There are no prerequisites.

Course Description

This course examines the various methods and techniques capable of optimizing the overall compensation package for key employees in small to medium-sized businesses. The course will describe and evaluate effective pay plans essential to attract, motivate, and retain key people. Other topics investigated include qualified and nonqualified deferred compensation, benefit targeting, insurance programs, statutory fringe benefits, interest free loans, and investment planning. This course also explores different types of indirect compensation in the form of business entertainment, expense accounts, auto use, travel, and transportation. Finally, equity participation is explored through stock sales, repurchase agreements, incentive stock options, ESOTs, stock options, and bonuses.


Danny Santucci, JD

Danny Santucci, BA, JD, is a prolific author of tax and financial books and articles. His legal career started with the business and litigation firm of Edwards, Edwards, and Ashton. Later he joined the Century City entertainment firm of Bushkin, Gaims, Gaines, and Jonas working for many well-known celebrities. In 1980, Danny established the law firm of Santucci, Potter, and Leanders in Irvine, California. With increasing lecture and writing commitments, Danny went into sole practice in 1995. His practice emphasizes business taxation, real estate law, and estate planning. Speaking to more than 100 groups nationally each year, he is known for spicing up his extensive expertise with an incredible sense of humor.

Course Specifics

May 25, 2017
There are no prerequisites.

Compliance Information

IRS Provider #: 0MYXB
IRS Course ID: 0MYXB-T-00483-13-S
IRS Federal Tax Law Credits: 20
CTEC Provider #: 2071
CTEC Course ID: 2071-CE-0506
CTEC Federal Tax Law Credits: 20
Qualifies for CA Fraud: No

Learning Objectives

Upon successful completion of this course, participants will be able to:

Chapter 1

  • Identify vehicles and strategies for building wealth
  • Name a requirement of a §1031 transaction
  • State proper disposition for paying taxes on a §453 installment sale
  • Specify the tax treatment of a cash inheritance
  • List an investment offering tax advantages

Chapter 2

  • List a beneficial item to be included when designing compensation plans for executives and line workers
  • Identify the cutoff for the highest corporate tax rate
  • Calculate an expected capital gains tax rate
  • Locate the definition for dependent in the IRC
  • Cite the limitation on credits from §469 passive activities
  • Name a factor that may erode the value of deferred income
  • State when employee benefits are includable in taxable income or exempt
  • Specify an item of interest of the IRS when compensation is challenged in tax court

Chapter 3

  • Identify the period that a company may pay all or a portion of deferred compensation
  • Specify treatment of employer's benefits in a funded deferred compensation plan
  • Name the target of ERISA exemptions for unfunded arrangements
  • List a vehicle to provide deferred benefits based on company profits
  • Define the result of a company transferring money into a plan for employees
  • Cite a problem with most qualified retirement plans
  • Determine the type of retirement plan that is best for a specific employer or self-employed person
  • Cite the amount that can be paid out by the PBGC if a company becomes insolvent
  • Identify a minimum requirement for using a trust to hold a pension plan
  • Calculate how much an employee would receive when he or she has a benefits package with a cliff vesting schedule
  • Name a plan that has two methods for determining contribution amounts under §404
  • Identify an allowable supplemental benefit to a pension plan
  • Name the lowest-cost plan available for employers
  • Specify a requirement of a company with a defined contribution plan
  • State the length of time a business must be in existence to end a profit-sharing plan without a business reason
  • Calculate the maximum contribution for the owner of multiple closely related ventures
  • Cite the amount that can be deducted for contributions to an IRA by a couple
  • Name a retirement plan that allows for discrimination
  • Specify a group that needs to be covered under a SEP

Chapter 4

  • Specify an item included in income under §61
  • List a fringe benefit commonly provided before 1975
  • Define how special valuation rules apply when cars are provided to employees
  • Cite treatment of benefits when using the two-month pour-over accounting method
  • Identify when a company may not deduct group term life insurance premiums and how insurance costs includable in employees' income is treated
  • State a tax consequence when an employer reimburses employees for medical expenses
  • List requirements for §105 medical reimbursement plans or §125 cafeteria plans
  • Cite which related §127 expenses are deductible when paid directly by a company
  • Name the IRC section that allows employees to exclude dependent care assistance costs
  • List a condition for excluding the cost of no-additional-cost services or discounting software for employees under §132
  • Specify a working condition fringe benefit that is excludible from income
  • Cite a §132 de minimis fringe benefit
  • Identify people who would not qualify for qualified transportation fringe benefits
  • State minimum miles for the cents-per-mile method on a company car or the minimum payment when using the commuting value method
  • Cite the maximum deduction for costs under an adoption assistance program
  • Specify how to characterize payments received from an employer for loss on the sale of a home in relation to moving
  • Identify the rate determination frequency on a loan under §7872
  • State the time limit for providing a SPD for a welfare plan from the date of adoption

Chapter 5

  • Identify how costs associated with entertaining clients at home should be treated
  • Cite the limitation on the value of sports tickets purchased for entertainment of a client
  • Cite the IRC section that deals with travel, meals, and lodging deductions
  • Define an entertainment facility for the purposes of §274
  • Name a circumstance where special standards meal allowance may be used

Chapter 6

  • State how the IRS classifies workers who travel to different locations for work
  • Identify a rule allowing a travel expense deduction when a trip is less than 24 hours
  • Cite the allocation requirements for attempting to deduct business costs during a foreign or domestic vacation
  • Specify the maximum deduction for attending a conference at sea
  • Determine how vehicle costs are treated under a §179 election
  • Name an automobile cost that may be deducted separately when using the standard business mileage rate
  • Identify entity tax treatment costs for travel for medical care

Chapter 7

  • List one of the two types of insurance
  • Name a benefit arrangement subject to ERISA regulatory requirements
  • State the maximum tax-free amount under the former §101(b)
  • Calculate how many employees may be treated as key persons
  • Identify  a factor in determining the disallowed amount of tax-exempt interest income for §265 bonds
  • Cite a tax-advantaged way to set aside funds for medical expenses

Chapter 8

  • State the two factors in determining benefits from stock options
  • Identify the categorization of nonvoting stock and sales of stock subject to a voting trust
  • Cite ERISA treatment of a stock bonus plan designed to provide equity participation
  • Specify how future compensation would be determined when issuing phantom stock
  • List an advisable restriction when transferring stock to an executive
  • State the purchase period for a nonqualified stock option used as payment for services
  • Cite when a SAR payment is equivalent to the appreciation in company stock value
  • Identify the approval period for a qualified stock incentive plan
  • Name a type of business is prohibited from issuing golden parachute agreements
  • State which stock receives stepped-up basis in cross-purchase plans
  • Cite when the IRS is unlikely to accept the agreed value in a buy-sell agreement
  • Name the most effective method of valuation of closely held stock

Chapter 9

  • Identify potential beneficiaries when a spouse has power of appointment over a marital deduction trust
  • Define the term for an estate that can be passed tax-free
  • State the current status of modified carryover basis rules and the amount that a decedents estate could be increased by using them
  • List an issue that would not be covered in a simple will
  • Identify how a children's trust acts under the living A-B revocable trust format
  • Define what a pour-over provision in a simple will does
  • Name a good asset to be put into a charitable income trust
  • Cite a good device for maintaining a client's wishes in regard to medical care
  • List a disadvantage of a private annuity even when property is unaffected by new regulations due to the exchange date

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