Course Description

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.

Learning objectives

• Specify the tax consequences on the sale of easements and the holding period and basis of inherited property.
• Identify the application elements of the §121 home sale exclusion specifying the associated safe harbor regulations.
• Recognize the importance of the installment method and §453 requirements, and specify the §453 basic terminology.
• Identify the variables that determine which §1038 rules apply recognizing 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.
• Specify the tax treatment of a §1033 involuntary conversion by: Determining related terminology and the tax consequences of receiving a condemnation award or severance damages; Identifying gain or loss from condemnations recognizing the reporting of payments associated with involuntary conversions; and Determining whether clients can postpone gain on condemned, damaged, destroyed, or stolen property and specifying the related party rule.
• 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.
• Identify qualified deferred compensation plans and nonqualified plans by: Determining the major benefit of the qualified deferred plans and the calculation basis of benefits and contributions; and Recognizing the current and deferred advantages and the disadvantages of corporate plans stating fiduciary responsibilities and prohibited transactions.
• Identify the requirements of the basic forms of qualified pension plans permitting clients to compare and contrast such plans.
• Determine the distinctions between defined contribution and defined benefit plans, specify the types of defined contribution plans, and identify their effect on retirement benefits.
• 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.
• Determine what constitutes SEPs and SIMPLEs recognizing the mechanics and eligibility requirements of each type of plan.
• 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.
• Specify differences between the regular and alternative minimum tax recognizing 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.
• Identify the reporting requirements for real estate transactions, independent contractors, and cash reporting.
• 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.

Final examination expiration date:

The program participant will have one year from the date of purchase to complete the course and final examination.