Source: https://www.cpethink.com/course/1040-tax-workshop-2017
Timestamp: 2019-04-21 20:20:03+00:00

Document:
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.
Prerequisites : General understanding of federal income taxation.
As a result of studying each assignment, you should be able to meet the objectives listed below each assignment.
1. Identify federal revenue tax sources noting the definitive role of gross income and, determine a client’s tax liability using current rates, tables, and statutory amounts, and their withholding and/or estimated tax responsibility.
2. Specify the various filing statuses and their filing requirements noting the advantages and disadvantages of each.
3. Determine what constitutes gross income under §61 noting 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.
e. Specifying deductions that are subject to the 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 noting the cited changes created by recent tax legislation to individual tax returns.
1. Recognize the tax treatment of rental property expenses noting 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, determine deductible health insurance costs and the requirements of the home-office deduction, and specify self-employment taxes and available business and investment credits.
d. Recognizing the substantiation requirements associated with business gifts, employee achievement awards, and sales incentive awards.
4. Determine the differences between accountable and nonaccountable plans including the requirements for an accountable plan particularly adequately accounting for travel and other employee business expenses.
5. Determine what constitutes local transportation and commuting including how nondeductible personal commuting relates to local business transportation expenses.
6. Identify the apportionment of automobile expenses between personal 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 increase 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 noting their impact on income and expenses, and identify expensing, depreciation, and amortization.
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 noting associated safe harbor regulations.
3. Recognize the importance of the installment method and §453 requirements, and specify the §453 basic terminology.
4. Identify the variables that determine which §1038 rules apply noting distinctions among the rules, calculations, and effects of repossessions of personal property and repossessions of real property, and recognize when a bad debt deduction may be taken on a repossession.
c. Determining whether clients can postpone gain on condemned, damaged, destroyed, or stolen property and specifying the related party rule.
6. Recognize the scope of the §465 at-risk rules and their effect on property depreciation, and identify the requirements, mechanics, and types of §1031 like-kind exchange.
b. Recognizing the current and deferred advantages and the disadvantages of corporate plans noting fiduciary responsibilities and prohibited transactions.
8. Identify the requirements of the basic forms of qualified pension plans permitting clients to compare and contrast such plans.
9. Determine the distinctions between defined contribution and defined benefit plans, specify the types of defined contribution plans, and identify 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 special requirements of Roth IRAs.
11. Determine what constitutes SEPs and SIMPLEs noting the mechanics and eligibility requirements of each type of plan.
b. Listing the current and deferred advantages and disadvantages of corporate plans while defining fiduciary responsibilities and prohibited transactions.
8. Identify the requirements of the three basic forms of qualified pension plans permitting clients to compare and contrast such plans.
9. Define defined contribution and defined benefit plans, name the five types of defined contribution plans, and show their effect on retirement benefits.
10. Show the differences between self-employed and qualified plans used by other business types identifying key choice of entity factors, and list the requirements of IRAs and Roth IRAs.
11. Define SEPs and SIMPLEs identifying the mechanics and eligibility requirements of each.
1. Identify basic income types and the “buckets” of income and loss under §469 that can influence what can be deducted, determine the suspension of disallowed passive losses, and recognize the special rules for transfers deemed not to be fully taxable dispositions.
2. Specify differences between the regular and alternative minimum tax noting the application tax preferences and adjustments, and determine the life of assets under ADS, alternative minimum taxable income, passive losses under the AMT, and what constitutes ACE.
3. Identify the reporting requirements for real estate transactions, independent contractors, and cash reporting.
4. Recognize types of accuracy related and unrealistic position penalties, and specify the IRS's examination of returns policy and assessment process including applicable statute of limitations.
Test #1 - "Directly Related"
Test #2 - "Associated With"

References: §61
 §121
 §453
 §453
 §1038
 §465
 §1031
 §469