Author : | Danny C Santucci, JD |
Course Length : | Pages: 163 ||| Word Count: 94,782 ||| Review Questions: 120 ||| Final Exam Questions: 93 |
CPE Credits : | 18.5 |
IRS Credits : | 18 |
Price : | $128.45 |
Passing Score : | 70% |
Course Type: | NASBA QAS - Text - NASBA Registry - IRS Enrolled Agents |
Technical Designation: | Technical |
Primary Subject-Field Of Study: | Taxes - Taxes for Course Id 2386 |
Description : | Test the treacherous (and shark-infested) waters of tax, bankruptcy, and financial problems. This course will teach participants how to apply, implement, and evaluate the strategic tax aspects of bankruptcy, property settlements, debt cancellation, and foreclosure. Current perspectives on asset protection, repossession, and bad debts are examined with an emphasis on planning considerations. The cancellation of indebtedness income inclusion rules are examined 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 is explored with detail given to the calculation of gain and received property basis. Finally, eldercare and estate planning are reviewed and detailed. |
Usage Rank : | 0 |
Release : | 2024 |
Version : | 1.0 |
Prerequisites : | General understanding of federal income taxation. |
Experience Level : | Overview |
Additional Contents : | Complete, no additional material needed. |
Additional Links : |
What Are Taxes?
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Advance Preparation : | None. |
Delivery Method : | QAS Self Study |
Intended Participants : | Anyone needing Continuing Professional Education (CPE). |
Revision Date : | 24-Oct-2024 |
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 - NASBA Registry - IRS Enrolled Agents - 2386 |
Keywords : | Taxes, Tax, Bankruptcy, Financial, Problems, v14, 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 SUBJECTChapter 1 Bankruptcy At the start of Chapter 1, participants should identify the following topics for study:
* Bankruptcy types * Automatic stay * Preferences * Priorities * Debt discharge * Individual bankruptcy estate * Individual debtor * Corporate bankruptcy * Homesteading & garnishment After reading Chapter 1, participants will be able to:
2. Identify the differences between preferential and nonpreferential payments specifying the priority of creditor claims, recognize when debt is discharged under various bankruptcy types, and identify how to establish an individual bankruptcy estate. 3. Recognize partnership bankruptcies, specify debts covered under homesteading, and determine permissible garnishment amounts and special garnishment rules. As a result of studying each assignment, you should be able to meet the objectives listed below each assignment. ASSIGNMENT SUBJECTChapter 2 Transfers Incident to Divorce At the start of Chapter 2, participants should identify the following topics for study:
* Premarital agreements * Application of §1041 * Incident to divorce * Property basis * Purchases of residence between spouses * Purchases of business interests between spouses * Selected asset divisions of residence & business interests * Real & personal property * Pension benefits After reading Chapter 2, participants will be able to:
2. Specify the position of U.S. v. Davis on interspousal transfers recognizing the changes made by §1041, identify the requirements of §1041 and the scope of its application, and recognize transfers incident to divorce and avoid them when desired. 3. Determine the application of §1041 to transfers in trust and to third-parties transfers on behalf of a spouse or former spouse, identify the property basis for the transferor & transferee spouse after a property settlement, and specify the application of §1041 assumption liabilities including reporting and notice requirements. 4. Recall the tax dangers of purchasing a former spouse's interest in property, identify the use of a §121 disposition or a §1031 exchange to dispose of real property received in a §1041 transfer, recognize the methods of dividing business interests in a marital settlement, and determine the post-receipt taxation and protection of assets and payments. 5. Specify popular methods of dividing retirement benefits in a divorce or separation action identifying the requirements and tax consequences of a “qualified domestic relations order (QDRO), determine the treatment of IRAs at divorce considering the IRA deduction limit and rollovers, and recognize military pensions that may be available to a former spouse. As a result of studying each assignment, you should be able to meet the objectives listed below each assignment. ASSIGNMENT SUBJECTChapter 3 Asset Protection At the start of Chapter 3, participants should identify the following topics for study:
* Types of creditors * Fraudulent transfers * Preparation for asset protection * Types of insurance * Buy-sell agreements * Individual ownership & corporate ownership * Asset protection aspects of trusts * Co-tenancy & partnerships * Divorce After reading Chapter 3, participants will be able to:
2. Determine fraudulent transfers under the Uniform Acts, identify net worth under a balance sheet, and determine asset values in the preparation of a balance sheet. 3. Identify how insurance and buy-sell agreements can offer asset protection by determining the asset protection elements of homeowner's, automobile, disability insurance, and buy-sell agreements. 4. Recognize the asset protection advantages and disadvantages of ownership formats and entities citing the use of individual ownership and corporate ownership in an asset protection plan, recognize asset protection elements trusts, specify the types of co-tenancy and their asset protection dangers, and identify the protection provided by marital agreements. As a result of studying each assignment, you should be able to meet the objectives listed below each assignment. ASSIGNMENT SUBJECTChapter 4 Medical, Charitable, and Casualty At the start of Chapter 4, participants should identify the following topics for study:
* Medical deductions * Health savings accounts * Accelerated death benefits * Charitable contributions of cash * Charitable contributions of property * Substantiation * Pre- & Post-2018 Casualty & theft losses * Deductible & nondeductible losses * Disaster area losses After reading Chapter 4, participants will be able to:
2. Cite variables that impact the deductibility of §170 charitable contributions recognizing qualified organizations and limitations and identify the types of contributions that can be made, their tax treatment, and substantiation requirements. 3. Determine what constitutes a §165 casualty or theft and the rules for taking a deduction for all or part of each loss. As a result of studying each assignment, you should be able to meet the objectives listed below each assignment. ASSIGNMENT SUBJECTChapter 5 Debt Cancellation & Foreclosure At the start of Chapter 5, participants should identify the following topics for study:
* Real property business debt exclusion * General ordering of tax attribute reduction * Basis reduction * Individual and partnership bankruptcies * Corporate stock-for-debt rule * S corporation bankruptcy * Reporting * Amount realized on the sale or other distribution of property * Discounted acquisition of debt After reading Chapter 5, participants will be able to:
2. Specify the reduction of tax attributes on cancellation of indebtedness identifying any special basis reduction rules. 3. Determine gain or loss resulting from foreclosure or repossession including its character and specify the tax danger of acquiring one's own debt at a discount. As a result of studying each assignment, you should be able to meet the objectives listed below each assignment. ASSIGNMENT SUBJECTChapter 6 Repossession At the start of Chapter 1, participants should identify the following topics for study:
* Non-installment method sales * Installment method sales * Basis of repossessed personal property * Bad debt * Repossession of real property * Figuring gain on repossession * Seller’s former home exception After reading Chapter 6, participants will be able to:
2. Determine the potential gain and tax basis of property repossessed stating applicable limits and key elements. As a result of studying each assignment, you should be able to meet the objectives listed below each assignment. ASSIGNMENT SUBJECTChapter 7 Bad Debts At the start of Chapter 1, participants should identify the following topics for study:
* True debt * Mechanics’ liens * Reporting & recovery * Credit transactions * Former business bad debts * Insolvency of a partner * Business loan guarantees * Specific charge-off method * Nonaccrual-experience accounting method After reading Chapter 7, participants will be able to:
2. Identify the qualifications for §166 tax treatment of business bad debt specifying the debt’s relationship to business and the potential creation of a net operating loss. As a result of studying each assignment, you should be able to meet the objectives listed below each assignment. ASSIGNMENT SUBJECTChapter 8 Elderly & Disabled Planning At the start of Chapter 1, participants should identify the following topics for study:
* Medicare * Medicaid & countable assets * Medicaid & non-countable assets * Medicaid & inaccessible assets * Private insurance * Healthcare decisions * Supplemental security income * Income & assets * Disability benefits After reading Chapter 8, participants will be able to:
2. Specify available health care decisions such as a living will, and recognize Social Security disability benefits. As a result of studying each assignment, you should be able to meet the objectives listed below each assignment. ASSIGNMENT SUBJECTChapter 9 Estate Planning At the start of Chapter 1, participants should identify the following topics for study:
* Applicable exclusion amount * Stepped-up basis * Basic estate planning goals * Simple will * Types of trusts * Charitable trusts * Insurance trusts * Family documents * Private annuities After reading Chapter 9, participants will be able to:
2. Identify various types of estate trusts and the family documents that every taxpayer should consider, and determine the advantages and disadvantages of the former private annuity format. |
Course Contents : | Chapter 1 - Bankruptcy Federal Bankruptcy Means Testing Median State Income Test Means Test Credit Counseling Tax Law Changes Chapter 13 "Superdischarge" Subordination Of Ad Valorem Tax Liens Interest on Tax Claims Tax Returns Bankruptcy Types Chapter 7 - Liquidation Exempt Assets Availability Trustee Appointment Chapter 11- Reorganization Availability Creditors’ Committee Reorganization Plan Chapter 13 - Wage-Earner Plan Availability Repayment Plan Trustee Appointment Automatic Stay Tax Assessment Suspension of Statute of Limitation Immediate Assessment Levy Tax Court Tax Court Petition Preferences Trust Fund Taxes Allocation of Tax Payments Priorities Super Priority Claims Secured Claims Federal Tax Liens Priority Claims Tax Claim Determination Refunds Priority of Tax Claims Second Priority Tax Claims Third Priority Tax Claims Four Generates Priority Eight Tax Claims Eighth Priority Tax Claims Debt Discharge Chapter 7 Discharge Chapter 11 Discharge Chapter 13 Discharge Discharge of Taxes Tax Liens Individual Bankruptcy Estate Separate Entity Tax Attribute Carryovers Termination of the Estate Filing Requirements Disclosure of Return Information Taxable Income Taxable Year Gross Income Deductions & Credits Administrative Expenses Net Operating Loss Carryback Transfers to Debtor Partnership & S Corporation Interests Request for Prompt Determination of Liability Tax Liability Individual Debtor Tax Year Election Annualizing Taxable Income Making the Election Later Bankruptcy of Spouse Election Considerations Transfers between Debtor & Estate Net Operating Loss Carryback Limitation Partnership Bankruptcy No Separate Estate Discharge of Debts Corporate Bankruptcy Exemption Return Filing Personal Holding Company Tax Tax-Free Reorganizations §354, §355, & §356 Corporate Liquidations under Chapter 7 Carryover of Tax Items - §381 & 382 Bankruptcy Exception Reduction of Carryforwards Section 269 Presumption Homesteading Types of Homesteads Property & Equity Covered Who Can Homestead? Excluded Debts Garnishment 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 U.S. vs. Foreign Spouse Mandatory Scope Property vs. Income Unpaid Income Savings Bonds Receivables Interest Imputed Interest Transfers to a Former Spouse 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 & Recordkeeping Purchases Between Spouses Residence Home Mortgage Interest Deferral & Exclusion of Gain Business & Investment Property Recapture Section 1031 Exchange Asset Separation 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 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 - Asset Protection Why Asset Protection? Situations That Create Danger Sources of Lawsuits Types of Liability Basic Protection Concepts Types of Creditors Evading Creditors Fraudulent Transfers Badges of Fraud Statute of Limitations Criminal Penalties Permissible Asset Transfers Asset Protection Goals Preparation Insurance Homeowners Insurance Automobile Insurance Disability Insurance Life Insurance Life Insurance Trust Buy-Sell Agreements Definition Asset Protection Aspects of Common Entities Individual Ownership Sole Proprietorship Corporate C Corporation No Pass-Through The S Corporation - §1361 Trusts Types of Trusts Revocable Trust Land Trusts Irrevocable Trusts Testamentary Trust Business Trusts Foreign Trusts - §679 Asset Protection Trusts - APTs Foreign Jurisdictions Alternatives Income Taxation Estate & Gift Tax Creditor Protection Family Trusts Medicaid Trust Grantor Retained Income Trust Co-Tenancy Tenancy in Common Varying