Family Tax Planning 2022 - 24 CPE

TEXAS COMPLIANCE PENDING:

Texas requires a class be reviewed by enough students to assign earned CPE credits.  This course is still new enough that we are obtaining the reviews needed.   We recommend Texas CPAs check back soon. This process is usually finished within a few weeks.

While the nuclear family remains the center point of society, today it is under tremendous economic and social pressure. This course is designed to cover “hot” topics having a direct impact on the practitioner who represents any client with family issues. The emphasis is on using tax solutions to ease family economic concerns permitting the practitioner to be a real tax hero.

Completion Deadline & Exam: This course, including the examination, must be completed within one year of the date of purchase. In addition, unless otherwise indicated, no correct or incorrect feedback for any exam question will be provided.

Course Level: Overview. This program is appropriate for professionals at all organizational levels.

Field of Study: Taxes

Prerequisite: General understanding of federal income taxation.

Advanced Preparation: None

Learning Assignments & Objectives

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

ASSIGNMENT                  SUBJECT

Chapter 1                      Basic Marital Tax Matters

At the start of Chapter 1, participants should identify the following topics for study:

* Marital status

* Joint return

* Separate returns

* Head of household

* Exemptions

* Divorce costs

* Withholding & estimated tax

* Community property states

* Ending the community

* Living together

Learning Objectives

After reading Chapter 1, participants will be able to:

1. Determine how filing status affects taxpayers’ filing requirements, standard deductions, and correct tax by:

a. Specifying divorce tax implications and the requirements and effects of filing as married or unmarried;

b. Identifying the requirements of filing a joint return and how to avoid being penalized;

c. Recognizing the key elements of filing separate returns including what items to report and whether or not married taxpayers should file separate returns; and

d. Identifying the requirements for filing as head of household and the tax advantages and disadvantages of this filing status.

2. Select the number of pre-2018 exemptions a client could have and state the impact said exemptions had by:

a. Recognizing the former phaseout of exemptions showing its tax impact on taxpayers, identifying when exemptions could have been taken for spouses, and specifying prior reporting requirements for dependent exemptions;

b. Citing the requirements for pre-2005 dependency, particularly relationship, married person, citizen or resident, and income;

c. Identifying the former regular and special method for determining support recognizing complications from back child support and multiple support agreements;

d. Determining the current “qualified child” standard using residency, relationship, age, and joint return prohibition; and

e. Specifying the requirements to treat a child as a qualifying child of a non-custodial parent.

3. Determine deductible and nondeductible divorce expenditures, identify which spouse is subject to tax imposed upon withheld wages, and specify the effects of making separate estimated tax payments or joint declarations of estimated tax.

4. Recognize the special rules that apply to community property states and identify whether clients are affected by these rules by:

a. Determining what constitutes community property naming community property states and the effects of conversion and commingling of property including how to avoid such issues;

b. Identifying community income earned by married couples by:

i. Specifying reporting guidelines, identifying how to separate income earned and received into community property and separate property and recognizing what income and property belongs to which spouse when they have different residency statuses;

ii. Identifying requirements for the special community income allocation rules of §66(a) and determining a community property termination and the treatment of alimony payments; and

iii. Recognizing the importance of statements and records to provide estimates of a former spouse’s income and identifying conditions for tax relief.

5. Determine the effect of living together on filing statuses and dependency citing differences between the married tax rate and other tax rates, identify the tax consequences of having a living together contract listing tax traps, and specify the results of Marvin v. Marvin.

After studying the materials in Chapter 1, answer the exam questions 1 to 10.

ASSIGNMENT                  SUBJECT

Chapter 2                      Children

At the start of Chapter 2, participants should identify the following topics for study:

* Child tax credit

* Income earned by children

* Unearned income of children under 18

* Adoption credit

* Child or dependent care credit

* Qualifying person

* Keeping up a home

* Employment-related expenses

* Allowable amount & reporting

* Dependent care assistance

Learning Objectives

After reading Chapter 2, participants will be able to:

1. Identify the child tax credit listing the requirements for qualifying child and determine the tax treatment of earned and unearned income for children.

2. Recognize the elements of the adoption tax credit stating qualifying costs and fees, specify the tests for the §21 dependent care credit and identify qualifications for §129 dependent care assistance.

After studying the materials in Chapter 2, answer the exam questions 11 to 14.

