Getting Cash Out of Your Business (eBook)

  • Credits: 19
  • Format: Self-Study eBook
  • Field of Study: Federal Tax Law
  • Author/Speaker: Danny Santucci
Available Formats:
Advanced Preparation: None
Experience Level: Basic
Program Prerequisites: General Understanding of Taxation
Course ID: EWTFM-T-01977-22-S | 6233-CE-0670 | DS-133.22
Published Date: Mar 2022

This course examines the various ideas, methods, and techniques capable of optimizing the overall compensation package for key employees and principals in small to medium-sized businesses. Qualified and non-qualified deferred compensation, benefit targeting, insurance programs, statutory fringe benefits, interest-free loans, and investment planning are investigated. Effective pay plans essential to attract, motivate and retain key people are defined and evaluated.

Consideration is given to indirect compensation in the form of business entertainment, expense accounts, auto use, travel, and transportation. Equity participation is explored through stock sales, repurchase agreements, incentive stock options, ESOTs, stock options, and bonuses. The new field of professional services is probed to provide tax, financial, and estate planning to the key executive.

Topics include:
  • Tax Economics
  • Business Planning
  • Deferred Compensation Plans
  • Basic Fringe Benefits
  • Business Entertainment
  • Business Travel and Transportation
  • Insurance
  • Equity Participation
  • Estate Planning

Learning Objectives:

After reading the course material, you will be able to:

  • Identify financial and tax income types and how cash management is used to acquire and operate assets, specify changes recently made to taxable income, determine how the passive loss rules categorize income and identify income splitting formats that can reduce tax.
  • Recognize basic cash management techniques and how to generate tax-free income, identify ways to defer income, and specify techniques to shelter income.
  • Determine the importance of budgeting and rules to budget effectively, specify several cash usages, recognize financial acquisition guidelines for tax-advantaged investments, and specify multiple asset management rules.
  • Identify economic and tax trends particularly recent capital gain complexity and rate “baskets” and their varying taxation, recognize Section 469 “buckets” of income and loss that influence what a taxpayer can deduct against other income.
  • Specify several ways to defer income and accelerate deductions, thereby expanding business cash flow and planning opportunities.
  • Identify defined contribution and defined benefit plans, specify the differences among the types of defined contribution plans, and recognize their effect on retirement benefits.
  • Identify the rules for excluding the value of meals and lodging under Section 119, and “cafeteria plans” and how they operate.
  • Recognize the requirements and limits of employee educational assistance programs and dependent care assistance and how to obtain each type of assistance.
  • Identify tax definition of entertainment, recognize the former tests for pre-2018 entertainment expenses to be deducted, determine the importance of the statutory exceptions and the percentage reduction restriction for meals and entertainment and, specify the former 2% floor on miscellaneous itemized deductions.
  • Determine what constitutes an “entertainment facility,” identify substantiation, recordkeeping, reimbursement, reporting requirements, and variations in methods, specify how to itemize non-reimbursed employee expenses, and identify the special reporting rules for self-employed persons and employers.
  • Identify deductible meals, lodging, conventions, and meetings and related necessary compliance issues, specify the special requirements for cruises, determine the treatment of luxury water travel, recognize auto usage as a component of travel, cite the requirements for family member travel expenses and recognize the interplay of the "no additional cost" rule to ensure taxpayer compliance with Section 274.
  • Recognize the business and tax importance of available business insurance including the broad spectrum of company-paid insurance, Section 79 group term life, retired lives reserve, split-dollar, former death benefit plans, business travel, disability, medical, and dental specifying permitted coverage and tax treatment.
  • Determine tax-advantaged entity purchase and cross-purchase agreements, recognize the importance of funding a buy-sell agreement, and determine the value of the closely-held stock.
  • Identify estate planning for business clients and the elements of estate tax planning that have remained unchanged by recent legislation, recognize the unlimited marital deduction including its effect on the gross estate of the value of the property, and specify the applicable exclusion amounts for various years of death.

Who Should Attend:
  • All Certified Public Accountants (CPAs)
  • Enrolled Agents (EAs)
  • Other Tax Return Preparer (OTRP)

Qualifies and Approved with all State Boards of Accountancy and the following sponsorships: