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Course Details

Making the Best of Bad Situations - Mini Course (Course Id 247)

Updated / QAS / Registry / EA   Add to Cart 
Author : Danny C Santucci, JD
Status : Production
CPE Credits : 2.0
IRS Credits : 2
Price : $19.95
Passing Score : 70%
NASBA Technical: Yes
Primary Subject-Field Of Study:

Taxes - Taxes for Course Id 247

Description :

This mini-course will teach participants how to apply, implement, and evaluate the strategic tax aspects of marital and financial setbacks. Property transfers, asset divisions, alimony, filing status, exemptions, and child support are examined. The cancellation of indebtedness income inclusion rules are discussed in the context of debt forgiveness and property foreclosure. Emphasis is given to the exceptions from income inclusion contained in 108. The tax treatment of property repossession under 1038 and bad debt treatment under 166 is reviewed.

Usage Rank : 0
Release : 2017
Version : 1.0
Prerequisites : General understanding of federal income taxation.
Experience Level : Overview
Additional Contents : Complete, no additional material needed.
Additional Links :
Advance Preparation : None.
Delivery Method : Self-Study
Intended Participants : Anyone needing Continuing Professional Education (CPE).
Revision Date : 31-Aug-2017
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 - 247

Keywords : Taxes, Making, Best, Bad, Situations, Mini, Course, cpe, cpa, online course
Learning Objectives :

As a result of studying the assigned materials, you should be able to meet the objectives listed below.

ASSIGNMENT

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

    * Marital tax liability
    * Transfers incident to divorce
    * Alimony & child support
    * Debt cancellation & income inclusion rule
    * Reduction of tax benefits
    * Foreclosure
    * Repossession of personal property
    * Repossession of real property
    * Non-business bad debts
    * Business bad debts
Learning Objectives:

After reading the materials, participants will be able to:
    1. Recognize tax considerations and tax guidance for marital breakdowns and, identify marital status noting the effect marital status has on filing status and federal income tax obligations.
    2. Identify state marital property provisions, cite the elements of 1041 identifying at least two tax traps for the unaware, and specify variables that determine whether a payment is alimony.
    3. Determine the exceptions to the general income inclusion rule noting their tax impact, and recognize the various issues related to calculating gain or loss resulting from foreclosure or repossession including the differences between personal and real property repossession, amount realized on sale or other distribution of property in a foreclosure, and basis calculation on repossession of property.
    4. Identify nonbusiness and business bad debts under 166 noting their differences in Code requirements and amount allowed.
Course Contents :

Chapter 1 - Basic Marital Tax Matters

Filing Status

Marital Status

Same-Sex Marriage

Unmarried

Abandoned Spouse Rule - 7703

Married

Joint Return

Citizenship  1-3

Liability

Innocent Spouse Exception

Refund Offset Program - 6402

Injured Spouse - Form 8379

Separate Returns

Itemized Deductions

Medical Expenses

Property Tax & Interest

State Income Taxes

Casualty Loss

Separate vs. Joint Dilemma

Disadvantages of a Separate Return

Advantages of a Separate Return

Joint Return after Separate Returns

Head of Household

Requirements

Considered Unmarried

Keeping Up a Home

Qualifying Person

Nonresident Alien Spouse

Exemptions

Phaseout of Exemptions

Personal Exemptions

Spouses

Former Spouse

Dependency Exemptions Old & Current Rules

Five Pre-2005 Dependency Tests - The Old Rules

Test #1 - Relationship

Household Member

Test #2 - Income

Dependent Child Income Exception

Definition of a Child

Definition of a Student

Test #3 - Citizen or Resident

Test #4 Married Person

Test #5 - Support

Regular Method

Joint Home Ownership

Special Support Method for Children of Divorced or Separated Parents

Custodial Parent

Noncustodial Parent

Back Child Support

Dependency Tests After 2004

Unified Definition of a Qualified Child

Four Dependency Tests

Test #1 - Residency (or Time) & Citizenship

Children of Divorced or Separated Parents

Test #2 - Relationship Test

Test #3 - Age Test

Test #4 - Joint Return Restriction

Medical Expenses

Child-Care Credit

Divorce Costs

Allocation of Costs & Fees

Tax Advice - 212(3)

Fees to Obtain Alimony or Protect Income - 212(1) & (2)

Fees to Obtain Property - 1012 & 1016

Nondeductible Expenses

Withholding & Estimated Tax

Joint Estimated Tax Payments

Refunds & Deficiencies

Nonresident Alien Spouse Withholding

Community Property

Community Property States

Transmutation

Commingling

Income Reporting

Spouses with Different Residency Statuses

Special Income Rules For Spouses Living Apart - 66(a) & 879

Mandatory Application

Earned Income

Trade or Business Income

Partnership Income or Loss

Separate Property Income

Social Security Benefits

Other Income

Denial of Community Property Reporting - 66(b)

