0
| Author : | Danny C Santucci, JD |
| Course Length : | Pages: 299 ||| Review Questions: 200 ||| Final Exam Questions: 175 |
| CPE Credits : | 35.0 |
| IRS Credits : | 35 |
| Price : | $164.95 |
| Passing Score : | 70% |
| Course Type: | NASBA QAS - Text - Technical - NASBA Registry - IRS Enrolled Agents |
| Primary Subject-Field Of Study: | Taxes - Taxes for Course Id 201 |
| Description : | Designed to make the practitioner comfortable with “high traffic” issues, this program enables participants to discuss and handle business/personal tax essentials. The course examines and explains the practical aspects of individual & corporate planning, bridging the gap between theory and application. Significant new developments are summarized with emphasis on tax savings ideas. This course examines and explains the practical aspects of using a closely held corporation to maximize after-tax return on business operations. Recent developments giving corporations a competitive edge over other entities are explored and detailed. Practitioners are alerted to often missed fringe benefits, retirement planning opportunities, corporate business deductions, income splitting possibilities, and little-known estate planning techniques. |
| 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 : |
What Is Income Tax and How Are Different Types Calculated?
|
| Advance Preparation : | None. |
| Delivery Method : | QAS Self Study |
| Intended Participants : | Anyone needing Continuing Professional Education (CPE). |
| Revision Date : | 08-Nov-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 - 201 |
| Keywords : | Taxes, Guide, Federal, Corporate, Individual, 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 Individual Tax Elements At the start of Chapter 1, participants should identify the following topics for study:
* Filing status * Gross income * Dividends and distributions * Discharge of debt income * Exclusions from income * Nonbusiness and personal deductions * Education and medical expenses * Casualty and theft losses * Tax credits After reading Chapter 1, participants will be able to:
2. Specify the various filing statuses and their filing requirements recognizing the advantages and disadvantages of each. 3. Determine what constitutes gross income under 61 stating the tax treatment of compensation, fringe benefits, rental income, Social Security benefits, alimony, prizes, and awards, identify dividend and distribution types and their tax differences, and specify how debt discharge can result in taxable income. 4. Identify the mechanics of income exclusions such as education-related exclusions, gift and inheritance exclusions, insurance, personal injury awards, interest on state and local obligations, and the foreign earned income exclusion. 5. Recognize income tax deductions and their use to reduce tax liability by:
b. Specifying the deductibility of 163 interest categories, 162 educational expenses, pre-2018 217 moving expenses, pre-2018 165 casualty & theft losses, and 164 taxes stating their proper reporting and substantiation; c. Determining variables that impact the deductibility of charitable contributions, and identifying qualified organizations, permissible contributions contribution limitations, their tax treatment, and substantiation requirements; d. Identifying the deductibility of medical care expenses including medical insurance, meals and lodging, transportation, home improvements, and lifetime care payments recognizing the impact of Medicare; e. Specifying deductions that are subject to the pre-2018 2% of AGI limitation, deductions not subject to the 2% limit, and nondeductible expenses. Chapter 2 Property Transfers & Retirement Plans At the start of Chapter 2, participants should identify the following topics for study:
* Installment sales * Repossession * Involuntary conversions * At-risk rules * Like-kind exchanges * Qualified deferred compensation * Basic requirements of a qualified pension plan * Basic types of corporate plans * IRAs and SIMPLE plans After reading Chapter 2, participants will be able to:
2. Identify the application elements of the 121 home sale exclusion specifying the associated safe harbor regulations. 3. Recognize the importance of the installment method and 453 requirements, and specify the 453 basic terminology. 4. Identify the variables that determine which 1038 rules apply recognizing distinctions among the rules, calculations, and effects of repossessions of personal property and repossessions of real property, and recognize when a bad debt deduction may be taken on a repossession. 5. Specify the tax treatment of a 1033 involuntary conversion by:
b. Identifying gain or loss from condemnations recognizing the reporting of payments associated with involuntary conversions; and c. Determining whether clients can postpone gain on condemned, damaged, destroyed, or stolen property and specifying the related party rule. 7. Identify qualified deferred compensation plans and nonqualified plans by:
b. Recognizing the current and deferred advantages and the disadvantages of corporate plans stating fiduciary responsibilities and prohibited transactions. 9. Determine the distinctions between defined contribution and defined benefit plans, specify the types of defined contribution plans, and identify their effect on retirement benefits. 10. Identify how self-employed plans differ from qualified plans for other business types and owners, and specify the requirements of IRAs and the special requirements of Roth IRAs. 11. Determine what constitutes SEPs and SIMPLEs recognizing the mechanics and eligibility requirements of each type of plan. Chapter 3 Losses, AMT & Compliance At the start of Chapter 3, participants should identify the following topics for study:
