment Simultaneous Exchanges Safe Harbor #4 - Interest Interest Reporting - Section 468B(g) Restrictions On Rights to Money & Other Property - “g(6)” Limitations Outside Transfers of Money or Other Property Exchanges of Partnership Interests Effective Date of Partnership Provisions Foreclosure Discharged Debt Nonrecourse Indebtedness Recourse Indebtedness Reporting Form 1099A Timing & Character of Gain or Loss Gain Loss Lender’s Tax Impact Foreclosure Sale Mortgage Debt Relief Act of 2007 Qualified Principal Residence Indebtedness - §108(h)(2) Mixed Indebtedness Repossession 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 Buyer Improvements Bad Debt Seller’s Former Home Exception Involuntary Conversions 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 Related Party Rule Chapter 9 - Retirement & Employee Benefits Retirement Plans Designing Your Retirement Sources of Retirement Income Qualified Corporate Programs Defined Contribution Plans Profit-Sharing Plan Money Purchase Pension Plan Stock Bonus Plan Employee Stock Ownership Plan 401(k) Plan Defined Benefit Defined Benefit Pension Annuity Plan SIMPLE Plans Self-Employed Plans Individual Retirement Accounts Roth IRA - §408A Contributions to Roth IRAs Phase-out Excess Contributions Taxation of Distributions Qualified Distribution 5-Year Exception Nonqualified Distributions Reporting Rollovers & Conversions Rollover from Traditional IRA Allowable Rollovers Income Taxation Rollover Considerations Conversions Transfer of Contributions Waiting Period Penalty-Free Withdrawals Tax-Deferred Annuities Mechanics Types of Deferred Annuity Fixed Annuity Variable Annuity Minimum Investment & Charges Simplified Employee Pension (SEP) Plan Investment Assets Ultimate Question Participant Loan Regulations Additional Loan Requirements DOL Regulations Fringe Benefits Old Dichotomy - Statutory v. Nonstatutory Fringe Benefit Provisions TRA ‘84 - §132 Discrimination Only Statutory 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 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 Types of Loans Demand Loans Term Loans Application of §7872 and Rate Determinations Summary Moving Expenses & Reimbursement Suspended - §217 Financial Planning - §67 & §212 Popularity Taxation Tax Planning - §67 & §212 Taxation Estate Planning - §67 & §212 Death Benefit Payment - §101(b) Repealed On-premises Athletic Facility - §132(j)(4)(B) Employer-Provided Retirement Advice & Planning - §132 Home Office - §280A Carryforward Renting Space to Employer Fringe Benefit Plans for S Corporations Insurance Basis Permanent Policies Effect of Premium Payment Key Employee Insurance Medical Insurance Retirement Plans Summary ERISA Compliance Welfare Plans Additional Requirements Chapter 10 - Torts & Personal Injuries Types of Torts Intentional Torts Unintentional Torts Business Torts Damages Personal Injury Awards - §104 Personal Injury Back Pay Installment Payments Nonphysical Personal Injury Punitive Damages Wrongful Death Interest & Legal Fees Chapter 11 - Wills & Probate What Is A Will? Provisions & Requirements Specific & General Bequests Residual Bequests Conditional Bequests Executor Guardian Types of Wills Title Implications Individual Joint Tenancy Tenants in Common Tenants by the Entirety Community Property Tax Basis Advantage Untitled Assets Changes to a Will Advantages of a Will Intestate Succession Periodic Review Continuing Business Operations Simple Will Probate Advantages Disadvantages Probate Avoidance Joint Tenancy Community Property Totten Trust Accounts Life Insurance & Employee Benefits Living Trusts Chapter 12 - Trusts What is a Trust? Why a Trust? Types of Trusts Common Elements Revocable Trust Irrevocable Trusts Testamentary Trust Foreign Trusts - §679 Family Trusts Medicaid Trust Living Trust Reversion Advantages of a Living Trust Disadvantages Priority Pour-Over Will Trust Taxation Income Tax Grantor Trusts - §671 to §678 Grantor Retained Income Trust Revocable Trusts Included in Estate - §646 & §2652(b)(1) Election for Income Tax Purposes Irrevocable Trust Taxation Throwback Rules Capital Gains Deduction of Estate Planning Expenses Deductibility of Death Expenses Gift Tax Estate Tax Unlimited Marital Deduction Outright to Spouse Marital Deduction Trust Qualified Terminable Interest Property (QTIP) Trust “A-B” Format “A-B-C” (QTIP) Format Valuation & Tax Basis Alternate Valuation Fundamental Provisions - Revocable Living Trust Identification Clause Recital Clause Property Transfer Clause Income & Principal Clause Revocation & Amendment Clause Trustee Clause Trustee’s Acceptance Choice of a Trustee Factors for Corporate Trustees Factors for Individual Trustees Trust Termination Clause Glossary |
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