Ea exam 2010 review course intro
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This document provides information about an enrolled agent examination review course and the enrolled agent exam. The review course will run for 12 weeks from July 12, 2010, with assignments due weekly on Fridays. Students will be graded based on assignments, tests, and a final exam. The enrolled agent exam consists of three parts testing different areas of taxation. Candidates have two years to pass all three parts once the first part is passed, and must complete continuing education to maintain their enrolled agent license.
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Associate Degree Nursing - STEPS Sessions - June 2021
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Representation techniques july 16, 2014
This document discusses various tax representation techniques. It begins by outlining the typical audit process, noting that audits are usually office or field audits and provide tips for cooperating with audits. It then discusses options for appealing an auditor's findings like fast track settlements, which use mediators to resolve cases in around 60 days. The document also covers collection issues like different collection tiers, working with revenue officers, tax liens, levies, and collection due process hearings which allow taxpayer challenges to liens or levies.
Ppt ch 20
The document discusses different types of business entities that could be formed for a new catering business, including corporations, partnerships, and limited liability companies. It recommends that the sisters form an S corporation or LLC to obtain limited liability protection while also benefitting from the tax advantages of a pass-through entity that allows losses to offset their personal income. The chapter covers topics like corporate versus individual tax rules, deductions, and the dividends received deduction.
Ppt ch 19
SEP plans allow employers to make deductible contributions to traditional IRAs established for each eligible employee; contributions are discretionary but must be based on a written allocation formula and cannot exceed a certain percentage of compensation for each employee; SEP plans provide an easy way for small businesses to offer retirement benefits to employees.
Ppt ch 18
The document discusses accounting periods and methods for partnerships and S corporations. It states that a partnership's tax year must end on the tax year of the majority interest partners, or if no majority, the principal partners. If there is no majority or principal partners, the tax year that results in the least aggregate deferral of income is used. Exceptions allow other fiscal year ends if valid business purposes or section 444 elections are met. The document also discusses short tax years, accounting methods, and provisions that mitigate the effects of an arbitrary accounting period.
Ppt ch 17
Hazel Brown owns an arts and crafts store. In 2012, she is planning to sell the store equipment she purchased in 2009 for $450,000 and has since depreciated.
- If she sells the equipment for $128,000, she will have a $53,040 gain. This full amount will be treated as ordinary income under §1245 recapture rules rather than potential §1231 capital gain, since the gain is less than her total depreciation of $375,040.
- If she sells the equipment for more than its original $450,000 cost, the portion of gain up to her $375,040 in total depreciation would be ordinary income under §12
Ppt ch 16
Maurice inherited $500,000 and invested it in various assets on the advice of a financial advisor. He is now considering selling some investments and moving money between bonds. The summary provides an overview of the tax treatment of capital gains and losses, including the classification of different assets as capital or ordinary assets, what qualifies as a "sale or exchange," and how gains or losses from various transactions are treated for tax purposes. It also notes that long-term capital gains may be taxed at a lower rate than ordinary gains.
Ppt ch 14
Alice owns a house that she inherited from her mother 7 months ago. She is considering selling the house to her nephew Dan for $275,000 and thinks she will have no gain or loss. As Alice's tax advisor, you need information to determine the tax consequences, such as whether Alice received the house as a gift or inheritance, the basis of the property, and whether it has been her primary residence. You will also need to advise Alice on the tax consequences of selling her car that she has owned for 4 months, as well as transactions involving the sale of stock at a loss and subsequent repurchase.
Ppt ch 13
The document discusses several tax credits available to individuals and businesses, including:
1) Education tax credits that can help offset tuition and other education expenses.
2) The research and experimentation tax credit that incentives private sector investment in research.
3) Tax credits for rehabilitation expenditures, hiring targeted groups of employees, and other activities.
Ppt ch 12
Bob and Carol paid different amounts of federal income tax even though they had identical incomes, deductions, and investments. Carol paid $15,000 more than Bob due to an oversight in the treatment of interest from private activity bonds they both owned. These bonds were issued in 2010 and interest from such bonds is not a tax preference item for the alternative minimum tax in that year. After reviewing the returns, Adam determined Carol was eligible for a $15,000 refund due to an error on her Form 6251 in treating the bond interest as a tax preference.
P pt ch 10
The document discusses itemized deductions for individuals, including medical expenses, taxes, interest expenses, and qualified residence interest. It provides examples to illustrate how these deductions are calculated and applied. It also summarizes how these deductions would apply to the specific scenario of John and Susan Williamson purchasing their first home, as presented in an earlier example.
Ppt ch 09
Morgan has accepted a new sales job that requires travel and some entertainment expenses. She will work out of her apartment and be reimbursed for some travel expenses. Some of Morgan's expenses may be deductible, including transportation between client sites, home office expenses if the office space is exclusively used for work, and moving expenses if she meets certain tests. However, commuting costs and some education or entertainment expenses would not be deductible.
P pt ch 08
Dr. Payne correctly calculated the depreciation expense for his dental practice assets using MACRS depreciation rates. He will also be able to claim depreciation deductions for the rental properties he converted his original residence and purchased condo into, using the fair market value of the residence as its basis since it was previously used for personal purposes. The document provides an overview of depreciation, amortization, and depletion deductions for business and rental property assets, and examples and rules for calculating MACRS depreciation using conventions like half-year and mid-quarter.
P pt ch 07
Martha experienced significant financial losses in the current year. She loaned a friend money to start a business that failed, resulting in a bad debt. She also lost money investing in a pharmaceutical company that declared bankruptcy. Additionally, her sole proprietorship bookstore experienced losses due to increased competition. Martha is hoping that tax law provisions related to deductions and losses can provide some relief.
P pt ch 06
Dr. Payne has incorrectly calculated some of the business expenses deductible on Schedule C of his tax return. Specifically, the contributions to political campaigns are not deductible, and hobby losses are only deductible up to the amount of hobby income. Dr. Payne should re-examine the expenses from his dental practice to ensure they meet the requirements of being ordinary, necessary, and substantiated to be deductible as trade or business expenses.
P pt ch 05
Paul received a $1,500 bonus from his summer internship employer that must be included in his gross income as it was compensation for services. His $400 monthly stipend from his graduate assistantship teaching accounting must also be included in gross income. However, the $6,000 tuition waiver can be excluded. Most of the damages from his accident settlement can be excluded from income as compensation for personal physical injuries, except the punitive damages which are taxable.
P pt ch 04
Dr. Cliff Payne, a dentist, opened a sole proprietorship dental practice at the beginning of the year with a December 31 year-end. He contracted to have a building constructed for his medical practice and used extra money to purchase stock. The document discusses the calculation of gross income for Dr. Payne's dental practice and whether he correctly calculated it as the $385,000 billed to patients. It then provides an overview of the concepts of gross income, accounting periods and methods, income sources including dividends and partnerships, and other inclusions like imputed interest.
P pt ch 03
Polly supports her unemployed husband Nick, stepdaughter Paige, and family friend Maude who lived with Polly. Paige works part-time but trains for a college scholarship. Nick left in March. Polly sold her wedding rings for $8,000. Polly may be able to claim dependency exemptions for Paige and Maude depending on whether they meet the tests for qualifying child, qualifying relative, gross income, support and other rules. Polly should review her tax situation considering these dependency exemption rules.
P pt ch 02
This document provides an overview of the statutory and administrative sources of US tax law, as well as the federal judicial system for tax disputes. It discusses the Internal Revenue Code, Treasury regulations, revenue rulings, revenue procedures, letter rulings, and other administrative pronouncements. It also describes the four courts that have original jurisdiction over tax cases and their roles, as well as the appeals process. Precedent and citations for Tax Court, District Court, Court of Appeals, and Supreme Court decisions are covered.
P pt ch 01
The document provides an overview of US taxation including:
1) It describes different types of taxes such as income taxes, property taxes, employment taxes, and gift/estate taxes.
2) It discusses key concepts related to taxation including tax bases, tax rates, tax structures, and criteria for evaluating tax systems.
3) It provides examples and explanations of how different taxes could apply to a fictional married couple described in the introductory scenario.
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