Percentages No Survivorship Joint Tenancy with Right of Survivorship Equal Percentages Tenants by the Entirety Right of Partition Partnership Family Partnerships Charging Orders Phantom Income to Creditor Tax Issues Estate Savings Income Tax Savings Limited Liability Company Retirement Plan Retirement Fund Protection in Bankruptcy Custodianship Estate Divorce Premarital Agreements Uniform Premarital Act - The California Example Permitted Items of Agreement Unenforceable Items Retirement Equity Act of 1984 Benefits of a Premarital Agreement Post-Nuptial Agreements Chapter 4 - Medical, Charitable & Casualty Medical Costs - §213 Spouse Separate Returns Community Property States Dependents Adopted Child Children of Divorced or Separated Parents Multiple Support Agreements Decedents Medical Deductions Items Deductible Items Not Deductible Medical Insurance Premiums Meals & Lodging Expenses of Transportation Cosmetic Surgery Permanent Improvements Lifetime Care Advance Payments Reimbursement of Expenses Amounts Deductible Long-term Care Provisions IRA Withdrawals for Certain Medical Expenses Grandfathered Archer Medical Savings Accounts - §220 Health Savings Accounts (HSAs) - §223 Benefits Qualifications High Deductible Health Plan (HDHP) Limits for HDHP Amount of Contribution Enrolled in Medicare Special Rules for Married Couples Establishing an HSA Rollovers Distributions Qualified Medical Expenses Insurance Premiums Record Keeping Prescription Drug Costs Accelerated Death Benefits Terminally Ill Individual Chronically Ill Individual Exclusion Limited Health Insurance For Self-Employed Charitable Contributions - §170 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 an IRA 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 Personal Casualty & Theft Losses - §165 Casualty Theft Mislaid or Lost Property Deductible Losses Nondeductible Losses Proof of Loss Amount of Loss Theft Recovered Property Related Expenses Protection Cost Repair & Replacement Costs Allocation for Mixed Use Property Insurance and Other Reimbursements Limitations Disaster Area Losses Unsafe Home Special Residence Rule Loss on Deposits Chapter 5 - 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) Tax-Exempt Educational Organizations - §108 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 Shareholder’s Basis in Debt Bankruptcy Estate as Shareholder Reporting 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 Mortgage Relief Act of 2007 Qualified Principal Residence Indebtedness Mixed Indebtedness Lender’s Tax Impact Foreclosure Sale Discounted Acquisition of Debt Transactions Involving Related Parties Related Persons Chapter 6 - 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 Seller’s Former Home Exception Chapter 7 - 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 Chapter 8 - Elderly & Disabled Planning Managing the Estate Joint Tenancy Conservatorship Durable Power Revocable Living Trust Catastrophic illness Medicare Medicaid Countable Assets Non-Countable Assets Personal Residence Gifting the Residence - General Rule Exceptions Inaccessible Assets Gifts Spousal Transfers Spousal Allowance Medicaid Trusts Limited Trust Exceptions Criminalization of Medicaid Asset Transfers Private Insurance Health Care Decisions Supplemental Security Income Income Unearned Income Earned Income Exempt Income Assets Countable Assets Non-Countable Assets Disability Benefits Blind Kidney Disease AIDS Chapter 9 - Estate Planning Unlimited Marital Deduction Outright To Spouse Marital Deduction Trust - §2056 Qualified Terminable Interest Property (QTIP) Trust Applicable Exclusion Amount Spousal Portability of Unused Exemption Amount - §2010(c)(2) Stepped-up Basis - §1014 Basic Estate Planning Goals Primary Dispositive Plans Simple Will Danger for Larger Estates Probate Transfers within Probate Disposition of Property without a Will Transfers outside Probate Assets Not Subject to a Will Assets Subject to a Will Trusts Types of Trusts Living Trusts Testamentary Trusts Revocable & Irrevocable Living “A-B” Revocable Trust Living “A-B-C” (QTIP) Trust Impact of Spousal Portability on Trust B under TUIRJCA Charitable Trusts Charitable Remainder Trusts Charitable Income Trusts Insurance Trusts Family Documents Living Will Property Agreement & Inventory Durable Power Of Attorney Power of Attorney for Health Care Conservatorship Funeral Arrangements Anatomical Gifts Private Annuity? Advantages to the Transferor Disadvantages to the Transferor Advantages to the Transferee Disadvantages to the Transferee Regulations Restrict Private Annuity Income Glossary |