|Author :||Danny C Santucci, JD|
|Course Length :||Pages: 128 ||| Review Questions: 80 ||| Final Exam Questions: 80|
|CPE Credits :||16.0|
|IRS Credits :||16|
|Passing Score :||70%|
|Course Type:||NASBA QAS - Text - Technical - NASBA Registry - IRS Enrolled Agents|
|Primary Subject-Field Of Study:||
Taxes - Taxes for Course Id 233
Taxes aren't taxes – they are dollars in terms of the net return on investment. All tax professionals need to know the tax economics of investing for themselves and their clients. This need is accentuated by the rapid rise of the Internet as a broad-based and effective investment tool.
The tax professional is in a special position to detect a client's need for financial planning. Preparing returns discloses assets, savings, business entities, and family members. Knowledge of the client's assets, activities, and the tax characteristics of available entities permits investment matching for maximum after-tax return.
The basic tax characteristics of the primary tax entities are explored and analyzed. Their ability to defer, reduce, and eliminate tax is examined. Client goals, purposes, and risk tolerances are determined and quantitated using the Sharp ratio. Investments and assets are then evaluated using a variety of tools found on the Internet. Finally, investments and entities are matched to produce the best after-tax return for the client.
|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 :||QAS Self Study|
|Intended Participants :||Anyone needing Continuing Professional Education (CPE).|
|Revision Date :||19-Nov-2022|
|NASBA Course Declaration :||Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam.|
|Approved Audience :||
NASBA QAS - Text - Technical - NASBA Registry - IRS Enrolled Agents - 233
|Keywords :||Taxes, Matching, Investments, Tax, Savings, Techniques, 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 Introduction
At the start of Chapter 1, participants should identify the following topics for study:
* Mapping for financial independence
* Investment purposes
* Cash management
* Physical assets
* Financial assets
* Life insurance
* Social Security
* Investment selection & evaluation strategies
After reading Chapter 1, participants will be able to:
2. Recognize investment planning goals and purposes, select retirement planning direction, and identify resource allocation including necessary generational changes.
3. Determine the development and implementation of a financial plan for retirement by:
b. Specifying physical and financial assets including stocks and bond types;
c. Selecting mutual funds based upon an investor’s personal objectives and risk tolerance; and
d. Recognizing major types of life insurance including their use as financial planning tools.
Chapter 2 Entities & Title
At the start of Chapter 2, participants should identify the following topics for study:
* Trusts holding title & business trusts
* Co-tenancy taxation, percentage interests, & partition
* Partnership taxation & recapitalization
* Family partnerships
* Limited liability companies
* Retirement plans
After reading Chapter 2, participants will be able to:
b. Specifying the C corporations groups including the estate-planning problems associated with each; and
c. Recognizing advantages that partnerships may have over corporations.
3. Specify the title holding benefits of trusts, co-tenancy, partnerships, and limited liability companies and the tax characteristics of each.
4. Identify the types of retirement plans used to provide lifetime benefits to a business owner and to employees, determine how title can be held on behalf of minors and the tax treatment of custodianships, and specify the tax treatment of a probate estate.
Chapter 3 Deferral
At the start of Chapter 3, participants should identify the following topics for study:
* Related party exchanges
* Multiple property exchanges
* Delayed (deferred) exchange regulations
* Actual & constructive receipt rule
* Qualified contribution plans
* Tax-deferred annuities
* Installment sales
* At-risk rule
* Deferred compensation and options
After reading Chapter 3, participants will be able to:
2. Cite the related party §1031 restrictions and prohibited parties or entities and permissible disposition exceptions, identify protections for exchange participants, and recognize multiple property exchanges.
3. Recall the evolution of §1031 delayed exchanges and allowable transfers, determine how to select replacement property within statutory deadlines, specify constructive receipt safe harbors, recognize methods to secure exchange party performance, and identify the §1031 partnership underlying asset rule. Recognize how to design retirement plans following basic steps, identify the most popular methods for providing for retirement, and specify near retirement investments.
4. Determine the requirements for an installment sale and how to elect out of the installment method, specify variables affecting §453 availability, and recognize the use of a property option to receive income and postpone tax.
Chapter 4 Reduction
At the start of Chapter 4, participants should identify the following topics for study:
* Low Income Housing Credit & Child & Dependent Care Credit
* Estimated taxes
* Automobile deductions
* Remaining business entertainment deductions
* Depreciation & cost recovery
* Net operating losses
* Tax breaks for nonitemizers
* Amended returns
After reading Chapter 4, participants will be able to:
2. Recognize the estimated tax rules, procedures including payment deadlines, underpayment penalties, and the economics of overpaying estimated taxes, and specify the types of interest that are nondeductible including personal interest under §163(h)(1).
3. Determine the deductibility of investment interest, prepaid interest, points, prepayment penalties, and the offset of passive income with rental property mortgage interest.
4. Identify business vehicle operating costs using (or switching between) the actual cost method or the standard mileage rate and allocating expenses based on §162 usage, cite the importance of retaining substantiatable expense and mileage records, and specify depreciation traps when purchasing a vehicle.
5. Determine the requirements for business expenses and identify the business expense statutory exceptions and the application of R.R. 90-23 and R.R. 99-7 to the deduction of transportation costs to a temporary work location.
6. Recognize business asset depreciation using both ACRS and MACRS recovery classes, identify sources of §172 net operating losses (NOLs) and carryback and carryover rules, cite several tax breaks for nonitemizing taxpayers, determine the advisability of filing an amended return, specify how to avoid audits by claiming refunds for provable items, and identify which return amendments are safest.
Chapter 5 Income Splitting
At the start of Chapter 5, participants should identify the following topics for study:
* Deductible business expenses
* Home-office deduction
* C or regular corporations
* S corporations
* Family partnerships
* Childcare & education
* Interest-free loans
After reading Chapter 5, participants will be able to:
2. Determine the tax opportunities available to an unincorporated business by specifically recognizing retirement plans, the hiring of family members, travel expenses, casualty losses, bad debts, and self-employment tax.
3. Identify the uses and tax characteristics of regular and S corporations by:
b. Determining the taxation of these entities including their ability to split income; and
c. Specifying initial §351 formation and capitalization issues and identifying appropriate tax form filings for each entity.
5. Identify the use of a custodianship to split income and initial planning considerations and examples of good investments for children, determine deductions and credits for childcare, education, children, and §7872 loans, and specify the income and later estate tax benefits of gifts.
Chapter 6 Elimination
At the start of Chapter 6, participants should identify the following topics for study:
* Municipal bonds
* Divorce & separation settlements
* Gifts & inheritances
* Life insurance
* Fringe benefits
* Taxation & valuation of benefits
* Employee expense reimbursement & reporting
* Fixed & variable rate allowances
* Social security
After reading Chapter 6, participants will be able to:
b. Determining qualifications for tax-free state or local obligations specifically including private activity bonds; and
c. Specifying the tax elimination aspects of family transactions such as gifts, bequests, inheritances, life insurance, and even divorce.
b. Identifying popular employee fringe benefits including employer-paid accident & health coverage, meals or lodging, cafeteria plan benefits, §127 education assistance, achievement awards, group life insurance, and dependent care assistance.
|Course Contents :||
Chapter 1 -
Asset Allocation Rebalancing
Chapter 2 -
Corporate Tax Rate
Chapter 3 -
Chapter 4 -
Chapter 5 -
Kiddie Tax - §1(g)
Chapter 6 -