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Course Details

Getting Cash Out of Your Business with Tax Analysis (Course Id 206)

Updated / QAS / Registry / EA   Add to Cart 
Author : Danny C Santucci, JD
Status : Production
CPE Credits : 24.0
IRS Credits : 24
Price : $167.95
Passing Score : 70%
Primary Subject-Field Of Study:

Taxes - Taxation for Course Id 206

Description :

This course examines the various ideas, methods, and techniques capable of optimizing the overall compensation package for key employees and principals in small to medium sized businesses. Qualified and non-qualified deferred compensation, benefit targeting, insurance programs, statutory fringe benefits, interest free loans, and investment planning are investigated. Effective pay plans essential to attract, motivate, and retain key people are defined and evaluated. Consideration is given to indirect compensation in the form of business entertainment, expense accounts, auto use, travel, and transportation. Equity participation is explored through stock sales, repurchase agreements, incentive stock options, ESOTs, stock options, and bonuses. The new field of professional services is probed to provide tax, financial and estate planning to the key executive.

Usage Rank : 0
Release : 2016
Version : 1.0
Prerequisites : General understanding of federal income taxation.
Experience Level : Overview
Additional Contents : Complete, no additional material needed
Additional Links :
Advance Preparation : None
Delivery Method : Self-Study
Intended Participants : Anyone needing Continuing Professional Education (CPE)
Revision Date : 30-Apr-2016
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 - NASBA Registry - IRS Enrolled Agents - 206

Keywords : Taxes, Getting, Cash, Out, Your, Business, 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       SUBJECT
Chapter 1                Tax Economics

       At the start of Chapter 1, participants should identify the following topics for study:

    * Financial fundamentals
    * Tax planning elements
    * Taxable income
    * Tax-free income
    * Tax-deferred income
    * Tax-sheltered income
    * Budgeting
    * Cash
    * Acquisition
    * Assets
    * Management
Learning Objectives:

       After reading Chapter 1, participants will be able to:
    1. Identify financial and tax income types noting how cash management is used to acquire and operate assets, specify changes recently made to taxable income, determine how the passive loss rules categorize income and identify income splitting formats that can reduce tax.
    2. Recognize basic cash management techniques and how to generate tax-free income, identify ways to defer income, and specify techniques to shelter income.
    3. Determine the importance of budgeting noting rules to budget effectively, specify several cash usages, recognize financial acquisition guidelines for tax-advantaged investments, and specify multiple asset management rules.
ASSIGNMENT       SUBJECT
Chapter 2                Business Planning

       At the start of Chapter 2, participants should identify the following topics for study:

    * Financial and compensation planning
    * Periodic review & goal setting
    * Team concept
    * Individual and corporate income tax rates
    * Capital gains & personal exemptions
    * Passive loss rules
    * Deferral of income
    * Acceleration of deductions
    * Avoiding taxable income
    * Unreasonable compensation
Learning Objectives:

       After reading Chapter 2, participants will be able to:
    1. Recognize compensation strategies citing employer vs. employee perspectives, identifying parties’ goals and objectives, and selecting compensation techniques to accomplish such goals.
    2. Identify economic and tax trends particularly recent capital gain complexity noting rate “baskets” and their varying taxation, recognize the §469 “buckets” of income and loss that influence what a taxpayer can deduct against other income.
    3. Specify several ways to defer income and accelerate deductions, and thereby expand business cash flow and planning opportunities.
    4. Recognize the dangers of unreasonable compensation and their impact on deductions and distributions, and identify ways to avoid unreasonable compensation.
ASSIGNMENT       SUBJECT
Chapter 3                Deferred Compensation Plans

       At the start of Chapter 3, participants should identify the following topics for study:

    * Types of deferred compensation
    * Advantages of nonqualified deferred compensation
    * Economic benefit of nonqualified deferred compensation
    * Tax consequences
    * Qualified deferred compensation – retirement plans
    * Basic requirements of a qualified pension plan
    * Basic types of corporate plans
    * Self-employed plans - Keogh
    * Individual plans - IRAs
    * SEPs and SIMPLE plans
Learning Objectives:

       After reading Chapter 3, participants will be able to:
    1. Determine the meaning of “deferred compensation plan”, cite questions for assessing deferral usage, and recognize multiple deferred compensation types so clients may properly structure compensation.
    2. Identify client compensation decisions by specifying qualified deferred compensation restrictions, recalling the purposes, benefit formulas, and necessary contractual provisions for nonqualified plans., recognize the IRS’s position on nonqualified compensation, determine “constructive receipt” and “economic benefit”, and identify the differences among unfunded bare contractual promise plans, funded company account plans and segregated asset plans.
    3. Recognize qualified deferred compensation plans and nonqualified plans, the major benefit of the qualified deferred plans, and the basis of the benefits and contributions and, identify the current and deferred advantages and the disadvantages of corporate plans noting fiduciary responsibilities and prohibited transactions.
    4. Cite the requirements of the basic forms of qualified pension plans permitting clients to elect among such plans.
    5. Identify defined contribution and defined benefit plans, specify the differences among the types of defined contribution plans, and recognize their effect on retirement benefits.
    6. Determine the differences between self-employed and qualified plans identifying key choice of entity factors.
    7. Cite the requirements of IRAs, SEPs, and SIMPLEs, and recognize tax-free Roth IRA distributions noting where changes may be necessary to maximize plan benefits.
ASSIGNMENT       SUBJECT
Chapter 4                Basic Fringe Benefits

       At the start of Chapter 4, participants should identify the following topics for study:

    * Benefit mechanics
    * Employee achievement awards
    * Group term life insurance
    * Self-insured medical reimbursement plans
    * Medical insurance
    * Meals & lodging
    * Cafeteria plans
    * Employer-provided automobile
    * Adoption assistance program
    * Interest-free & below-market loans
Learning Objectives:

       After reading Chapter 4, participants will be able to:
    1. Recognize basic fringe benefit planning by determining “income” under §61, and identify the differences between former nonstatutory and current statutory fringe benefits created by recent cases, rulings, and tax law changes.
    2. Specify the mechanics of typical fringe benefits, determine the fair market value of a fringe benefit under the general valuation rule or the special valuation rules, and identify the general accounting rule and the special two-month pour-over accounting rule.
    3. Identify an “employee achievement award” under §274, and recognize the rules for group term life insurance under §79 noting how to implement proper coverage.
    4. Determine the mechanics of self-insured medical reimbursement plans under §105, and specify the requirements of medical insurance under §106 noting differences.
    5. Identify the rules for excluding the value of meals and lodging under §119, and “cafeteria plans” and how they operate.
    6. Recognize the requirements and limits of employee educational assistance programs and dependent care assistance noting how to obtain each type of assistance.
    7. Identify “no-additional-cost services” and determine what property or services are excludable from income as qualified employee discounts under §132(c), and specify exceptions to working condition fringes and de minimis fringes.
    8. Determine the requirements for qualified transportation fringe benefits under §132(f), specify valuation methods for employer-provided automobiles and, identify the qualifications for the popular physical fitness exclusion, and the requirements and benefits of adoption assistance programs.
    9. Recognize planning services available under §§132, 212 and 67, determine interest-free and below-market loans, identify child care benefits and corporate funded educational savings accounts, specify S corporation fringe benefits, and identify ERISA compliance requirements.
ASSIGNMENT       SUBJECT
Chapter 5                Business Entertainment

       At the start of Chapter 5, participants should identify the following topics for study:

    * Tests for entertainment expenses
    * Statutory exceptions
    * Quiet business meals & drinks
    * Ticket purchases
    * Percentage reduction for meals & entertainment
    * Entertainment facilities
    * Substantiation & record keeping
    * Employee expense reimbursement & reporting
    * Self-employed persons
    * Employers
Learning Objectives:

       After reading Chapter 5, participants will be able to:
    1. Identify the key tax terms “entertainment,” “lavish” and “extravagant,” recognize the required tests to ensure that entertainment expenses can be deducted, determine the importance of the statutory exceptions and the treatment of ticket purchases noting the percentage reduction restriction for meals and entertainment and, specify the over arching 2% floor on miscellaneous itemized deductions and how it can reduce business entertainment deductions.
    2. Determine what constitutes an “entertainment facility,” and identify substantiation, recordkeeping, reimbursement, and reporting requirements noting variations in methods, specify how to itemize non-reimbursed employee expenses and identify the special reporting rules for self-employed persons and employers.
ASSIGNMENT       SUBJECT
Chapter 6                Business Travel & Transportation

       At the start of Chapter 6, participants should identify the following topics for study:

    * Transportation & travel distinguished
    * Definition of “tax home”
    * Temporary & indefinite assignments
    * Away from home requirement
    * Business purpose requirement for business travel
    * Convention & meetings
    * Cruises & luxury water travel
    * Automobiles
    * Actual cost method
    * Standard mileage method
Learning Objectives:

       After reading Chapter 6, participants will be able to:
    1. Identify business travel and transportation concepts by specifying the differences between transportation and “tax home” sensitive travel to maximize deductible expenses.
    2. Recognize how time acts as a critical factor in distinguishing a temporary from an indefinite job assignment, cite the “away from home” requirement, and determine the factors associated with the business purpose requirement.
    3. Identify deductible meals, lodging, conventions, and meetings noting necessary compliance issues, specify the special requirements for cruises, determine the treatment of luxury water travel, recognize auto usage as a component of travel, cite the requirements for family member travel expenses and recognize the interplay of the "no additional cost" rule to ensure taxpayer compliance with §274.
ASSIGNMENT       SUBJECT
Chapter 7                Insurance

       At the start of Chapter 7, participants should identify the following topics for study:

    * Company paid insurance
    * 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
Learning Objectives:

       After reading Chapter 7, participants will be able to:
    1. Recognize the business and tax importance of available business insurance including the broad spectrum of company paid insurance, §79 group term life, retired lives reserve, spit dollar, former death benefit plans, business travel, disability, medical, and dental specifying permitted coverage and tax treatment.
    2. Determine the requirements and restrictions pertaining to the interest limitation on policy loans under §264, the interest limitation for tax-exempt interest income under §265, the conditions under which business owners may fully deduct amounts paid for medical and dental insurance and qualified long-term care insurance, recognize the application of the uniform capitalization rules, and identify the basic mechanics of health savings accounts.
ASSIGNMENT       SUBJECT
Chapter 8                Equity Participation

       At the start of Chapter 8, participants should identify the following topics for study:

    * Stock plans
    * Section 83
    * Stock appreciation rights plan
    * Qualified incentive stock options
    * Golden parachute agreements
    * Buy sell agreements
    * Entity & cross purchase agreements
    * Estate tax valuation
    * Funding the buy sell agreement
    * Purchase price & terms
Learning Objectives:

       After reading Chapter 8, participants will be able to:
    1. Recognize equity participation by specifying factors that determine the benefits of stock options, determine how to transfer an equity position, identify controlled sales, and cite programs to provide executives with an equity ownership interest in a business.
    2. Identify the taxation and use of nonqualified stock options under §83 noting the mechanism for stock appreciation rights (SARs) plans.
    3. Recognize the requirements of §422A noting which insure that a qualified incentive stock option is available, and recall changes the TRA ’86 made to the golden parachute rules and their effect on what constitutes a parachute payment.
    4. Determine tax advantaged entity purchase and cross purchase agreements, recognize the importance of funding a buy-sell agreement, and determine the value of closely held stock.
ASSIGNMENT       SUBJECT
Chapter 9                Estate Planning

       At the start of Chapter 9, participants should identify the following topics for study:

    * Unlimited marital deduction
    * Applicable exclusion amount
    * Stepped-up basis
    * Basic estate planning goals
    * Simple will
    * Types of trusts
    * Charitable trusts
    * Insurance trusts
    * Family documents
    * Private annuities
Learning Objectives:

       After reading Chapter 9, participants will be able to:
    1. Identify estate planning for business clients noting elements of estate tax planning that have remained unchanged by recent legislation, recognize the unlimited marital deduction including its effect on the gross estate of the value of property, and specify the applicable exclusion amounts for various years of death.
    2. Determine “stepped-up basis” noting the former “modified carryover basis” rules for estate tax purposes and identify the basis increase for certain business property.
    3. Specify several basic estate-planning goals and identify the benefits and drawbacks of the primary dispositive plans.
    4. Recognize the various types of trusts noting items necessary in business estate planning, specify multiple family estate documents that every taxpayer should consider, and identify the advantages and disadvantages of private annuities for the transferor and the transferee.
Course Contents :

Chapter 1 - Tax Economics

Financial Fundamentals

Tax Planning Elements

Assets, Income, & Cash

Income

Taxable

Income Splitting/Matching

Tax-free

Fringe Benefits

Tax-deferred

Section 1034 Sale or Exchange of Residence - Repealed

Section 1031 “Like Kind” Exchanges

Options

Deferred Compensation

Qualified Corporate Retirement Plans

Self-employed Plans

Individual Retirement Accounts

Installment Sales

Tax-sheltered

Age 55 Exclusion - Repealed

Home Sale Exclusion - §121

Municipal Bonds

Gifts & Inheritances

Life Insurance

Budgeting

Rule #1: Expenses - 60%

Rule #2: Taxes - 20%

Rule #3: Savings - 10%

Rule #4: Education - 10%

Cash

Acquisition

Assets

Management

Chapter 2 - Business Planning

Perspective

Financial Planning

Overall Compensation Planning

Periodic Review & Goal Setting

Employer Objectives

Targeting

Employee Objectives

Common Objectives

Small Companies

Larger Companies

Team Concept

Leader of the Pack

General Tax Strategies

Income Tax Rates

Individual Rates

Corporate Tax Rates

TRA ‘86

OBRA ‘93 & Current Rates

Capital Gains

Rates - §1

Personal Exemptions

Phase-Out

Dependents

Standard Deduction

W-4 Forms

Passive Loss Rules

Categories of Income & Loss

Exclusion of Personal Service Income

Deferral of Income

Equivalent To an “Interest-free” Loan

Tax Bracket Straddle

Tax Savings v. Loss of Buying Power

Protecting Deferred Amounts

Tax Deferral Is Not Elimination

Bottom Line

Acceleration of Deductions

Time Value of Deductions

Special Treatment of Fringe Benefits

Avoiding Taxable Income

Excluded Statutory Fringe Benefits

Foreign Earned Income

Housing Exclusion

Ministers

Worker’s Compensation

Personal Injury

Employee Death Benefits - Repealed

Unreasonable Compensation

Overall Limitation

Scope of Examination

Factors

Employee’s Qualifications

Size of the Business

Employee’s Compensation History

Services Performed by the Employee

Miscellaneous Factors

Chapter 3 - Deferred Compensation Plans

Can You Afford The Deferral?

Mandatory v. Voluntary Plans

Types of Deferred Compensation

Funded

Unfunded

Qualified

Nonqualified

Forfeitable

Nonforfeitable

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

Contractual Arrangement

Necessary Provisions

Tax Status

Service’s Position

Rationale

Congressional Moratorium

No Ruling or Regulation Policy

Constructive Receipt

Beyond Actual Receipt

Simple Set Asides Are Not Possible

Revenue Ruling 60-31

Regulations

Time & Control Concept

Control

Timing

After the Fact Contract

Amendment to Existing Contract

Economic Benefit

Has Something of Value Been Transferred?