* Suspension of disallowed losses under 469 * Computing the alternative minimum tax * Minimum AMT tax credit * Reporting compliance rules and provisions * Accuracy related penalties * Information reporting penalty final regulations * Penalty for unrealistic position * Statute of limitations for assessments * Examination of returns After reading Chapter 3, participants will be able to:
2. Specify differences between the regular and alternative minimum tax recognizing the application tax preferences and adjustments, and determine the life of assets under ADS, alternative minimum taxable income, passive losses under the AMT, and what constitutes ACE. 3. Identify the reporting requirements for real estate transactions, independent contractors, and cash reporting. 4. Recognize types of accuracy related and unrealistic position penalties, and specify the IRS's examination of returns policy and assessment process including applicable statute of limitations. Chapter 4 Business Forms & Characteristics At the start of Chapter 4, participants should identify the following topics for study:
* Partnerships * Estates & trusts * Unincorporated associations * Corporation defined * Subchapter S corporations * Ordinary C corporations * Personal service corporations * Corporate tax rates * Alternative minimum tax After reading Chapter 4, participants will be able to:
2. Recognize partnerships and their advantages and disadvantages, identify partnership taxation, particularly the application of the passive loss (469) and at-risk rules (465), and determine correct partnership income or loss reporting stating the role of husband and wife partnerships and limited partnerships. 3. Identify the reporting requirements of estates, trusts, and unincorporated associations, determine what constitutes a corporation for a subchapter S or regular corporation, specify the characteristics of a personal service corporation and recognize the repeal of the alternative minimum tax for regular corporations. Chapter 5 Corporate Formation & Capitalization At the start of Chapter 5, participants should identify the following topics for study:
* Start-up & organizational expenses * Tax recognition of the corporate entity * Capital gains & losses * Dividends received deduction * Charitable contributions * Accumulated earnings tax trap * Accounting periods & methods * Inventories * Multiple corporations After reading Chapter 5, participants will be able to:
2. Recognize the requirements of 1244 and the small business stock exclusion, determine the differences between start-up and organizational expenses and, identify the elements of corporate tax recognition including the dangers of corporate ownership and capital gains and losses stating dividends received treatment. 3. Specify the requirements for corporate charitable contributions, identify former 341 collapsible corporations, and determine how to avoid 541 status, particularly as to personal service contracts. 4. Identify 531 status and determine accounting periods and methods available to corporations. 5. Specify methods for identifying inventory items including common methods of valuing inventory and, identify multiple corporation tax advantages and the tax consequences of corporate liquidations and distributions. Chapter 6 Corporate Principals & Employees At the start of Chapter 6, participants should identify the following topics for study:
* FICA & FUTA * Employee labor laws * Employee v. contractor status * Unreasonable compensation * Income splitting * Buy-sell agreements * Entity & cross-purchase agreements * Sole shareholder planning * Recapitalization After reading Chapter 6, participants will be able to:
2. Recognize common-law rules used to determine employee status for FICA and federal income tax withholding, specify the dangers of unreasonable compensation stating how to avoid them, and determine how a corporation can be a valuable income-splitting device. 3. Identify a buy-sell agreement distinguishing an entity purchase from a cross-purchase agreement and recognize business recapitalizations and their potential uses. Chapter 7 Basic Fringe Benefits At the start of Chapter 7, participants should identify the following topics for study:
* No additional cost services & qualified employee discounts * Working condition fringes * Employee achievement awards * Dependent care assistance * Cafeteria plans * Self-insured medical reimbursement plans * Employer-provided automobile * Interest-free & below-market loans * Fringe benefit plans for S corporations After reading Chapter 7, participants will be able to:
2. Determine no-additional-cost services and identify what property or services are excludable from income as qualified employee discounts under 132(c), specify exceptions to working condition fringes and de minimis fringes, recognize a 74 employee achievement award, and cite the 79 group term life insurance rules. 3. Recognize the requirements and limits of 129 dependent care assistance, identify 125 cafeteria plans specifying how they function, specify the 119 meals and lodging exclusion, cite the mechanics of 105 self-insured medical reimbursement plans, and determine the requirements and limits of 127 programs. 4. Identify employer-provided automobiles valuation methods, determine what constitutes interest-free and below-market loans, specify the requirements and limitations of fringe benefits under 217, 132, 67 212, 132(h)(5) and 280A, cite S corporation fringe benefits, and specify ERISA compliance requirements. Chapter 8 Business Entertainment At the start of Chapter 8, participants should identify the following topics for study:
* Statutory exceptions * Former quiet business meals & drinks * Pre-2018 ticket purchases * Percentage reduction for meals & entertainment * Entertainment facilities * Substantiation & record keeping * Employee expense reimbursement & reporting * Self-employed persons * Employers After reading Chapter 8, participants will be able to:
2. Determine the former treatment of ticket purchases, recognize the percentage reduction restriction for meals, specify the application of the former 2% deduction limit and determine an entertainment facility stating related deductible costs. 3. Identify substantiation, recordkeeping, reimbursement, and reporting requirements recognizing variations in methods and determine how to itemize non-reimbursed employee expenses, and specify the special reporting rules for self-employed persons and employers. Chapter 9 Insurance At the start of Chapter 9, participants should identify the following topics for study:
* Group term life insurance * Regulations * Retired lives reserve * Split-dollar life insurance * Medical & dental insurance * Interest limitation on policy loans * Key person life insurance * COBRA * VEBAs - 501(c)(9) Trusts After reading Chapter 9, participants will be able to:
b. Determining corporate uses for life insurance including estate, travel and accident uses and specifying the tax treatment, reporting requirements, and discrimination rules for business insurance particularly the 79 requirements for group insurance; c. Identifying the benefit of not needing a medical examination as a prerequisite to purchasing a plan; d. Recognizing retired lives reserve and split-dollar life insurance stating their mechanics, taxation regulation, and advantages and disadvantages; e. Specifying the mechanics of employer-paid health, medical, and disability income insurance including the impact of medical examination requirements. Chapter 10 Nonqualified Deferred Compensation At the start of Chapter 10, participants should identify the following topics for study:
* Purposes & benefits * Constructive receipt * Economic benefit * Funded company account plan * Segregated asset plan * Tax consequences * Accounting * Estate planning considerations * Withholding, Social Security & IRAs After reading Chapter 10, participants will be able to:
b. Specifying deferred compensation patterns set forth in R.R. 60-31 stating the taxability of each; and c. Determining unfunded and funded plans and the use of company assets or bookkeeping accounts to avoid employee taxation. Chapter 11 S Corporations At the start of Chapter 11, participants should identify the following topics for study:
* S corporation status * Termination * Income & expense * Built-in gain * Passive income * Basis of stocks & debts * Distributions * Form 1120S * Fringe benefits After reading Chapter 11, participants will be able to:
2. Identify variables that impact whether a business can choose S corporation status. 3. Cite ways an S corporation may be terminated specifying related procedures to be followed. 4. Recognize the taxation and fringe benefits of S corporations as compared to other entity formats by:
b. Identifying the benefits available to other entity formats, determining S corporation owner compensation and distribution options recognizing reasonable compensation requirements, related party rules, S corporation distribution taxation, tax year choices, fringe benefits, and specifying when the Form 1120S must be filed. Chapter 12 Business Dispositions & Reorganizations At the start of Chapter 12, participants should identify the following topics for study:
* Buying an existing business * Type 1 reorganization * Type 2 reorganization * Type 3 reorganization * Type 4 reorganization * Type 5 reorganization * Type 6 reorganization * Type 7 reorganization * Carryover of corporate tax attributes After reading Chapter 12, participants will be able to:
b. Identifying advantages of purchasing an existing business over starting a new business, citing ways to find a business that is for sale, and specifying the tax considerations of such an acquisition; c. Specifying a reorganization under 368(a)(1) recognizing the types of transactions that qualify as non-taxable reorganizations; and d. Identifying the factors that determine the corporate tax attributes of an acquired corporation that carry over to the acquiring or successor corporation. |
| Course Contents : | Chapter 1 - Individual Tax Elements Federal Income Taxes: A Description Application of U.S. Individual Income Tax Gross Income Adjusted Gross Income (AGI) Taxable Income Standard Deduction Itemized Deduction Personal Exemptions Filing Status Rates & Tax Liability Tax Credits Rates, Tables, & Statutory Amounts Income Tax Rates - 1 Marriage Penalty - Mostly Gone Standard Deduction - 63 Dependent Limit - 63(c)(5) Personal Exemptions & Phaseout (Suspended) - 151 Limitation on Itemized Deductions - 68 Earned Income Tax Credit - 32 Disqualified Income - 32(i) Means-Tested Programs Social Security & Self-Employment Earnings Base Standard Mileage Rate Qualified Transportation Fringes Passenger Automobile Depreciation Limits (CAPS) Expensing Deduction - 179 Self-Employed Health Insurance Deduction Corporate Income Tax Rates 1993 Through 2017: 2018 & Later: 21% Withholding & Estimated Tax Estimated Tax - 6654 Social Security, Medicare & FUTA (or Payroll) Taxes FICA - 3111 & 3121 Temporary Employee OASDI Cut SECA - 1401 Temporary Sole Employer OASDI Cut Wage Base Additional Hospital Insurance Tax On Certain High-Income Individuals Final Regulations TD 9645 FUTA - 3301 & 3306 Filing Status Marital Status Single Taxpayers Divorced Persons Sham Divorce Annulled Marriages Married Taxpayers Same-Sex Marriage Marriage Penalty - Mostly Gone Spouses Death Married Persons Living Apart Filing Jointly Joint Liability Innocent Spouse Exception Nonresident Alien Filing Separately Special Rules Joint Return after Separate Returns Separate Returns after Joint Return Exception Head of Household Advantages Requirements of 2(b) Considered Unmarried Keeping Up a Home Qualifying Person Summary Qualifying Widow(er) With Dependent Child Gross Income Compensation Fringe Benefits Rental Income Advance Rent Security Deposits Payment for Canceling a Lease Social Security Benefits Taxability of Benefits Alimony & Spousal Support to Change in 2019 Restrictions & Requirements Prior to 2019 Pre-2019 Recapture Child Support Prizes & Awards - 74 & 274 Dividends & Distributions Ordinary Dividends Money Market Funds Dividends on Capital Stock Dividends Used to Buy More Stock Qualified Dividends Capital Gain Distributions Undistributed Capital Gains Form 2439 Basis Adjustment Real Estate Investment Trusts (REITs) Nontaxable Distributions Return of Capital Basis Adjustment Liquidating Distributions Distributions of Stock and Stock Rights Taxable Stock Dividends and Stock Rights Discharge of Debt Income Exceptions from Income Inclusion Reduction of Tax Attributes Order of Reductions Foreclosure Nonrecourse Indebtedness Recourse Indebtedness Mortgage Relief Act of 2007 Principal Residence Qualified Principal Residence Indebtedness Acquisition Indebtedness Bartering Barter Exchange Backup Withholding Recoveries Itemized Deduction Recoveries Recovery Limited to Deduction Recoveries Included in Income Non-Itemized Deduction Recoveries Amounts Recovered for Credits Tax Benefit Rule Children's Income Earned Income - 73 Unearned Income "Kiddie" Tax - 1(g) Application, Threshold & Impact Election to Report on Parents Return - 1(g)(7)(A) [Form 8814] Election Situations Definitions AMT Exemption for Children - 59(j) Exclusions from Income Educational Savings Bonds - 135 Income Exclusion Limitation MAGI Notice 90-7 Education Expenses Excludable Interest Forms 8818 & 8815 Scholarships & Fellowships - 117 Definitions Work Learning Service Programs Scholarship Prizes Education Expenses Education Assistance Programs - 127 Employer Educational Trusts - 83 Qualified Tuition Programs (QTP) - 529 Gift & Inheritance Exclusion Subsequent Income Divorce Business Gifts Employees Insurance Exceptions Purchase for Value Installment Payments Specified Number of Installments Specified Amount Payable Installments for Life Personal Injury Awards - 104 Personal Injury Emotional Distress Punitive Damages Tax Benefit Rule - 111 Interest State & Local Obligations - 103 Foreign Earned Income Exclusion - 911 Nonbusiness & Personal Deductions Itemized Deductions Limitation on Itemized Deductions Suspended - 68 Personal & Dependency Exemptions Suspended - 151 Deemed Personal Exemption for Related Incorporating Provisions Personal Exemptions Dependency Exemptions Dependency Before 2005 Dependency After 2004 & Before 2018 Suspension Residency Test Citizenship Relationship Test Age Test Joint Return Prohibition Exception Phaseout of Exemptions Interest Expense - 163 Personal Interest - 163(h)(1) Definition Deductibility Investment Interest - 163(d) Definitions Net Investment Income Limitation Qualified Residence Interest - 163(h)(3) [Form 8598] Definitions Limitations Acquisition Indebtedness Modified Home Equity Indebtedness Restricted Refinancing Home Improvements Timing Alternative Minimum Tax Co-ordination Points Home Purchase & Improvement Exception Refinancing Huntsman Case Mortgage Interest Statement Business Interest - 163(j) Allocation of Interest Expense Education Expenses Work-Related Education Prior to 2018 Educational Transportation Educational Travel Meal Expenses Work-Related Education After 2018 Higher Education Expense Deduction (Repealed) - 222 Dollar Limitation & Phase Out Educator Expenses - 62 Medical Expense Deductions - 213 [Schedule A] Items Deductible Items Not Deductible Medical Insurance Premiums Medicare Part A Medicare Part B Medicare Part D Prepaid Insurance Premiums Meals & Lodging Expenses of Transportation Permanent Improvements Spouses, Dependents & Others Reimbursement of Expenses Long-Term Care Provisions Long-Term Care Payments - 7702B(d)(4) Long-Term Care Premiums - 213(d)(10) IRA Withdrawals for Certain Medical Expenses ABLE Accounts - 529A Contributions Charitable Contributions - 170 [Schedule A] Requirements for Deductibility Qualified Organizations Limitations on Contributions Five-year Carryover Contributions of Cash Benefits Received Benefit Performances Athletic Event Seating Rights Repealed Raffle Tickets, Bingo, Etc. Dues, Fees, or Assessments Contribution of Property Clothing & Household Goods Ordinary Income or Short-Term Capital Gain Type Property Exception Capital Gain Type Property Exceptions Conservation Easements Loss Type Property Vehicle Donations Fractional Interests Other Types of Contributions Charitable Distributions from IRAs - 408 Substantiation Cash Contributions Contributions Less Than $250 Contributions of $250 or More Payroll Deduction Records Noncash Contributions Deductions of Less Than $250 Additional Records Deductions of At Least $250 But Not More Than $500 Deductions Over $500 But Not Over $5,000 Deductions over $5,000 Contributions over $75 Made Partly for Goods or Services Deduction for Taxes - 164 [Schedule A] Income Taxes Real Property Tax Accrual Method Taxpayers State & Local Sales Tax Deduction - 164 Personal Property Tax Other Deductible Taxes Examples of Non-Deductible Taxes Casualty & Theft Losses - 165 [Schedule A] Definitions Proof of Loss Amount of Loss Insurance & Other Reimbursements Limitations Allocation for Mixed Use Property 2% Itemized Deductions Suspended - 67 [Schedule A] Deductions - Subject to 2% Limit Deductions Not Subject To 2% Limit Nondeductible Expenses Moving Expenses Suspended - 217 Distance Test Time Test Time Test for Employees Time Test for Self-employment Deductible Expenses Travel Expenses Travel by Car Location of Move Reporting Reimbursements Credits Dependent Care Tax Credit - 21 [Form 2441] Eligibility Employment Related Expenses Qualifying Out-of-the-home Expenses Payments to Relatives Allowable Amount Dependent Care Assistance - 129 Reporting Earned Income Tax Credit - 32 [Form 1040] Persons with Qualifying Children Persons without a Qualifying Child Computation Phaseout Disqualified Income - 32(i) Means-Tested Programs Adoption Credit - 23 & 137 Qualified Adoption Expenses Exclusion from Income for Employer Reimbursements - 137 Child Tax Credit - 24 Credit Amount Qualifying Child $500 Credit for Certain Dependents - 24(h)(4)(A) Phase-out Refundable Child Care Credit Amount AMT & Child Tax Credit American Rescue Plan Act Of 2021 (ARPA) Temporary Provisions Phaseout Advance Payments Hope & Lifetime Learning Credits - 25A Lifetime Learning Credit - 25A(c) Phase Out - 25A(d)(1) Hope (with American Opportunity modifications) Credit Phase Out - 25A(d)(2) Refundable Ministers & Military - 107 Clergy Rental Value of a Home Members of Religious Orders Military & Veterans Wages - 61 Nontaxable Income - 134 Veterans Benefits - 134 Chapter 2 - Property Transfers & Retirement Plans Sales & Exchanges of Property Sale or Lease Easements Capital Gains & Losses Capital Assets - 1221 Capital Gains & Qualified Dividends Rate 1(h) Holding Periods - (1222 & 1223) Capital Losses - 1211 Business Property Basis of Property Basis Adjustments Property Received as a Gift Property Received by Inheritance Changes in Property Usage Stocks & Bonds Sale of Personal Residence - 121 Two-Year Ownership & Use Requirements Tacking of Prior Holding Period Prorata Exception Limitations on Exclusion Reduced Home Sale Exclusion for Periods of Nonqualified Use Computation Nonqualified Use Post-May 6, 1997 Depreciation Surviving Spouse Home Sale Exclusion Installment Sales - 453 General Rules Dealer Sales Unstated Interest Related Parties - 453(e) Disposition of Installment Notes - 453B Determining Installment Income Pledge Rule Escrow Account Depreciation Recapture Like-Kind Exchange Repossessions - 1038 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 Bad Debt Sellers Former Home Exception Involuntary Conversions - 1033 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 At Risk Limits for Real Estate - 465 Amount At Risk Qualified Nonrecourse Financing Taxpayers Affected Closely Held Corporation Qualified Corporation Exception Partner & S CorporationSharehholders Partner S Corporation Shareholder Section 1031 Like-Kind Exchanges Statutory Requirements & Definitions Qualified Transaction - Exchanges v. Sales Held for Productive Use or investment Investment Purpose Statutory Exclusions from 1031 Like-Kind Property Nature or Quality of Property Like-Kind Status for Personal Property Repealed Real v. Personal Property The Concept of Boot Realized Gain Recognized Gain Limitation on Recognition of Gain under 1031 The Definition of Boot The Rules of Boot Property Boot Mortgage Boot Netting Boot - The Rules of Offset Property Boot Given Offsets Any Boot Received Mortgage Boot Given Offsets Mortgage Boot Received Mortgage Boot Given Does Not Offset Property Boot Received Revenue Ruling 72-456 & Commissions Gain or Loss on Boot Basis on Tax-Deferred Exchange Allocation of Basis Installment Reporting of Boot Exchanges Between Related Parties Reporting an Exchange Types of Exchanges Two-Party Exchanges Three-Party Alderson Exchange Three-Party Baird Publishing Exchange Delayed Exchanges 45-Day Rule Method of Identification 180-Day Rule Final Regulations for Delayed (Deferred) Exchanges Deferred (Delayed) Exchange Definition Identification Requirements Identification & Exchange Periods Method of Identification Property Description Revocation Substantial Receipt Multiple Replacement Properties Actual & Constructive Receipt Rule Four Safe Harbors Safe Harbor #1 - Security Safe Harbor #2 - Escrow Accounts & Trusts Safe Harbor #3 - Qualified Intermediary Safe Harbor #4 - Interest Exchanges of Partnership Interests 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 Pension Protection Act of 2006 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 for 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 Diversification Rights 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 - IRAs 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 Definitions Required Minimum Distributions during Owners Lifetime Required Minimum Distributions in Year of the Owner's Death Beneficiaries - Distributions after Owners Death Estate Tax Deduction Charitable Distributions from IRAs - 408 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 Nonspouse Rollovers Roth IRA - 408A Eligibility Contribution Limitation Roth IRAs Only Roth IRAs & Traditional IRAs Conversions AGI Limit Exception Repealed 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 3 - Losses, AMT & Compliance Passive Losses Prior Law Passive Loss Rules Application Active Losses Credits Calculating Passive Loss Categories of Income & Loss Passive Portfolio Material Participation Self-Charged Interest Regulations Passive Deduction - Portfolio Income Regulations Suspension of Disallowed Losses Fully Taxable Disposition Abandonment & Worthlessness Related Party Transactions Credits Disallowance Increase Basis Election Entire Interest Partnership Grantor Trust Other Transfers Transfer By Reason Of Death - 469(g)(2) Transfer by Gift - 469(j)(6) Installment Sale - 469(g)(3) Activity No Longer Treated As Passive Activity - 469(f)(1) Closely Held To Nonclosely Held Corporation- 469(f)(2) Nontaxable Transfer Ordering of Losses Capital Loss Limitation Carryforwards Allocation of Suspended Losses Taxpayers Affected Noncorporate Taxpayers Regular Closely Held Corporations Personal Service Corporations Definition Real Estate Professionals Activities Facts & Circumstances Test Relevant Factors Rental Activities Limited Partnership Activities Partnership & S Corporation Activities Consistency Regrouping Partial Dispositions Alternative Minimum Tax - 55 Computation Tentative Minimum Tax AMT Exemption Amounts - 55(d) AMT Exemption Phaseout Regular Tax Deduction - 55(c) Tax Preferences & Adjustments Preferences & Adjustments for All Taxpayers Preferences & Adjustments for Noncorporate Taxpayers Only Preferences & Adjustments for Corporations Only Prior to 2018 Adjustments - 56 Itemized Deductions Medical Expenses Taxes Interest Depreciation Alternative Depreciation System (ADS) ADS Recovery Periods Asset Placed in Service After 1998 Mining Exploration and Development Costs Basis Election Long-Term Contracts Home Construction Contracts Pollution Control Facilities Installment Sales Circulation Expenditures Incentive Stock Options Credit for Prior Year Minimum Tax & ISOs Research & Experimental Expenditures Passive Farm Losses Definition Loss Disallowance Allocation Same Activity Suspension Passive Activity Losses Corporate Business Untaxed Reported Profits (Pre-1990) Corporate ACE Adjustment (1990 to 2018) Adjusted Current Earnings Regulations Tax Preferences - 57 Depletion Intangible Drilling Costs Excess Drilling Costs Accelerated Depreciation Real Property Personal Property Private Activity Bond Interest Alternative Tax NOL Deduction Carrybacks & Carryovers Alternative Minimum Foreign Tax Credit Foreign Tax Credit Carryback or Carryover Tentative Minimum Tax Minimum Tax Credit Regular Income Tax Reduced Carryforward of Credit Other Credits Compliance Reporting Requirements Real Estate Transactions [Form - 1099S] Independent Contractors Cash Reporting [Form 8300] Exceptions Recipients Knowledge Cash Reporting Rules - Attorneys Sale of Certain Partnership Interests (Form 8308) Tax Shelter Registration Number [Form 8271] Asset Acquisition Statement [Form 8594] Accuracy-Related Penalties Negligence Substantial Understatement of Income Tax Penalty on Carryover Year Return Substantial Valuation Overstatements Substantial Estate & Gift Tax Valuation Understatements Final Regulations Negligence or Disregard of Rules Substantial Understatement Penalty Adequate Disclosure Information Reporting & Penalties - 6721 et al Corrections Resulting in Reduced Penalties Small Businesses Reasonable Cause Penalty for Unrealistic Position Realistic Possibility Standard Adequate Disclosure Form 8275-R Statute of Limitations for Assessments Three Year Assessment Periods Six-Year Assessment Period No Statute Of Limitations Extension of Statute Of Limitations Examination of Returns How Returns Are Selected Arranging the Examination Transfers Representation Recordings Repeat Examinations Changes to Return Appealing Examination Findings Appeals Office Appeals to the Courts Court Decisions Recovering Litigation Expenses Other Remedies Claims for Refund Cancellation of Penalties Reduction of Interest Chapter 4 - Business Forms & Characteristics Sole Proprietorships Advantages Disadvantages Self-Employment Taxes Incorporation S Solution Estimated Tax Payments 20% Deduction Partnerships Conduit Entity Advantages Disadvantages Husband-Wife Partnerships General Tax Aspects Limited Partnerships Passive Presumption At-Risk Rules - 465 Financing Passive Loss Limitations - 469 Active/Passive Determination Triggering Suspended Losses Limited Liability Companies Estates & Trusts Income Distribution Business Trusts Unincorporated Associations Corporate Treatment Corporation Defined Effect of State Laws Corporate Characteristics Partnership Determinations Trust Determinations Professional Associations Check-The-Box Regulations Subchapter S Corporations Ordinary C Corporations Advantages Disadvantages Personal Service Corporations - 441, 448, 469 Testing Period Personal Services Principal Activity & Substantial Performance Employee-Owner Independent Contractor Passive Loss Limitations - 469(a)(2) Qualified Personal Service Corporation - 448 Federal Corporate Income Taxation Overview Taxable Income Allowable Deductions Tax Credits Corporate Tax Rates Tax Tables Current Rate - 21% Capital Gains Tax Return & Filing Affiliated Group Corporate Estimated Tax Alternative Minimum Tax Repealed Chapter 5 - Corporate Formation & Capitalization Incorporation - 351 Basic Requirements Corporate Nonrecognition Property Stock Solely For Services Impact on Recipient Impact on Other Shareholders Stock for Debt Stock Notes Control Property Basis Stock Basis Liabilities Miscellaneous Trade & Technical Corrections Act - 351 Recourse Liability Nonrecourse Liability Basis Incorporation of a Partnership Alternative #1 Alternative #2 Alternative #3 Tax Consequences - Alternative #1 Tax Consequences - Alternative #2 Tax Consequences - Alternative #3 Accounts Receivable Continuing Partnership Section 1244 Stock Maximum Ordinary Loss Original Issuance Distributed Stock General Requirements Start-Up Expenses Covered Expenses Amortization Organizational Expenses Definition Stock Issuance & Syndication Expenses Amortization Start of Business Tax Recognition of the Corporate Entity Tax Criteria Nominee & Agency Corporations Having Income Attributed to the Corporation Section 482 Reallocation Corporation & Shareholder Goodwill Interest-Free Loans Section 269A Capital Gains & Losses Net Capital Loss Carryovers & Carrybacks - 1212 S Corporation Status Asset Types Five-Step Characterization Process Netting Capital Gains Netting Section 1231 Gains (Losses) Character of Section 1231 Gains (Losses) 5 Year Averaging NOL Carryback & Carryover - 172 Loss Computation Deduction Computation Dividends Received Deduction - 243 Dividends from Domestic Corporations 65% Exception Ownership Limitation Denial of Deduction Debt-Financed Portfolio Stock Property Dividends Change to Holding Period Charitable Contributions Timing of Deduction Limitation Carryover of Excess Contribution Charitable Contributions of Computer Equipment - Expired Collapsible Corporations - 341 (Repealed) Definition Presumption Covered Transactions Personal Holding Companies - 541 Penalty Tax Professional Corporations Named Professionals Avoidance of PHC Status Accumulated Earnings Tax Trap - 531 Imposition of Penalty Tax Computation Accumulated Earnings Credit Application of Credit to Controlled Groups Reasonable Accumulations Working Capital Service Corporations Minority Stock Redemptions Majority Stock Redemptions Stockholder Harmony Tax Exempt Income Accounting Periods & Methods Accounting Periods Section 444 Election Business Purpose Tax Year 25% Test Length of Accounting Period Short Tax Year Not in Existence Entire Year Change in Accounting Period Election of Accounting Period Changing Accounting Periods Changes Without IRS Consent Accounting Methods Methods Available Cash Method Limitation Accrual Method Economic Performance Rule Special Methods Combination (Hybrid) Method Accounting for Long-term Contracts Changing the Accounting Method Inventories Identification Methods Specific Identification Method FIFO Method LIFO Method Valuation Methods Cost Method Uniform Capitalization Rules - 263A Lower of Cost or Market Method Multiple Corporations Controlled Group Restrictions Definition Parent-Subsidiary Groups Brother-Sister Groups Consolidated Returns Definition Corporate Liquidations & Distributions The Old General Utilities Doctrine Loss Limitations Chapter 6 - Corporate Principals & Employees Employee Status of Active Shareholders Payroll Tax Withholding & Reporting Form 941 Deposit Rules Lookback Period Monthly Depositor Semi-Weekly Depositor One-Day Rule Form W-4 Whistle-Blowing (Repealed) Form W-2 Form W-3 Social Securitys Payroll Tax or FICA - 3111 & 3121 Rates Deduction Federal Unemployment (FUTA) Tax - 3301 & 3306 Form 940 Employee Labor Laws Minimum Wage Requirement Overtime Fair Employment Laws Child Labor Laws Immigration Law Workers Compensation Insurance State Disability Insurance (SDI) OSHA Employee vs. Contractor Status Factors Unreasonable Compensation Overall Limitation Allowance of Deduction Publicly Traded Corporation Limitation Limitation on Accrual Deduction Employment Contracts Scope of Examination Officers Compensation Factors Employees Qualifications Size of the Business Employees Compensation History Unreasonably Low Salaries Services Performed by the Employee Past Service Reasonable Dividends Bonuses as Constituting Dividends Payback Agreements Miscellaneous Factors Income Splitting Gift & Redemption Hire the Kids & Spouse 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 Arms-Length Bargain Enforcement of Contract Price Joint Ownership Funding the Buy-Sell Agreement Term vs. Whole Life Policy Ownership Premium Payment Purchase Price S Corporations Sole Shareholder Planning Complete Liquidations Alternative Dispositions Use of Life Insurance Estate Valuation One-Way Buy-Outs Recapitalization In General Valuation of Stock Estate Freeze Provisions Stock Dividends Section 306 Tainted Stocks 306 Exceptions Chapter 7 - 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 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 - 217 Employer-Provided Retirement Advice & Planning - 132 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) 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 8 - Business Entertainment Pre-2018 Entertainment Former Directly Related Test Clear Business Setting Presumption Former Associated Test Substantial Business Discussion Timing Conventions Statutory Exceptions Miscellaneous Former Entertainment Provisions Home Entertainment Expenses Expense for Spouses Of Out Of Town Business Guests Ticket Purchase Face Value Restriction Charitable Sports Events Exception Skyboxes One Event Rule Related Parties Food & Beverages Employee Business Expenses Post-2018 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 Lavish or Extravagant Restriction Ordinary & Necessary Requirement Percentage Reduction for Meals - 274(n)(1) Application of Reduction Rule Exceptions - 274(n)(2) Employee Business Expenses Subject to 2% Floor Suspended Form 2106 Restricted Entertainment Facilities Exceptions Covered Expenses Club Dues OBRA '93 & TCJA Sales Incentive Awards Substantiation & Record Keeping - 274(d) Documentation Payback Agreements Employee Expense Reimbursement & Reporting TRA '86 - Unreimbursed Expenses Become Itemized Deductions Family Support Act - Reimbursement Without Accounting Is Income Accountable Plans Reasonable Period of Time Fixed Date Safe Harbor - #1 Period Statement Safe Harbor - #2 Adequate Accounting Per Diem Allowance Arrangements Federal Per Diem Rate Related Employer Restriction Usage & Consistency Unproven or Unspent Per Diem Allowances Reporting Per Diem Allowances Reimbursement Not More Than Federal Rate Reimbursement More Than Federal Rate Nonaccountable Plans Self-Employed Persons Expenses Related to Taxpayer's Business Reimbursed