Course No. 9030
Format: Online pdf (415 pages). Printed book available.
Instructional Delivery Method: QAS Self-Study
Prerequisites: General understanding of federal income taxation
Advance Preparation:None
Level: Overview
CPE Credit: 19 hrs.
Field of Study: Taxes: Technical
Course expiration: You have one year from date of purchase to complete the course.
Course Revision Date: April 2025
Learning Assignments & Objectives
Chapter 1 Bankruptcy
Bankruptcy
At the start of Chapter 1, participants should identify the following major topics for study:
* Tax law changes
* Bankruptcy types
* Automatic stay
* Preferences
* Priorities
* Debt discharge
* Individual bankruptcy estate
* Individual debtor
* Corporate bankruptcy
* Homesteading & garnishment
Learning Objectives
After reading Chapter 1, participants will be able to:
- Determine how the 2005 Bankruptcy Act changed procedures and qualifications, identify the most common bankruptcy types, and specify the rules for automatic stay including their impact on “freezing” creditor activity, tax assessment, and collection.
- Identify the differences between preferential and nonpreferential payments specifying the priority of creditor claims, recognize when debt is discharged under various bankruptcy types, and identify how to establish an individual bankruptcy estate.
- Recognize partnership bankruptcies, specify debts covered under homesteading, and determine permissible garnishment amounts and special garnishment rules.
Chapter 2 Transfers Incident to Divorce
Transfers Incident to Divorce
At the start of Chapter 2, participants should identify the following major topics for study:
* Property rights
* Premarital agreements
* Application of §1041
* Incident to divorce
* Property basis
* Purchases of residence between spouses
* Purchases of business interests between spouses
* Selected asset divisions of residence & business interests
* Real & personal property
* Pension benefits
Learning Objectives
After reading Chapter 2, participants will be able to:
- Identify types of marital property and their likely division in marital property settlements and determine the benefits of premarital agreements stating the requirements and permissible provisions.
- Specify the position of U.S. v. Davis on interspousal transfers recognizing the changes made by §1041, identify the requirements of §1041 and the scope of its application, and recognize transfers incident to divorce and avoid them when desired.
- Determine the application of §1041 to transfers in trust and to third-parties transfers on behalf of a spouse or former spouse, identify the property basis for the transferor & transferee spouse after a property settlement, and specify the application of §1041 assumption liabilities including reporting and notice requirements.
- Recall the tax dangers of purchasing a former spouse’s interest in property, identify the use of a §121 disposition or a §1031 exchange to dispose of real property received in a §1041 transfer, recognize the methods of dividing business interests in a marital settlement, and determine the post-receipt taxation and protection of assets and payments.
- Specify popular methods of dividing retirement benefits in a divorce or separation action identifying the requirements and tax consequences of a “qualified domestic relations order (QDRO) determine the treatment of IRAs at divorce considering the IRA deduction limit and rollovers, and recognize military pensions that may be available to a former spouse.
Chapter 3 Asset Protection
Asset Protection
At the start of Chapter 3, participants should identify the following major topics for study:
* Need for asset protection
* Types of creditors
* Fraudulent transfers
* Preparation for asset protection
* Types of insurance
* Buy-sell agreements
* Individual ownership & corporate ownership
* Asset protection aspects of trusts
* Co-tenancy & partnerships
* Divorce
Learning Objectives
After reading Chapter 3, participants will be able to:
- Recognize the goals and purposes of asset protection and the objections to it, list reasons for asset protection and situations that can put assets at risk, determine how insurance, asset placement, and statutory protections can achieve asset protection, and identify the types of creditors associated with asset protection.
- Determine fraudulent transfers under the Uniform Acts, identify net worth under a balance sheet, and determine asset values in the preparation of a balance sheet.
- Identify how insurance and buy-sell agreements can offer asset protection by determining the asset protection elements of homeowner’s, automobile, disability insurance, and buy-sell agreements.
- Recognize the asset protection advantages and disadvantages of ownership formats and entities citing the use of individual ownership and corporate ownership in an asset protection plan, recognize asset protection elements trusts, specify the types of co-tenancy and their asset protection dangers, and identify the protection provided by marital agreements.