Insurance Coverage Has a Calculable Value

Segregated Funds Have Immediate Economic Value

Value v. Control

Revenue Ruling 60-31

Situation 1

Situation 2

Situation 3

Situation 4

Situation 5

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 for Cash or Accrual

Separate Accounts for Two or More Participants

Employer Deduction Traps

Income Tax on Employer Held Assets

Inclusion in Income under §409A

State Tax Issues

Accounting

Two Sets of Rules

Financial Accounting Rules

IRS Rules

Estate Planning Considerations

Death during Deferral

Income Tax Consequences

Estate Tax Consequences

Gift Tax Consequences

Withholding, Social Security & IRA’s

Other Payroll Taxes

Social Security Benefits

IRA’s

Qualified Deferred Compensation - Retirement Plans

Qualified Deferred Compensation

Qualified v. Nonqualified Plans

Major Benefit

Current Deduction

Timing of Deductions

Part of Total Compensation

Compensation Base

Salary Reduction Amounts

Benefit Planning

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

Nondiscrimination Compliance

Contribution & Benefit Limits

Defined Benefit Plans (Annual Benefits Limitation) - §415

Defined Contribution Plans (Annual Addition Limitation) - §415

Limits on Deductible Contributions - §404

Assignment & Alienation

Miscellaneous Requirements

Basic Types of Corporate Plans

Defined Benefit

Mechanics

Defined Benefit Pension

Defined Contribution

Mechanics

Discretion

Favorable Circumstances

Types of Defined Contribution Plans

Profit Sharing

Requirements for a Qualified Profit Sharing Plan

Written Plan

Eligibility

Deductible Contribution Limit

Substantial & Recurrent Rule

Money Purchase Pension

Cafeteria Compensation Plan

Thrift Plan

Section 401(k) Plans

Death Benefits

Defined Benefit Plans

Money Purchase Pension & Target Benefit Plans

Employee Contributions

Non-Deductible

Life Insurance in the Qualified Plan

Return

Universal Life

Compare

Plan Terminations & Corporate Liquidations

10-Year Rule

Lump-Sum Distributions

Asset Dispositions

IRA Limitations

Self-Employed Plans - Keogh

Contribution Timing

Controlled Business

General Limitations

Effect of Incorporation

Mechanics

Parity with Corporate Plans

Figuring Retirement Plan Deductions For Self-Employed

Self-Employed Rate

Determining the Deduction

Individual Plans - IRA’s

Deemed IRA

Mechanics

Phase-out

Special Spousal Participation Rule - §219(g)(1)

Spousal IRA

Eligibility

Contributions & Deductions

Employer Contributions

Retirement Vehicles

Distribution & Settlement Options

Life Annuity Exemption

Minimum Distributions

Required Minimum Distribution

2009 Waiver of Required Minimum Distribution Rules

Definitions

Distributions during Owner’s Lifetime & Year of Death after RBD

Sole Beneficiary Spouse Who Is More Than 10 Years Younger

Distributions after Owner’s Death

Inherited IRAs

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 4 - Basic Fringe Benefits

Concept

Definition of Income - §61

Deductions without Taxable Income

Benefit Mechanics

Old Dichotomy - Statutory v. Nonstatutory

Fringe Benefit Provisions

TRA ‘84 - §132

Discrimination

Only Statutory Benefits Remain

General Valuation Rule

Fair Market Value

Special Valuation Rules

Restrictions on Special Valuation Rules

Withholding & Accounting

General Accounting Rule

Special 2-Month Pour-Over Accounting Rule

Types of Benefits

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

Monthly Cost Table

Family Member Cost

Employment Taxes

Group Requirements

Employee

Permanent Benefits

Discriminatory Plan

Eligibility

Type & Amount of Benefits

Key Employee

Self-Insured Medical Reimbursement Plans - §105

Allowable Expenses

Requirements

Benefits

Reporting

Exposure

Medical Insurance - §106

Group Health Plan Restrictions - COBRA

Coverage Requirement

Continuation Requirement

American Recovery & Reinvestment Act

Exemptions

Continuation Period

Notice

Meals & Lodging - §119

Convenience of Employer

Substantial Nonpay Reasons

Meals with a Charge

Lodging Required by Employer

Highly Compensated Employees

50% Limit on Meals

Cafeteria Plans - §125

Definition

Qualified Benefits

Non-Qualified Benefits

Controlled Group Rules

Salary Reduction Plans

Nondiscrimination

Highly Compensated Participants

Key Employees

Timing

Reporting Requirements

Employee Educational Assistance Programs - §127

Requirements

Educational Assistance

Dependent Care Assistance - §129

Amount of Assistance

Requirements

55% Test

Reporting

Conflict with Dependent Care

No-Additional-Cost Services - §132(b)