ASSIGNMENT                  SUBJECT

Chapter 3                      Education

At the start of Chapter 3, participants should identify the following topics for study:

* Work-related educational expenses

* Educational expense credits

* Education savings accounts

* Deduction for student loan interest

* Qualified tuition programs

* Higher education expense deduction

* IRA withdrawals for education expenses

* Scholarships & fellowships

* Educational savings bonds

* Educational incentives & financial aid

Learning Objectives

After reading Chapter 3, participants will be able to:

1. Determine the differences between qualifying §162 deductible and nonqualifying education and specify education expense credits under §25A listing covered costs and fees.

2. Identify the benefits and requirements of §530 education savings accounts, specify the deductible portion of student loan interest payments and determine the §108 exclusion for the forgiveness of certain student loans.

3. Recognize the mechanics and requirements of available educational benefits by:

a. Identifying the benefits of prepaying or contributing to a student’s education stating how taxpayers may deduct higher education expenses;

b. Specifying the tax consequence of withdrawing amounts from an IRA for education expenses under §72(t) and the employee advantages §127 employer-provided educational assistance; and

c. Determining the differences between §117 tax-free scholarship payments and those that are taxable and identifying which education savings bonds qualify for the §135 exclusion of interest from gross income.

4. Identify educational incentives and financial aid available to students and parents.

After studying the materials in Chapter 3, answer the exam questions 15 to 23.

ASSIGNMENT                  SUBJECT

Chapter 4                      Medical, Charitable & Casualty

At the start of Chapter 4, participants should identify the following topics for study:

* Medical costs

* Medical deductions

* Health savings accounts

* Accelerated death benefits

* Charitable contributions of cash

* Charitable contributions of property

* Substantiation

* Casualty & theft losses

* Deductible & nondeductible losses

* Disaster area losses

Learning Objectives

After reading Chapter 4, participants will be able to:

1. Identify deductible §213 medical care expenses for federal tax purposes by:

a. Recognizing deductible medical costs paid for spouses and dependents listing dependency requirements;

b. Determining the deductibility of specific medical care expenses including medical insurance premiums, costs for meals and lodging, transportation expenses, costs for cosmetic surgery, expenditures for making permanent improvements to a home, and lifetime care advance payments;

c. Specifying the benefits of medical savings accounts showing differences such accounts have with health savings accounts, recognizing the benefits and qualifications of HSAs, and determining high deductible health plans stating how they relate to HSAs;

d. Recognizing the mechanics of prescription drug plans and specifying what constitutes accelerated death benefits; and

e. Determining the deductibility of health insurance by self-employed taxpayers.

2. Specify variables that impact the deductibility of §170 charitable contributions identifying qualified organizations and limitations for these purposes naming the types of contributions that can be made, their tax treatment, and substantiation requirements.

3. Determine what constitutes casualty and theft, and specify the rules for taking a deduction for all or part of each loss under §165.

After studying the materials in Chapter 4, answer the exam questions 24 to 32.

ASSIGNMENT                  SUBJECT

Chapter 5                      Home Sales & Moving Expenses

At the start of Chapter 5, participants should identify the following topics for study:

* Capital gains rates

* Rate groups

* AMT

* Home sales under §121

* Special rules for ownership & use requirements

* Prorata exception

* 1099-S reporting

* Distance & time tests for moving expenses

* Deductible moving expenses

* Reporting moving expenses

Learning Objectives

After reading Chapter 5, participants will be able to:

1. Recognize the relationship between home sales and the capital gains rates, and specify the rate “baskets” created by the capital gain provisions stating how to treat capital assets in each category.

2. Determine the key elements of the §121 home sale exclusion and its application, and specify the safe harbor proration provisions associated with the home sale exclusion.

3. Identify whether a taxpayer meets the former distance and time tests for deductible pre-2018 moving expenses under §217.

After studying the materials in Chapter 5, answer the exam questions 33 to 38.

ASSIGNMENT                  SUBJECT

Chapter 6                      Home Mortgage Interest

At the start of Chapter 6, participants should identify the following topics for study:

* Secured debt

* Qualified home

* Special situations

* Points

* Mortgage interest statement – Form 1098

* Special rule for cooperative housing

* Home acquisition debt

* Home equity debt

* Mixed-use mortgages

* Grandfathered debt

Learning Objectives

After reading Chapter 6, participants will be able to:

1. Identify categories of mortgages and characteristics of secured debt that influence the deductibility of interest, determine what constitutes a “qualified home,” and specify special situations that affect qualified home mortgage interest.

2. Recognize the general rule for the tax treatment of points specifying exceptions and, identify when a taxpayer will receive a Mortgage Interest Statement – Form 1098 and which information is included on this statement to figure interest deductions.

3. Determine when a stock in a cooperative housing corporation owned by a tenant-stockholder is a qualified home and, ide