|Author :||Danny C Santucci, JD|
|CPE Credits :||24.0|
|IRS Credits :||24|
|Passing Score :||70%|
|Primary Subject-Field Of Study:||
Taxes - Taxes for Course Id 950
Updating practitioners on current developments, this core program examines and explains the practical aspects of travel and entertainment deductions. Fundamentals are reviewed and planning opportunities identified. Creative strategies are discussed and evaluated along with traditional approaches. Taxpayers are once again looking to their tax professional for guidance and planning related to travel and entertainment expenses. The goal of this course is to understand and solve problems. Participants will learn to master the proper administration of these complex and often cumbersome provisions in a humorous and entertaining format.
|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 :||29-Nov-2019|
|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 - 950
|Keywords :||Taxes, Travel, Entertainment, Auto, Rules, from, Tax, Perspective, 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 Travel Expenses
At the start of Chapter 1, participants should identify the following topics for study:
* Travel expenses of investors
* Transportation expenses
* Business purpose requirement
* Circuit Court test for “tax home”
* IRS test for “tax home”
* No tax home
* Two work locations
* Away from home requirement
* Temporary & indefinite assignments
After reading Chapter 1, participants will be able to:
2. Specify deductible travel costs to find a new job, identify investor travel expenses, and determine deductible transportation.
3. Identify the business purpose requirement, the complications of mixed business and personal travel and costs at a destination.
4. Recognize the IRS’s and Circuit Courts’ definition of “tax home,” identify when a taxpayer lacks a tax home, and specify the “away from home” requirement including the sleep and rest rule.
5. Identify temporary and indefinite job assignments recognizing the critical factor in distinguishing the two job assignments.
Chapter 2 Categories of Business Travel Expense
At the start of Chapter 2, participants should identify the following topics for study:
* Point-to-point rules
* Extended stay or side trip rule
* Foreign business travel
* Conventions & meetings
* Conventions outside the North American area
* Cruise ship conventions
* Luxury water travel
* Spousal & companion travel expenses
* Aides to sick & handicapped individuals
After reading Chapter 2, participants will be able to:
2. Specify the “point-to-point” rule for different modes of transportation and which expenses incurred on a business trip with an extended stay or side trip are deductible.
3. Identify the rules for foreign business travel by:
b. Determining the allocation of expenses incurred in traveling on a foreign side trip and specifying exceptions to the general rule.
b. Identifying the availability of the convention and meeting deduction to professional groups, self-employed persons, employees and the videotaped lecture rule; and
c. Determining the differences between foreign conventions and foreign travel and citing convention expenses permitted under §274(h)
Chapter 3 Local Transportation
At the start of Chapter 3, participants should identify the following topics for study:
* Trips to a union hall
* Commuting & economic hardship
* Irregular worksite assignments
* Home office
* Hauling tools & equipment
* Transportation between different sites
* Transportation between different jobs
After reading Chapter 3, participants will be able to:
2. Identify the regular/irregular rule, determine a temporary work site under R.R. 90-23, recognize the impact of R.R. 94-47 and R.R. 99-7 on transportation between a taxpayer’s residence and workplace, specify the §280A home office requirements and their impact on business transportation, and identify the hauling tool rule.
Chapter 4 Automobiles
At the start of Chapter 4, participants should identify the following topics for study:
* Deduction limitations using the actual cost method
* Expensing - §179
* Predominate business use rule
* Auto leasing
* Standard mileage method
* Auto trade-in vs. sale
* Employer-provided automobile
* Nonpersonal use vehicle
* Reporting of an employer-provided automobile
After reading Chapter 4, participants will be able to:
b. Identifying the automobile costs that are generally deductible and nondeductible and their exceptions.
b. Identifying depreciation methods and conventions under the modified cost recovery system (MACRS) and citing the depreciation caps that apply to different vehicles.
4. Specify the impact of the §280F predominate business use rule, as established by the Tax Reform Act of 1984, on depreciation, excess deductions, and the former investment tax credit.
5. Determine automobile leasing elements recognizing vehicle purchase differences, specify various leasing terminology including closed-end and open-end, identify monthly lease payments and income inclusion amounts, and cite the leasing deduction restrictions.
6. Identify the mechanics of the standard mileage method including the ability to switch methods, deduct charitable and medical transportation, and MACRS depreciation limitations.
7. Recognize the differences between trading and selling a vehicle and the use of employer-provided vehicles as §132 fringe benefits by:
Chapter 5 Entertainment
At the start of Chapter 5, participants should identify the following topics for study:
* Allocation – business & nonbusiness persons
* Former directly related test
* Former associated test
* Statutory exceptions
* Quiet business meals & drinks repeal
* Ticket purchases
* Percentage reduction for meals & pre-2018 entertainment
* Entertainment facilities
* Business gifts
After reading Chapter 5, participants will be able to:
b. Identifying the pre-2018 stepped process of determining qualifying allowable entertainment expenses and the former allocation and proration entertainment expenses including meals; and
c. Specifying the elements of the ordinary and necessary requirement under §162.
b. Determining the meaning of the former “associated with” test in finding whether expenses have a business purpose; and
c. Specify the remaining statutory exceptions to §274 identifying the tenth repealed exception.
4. Recognize the 50% reduction for meals and pre-2018 entertainment and related expenses including exceptions.
5. Determine what constitutes an entertainment facility specifying excluded facilities types and costs and recognize the effect of OBRA ’93 on club dues.
6. Identify the tax benefits and substantiation requirements for business gifts, employee achievement awards, and sales incentive awards by:
b. Recognizing the tax treatment of joint spousal gifts and exclusions to the annual limitation; and
c. Citing conditions that must be met for costs from a §74 qualified plan award program to be deductible.
Chapter 6 Substantiation
At the start of Chapter 6, participants should identify the following topics for study:
* Separate expenses
* Adequate records method of substantiation
* Sufficiently corroborated statements method of substantiation
* Exceptional circumstances method of substantiation
* Written policy statements
* Treating vehicle as 100% personal
* Exempt vehicles
* Farming vehicles
* Additional information requirements
After reading Chapter 6, participants will be able to:
2. Cite ways to substantiate travel and pre-2018 entertainment expenses using required records by:
b. Selecting a sampling of the use of listed property for portions of a taxable year; and
c. Identifying documentary evidence.
Chapter 7 Reporting & Reimbursement of T&E Expenses
At the start of Chapter 7, participants should identify the following topics for study:
* Accountable plans
* Adequate accounting
* Non-accountable plans
* Self-employed persons
* Meal & pre-2018 entertainment expenses for self-employed
* When an employer can deduct expenses
* Meals and employer-provided autos
* Disclosure of business use of automobiles
* Disclosure of business use of other listed property
After reading Chapter 7, participants will be able to:
2. Determine how to adequately account for travel and other employee business expenses by:
b. Identifying incidental expenses under R.R. 2002-63 for accounting purposes and specifying the meal break out and 50% limitation; and
c. Recognizing accountable plans and nonaccountable plans and their correct reporting of employee reimbursements.
|Course Contents :||
Chapter 1 -
Chapter 2 -
Chapter 3 -
Chapter 4 -
Depreciation “Caps” - §280F(a)
Chapter 5 -
Former Four-Step Deduction Process
Percentage Reduction for Meals - §274(n)(1)
Chapter 6 -
Chapter 7 -
So Who Files Form 2106?