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 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.
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, and statutory amounts, and their withholding and/or estimated tax responsibility.
2. Specify the various filing statuses and their filing requirements recognizing the advantages and disadvantages of each.
3. Determine what constitutes gross income under §61 stating the tax treatment of compensation, fringe benefits, rental income, Social Security benefits, alimony, prizes, and awards, identify dividend and distribution types and their tax differences, and specify how debt discharge can result in taxable income.
4. Identify the mechanics of income exclusions such as education-related exclusions, gift and inheritance exclusions, insurance, personal injury awards, interest on state and local obligations, and the foreign earned income exclusion.
5. Recognize income tax deductions and their use to reduce tax liability by:
a. Identifying personal, spousal and dependency exemptions and reporting requirements including pre-2005 dependency rules;
b. Specifying the deductibility of §163 interest categories, §162 educational expenses, pre-2018 §217 moving expenses, pre-2018 §165 casualty & theft losses, and §164 taxes stating their proper reporting and substantiation;
c. Determining variables that impact the deductibility of charitable contributions, and identifying qualified organizations, permissible contributions contribution limitations, their tax treatment, and substantiation requirements;
d. Identifying the deductibility of medical care expenses including medical insurance, meals and lodging, transportation, home improvements and lifetime care payments recognizing the impact of Medicare;
e. Specifying deductions that are subject to the pre-2018 2% of AGI limitation, deductions not subject to the 2% limit, and nondeductible expenses.
6. Determine distinctions among several types of tax credits identifying the eligibility requirements and citing changes created by recent tax legislation to individual tax returns.
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, advance payments, and security deposits.
2. Identify the application of the hobby loss rules to a business, deter-mine deductible health insurance costs and the requirements of the home-office deduction, and specify self-employment taxes and availa-ble business and investment credits.
3. Determine how to properly deduct travel and pre-2018 entertain-ment expenses by:
a. Identifying deductible business travel expenses, a taxpayer's tax home, if any, and work locations based on the IRS's definition and recalling the 'away from home” requirement and 'sleep and/or rest” rule;
b. Specifying the key elements of deductible domestic and foreign business travel costs recognizing the Reg. §1.162 deduction of con-vention and meeting expenses;
c. Identifying §274 pre-2018 entertainment deductibility tests, deter-mining the limits on home entertaining, ticket purchases, and meals and entertainment stating the eight exceptions to the percentage re-duction rule; and
d. Recognizing the substantiation requirements associated with business gifts, employee achievement awards, and sales incentive awards.
4. Determine the differences between accountable and nonaccounta-ble plans including the requirements for an accountable plan particu-larly adequately accounting for travel and other employee business ex-penses.
5. Determine what constitutes local transportation and commuting in-cluding how nondeductible personal commuting relates to local busi-ness transportation expenses.
6. Identify the apportionment of automobile expenses between per-sonal and business use, the actual cost and standard mileage methods, 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, or other methods of accounting, select available accounting periods specifying their impact on income and ex-penses, and identify expensing depreciation, and amortization.
Choose Your Preferred Format
Get immediate access to a robust collection of learning and reference materials, allowing you to dive deep into the information you need. Our self-study materials are authored by top-quality, industry experts who focus on helping you grasp concepts quickly using real-life examples. Download your CPE to any device, and take it with you so you can learn when and wherever you want. Complete your CPE with an online exam, and enjoy instant grading with the option to print your certificate immediately upon passing.
Our self-study materials are authored by top-quality, industry experts. You’ll receive a bound notebook of all the course materials, shipped to you within one business day. In addition, you’ll also have full online access. Each self-study package includes a robust collection of learning and reference materials to help you cover the information efficiently and put it into practice immediately.
Experience high-quality instruction with our Self-Study Videos, available to you 24/7. With more than 80+ videos currently in the Western CPE Self-Study Video library, you can see and hear our expert instructors deliver the information you need in a dynamic way that allows you to immediately apply your learning. Unlike a live course or webcast, you can complete the course on your own time, playing and pausing as needed. Self-Study Videos allow you to complete your CPE requirements on your own time.
Back to top