Expenses Incurred on Behalf of a Client With Adequate Accounting Without Adequate Accounting Employers When Can an Expense Be Deducted? Economic Performance Rule Nondeductible Meals Employer-Provided Auto Chapter 9 - Insurance Company Paid Insurance Popularity Types of Life Insurance Group Term Life Requirements Key Employee Defined Popularity and Application Coverage & Premiums Medical Examination Regulations Spouse & Dependent Insurance Computation Tax Liability Reporting Discrimination Eligibility & Benefits Excluded Employees Policy Requirements Ten Employee Rule Less Than Ten Employees Permanent Benefits Nondiscrimination Requirements Retired Lives Reserve Revenue Ruling 68-577 Taxation Advantages Comparison With Other Programs Executive Bonus Split-Dollar Disadvantages Reserve Account Revenue Rulings Qualified Trusts Nonqualified Trusts Deductibility of Contributions Separate Account for Key Employees Disqualified Benefit Effective Date Revenue Procedure 93-3 Estate Planning Considerations Policy Assignments Split-Dollar Life Low-Cost Term Insurance Regulatory Requirements Taxation Revenue Ruling 64-328 Johnson Case 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 Key Person Life Insurance Closely Held Corporations Sole Shareholder Applications COBRA Affected Employers VEBAs - 501(c)(9) Trusts Section 419 Self Insurance Severance Pay Post-Retirement Medical Benefits VEBA Taxation on Earnings Nondiscrimination Rules Applied Uniform Application Controlled Groups Termination Disqualified Benefits Conclusion Chapter 10 - Nonqualified Deferred Compensation Postponement of Income Advantages IRS Scrutiny & Approval Nondiscrimination ERISA Funding No Immediate Cash Outlay Annual Report Notice Requirement Purposes & Benefits Benefit Formula Incentive Deferred Bonuses Contractual Arrangement Necessary Provisions Tax Status Services 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 Still 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 & IRAs Other Payroll Taxes Social Security Benefits IRA's Chapter 11 - S Corporations Introduction Advantages Planning Disadvantages Passthrough Entities - 20% Deduction Becoming an S Corporation S Corporation Status Number of Shareholders Individuals Only Estates Grantor Trusts Voting Trusts Testamentary Trust Qualifying Simple Trusts Electing Small Business Trusts Aliens C Corporations Tax-Exempt Entities Exception for S Corporation ESOP - 512 One Class of Stock Affiliated Groups & Subsidiaries Prior Law Current Law Domestic Corporation Election Requirement Making the Election Form 2553 Invalid S Elections Extension S Corporation Termination Revoking the Election Procedure Effective Date Ceasing to Qualify Effective Date Passive Income - 1362 Effective Date S Termination Year Pro-Rata Allocation Allocation Based On Normal Accounting Rules Annualization of 1120 Short Year Taxation of S Corporations S Corporation Income & Expense Separately Stated Items Nonseparately Stated Items Interest Expense on Debt-Financed Distributions Tax Exempt Income Net Operation Losses Carryover of C Corporation NOLs Reduction of Pass-Thru Items Built-In Gain - 1374 Net Recognized Built-In Gain Recognized Built-In Gains Recognized Built-In Loss Deduction Items Amount of Tax Credits Net Operating Loss Carryovers Treatment of Certain Property Transfer of Assets Passive Income - 1375 Gross Receipts Sales or Exchanges of Stock or Securities Passive Investment Income Royalties Rents Interest Figuring the Tax on Excess Net Passive Income Net Passive Income Excess Net Passive Income Special Provisions Waiver of Tax Tax Preference Items LIFO Recapture Tax Capital Gains Tax Reducing Corporate Capital Gains Figuring Corporate Taxable Income Recapture of Investment Credit Estimated Corporate Tax Payments Basis of Stock & Debts Adjustments to Basis Limitation on Loss Deductions Basis Limit Adjustments to Stock Basis Increases Decreases Adjustments to Debt Basis Restoring Basis of Loans Loan Repayments Guarantees At-Risk Rules - 465 Reasonable Compensation Related Party Rules Definition of Related Party Stock Attribution Rules Business Expenses & Interest Distributions Earnings & Profits Accumulated Adjustments Account (AAA) Dividend Election Post-Termination Distributions Transition Period Order of Distribution No Earnings & Profits Appreciated Property Distributions Taxable Year Business Purpose Change of Tax Year Form 1120S Extension Late Filing Reasonable Cause Schedule K-1 Shareholders Treatment Of S Corporation Items Pro Rata Share Optional 10-year Write-Off of Tax Preferences Fringe Benefits Health Insurance Premiums Reporting Requirements Medical Deduction Entity Tax Comparison Chapter 12 - Business Dispositions & Reorganizations Starting a New Business Organization Costs Start-up Costs Syndication Costs Buying an Existing Business Finding a Business for Sale Tax Considerations Stock Acquisitions Section 338 Election Asset Acquisitions Allocation of Purchase Price to Assets Allocation Regulations Practical Considerations Reorganizations - 368 Types of Reorganizations Type 1 Reorganizations Benefits and Considerations Boot Limitation Type 2 Reorganizations 80% Control Requirement Voting Stock as Sole Consideration Shareholder Action Type 3 Reorganizations Consideration Transfer of Assets 90/70 Test Liquidation of Acquired Corporation Type 4 Reorganizations Asset Distributions Continuity of Business Boot Type 5 Reorganizations Type 6 Reorganizations Type 7 Reorganizations Bona Fide Business Purpose Test Carryover of Corporate Tax Attributes Mandatory Carry-Over Effect of Carry-Over on Acquisition Application of Rules to Subsidiary Liquidations Loss or Tax Credit Carryovers Glossary |
Login/Register