Covered Employees

Line of Business Requirement

Definition

Reciprocal Agreements

Nondiscrimination

Highly Compensated Employee

Qualified Employee Discounts - §132(c)

Manner of Discount

Real Estate & Investment Property Exclusion

Amount of Discount

Nondiscrimination

Working Condition Fringes - §132(d)

Covered Employees

Additions to Exclusion

Substantiation

Exceptions

De Minimis (Minimal) Fringes - §132(e)

Subsidized Eating Facilities

Qualified Transportation - §132(f)

Commuter Highway Vehicle

Transit Pass

Qualified Parking

Exclusion Limits

Employer Provided Automobile - §132 & §61

General Valuation Method

Special Method #1 - Lease Value

Annual Lease Value

Fair Market Value

Safe Harbor Value

Items Included in Annual Lease Value Table

Prorated Annual Lease Value

Daily Lease Value

Special Method #2 - Cents Per Mile

Regular Use

Mileage Rule

Items Included In Cents-Per-Mile Rate

Special Method #3 - Commuting Value

Control Employee

Employer-Provided Transportation in Unsafe Areas

Qualified Employee

Physical Fitness Programs - §132(h)(5)

Adoption Assistance Program - §137

Employment Taxes

Conflict with Adoption Credit

Eligible Child

Child with Special Needs

Limits on the Exclusion

Dollar Limit

Income Limit

Timing

Employer-Provided Retirement Advice & Planning - §132

Financial Planning - §212 & §67

Popularity

Taxation

Tax Planning - §212 & §67

Taxation

Estate Planning - §212 & §67

Moving Expenses - §217

Statement to Employees

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

25% Credit Allowed For Employer Child Care Facilities

Corporate Funded Educational Savings Accounts

Fringe Benefit Plans for S Corporations

ERISA Compliance

Welfare Plans

Additional Requirements

Chapter 5 - Business Entertainment

Definition

Lavish or Extravagant Restriction

Ordinary & Necessary Requirement

Directly Related Test

Clear Business Setting Presumption

Associated Test

Substantial Business Discussion

Timing

Conventions

Statutory Exceptions

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

Quiet Business Meals & Drinks

Taxpayer's (or Employee) Presence

Section 212 Meals Not Deductible

Home Entertainment

Ticket Purchases

Exception for Charitable Sports Events

Special Limitation for Skyboxes

Percentage Reduction for Meals & Entertainment

Related Expenses

Application of Reduction Rule

Exceptions

2% Floor on Employee Business Expenses

Miscellaneous Itemized Deductions

Entertainment Facilities

Exceptions

Covered Expenses

Club Dues

OBRA '93

Sales Incentive Awards

Substantiation & Record Keeping

Documentation

Contemporaneous Records

Payback Agreements

Employee Expense Reimbursement & Reporting

Family Support Act of 1988

Remaining Above-The-Line Deductions

Accountable Plans

Reasonable Period of Time

Fixed Date Safe Harbor

Period Statement Safe Harbor

Adequate Accounting

Per Diem Allowance Arrangements

Federal Per Diem Rate

Related Employer

Meal Break Out

Partial Days of Travel

Usage & Consistency

Unproven or Unspent Per Diem Allowances

Travel Advance

Reporting Per Diem Allowances

Reimbursement Not More Than Federal Rate

Reimbursement More Than Federal Rate

Nonaccountable Plans

Non-Reimbursed Employee Expenses

When an Employee Needs to File Form 2106

Self-Employed Persons

Expenses Related to Taxpayer's Business

Expenses Incurred on Behalf of a Client & Reimbursed

Meal & Entertainment Expenses

With Adequate Accounting

Without Adequate Accounting

Non-Entertainment Expense Deduction

Employers

When Can an Expense Be Deducted?