Chapter 4 Medical, Charitable and Casualty
Medical, Charitable, and Casualty
At the start of Chapter 4, participants should identify the following major topics for study:
* Medical costs
* Medical deductions
* Health savings accounts
* Accelerated death benefits
* Charitable contributions of cash
* Charitable contributions of property
* Substantiation
* Pre- & Post-2018 Casualty & theft losses
* Deductible & nondeductible losses
* Disaster area losses
Learning Objectives
After reading Chapter 4, participants will be able to:
- Identify deductible §213 medical care expenses, recognize the potential inclusion of spousal expenses, meals and lodging, cosmetic surgery, and reimburse expenses, and determine what constitutes a health savings account citing the benefits and qualifications of HSAs
- Cite variables that impact the deductibility of §170 charitable contributions recognizing qualified organizations and limitations and identify the types of contributions that can be made, their tax treatment, and substantiation requirements.
- Determine what constitutes a §165 casualty or theft and the rules for taking a deduction for all or part of each loss.
Chapter 5 Debt Cancellation & Foreclosure
Debt Cancellation & Foreclosure
At the start of Chapter 5, participants should identify the following topics for study:
* Income inclusion rule & exceptions
* Real property business debt exclusion
* General ordering of tax attribute reduction
* Basis reduction
* Individual and partnership bankruptcies
* Corporate stock-for-debt rule
* S corporation bankruptcy
* Reporting
* Amount realized on the sale or other distribution of property
* Discounted acquisition of debt
Learning Objectives
After reading Chapter 5, participants will be able to:
- Recognize the potential income inclusion from cancellation of indebtedness income, and identify exceptions to the general income inclusion rule and their tax effect.
- Specify the reduction of tax attributes on cancellation of indebtedness identifying any special basis reduction rules.
- Determine gain or loss resulting from foreclosure or repossession including its character and specify the tax danger of acquiring one’s own debt at a discount.
Chapter 6 Repossession
Repossession
At the start of Chapter 6, participants should identify the following topics for study:
* Repossession of personal property
* Non-installment method sales
* Installment method sales
* Basis of repossessed personal property
* Bad debt
* Repossession of real property
* Figuring gain on repossession
* Seller’s former home exception
Learning Objectives
After reading Chapter 6, participants will be able to:
- Recognize the §1038 repossession rules that apply to a transaction, determining gain or loss resulting from the repossession of sold under the installment and non-installment methods.
- Determine the potential gain and tax basis of property repossessed stating applicable limits and key elements.
Chapter 7 Bad Debts
Bad Debts
At the start of Chapter 7, participants should identify the following topics for study:
* Totally worthless bad debts
* True debt
* Mechanics’ liens
* Reporting & recovery
* Credit transactions
* Former business bad debts
* Insolvency of a partner
* Business loan guarantees
* Specific charge-off method
* Nonaccrual-experience accounting method
Learning Objectives
After reading Chapter 7, participants will be able to:
- Determine bad debt categories and their tax treatment and recognize true debt specifying the unique characteristics of deductible nonbusiness bad debt.
- Identify the qualifications for §166 tax treatment of business bad debt specifying the debt’s relationship to business and the potential creation of a net operating loss.
Chapter 8 Elderly & Disabled Planning
Elderly & Disabled Planning
At the start of Chapter 8, participants should identify the following topics for study:
* Managing the estate
* Medicare
* Medicaid & countable assets
* Medicaid & non-countable assets
* Medicaid & inaccessible assets
* Private insurance
* Healthcare decisions
* Supplemental security income
* Income & assets
* Disability benefits
Learning Objectives
After reading Chapter 8, participants will be able to:
- Specify ways to manage an incompetent person’s estate by recognizing tools such as conservatorship, durable powers, and trusts, identify the eldercare benefits of Medicare and Medicaid, countable income and assets, and determine possible benefits of Medicaid trusts and private insurance,
- Specify available health care decisions such as a living will, and recognize Social Security disability benefits.
Chapter 9 Estate Planning
Estate Planning
At the start of Chapter 8, participants should identify the following topics for study:
* Unlimited marital deduction
* Applicable exclusion amount
* Stepped-up basis
* Basic estate planning goals
* Simple will
* Types of trusts
* Charitable trusts
* Insurance trusts
* Family documents
* Private annuities
Learning Objectives
After reading Chapter 9, participants will be able to:
- Recognize the unlimited marital deduction and its use in a qualified terminable interest property trust and identify the applicable exclusion amount and the concept of “stepped-up basis”.
- Identify various types of estate trusts and the family documents that every taxpayer should consider, and determine the advantages and disadvantages of the former private annuity format.