Community Reporting Relief Provisions - 66(c)

Ending the Community

Annulment

Separation

Alimony vs. Community Income

Living Together

Married v. Unmarried Tax Rate Comparison

Sham Divorce

Dependency Exemptions

Attributable Income

Alimony & Property Divisions

Chapter 2 - Transfers Incident to Divorce

Property Rights

Marital Property

Common Law Property

Community Property

Equitable Distribution

Separate Property

Asset Division Principles

Premarital Agreements

Uses & Benefits

Control & Scope

Limitations

Retirement Equity Act of 1984

Enforceability Requirements

Checklist

Uniform Premarital Act - The California Example

Permitted Items of Agreement

Unenforceable Items

Property Settlements

Section 1041

Application of 1041

Mandatory Scope

Property vs. Income

Savings Bonds

Receivables

Interest

Imputed Interest

Incident to Divorce

Related To Termination

Rebuttable Presumption

Divorce or Separation Instrument

Transfers in Trust

Third Party Transfers

Property Basis

Gift Variation

Passive Activity Loss Property

Property Transferred In Trust

Basis in U.S. Savings Bonds

Negotiated Property Divisions

Adjudicated Property Divisions

Caselaw

General Rule - Immediate & Specific

Liabilities

Holding Period

Notice & Record keeping

Purchases Between Spouses

Residence

Home Mortgage Interest

Deferral & Exclusion of Gain

Business & Investment Property

Recapture

Section 1031 Exchange

Asset Separation

Final Personal Property Regulations

General & Product Class

Multiple Asset Exchanges

Related Parties

Two-Year Restriction

Foreign Property

Form 8824

Spousal Transfers

Installment Sale of Assets

Selected Asset Divisions

Residence

Section 121 Home Sales

Two-Year Ownership & Use Requirements

Special Divorce Rules

Tacking of Prior Holding Period

Prorata Exception

Limitations on Exclusion

Installment Obligations

Business Interests

Corporate Stock

Cases & Rulings

PLR 9046004

Arnes Cases

Mrs. Arnes v. United States, 981 F .2d 456 (9th Cir. 1992)

Mr. Arnes v. Commissioner, 102 TC 522 (1994)