Economic Performance Rule

Corporation

Nondeductible Meals

Employer Provided Auto

Chapter 6 - Business Travel & Transportation

Concept

Transportation and Travel Distinguished

Travel Expenses

Transportation Expenses

Definition of “Tax Home”

Circuit Court Test

IRS Test

Employment Area

No Tax Home

Itinerant Worker

Two Work Locations

Temporary & Indefinite Assignments

Temporary Assignment

Indefinite Assignment

Time

Prior Law Presumptions

One-Year IRS Presumption

Less than Two-Year Exception

Regular Home

Temporary Job That Became Permanent

Current Law - One-Year Rigid Time Rule

Away From Home Requirement

Sleep & Rest Rule

Correll Case

Business Purpose Requirement

All or Nothing

Primarily for Business Test

Time

Other Factors

Existing Trade or Business

51/49 Percent Test

Domestic Business Travel

Foreign Business Travel

Personal Pleasure

Primarily Business

Full Deduction

Definition of Business Day

Meals & Lodging

50% Deduction Limitation

Conventions and Meetings

Agenda Test

Foreign Conventions

Factors

North American Area

Allowable Expenses

Cruises

Deduction Limitation

Reporting Statements

Luxury Water Travel

Exceptions

Family Member Travel Expenses

Automobiles

Apportionment of Personal & Business Use

Actual Cost Method

Deduction Limitations

Definition of Car

Depreciation and Expensing

Placed in Service

MACRS

Double Declining Balance Method

Depreciation (“Caps”) Limits - §280F(a)

Deduction in Years after the Recovery Period

Bonus (or Additional First Year) Depreciation

Expensing Limits

Investment Tax Credit – Gone, Gone, Gone

Predominate Business Use Rule

Qualified Business Use

More Than 50% Use Test

Limitations

Recapture

ITC Recapture

Excess Depreciation Recapture

Leasing Restrictions

Cars Leased After 1986

Standard Mileage Method

Limitations on Standard Mileage Method

Must be an Individual

Alternating Use

Husband & Wife

Switching Methods

Charitable Transportation

Medical Transportation

Chapter 7 - Insurance

Company Paid Insurance

Popularity

Types of Life Insurance

Group Term Life - §79

Requirements

Cost Of Group-term Life Insurance

“Key Employee” Defined

Retired Lives Reserve

Revenue Ruling 68-577

Taxation

Split Dollar Life

Low Cost Term Insurance

Regulatory Requirements

Taxation

Death Benefit Only Plan - Repealed

Business Travel Accident Insurance

Medical & Dental Insurance

Premiums

Disability Income Insurance

Repeal of Exclusion

Tax Credit for Disabled

Interest Limitation on Policy Loans - §264

Deductibility of Premiums & Interest on Life Insurance

Exclusion Of Inside Buildup & Amounts Received

Premium Deduction Limitation

Interest Deduction Disallowance With Respect To Life Insurance

Prorata Disallowance of Interest on Debt to Fund Life Insurance

Interest Limitation for Tax-Exempt Interest Income

Other Selected Insurances

Self-Employed Health Insurance Deduction

Long-Term Care Premiums

Capitalized Insurance

Health Savings Accounts

Small Business Health Insurance Expense Tax Credit - §45R

Chapter 8 - Equity Participation

Perspective

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

Golden Parachute Agreements

Small Business

Buy Sell Agreements

Definition

Professional Corporations

Marketability Problems

Controlled Disposition

Entity & Cross Purchase Agreements

Stepped-Up Basis

Resulting Equity Ownership

Attribution & Constructive Ownership Rules

Estate Tax Valuation

Using the Buy Sell Agreement to Set Value

Section 2703 Restrictions

Exceptions to §2703

Arm’s Length Bargain

Enforcement of Contract Price

Basis

Joint ownership

Funding the Buy-Sell Agreement

Life Insurance Funding

Term vs. Whole Life

Policy Ownership

Premium Payment

Purchase Price & Terms

Valuation

Chapter 9 - Estate Planning

Unlimited Marital Deduction

Outright To Spouse

Marital Deduction Trust

Qualified Terminable Interest Property Trust

Applicable Exclusion Amount

Spousal Portability of Unused Exemption Amount - §2010(c)(2)

Stepped-up & Modified Carryover Basis

Modified Carryover Basis - §1022

Limited Basis Increase for Certain Property

2010 Special Election

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

Regulations Restrict Private Annuity Income

 

Glossary

Taxes Course 206 Home: https://www.cpethink.com/tax-cpa-courses
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