1040 Workshop 2019 - Part I
Field of Study:
This is the Part I of a two-part course and covers chapter 1 and chapter 2 of the course material. The course is 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 completing this section, you should be able to:
- 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.
- Specify the various filing statuses and their filing requirements noting the advantages and disadvantages of each.
- 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.
- 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.
- Recognize income tax deductions and their use to reduce tax liability.
- Determine distinctions among several types of tax credits identifying the eligibility requirements and noting the cited changes created by re-cent tax legislation to individual tax returns.
- 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.
- 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.
- Determine how to properly deduct travel and entertainment expenses
- 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.
- Determine what constitutes local transportation and commuting including how nondeductible personal commuting relates to local business transportation expenses.
- Identify the apportionment of automobile expenses between personal and business use, the actual cost and standard mileage methods, and the gas guzzler tax.
- Specify the various types of excluded fringe benefits that can increase employers’ deductions and incentive-based compensation of employees listing examples of each.
- Recognize the cash, accrual, or other methods of accounting, select available accounting periods noting their impact on income and ex-penses, and identify expensing, depreciation, and amortization.
Recommended CPE credits:
Type of delivery method:
Final examination expiration date:
The program participant will have one year from the date of purchase to complete the course and final examination.
Web CPE is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org