|Author :||Danny C Santucci, JD|
|CPE Credits :||35.0|
|IRS Credits :||35|
|Passing Score :||70%|
|Primary Subject-Field Of Study:||
Taxes - Taxation for Course Id 201
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|
|Prerequisites :||General understanding of federal income taxation.|
|Experience Level :||Overview|
|Additional Contents :||Complete, no additional material needed|
|Additional Links :|
|Advance Preparation :||None|
|Delivery Method :||Self-Study|
|Intended Participants :||Anyone needing Continuing Professional Education (CPE)|
|Revision Date :||07-Jun-2016|
|NASBA Course Declaration :||Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam.|
|Approved Audience :||
NASBA QAS - NASBA Registry - IRS Enrolled Agents - 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:
* 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 noting the advantages and disadvantages of each.
3. Determine what constitutes gross income under §61 noting 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 five fundamental categories of interest expense noting whether they are deductible;
c. Recognizing which education expenses are deductible and nondeductible;
d. Determining what constitutes Medicare and whether medical care expenses including medical insurance premiums, costs for meals and lodging, transportation expenses, expenditures for making permanent improvements to a home and lifetime care advance payments are deductible or nondeductible;
e. Specifying variables that impact the deductibility of charitable contributions, identifying qualified organizations and limitations for these purposes, and identifying the types of contributions that can be made, their tax treatment, and substantiation requirements;
f. Identifying the taxes that individuals may deduct under §164 and specifying the differences between casualty and theft noting the rules for taking a deduction for all or part of each loss;
g. Specifying deductions that are subject to the 2% of AGI limitation, deductions not subject to the 2% limit, and nondeductible expenses; and
h. Determining whether a taxpayer meets distance and time tests for deductible moving expenses under §217.
Chapter 2 Property Transfers & Retirement Plans
At the start of Chapter 2, participants should identify the following topics for study:
* Installment sales
* 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 noting 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 noting 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 noting 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 noting 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 noting 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 noting 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:
* 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 identifying the advantages and disadvantages, recall partnerships taxation particularly the application of the passive loss (§469) and at-risk rules (§465), and choose correct partnership income or loss reporting noting husband and wife partnerships and limited partnerships.
3. Identify the reporting requirements of estates, trusts and unincorporated associations, determine what constitutes a “corporation” from a subchapter S or regular corporation, specify the characteristics of a personal service corporation noting the alternative minimum tax for such corporations, and identify preferences and adjustments that apply to different types of taxpayers.
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
* 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 noting 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
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 noting 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” noting 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
* Quiet business meals & drinks
* Ticket purchases
* Percentage reduction for meals & entertainment
* Entertainment facilities
* Substantiation & record keeping
* Employee expense reimbursement & reporting
* Self-employed persons
After reading Chapter 8, participants will be able to:
2. Determine the treatment of ticket purchases including the percentage reduction restriction for meals and entertainment, specify the application of the 2% deduction limit particularly as to business entertainment deductions and determine an “entertainment facility” noting deductible costs.
3. Identify substantiation, recordkeeping, reimbursement, and reporting requirements noting 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
* Retired lives reserve
* Split dollar life insurance
* Medical & dental insurance
* Interest limitation on policy loans
* Key person life insurance
* 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 noting 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
* 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 noting the taxability of each; and
c. Determining unfunded and funded plans noting 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
* Income & expense
* Built-in gain
* Passive income
* Basis of stocks & debts
* 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 noting 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 noting 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) noting 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 -
Hope (with American Opportunity modifications) Credit
Chapter 2 -
Chapter 3 -
Chapter 4 -
Chapter 5 -
Chapter 6 -
Chapter 7 -
Chapter 8 -
Chapter 9 -
Chapter 10 -
Chapter 11 -
Chapter 12 -