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Guide to Federal Corporate and Individual Taxation (Course Id 201)

Updated / QAS / Registry / EA
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Author : Danny C Santucci, JD
Status : Production
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 the 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 : 2021
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 : QAS Self Study
Intended Participants : Anyone needing Continuing Professional Education (CPE).
Revision Date : 02-Dec-2021
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 SUBJECT
Chapter 1 Individual Tax Elements

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

    * Tax rates and tables
    * 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
Learning Objectives:

After reading Chapter 1, participants will be able to:
    1. Identify federal revenue tax sources citing the definitive role of gross income and, determine a clients tax liability using current rates, tables, exemptions, and statutory amounts, and their withholding and/or estimated tax responsibility.
    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:
      a. Identifying personal, spousal, and dependency exemptions (now suspended) and reporting requirements including pre-2005 dependency rules;
      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.
    6. Determine distinctions among several types of tax credits identifying the eligibility requirements and citing changes created by recent tax legislation to individual tax returns.
ASSIGNMENT SUBJECT
Chapter 2 Property Transfers & Retirement Plans

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

    * Capital gains & losses
    * 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
Learning Objectives:

After reading Chapter 2, participants will be able to:
    1. Specify the differences among property sales, exchanges of property, and sales of easements, and determine capital gain and ordinary income tax treatment in property sales.
    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:
      a. Determining related terminology and the tax consequences of receiving a condemnation award or severance damages;
      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.
    6. Recognize the scope of the 465 at-risk rules and their effect on property depreciation, and identify the requirements, mechanics, and types of 1031 like-kind exchange.
    7. Identify qualified deferred compensation plans and nonqualified plans by:
      a. Determining the major benefit of the qualified deferred plans and the calculation basis of benefits and contributions; and
      b. Recognizing the current and deferred advantages and the disadvantages of corporate plans stating fiduciary responsibilities and prohibited transactions.
    8. Identify the requirements of the basic forms of qualified pension plans permitting clients to compare and contrast such plans.
    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.
ASSIGNMENT SUBJECT
Chapter 3 Losses, AMT & Compliance

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

    * Passive loss rules
    * 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
Learning Objectives:

After reading Chapter 3, participants will be able to:
    1. Identify basic income types and the buckets of income and loss under 469 that can influence what can be deducted, determine the suspension of disallowed passive losses, and recognize the special rules for transfers deemed not to be fully taxable dispositions.
    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.
ASSIGNMENT SUBJECT
Chapter 4 Business Forms & Characteristics

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

    * Sole proprietorships
    * Partnerships
    * Estates & trusts
    * Unincorporated associations
    * Corporation defined
    * Subchapter S corporations
    * Ordinary C corporations
    * Personal service corporations
    * Corporate tax rates
    * Alternative minimum tax
Learning Objectives:

After reading Chapter 4, participants will be able to:
    1. Specify the advantages and disadvantages of sole proprietorships including self-employed taxes and payment requirements and identify the characterization of sole proprietorship assets upon disposition.
    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.
ASSIGNMENT SUBJECT
Chapter 5 Corporate Formation & Capitalization

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

    * Incorporation
    * 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
Learning Objectives:

After reading Chapter 5, participants will be able to:
    1. Identify the transfer of money, property, or both by prospective shareholders and the basic requirements associated with 351.
    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.
ASSIGNMENT SUBJECT
Chapter 6 Corporate Principals & Employees

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

    * Payroll taxes
    * FICA & FUTA
    * Employee labor laws
    * Employee v. contractor status
    * Unreasonable compensation
    * Income splitting
    * Buy-sell agreements
    * Entity & cross-purchase agreements
    * Sole shareholder planning
    * Recapitalization
Learning Objectives:

After reading Chapter 6, participants will be able to:
    1. Determine payroll taxes and the uses of Form 941, Form W-4, Form W-2, and Form W-3, specify the application of FICA and FUTA taxes and how to report them, and identify major employee labor laws.
    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.
ASSIGNMENT SUBJECT
Chapter 7 Basic Fringe Benefits

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

    * Statutory v. nonstatutory benefits
    * 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
Learning Objectives:

After reading Chapter 7, participants will be able to:
    1. Identify basic fringe benefit planning by determining income under 61 and specifying the differences between former nonstatutory and current statutory fringe benefits.
    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.
ASSIGNMENT SUBJECT
Chapter 8 Business Entertainment

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

    * Pre- and post-2018 tests for entertainment expenses
    * 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
Learning Objectives:

After reading Chapter 8, participants will be able to:
    1. Define the key tax term entertainment" and identify the pre- and post-2018 required 162 & 274 deductibility tests recognizing the importance of the remaining statutory exceptions for entertainment.
    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.
ASSIGNMENT SUBJECT
Chapter 9 Insurance

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

    * Company paid insurance
    * 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
Learning Objectives:

After reading Chapter 9, participants will be able to:
    1. Recognize the importance and variety of business insurance by:
      a. Identifying the popularity and application of business life insurance plans specifying common coverage and premiums;
      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.
    2. Identify the impact of the disallowance of the interest deduction on purchasers and the insurance industry recognizing the 264 interest limitation on policy loans, specify the benefit of corporate key person life insurance, cite the requirements of COBRA, and determine what constitutes a Voluntary Employee Benefit Association under 501(c)(9).
ASSIGNMENT SUBJECT
Chapter 10 Nonqualified Deferred Compensation

At the start of Chapter 10, participants should identify the following topics for study:

    * Postponement of income
    * Purposes & benefits
    * Constructive receipt
    * Economic benefit
    * Funded company account plan
    * Segregated asset plan
    * Tax consequences
    * Accounting
    * Estate planning considerations
    * Withholding, Social Security & IRAs
Learning Objectives:

After reading Chapter 10, participants will be able to:
    1. Recognize the postponement of income with a nonqualified plan by:
      a. Identifying nonqualified plan advantages including ways to design the plans and specifying the IRSs position on such arrangements recognizing the impact of constructive receipt and economic benefit concepts;
      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.
    2. Identify the set up of a segregated asset plan where the account is not subject to the claims of the employers creditors and still avoids employee taxation and specify the tax consequences of establishing a nonqualified plan.
ASSIGNMENT SUBJECT
Chapter 11 S Corporations

At the start of Chapter 11, participants should identify the following topics for study:

    * Advantages & disadvantages
    * S corporation status
    * Termination
    * Income & expense
    * Built-in gain
    * Passive income
    * Basis of stocks & debts
    * Distributions
    * Form 1120S
    * Fringe benefits
Learning Objectives:

After reading Chapter 11, participants will be able to:
    1. Determine what constitutes an S corporation and specify the advantages and list disadvantages associated with them.
    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:
      a. Determining the tax treatment of S corporation income and expenses, pass-through items, built-in gain, passive income, tax preference items, LIFO recapture tax and capital gains tax and their impact on the taxation of S corporations; and
      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.
ASSIGNMENT SUBJECT
Chapter 12 Business Dispositions & Reorganizations

At the start of Chapter 12, participants should identify the following topics for study:

    * Starting a new business
    * 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
Learning Objectives:

After reading Chapter 12, participants will be able to:
    1. Recognize various business disposition and reorganization possibilities by:
      a. Determining how organizational costs, start-up costs, and syndication costs are incurred and specifying what expenditures they include and how they are treated;
      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

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