0
Author: |
Danny C Santucci, JD |
Course Length: |
Pages: 31 ||| Word Count: 20,006 ||| Review Questions: 10 ||| Final Exam Questions: 10 |
CPE Credits: |
2.0 |
IRS Credits: |
2 |
Price: |
$17.95 |
Passing Score: |
70% |
Course Type: |
Text - IRS Enrolled Agents |
Technical Designation: |
Technical |
Field Of Study: |
Taxes |
Approved Audience: |
NASBA QAS - NASBA Registry |
Key Takeaways: |
This mini course focuses on tax issues affecting the treatment of interest and debt, including bona fide debt and related party considerations.
|
Frequently Asked Questions: |
|
Description: |
This course focuses on tax issues affecting the treatment of interest and debt. It covers the definition of bona fide debt, the impact of related parties, the avoidance of equity and lease characterization, and deductible versus nondeductible interest factors. Sticky cross issues such as the impact of at-risk rules under §465, passive loss restrictions of §469, and below-market rate loans under §7278 are examined. In addition, the accounting method treatment of interest, points, prepaid interest, and discounted loans are reviewed. Particular attention is given to imputed interest and original issue discount. |
Usage Rank: |
15385 |
Release: |
2006 |
Version: |
1.0 |
Prerequisites: |
General understanding of federal income taxation. |
Experience Level: |
Overview |
Additional Contents: |
Complete, no additional material needed. |
Additional Links: |
External: What Is Interest?
External: IRS Applicable Federal Rates (AFRs) - monthly revenue rulings
Internal: Debt Issues | Selected Topics - CPE Course (mini‑course on tax issues affecting interest and debt)
Internal: Installment Sales | Tax Mini‑Course
|
Advance Preparation: |
None. |
Delivery Method: |
QAS Self Study |
Intended Participants: |
Anyone needing Continuing Professional Education (CPE). |
Revision Date: |
30-Apr-2025 |
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. |
Keywords: |
Interest - Tax Mini Course - CPE course for CPAs |
Learning Objectives: |
As a result of studying the assigned materials, you should be able to meet the objectives listed below. ASSIGNMENTAt the start of the materials, participants should identify the following topics for study:
After reading the materials, participants will be able to:
|
Course Contents: |
Chapter 1 - Interest Introduction Indebtedness Bona Fide Debt Economic Substance Business Purpose Related Party Debt Inter-Family Loans Loans to Controlled Corporation Losses Debt v. Stock Factors Debt v. Lease Traditional Lease Leveraged Leases Debt v. Annuity Deductible Interest Business Interest Mortgage Interest Qualified Residence Interest - §163(h)(3) Acquisition Debt Modified Refinanced Acquisition Debt Home Equity Debt Suspended Form 1098 Prepayment Penalty Points Exception for Points on Home Seller Paid Points Expenses to Obtain a Mortgage Interest on Installment Purchases Investment Interest Investment Property Limit on Deduction Business vs. Investment Interest & Income Net Investment Income Investment Income Capital Gain Inclusion Election Child’s Investment Income Investment Expenses Losses from Passive Activities Carryover When to Deduct Investment Interest Form 4952 Interest Paid In Advance Interest on Margin Accounts Interest on a Market Discount Bond Disallowed Interest Expense Deduction for Student Loan Interest - §221 Nondeductible Interest Personal Interest - §163(h)(1) Interest on Income Tax Owed Penalties Capitalized Interest - §263A Production Period Traced Debt Avoided Cost Debt When Interest Is Paid or Incurred Partnerships & S Corporations Interest Related To Tax-Exempt Income - §265 Interest on Insurance Policy Loans - §264 Single Premium Life Insurance Systematic Plan of Borrowing Key Person Insurance Deductibility of Premiums & Interest on Life Insurance Existing Interest on Purchase Commitment Fees & Service Charges Corporate Acquisition Interest - §279 At-Risk Rules - §465 Loss Defined Form 6198 Activities Covered by the At-Risk Rules Amount At Risk Borrowed Amounts Related Persons Subsequent Years Amounts Not At Risk Nonrecourse Financing Other Loss Limiting Arrangements Reductions of Amounts At Risk Passive Activity Limitations - §469 Calculating Passive Loss Categories of Income & Loss Passive Portfolio Material Participation Suspension of Disallowed Losses Fully Taxable Disposition Abandonment & Worthlessness Related Party Transactions Other Transfers Transfer By Reason Of Death - §469(g)(2) Transfer By Gift - §469(j)(6) Installment Sale - §469(g)(3) Ordering of Losses Carryforwards Allocation of Suspended Losses Rental Activity Rental Activities of Real Estate Professionals Working Interests in Oil & Gas When to Deduct Interest Cash Method Prepaid Interest Points Exception for Points on Home Discounted Loans Refunds of Interest Accrual Method Prepaid Interest Tax Deficiency Related Taxpayer - §267 Election to Capitalize Carrying Charges - §266 Below-Market Interest Rate Loans - §7872 Demand Loans (Gift or Nongift) - §7872(a) Forgone Interest - §7872(e)(2) Term Gift Loans - §7872(d)(2) Nongift Term Loans - §7872(b) Loans Subject To the Rules Exceptions Special Rule for Certain Gift Loans Loans Not Subject To the Rules Tax Avoidance Loans Significant Effect on Federal Tax Liability Loans to Qualified Continuing Care Facilities Continuing Care Facility Continuing Care Contract Imputed Interest on Sales - §483 & §1271 through 1275 Applicable Federal Rate (AFR) Effects of Unstated Interest Selling Price & Contract Price Rules for Imputing Interest Test Rate of Interest Relationship of §1274 & §483 Section 483 Total Unstated Interest Transactions to Which Section 483 Rules Apply Sale of a Farm Sales with Total Payments of $250,000 Or Less Land Sales between Related Parties Exceptions to §483 Rules Section 1274 Rules Exceptions to §483 & §1274 Original Issue Discount (OID) De Minimis OID Form 1099-OID Nominee Debt Instrument Bought At Premium Exceptions to OID Rules Debt Instruments Issued From 1955 to 5/28/69 Corporate Debt Instruments Issued From 5/28/69 to 7/2/82 Debt Instruments Issued From 7/2/82 to 1/1/85 Debt Instruments Issued After 12/31/84 Recomputation of OID on Form 1099-OID Acquisition Premium REMIC Regular Interests Certificates of Deposit (CDs) Interest Subject To Penalty for Early Withdrawal Bearer Certificates Of Deposit Market Discount Bonds Glossary |
Login/Register