Blatt Case

Gaughan Case

Section 302 Stock Redemption

Recapitalization

Partnerships

Section 736(a) Payments

Effect on Recipient

Section 736(b) Payments

Effect

Exclusions From 736(b) Treatment

Liabilities

Series of Payments

Section 754 Election

Insurance Policies

Real & Personal Property

Classification of Assets

Character of Gain or Loss

Capital Assets - 1221

Long-Term or Short-Term

Installment Sale

Net Gain or Loss

Treatment of Net Capital Gains

Section 1231 Assets

Gains & Losses

Recapture Of Net Ordinary Losses

Ordinary Assets

Depreciable Property

Recapture on Personal Property

Section 1245 Property

Treatment of Gain

Recapture on Real Property

Section 1250 Property

Pension Benefits

Qualified Domestic Relations Order

Taxation of Distributions

Deferred v. Present Division of Benefits

Deferred Division Arguments

Present Division or Alternate Property Arguments

Individual Retirement Arrangements

IRA Deduction Limit

Rollovers

Divorce Distributions

Amounts Not Rolled Over

Retirement Planning After Divorce

Social Security Benefits

Divorced Spouse Benefits

Divorced Widow(er) Benefits

Military Pensions

Divorced Spouse Benefits

Jurisdiction Requirement

Disposable Pay

Direct Payment

Divorced Widow(er) Benefits

Social Security Offset

Civil Service Pensions

Divorced Spouse Benefit

Divorced Widow(er) Benefit

Railroad Pensions

Divorced Spouse Benefit

Divorced Widow(er) Benefit

Bankruptcy

Chapter 3 - Alimony & Child Support

Spousal Support - aka Alimony

Divorce or Separation Instrument

Invalid Decree

Amended Instrument

Premarital Agreements

Instruments Executed After 1984

Alimony Requirements

Payment Must Be In Cash

Payments to a Third Party

Written Requests, Consents, or Ratifications

Payments for Family Residence

Taxpayer-Owned Home

Spouse-Owned Home

Jointly-Owned Home

Rent On Property Owned by a Third Party

Payments for Life Insurance

Contingent Interest

Voluntary Payments

Payments to Remarried Spouse

Designating Payments as Not Alimony

Members of Different Households

Exception

Termination at Death

Substitute Payments

Child Support

Past Due Child & Spousal Support Payments

Joint Return Prohibited

Minimum Term Rule for 1985 & 1986 Instruments

Exception

Instruments Executed Before 1985 - Prior Law

Alimony Requirements

Periodic Payments

Exception for Installment Payments

10 Years Or Less

More Than 10 Years

Mixed Payments

Marital or Family Relationship

Property Settlement

Child Support

Deducting Alimony Paid

Reporting Alimony Received

Alimony as Compensation

Recapture of Alimony for Type A & B Agreements

Exceptions to Recapture

Including the Recapture in Income

Deducting the Recapture

TRA 84 Recapture - 1985 & 1986 Instruments

TRA 86 Recapture - After 1986 Instruments

Exceptions

Computation

Alimony Substitution Trusts & Annuities

Advantages of Alimony Trust

Disadvantages of Alimony Trust

Annuities

Alimony Paid by Estate

Child Support

Contingency Relating To the Child

Clearly Associated With a Contingency

Heller Case

Rebuttable Presumptions

COBRA Coverage

Coverage Termination

Notice

Election

Choice of Coverage

Cost

Deductibles

Qualified Medical Child Support Orders

Definition

Procedures & Duties

Jurisdiction

Chapter 4 - Avoiding Tax on Debt Cancellation & Foreclosure

Income Inclusion Rule

Exceptions from Income Inclusion

Order of Exclusions

Bankruptcy Case Exclusion - 108(a)(1)(A)

Insolvency Exception - 108(a)(1)(B)

Qualified Farm Debt Exclusion - 108(a)(1)(C)

Qualified Farm Debt - 108(g)(2)

Qualified Person - 108(g)(1)

Real Property Business Debt - 108(a)(1)(D)

Qualified Debt

Exclusion Limit

Ordinary Income Recapture

Partnerships

Deemed Distribution Rules

S Corporations

Student Loan Exception - 108(f)

Purchase Money Debt Reduction Exception - 108(e)(5)

Cancellation of Deductible Debt Exception - 108(e)(2)

Reduction of Tax Benefits (Attributes) - 108(b)

General Ordering of Tax Attribute Reduction

Basis Reduction

Depreciable Property Election

Procedure

Required Reduction

Timing of Basis Reduction

Limit on Basis Reduction

Recapture of Basis Reductions

Exempt Property

Special Basis Reduction Rule for Qualified Farm Debt

Qualified Property

Basis Reduction Order

Exclusion Limit

Individual Bankruptcy

Partnership Bankruptcy

Depreciable Property

Allocation of Debt-Discharge Income

Corporate Stock-For-Debt Rule

Token Share Inclusion

Workout Inclusion

Recapture of Gain on Later Sale

Debt Contributed to Capital

Debt-For-Debt Exchange

Earnings & Profits

S Corporation Bankruptcy

Net Operating Losses

Adjustments to Shareholders Basis in Debt

Bankruptcy Estate as Shareholder

Reporting

Mortgage Debt Relief Act of 2007 (Expired)

Qualified Principal Residence Indebtedness

Mixed Indebtedness

Amount Realized On Sale or Other Distribution of Property

Foreclosure

Nonrecourse Indebtedness

Recourse Indebtedness

Reporting

Form 1099A

Timing & Character of Gain or Loss

Gain

Loss

Lenders Tax Impact

Foreclosure Sale

Discounted Acquisition of Debt

Transactions Involving Related Parties

Related Persons

Chapter 5 - Repossession

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

Buyer Improvements

Bad Debt

Sellers Former Home Exception

Chapter 6 - Bad Debts

Non-Business Bad Debts

Totally Worthless

Determining Worthlessness

Required Basis or Income Inclusion

True Debt

Loan or Gift

Loan Guarantees

Political Debts

Mechanics Liens

Insolvency of Contractor

Secondary Liability on Home Mortgage

Reporting

Recovery

Business Bad Debts

Credit Transactions

Income Inclusion

Accrual Method Taxpayers

Cash Method Taxpayers

Former Business

Debt Acquired from a Decedent

Political Debts

Insolvency of Partner

Business Loan Guarantees

Reporting

Methods of Treating Bad Debts

Specific Charge-Off Method

Partly Worthless Debts

Deduction Disallowed

Totally Worthless Debts

Recovery of Bad Debt

Property Received for a Debt

Bankruptcy Claim

Sale of Mortgaged Property

Net operating Loss

Nonaccrual-Experience Accounting Method

Performing Services

Interest & Late Charges

Appendix A - Legal Aspects of California Foreclosure

Introduction

The Players

Non-Judicial Foreclosure

Desirability of a Non-Judicial Foreclosure

Availability of a Non-Judicial Foreclosure

Notice of Default

Notice of Trustee Sale

Conducting the Foreclosure Sale

Considerations after the Foreclosure Sale

Judicial Foreclosure Process

Desirability of a Judicial Foreclosure

Availability of a Judicial Foreclosure

Commencing a Judicial Foreclosure

Appointment of a Receiver

Obtaining a Deficiency Judgment

Liability on Mortgages/Deed Of Trust

Summary & Observations

 

Glossary

Taxes Course 247 Home: https://www.cpethink.com/tax-cpa-courses
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