1040 Workshop 2024 - 24.5 CPE
Designed to make the practitioner comfortable with “high traffic” issues, this program enables participants to discuss and handle individual tax essentials. The course examines and explains the practical aspects of return preparation and individual planning, bridging the gap between theory and application. Significant new developments are summarized with an emphasis on tax savings ideas. Practical applications and illustrations are used to systematically explore tax deferral, reduction, and elimination opportunities accompanying return preparation. For example, the analysis of gross income is discussed together with income-splitting techniques; property transactions are examined alongside like-kind exchanges and involuntary conversions. The result is an extraordinary blend of the latest developments affecting individual returns and their related planning ideas.
Completion Deadline & Exam: This course, including the examination, must be completed within one year of the date of purchase. In addition, unless oth-erwise 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 objec-tives listed below each assignment.
ASSIGNMENT SUBJECT
Chapter 1 Individual Tax Elements
At the start of Chapter 1, participants should identify the following major topics for study:
* Tax rates and tables
* Filing status
* Gross income
* Dividends and distributions
* Discharge of debt income
* Exclusions from income
* Nonbusiness and personal deductions
* Education and medical expenses
* Casualty and theft losses
* Tax credits
Learning Objectives
After reading Chapter 1, participants will be able to:
1. Identify federal revenue tax sources citing the definitive role of gross income and, determine a client’s tax liability using current rates, tables, exemptions, statutory amounts, and their withholding and/or estimated tax responsibility.
2. Specify the various filing statuses and their filing requirements rec-ognizing the advantages and disadvantages of each.
3. Determine what constitutes gross income under §61 stating the tax treatment of fringe benefits, rental income, prizes, and awards, and specify how debt discharge and foreclosure can result in taxable in-come.
4. Identify the mechanics of income exclusions such as education-related exclusions, insurance, and personal injury awards.
5. Recognize income tax deductions and their use to reduce tax liabil-ity by identifying interest related to businesses. investments, qualified residences, and deductions for medical expenses, charitable contribu-tions, casualty losses, and moving expenses.
6. Determine distinctions among several types of tax credits for chil-dren and education identifying amounts and eligibility requirements.
After studying the materials in Chapter 1, answer exam questions 1 to 34.
ASSIGNMENT SUBJECT
Chapter 2 Expenses, Deductions & Accounting
At the start of Chapter 2, participants should identify the following major topics for study:
* Landlord’s rental expenses
* Health insurance costs
* Home office deduction
* Travel and entertainment expenses
* Employee expense reimbursement and reporting
* Automobile deductions
* Fringe benefits
* Methods of accounting
* Expensing and depreciation
* Amortization
Learning Objectives
After reading Chapter 2, participants will be able to:
1. Recognize the tax treatment of rental property expenses specifying their impact on landlords and tenants taking into consideration the tax differences given to rent, insurance, tax preparation fees, property taxes, and purchased leases.
2. Identify the application of the hobby loss rules to a business, de-termine deductible expenses, recognize the requirements of the home-office deduction, and specify self-employment taxes.
3. Determine how to properly deduct travel by identifying deductible domestic and foreign business travel expenses, a taxpayer’s tax home, if any, and work locations; specify the “away from home” and conven-tion rules; and define the adequate substantiation methods.
4. Differentiate accountable and nonaccountable plans including the requirements for an accountable plan particularly adequate account-ing using per diem rates for non-related employees.
5. Determine what constitutes local personal commuting and deducti-ble travel to temporary work sites.
6. Identify the apportionment of automobile expenses between per-sonal and business use, the actual cost and standard mileage methods, depreciation, expensing, and the gas guzzler tax.
7. Specify the various types of excluded fringe benefits that can in-crease employers’ deductions and incentive-based compensation of employees listing examples of each.
8. Recognize the cash, accrual, and other methods of accounting, se-lect available accounting periods specifying their impact on income and expenses and identify expensing depreciation, and amortization.
After studying the materials in Chapter 2, answer exam questions 35 to 81.
ASSIGNMENT SUBJECT
Chapter 3 Property Transfers & Retirement Plans
At the start of Chapter 3, participants should identify the following major topics for study:
* Sales and exchanges of property
* Home sale exclusion
* Installment sales
* Repossession
* Involuntary conversions
* At-risk rules
* Like-kind exchanges
* Retirement plans
Learning Objectives
After reading Chapter 3, participants will be able to:
1. Specify the tax consequences on the sale of easements and the holding period and basis of inherited property.
2. Identify the application elements of the §121 home sale exclusion specifying the ownership and use requirements.
3. Recognize the §453 installment method requirements, the residen-tial lot exception, and the pledging rule limitation.
4. Identify the elements necessary for a §1038 repossession, the dif-ferent rules for real property and personal property repossessions, and calculating basis and gain on repossession
5. Specify the tax treatment of a §1033 involuntary conversion on condemnation or threat of condemnation; differentiate between con-demnation awards and severance damages; and identify replacement periods needed to postpone gain.
6. Recognize the scope of the §465 at-risk rules and their effect on property depreciation, and identify the requirements, taxation, and types of §1031 like-kind exchanges.
7. Identify planning considerations for benefit planning and funding a qualified retirement plan; determine the compensation base used for funding calculations and the impact of PBGC insurance in assuring benefits.
8. Identify the requirements of the basic forms of qualified pension plans permitting clients to compare and contrast such plans.
9. Differentiate defined contribution and defined benefit plans; speci-fy the types of defined contribution plans particularly Keogh plans and IRAs identifying their effect on retirement benefits.
10. Identify how self-employed plans differ from qualified plans for other business types and owners; and specify the requirements of IRAs and the Roth IRAs recognizing their contribution, rollover, and RMD requirements and restrictions.
11. Determine what constitutes SEPs and SIMPLEs recognizing the mechanics and eligibility requirements of each type of plan.
After studying the materials in Chapter 3, answer exam questions 82 to 129.
ASSIGNMENT SUBJECT
Chapter 4 Losses, AMT & Compliance
At the start of Chapter 4, participants should identify the following major topics for study:
* Passive loss rules
* Suspension of disallowed losses under §469
* Computing the alternative minimum tax
* Minimum AMT tax credit
* Reporting compliance rules and provisions
* Accuracy related penalties
* Information reporting penalty final regulations
* Penalty for unrealistic position
* Statute of limitations for assessments
* Examination of returns
Learning Objectives
After reading Chapter 4, participants will be able to:
1. Identify how the passive loss rules limit the ability to take deduc-tions, what transactions free disallowed losses, how suspended losses are carried forward, and when real estate professionals can escape the passive lost rules.
2. Specify differences between the regular and alternative minimum tax recognizing the impact of tax preferences and adjustments.
3. Identify the reporting requirements for employers, real estate transactions, independent contractors, and cash reporting.
4. Recognize types of accuracy-related and valuation overstatement penalties including the substantial authority defense for reporting po-sitions, and specify the IRS's examination of returns policy and as-sessment process including applicable statute of limitations.
After studying the materials in Chapter 4, answer exam questions 130 to 150.
