1040 Workshop 2012 - 40 CPE Credit Hours
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1040 Workshop 2012 - 40 CPE Credit Hours

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Course description and objectives: 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.


Completion Deadline & Exam: This course, including the examination, must be completed within one year of the date of purchase. In addition, unless otherwise indicated, no correct or incorrect feedback for any exam question will be provided.


Course Level: Overview. This program is appropriate for professionals at all organizational levels. (40 Credits)


Category: Taxation


Prerequisite: General understanding of federal income taxation.


Recommended Credits: 40 CPE Hours


Advanced Preparation: None


Learning Assignments & Objectives
As a result of studying each assignment, you should be able to meet the objectives listed below each assignment.




Individual Tax Elements At the start of Chapter 1, participants should identify the following major topics for study:


* Tax rates and tables

* Filing status

* Gross income

* Dividends and distributions

* Discharge of debt income

* Exclusions from income

* Nonbusiness and personal deductions

* Education and medical expenses

* Casualty and theft losses

* Tax credits


Learning Objectives


After reading Chapter 1, participants will be able to:


1. Name federal revenue tax sources discussing the definitive role of gross income, estimate a client’s tax liability using current rates, tables, and statutory amounts, and determine a client’s responsibility for withholding and/or estimated taxes.


2. Compare and contrast the various filing statuses pointing out advantages and disadvantages and naming the filing requirements of each.


3. Define gross income under §61 including the tax treatment of compensation, fringe benefits, rental income, Social Security benefits, alimony, prizes and awards, describe dividend and distribution types including their tax differences, and explain how debt discharge can result in taxable income.


4. Discuss the mechanics of income exclusions including education-related exclusions, gift and inheritance exclusions, insurance, personal injury awards, interest state and local obligations, and the foreign earned income exclusion.


5. Categorize income tax deductions and use such deductions to reduce tax liability by:

         a. Identifying personal, spousal and dependency exemptions and reporting requirements including pre-2005 dependency rules;

b. Determining the deductibility of five §163 interest categories, §162 educational expenses, §217 moving expenses, §165 casualty & theft losses, and §164 taxes along with their proper reporting and substantiation;

c. Discussing four variables that impact the deductibility of charitable contributions, and identifying qualified organizations, permissible contributions contribution limitations, their tax treatment, and substantiation requirements;

d. Explaining the deductibility of medical care expenses including medical insurance, meals and lodging, transportation, home improvements and lifetime care payments including the impact of Medicare;

e. Naming at least twelve deductions that are subject to the 2% of AGI limitation, up to six deductions not subject to the 2% limit, and eleven nondeductible expenses.


6. Compare several types of tax credits identifying the eligibility requirements and applying the cited changes created by recent tax legislation to individual tax returns.

After studying the materials in Chapter 1, answer the exam questions 1 to 49.



Expenses, Deductions & Accounting At the start of Chapter 2, participants should identify the following major topics for study:

* Landlord’s rental expenses

* Health insurance costs

* Home office deduction

* Travel and entertainment expenses

* Employee expense reimbursement and reporting

* Automobile deductions

* Fringe benefits

* Methods of accounting

* Expensing and depreciation

* Amortization


Learning Objectives

After reading Chapter 2, participants will be able to: 

1. Explain the tax treatment of rental property expenses contrasting their impact on landlords and tenants taking into consideration the tax differences given to rent, advance payments, and security deposits.


2. Analyze the application of the hobby loss rules to a business, determine deductible health insurance costs, discuss the requirements of the home-office deduction, figure self-employment taxes for clients, and name four available business and investment credits.


3. Position clients to properly deduct travel and entertainment expenses by: a. Identifying at least nine types of business travel expenses, determining a taxpayer’s tax home, if any, and work locations based on the IRS’s definition, and clarifying the “away from home” requirement and “sleep and/or rest” rule; b. Listing the key elements of deductible domestic and foreign business travel costs and explaining the Reg. §1.162 deduction of convention and meeting expenses; c. Discussing the three §274 entertainment deductibility tests, clarifying the limits on home entertaining, ticket purchases, and meals and entertainment, and listing eight exceptions to the percentage reduction rule; and d. Listing substantiation requirements associated with business gifts, employee achievement awards, and sales incentive awards.


4. Differentiate accountable and nonaccountable plans identifying three requirements for an accountable plan particularly adequately accounting for travel and other employee business expenses.


5. Differentiate local transportation and commuting explaining how nondeductible personal commuting and relates to local business transportation expenses.


6. Apportion automobile expenses between personal and business use, explain the actual cost and standard mileage methods, and define the gas guzzler tax.


7. Name twelve types of excluded fringe benefits that can increase employers’ deductions and incentive-based compensation of employees providing examples of each.


8. Apply the cash, accrual, or other methods of accounting, determine available accounting periods including their impact on income and expenses, and compare expensing, depreciation, and amortization giving examples of each.


After studying the materials in Chapter 2, answer the exam questions 50 to 112.


Property Transfers & Retirement Plans At the start of Chapter 3, participants should identify the following major topics for study:

* Sales and exchanges of property

* Home sale exclusion

* Installment sales

* Repossession

* Involuntary conversions

* At-risk rules

* Like-kind exchanges

* Retirement plans

* IRAs



Learning Objectives After reading Chapter 3, participants will be able to:


1. Distinguish sales of property and easements from exchanges and differentiate capital gain form ordinary income tax treatment on property dispositions.


2. Outline the key elements of the §121 home sale exclusion explaining its application particularly the three proration safe harbors.


3. Demonstrate the importance of the installment method, locate at least three §453 requirements, and define basic §453 terminology.


4. Identify the variables that determine which §1038 rules apply, outline distinctions between personal and real property repossessions, and determine when a bad debt deduction may be taken on a repossession.


5. Explain the tax treatment of a §1033 involuntary conversion by:

a. Defining related terminology and the tax consequences of receiving a condemnation award or severance damages;

b. Figuring gain or loss from condemnations and directing clients about the reporting of involuntary conversion payments; and

c. Determining whether clients can postpone gain on condemned, damaged, destroyed, or stolen property and discussing the related party rule.


6. Determine the scope of the §465 at-risk rules and their effect on property depreciation, and outline the requirements, mechanics, and types of §1031 like-kind exchange.


7. Compare and contrast qualified deferred compensation plans and nonqualified plans by: 

a. Identifying the major benefit of the qualified deferred plans and explaining the basis of the benefits and contributions enabling the client to choose plan type and benefit; and

b. Explaining the current and deferred advantages and disadvantages of corporate plans while warning of fiduciary responsibilities and prohibited transactions.


8. Describe the requirements of the three basic forms of qualified pension plans permitting clients to compare and contrast such plans.


9. Compare defined contribution and defined benefit plans, differentiate among five types of defined contribution plans, and describe their effect on retirement benefits.


10. Contrast self-employed plans with qualified plans used by other business types identifying key choice of entity factors, and describe the requirements of IRAs and Roth IRAs.


11. Define SEPs and SIMPLEs identifying the mechanics and eligibility requirements of each. After studying the materials in Chapter 3, answer the exam questions 113 to 171.



Losses, AMT & Compliance At the start of Chapter 4, participants should identify the following major topics for study:

* Passive loss rules

* Suspension of disallowed losses under §469

* Computing the alternative minimum tax * Minimum AMT tax credit

* Reporting compliance rules and provisions

* Accuracy related penalties

* Information reporting penalty final regulations

* Penalty for unrealistic position

* Statute of limitations for assessments

* Examination of returns


Learning Objectives

After reading Chapter 4, participants will be able to:


1. Identify the two basic income types and three “buckets” under §469, explain the suspension of disallowed losses including their relationship to total passive losses, and name six special transfers not deemed to be fully taxable dispositions.

Customer Reviews:

Terisaccount  (Sunday, 11 August 2013)
Rating: 5
This course is very well written, and so much so that I think I understand tax free exchanges for the first time ever! Thank you!

  • I have taken multiple courses from The CPE Discount Store.  They have great customer support and I received my certificate of completion on the same day.
    Bill P. - CPA - Richmond, New Hampshire
  • The CPE Discount Store offers a great selection of online CPE courses.   I was able to complete my course on my time frame which is a great way to take CPE.  Having the book as a reference for future work was also helpful.
    Tom N. - CPA - Longmont, CO
  • The CPE Discount Store course materials are very straight forward and easy to understand, I particularly like the website and customer follow up to my questions.
    Susan P. - CPA - San Diego, CA


Poorly written, many questions were nonsensical and the material was very old. This product was noted as a 2018 version but the quiz tested us on knowledge from the mid nineties. Very, very poor course and I would not recommend it to anyone.
This was a very interesting & informative book. The chapters were short and well laid out.
The test followed the book easily so it was a great test to cover the material. Highly recommend!
I have used the CPE subscription a few times now. I find it easy to check out books from the library or buy them & then take the test. It\'s very cost effective.

My request would be for more choices to be added. I have done many of them & cannot realistically repeat. Also, the books that have short chapters or bulleted points make it easier to follow along for test purposes

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