1040 Workshop: Sec. 2: Expenses, Deductions and Accounting (8 hrs)

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Course Description

1040 Workshop Sec. 2

This is Section 2 of the 1040 Workshop. The complete 4-part course is designed to make the practitioner comfortable with “high traffic” issues, enabling participants to discuss and handle individual 1040 tax essentials. The course examines and explains practical aspects of return preparation and individual planning, bridging the gap between theory and application. Significant new developments are summarized with an 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.

Section 2: Expenses, Deductions, and Accounting covers the following topics, and more:

* 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

This course is accepted by the IRS as CE credit for enrolled agents.

Course Information

Price: $74
This course is included in our Mega CPE Special and our Unlimited Tax Bundle

Course No. 9012-2
Instructional Delivery Method: QAS Self-Study
Format: Online pdf (175 pages). Printed book available.
Prerequisites: General understanding of federal income taxation
Advance Preparation:None
Level: Overview
CPE Credit: 8 hrs.
Field of Study: Taxes: Technical
Course expiration:  You have one year from date of purchase to complete the course.
Course Revision Date: January 2023


Expenses, Deductions, and Accounting

Learning Objectives

1. Recognize the tax treatment of rental property expenses specifying their impact on landlords and tenants taking into consideration the tax differences given to rent, advance payments, and security deposits.
2. Identify the application of the hobby loss rules to a business, deter-mine deductible health insurance costs and the requirements of the home-office deduction, and specify self-employment taxes and availa-ble business and investment credits.
3. Determine how to properly deduct travel and pre-2018 entertain-ment expenses by:
a. Identifying deductible business travel expenses, a taxpayer’s tax home, if any, and work locations based on the IRS’s definition and recalling the “away from home” requirement and “sleep and/or rest” rule;
b. Specifying the key elements of deductible domestic and foreign business travel costs recognizing the Reg. §1.162 deduction of con-vention and meeting expenses;
c. Identifying §274 pre-2018 entertainment deductibility tests, deter-mining the limits on home entertaining, ticket purchases, and meals and entertainment stating the eight exceptions to the percentage re-duction rule; and
d. Recognizing the substantiation requirements associated with business gifts, employee achievement awards, and sales incentive awards.
4. Determine the differences between accountable and nonaccounta-ble plans including the requirements for an accountable plan particu-larly adequately accounting for travel and other employee business ex-penses.
5. Determine what constitutes local transportation and commuting in-cluding how nondeductible personal commuting relates to local busi-ness transportation expenses.
6. Identify the apportionment of automobile expenses between per-sonal and business use, the actual cost and standard mileage methods, and the gas guzzler tax.
7. Specify the various types of excluded fringe benefits that can in-crease employers’ deductions and incentive-based compensation of employees listing examples of each.
8. Recognize the cash, accrual, or other methods of accounting, select available accounting periods specifying their impact on income and ex-penses and identify expensing depreciation, and amortization.

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Syamaladevi Prasad Duggirala
Posted 1 month ago
The subject matter has been presented satisfactorily

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