- Credits: 24
- Format: Self-Study eBook
- Field of Study: Federal Tax Update
- Author/ Speaker: Danny C. Santucci
|Course ID:||Advanced Preparation:||Experience Level:|
|EWTFM-U-01650-20-S | 6233-CE-0374||None||Overview|
|Published Date:||Program Prerequisites:||Other Course Formats:|
|© July 2020||General Understanding of Taxes||eBook | Self-Study|
Americans who want to be their own boss are not entirely on their own. They have a rich uncle - Uncle Sam - who is there to help, as well as to make demands. The Nation's tax laws are intended to encourage people to start new businesses and are chock full of incentives and tax breaks, as well as sometimes onerous reporting requirements.
This course is a fast-paced and entertaining guide through tax issues affecting business entities and their owners. The focus of this class is on tax devices and techniques available to the small-business owner. Emphasis will be given to operational deductions, fringe benefits, compensation, family income splitting, retirement plans, and estate planning.
After reading the course material, you will be able to:
- Recognize sole proprietorships, partnerships, and corporations as organizational formats for new and existing businesses.
- Identify how choice of entity relates to the type of records to keep, listing issues related to substantiation and documentation.
- Specify available accounting periods and methods and the methods for identifying and valuing inventory items.
- Identify the various types of income and their implications, including the hidden income tax dangers of cancellation of indebtedness income, tax recoveries, and depreciation recapture.
- Specify the existing basic business and investment tax credits, naming their tax requirements, and business asset types that affect the character of gain or loss, and recognize the tax treatment on the disposition of business assets, including non-recognition transfers and Section 1231 assets.
- Recognize the importance of Section 162 in deducting and substantiating business expenses and costs and specify the implications of the deduction timing and limits specifying the treatment of not-for-profit activities.
- Identify conditional sales contracts, leveraged leases, and true leases, and determine how to qualify for rent expense deductions including through leasehold improvements.
- Specify the various forms of interest expense under Section 163(a) recognizing related reporting and filing issues, and identify the distinctions between deductible and nondeductible interest.
- Recognize deductions for real estate, state, and local taxes and list deductions for home office use, research and experimentation costs, barrier removal, and mine development.
- Identify the various forms of tax treatment under the concepts of depreciation and amortization, including the effect on amortization of Section 197.
- Determine the differences between cost depletion and percentage depletion as a means of accounting for the reduction of a product’s reserves.
- Specify the types of bad debt and their effect on accounting and the various methods for dealing with bad debt.
- Recall MACRS classifications, cite the recapture provisions and exceptions, and identify the alternative depreciation system.
- Specify the common-law rules used by the IRS to determine whether a person is an employee for purposes of FICA, FUTA and federal income tax withholding.
- Identify the tests for wages to be deductible and how excluded fringe benefits can result in more employer deductions and incentive-based compensation to employees.
- Recognize the use of deferred compensation agreements including the basic types of nonqualified deferred compensation, and the tax consequences related to these plans.
- Identify the apportionment of business and personal use of an automobile, including deduction limitations, and specify the various depreciation methods such as MACRS and Section 179 expensing.
- Recognize personal auto leasing, its advantages and disadvantages, and the various kinds of leasing arrangements that can be used, such as closed-end or open-end leases.
- Recall the standard mileage method listing its limitations and identify the various working condition fringe benefits including their impact on the gross income of employees.
- Identify the various valuation methods used in determining the actual value of an employee’s personal use of an automobile specifying the reporting options available to the employer.
- Determine the differences between defined contribution and defined benefit plans recognizing the different types of plans and their effect on retirement benefits.
- Identify Keogh Plans, traditional and Roth IRAs, and SIMPLE 401(k) plans by specifying their characteristics and determining how and when they may and may not be appropriate.
- Specify the requirements that determine insurance premium deduction and, identify the interest disallowance rule, the uniform capitalization rules citing their relation to production or resale activity costs.
Who Should Attend:
- All Certified Public Accountants (CPAs)
- Enrolled Agents (EAs)
- Tax Return Preparers (TRPs)
Qualifies and Approved with All State Boards of Accountancy and the following sponsorship’s: