Fiscal Cliff Legislation (American Taxpayer Relief Act of 2012 - HR 8) - Mini Course (Course Id 528)

Taxes - Taxes for Course Id 528

On January 2, 2013, President Obama signed the American Taxpayer Relief Act of 2012 (ATRA) into law. Although ATRA raised income taxes for high-income individuals, it avoided tax rate increases for middle income taxpayers. ATRA also made many extensions of or modifications to existing law. In other instances, it reinstated many provisions for 2012 that were about to expire and extended them through 2013 and, in a few cases beyond.

This course is an overview providing reference to selected individual, energy business, retirement, and estate tax provisions enacted or indexed for inflation by ATRA. The resulting major tax changes carry special meaning to the tax practitioner and return preparer. The course is intended to be a resource for tax professionals and staff alike to gain easy access to the most important major changes enacted by ATRA.

NASBA QAS - Text - Technical - NASBA Registry - IRS Enrolled Agents - Registered Tax Return Preparers - 528

As a result of studying the assigned materials, you should be able to meet the objectives listed below.

      At the start of the materials, participants should identify the following topics for study:

* Tax bracket modifications and changes
* Individual & business tax credits
* Deduction limitations
* Education credits
* Energy credit extensions
* Reinstated business credits
* Retirement plan contribution and phaseout limits
* Estate & gift tax developments

1. Recognize changes imposed by the American Taxpayer Relief Act of 2012 (ATRA) relating to individual income taxes by identifying modified tax rates, specifying AMT phaseout limits, and determining the how tax credits and deductions work, including education, adoption, and energy credits.
2. Cite key ATRA business provisions, including bonus depreciation, expensing, the work opportunity credit, leasehold and restaurant property improvements, FICA and SECA taxes, and S corporation developments.
3. Identify types of retirement plans and how they were affected by ATRA, including contribution limits and phaseout limits, and recognize the implications of changes to estate, generation-skipping transfer, and gift taxes.

Chapter 1 - “Fiscal Cliff” Legislation (American Taxpayer Relief Act of 2012 - HR 8)

Individual

Income Tax Rates - §1

Marriage Penalty

Standard Deduction - §63

Dependent Limit - §63(c)(5)

Personal Exemptions & Phaseout - §151

Limitation on Itemized Deductions - §68

AMT - §55

Exemption Amount & ARTA Permanent Patch - §55(d)(1)

AMT Exemption Phaseout - §55(d) & §59(j)

AMT Exemption for Children - §59(j)

AMT & Personal Credits

Earned Income Tax Credit - §32

Disqualified Income

Means-Tested Programs

Child Tax Credit - §24

AGI Phaseout

Dependent Care Tax Credit - §21

State & Local Sales Taxes - §164

Educator Expenses - §62

Higher Education Tuition Deduction - §222

Dollar Limitation & Phase Out

Tuition Deduction Or Education Credit Allowed

Hope/Lifetime Election If Lower Tax

Capital Gains & Dividends - §1(h)

Residential Mortgage Debt Relief – §108

Deductible Mortgage Insurance - §163

Adoption Credit - §23 & 137

Coverdell Education Savings Accounts – §530

Hope & Lifetime Learning Credits - §25A

Lifetime Learning Credit

Hope Credit

“American Opportunity” Education Tax Credit

Student Loan Interest Deduction - §221

Scholarships with Service Requirements - §117

Conservation Contributions - §170

Energy

Credit for Energy New Efficient Home - §45L

Energy Efficient Appliance Credit - §45M

Existing Homes Energy-Efficient Improvements Credits - §25C

Investment Tax Credit for Production Tax Credit - §45 & §48

Alternative Fuel Refueling Property - §30C

Plug-In Electric Drive Motor Vehicle Credit - §30

Business

Expenses for Child Care Facilities & Services - §45F

Bonus (or Additional First-year) Depreciation - §168

50% Additional First-year Depreciation

100% Additional First-year Depreciation (Reduced to 50%)

Qualified Property

Depreciation Limits on Business Vehicles

Nonqualified Property

Expensing - §179

Special Film & TV Production Expensing - §181

Social Security, Medicare & FUTA (or Payroll) Taxes

FICA - §3111 & §3121

SECA - §1401

Wage Base

Additional Hospital Insurance Tax On Certain High-Income Individuals

FUTA - §3301 & §3306

Research Tax Credit - §41

Low-Income Housing Tax Credit Rate Freeze - §42

Military Allowances & Low-Income Housing - §42

Employer-Provided Educational Assistance - §127

Parity for Parking Exclusion & Transit Passes - §132

Work Opportunity Tax Credit (WOTC) - §51

Heroes & Warriors Work Opportunity Tax Credits Extended

Leasehold Improvement & Restaurant Property - §168

Qualified 15-Year Leasehold Improvement Property - §168(e)(3)(E)(iv)

Qualified Leasehold Improvement Property

Subsequent Owner

Qualified 15-Year Retail Improvement Property - §168(e)(E)(ix)

Qualified Retail Improvement Property

15-Year Restaurant Improvements - §168(e)(7)

Expensing Permitted

Enhanced Charitable Deduction for Food - §170

Qualified Small Business Capital Gains - §1202

New Markets Tax Credit - §45D

Motorsports Entertainment Complexes

S Corporation Built-In Gain Period - §1374

S Corporation Charitable Contributions

Payments To Controlling Exempt Organizations

Dividends Of Regulated Investment Companies (RIC's)

Retirement Plans

Charitable Distributions from IRAs - §408

Roth Conversions for Retirement Plans

Estate, GST & Gift Taxes - §2001, §2601 & §2501

Estate Tax - §2001

Repeal & Reinstatement of Estate & GST Taxes

Applicable Exemption Amount - §2010

Basis of Inherited Property - §1014

2010 Special Election

Portability - §2010(c))

State Death Tax Credit

Estate & Trust Income Tax Rates - §1(e)

GST Tax - §2601

Rates

Applicable Exemption Amount - §2010

Gift Tax - §2501

Reunification of Estate & Gift Taxes

Applicable Exemption Amount - §2505

Annual Exclusion for Gifts - §2503

Notice of Large Gifts Received from Foreign Persons - §6039F

Glossary