Itemized Deductions and Schedule A, Part I

Description

Participants will acquire an understanding of the underlying authority for, and possible complexity of, seemingly simple tax questions, and how that authority ties into tax software programs and preparation of the tax return for an individual. This course specifically addresses Schedule A deductions including medical & dental expenses, taxes, and interest.

Highlights

LINK AND INSTRUCTIONS TO COME FROM AES TAX ONE DAY PRIOR TO SESSION

Objectives

After completing this course the participant will be able to:

• Identify items that may be deducted on Schedule A and describe the effect of TOBBB on itemized deductions.
• Determine the deductible amount of medical and dental expenses, including retirement home expenses, health insurance premiums for a self-employed person, long-term care insurance premiums, assisted reproduction expenses, payments to a health and wellness coach, and other items that generally qualify as medical expenses.
• Determine the types of taxes that are deductible on Schedule A, including real property taxes, state income taxes, and sales taxes, the treatment of foreign taxes, and the treatment of state tax refunds; and calculate the tax deduction on purchase and sale of a residence.
• Discuss changes made by TOBBB, including the phaseout of itemized deductions, cutback on charitable contributions, and phaseout of the SALT deduction of $40,000.
• Illustrate the different types of interest that are deductible on Schedule A, including:
• - Qualified residence interest, including acquisition debt and home-equity debt;
• - Investment interest and Form 4952;
• - Mortgage insurance premiums after TOBBB;
• - Points.
• Determine how to treat the interest on a vacation home.
• Illustrate the treatment of gambling losses after TOBBB and discuss the amounts of gambling losses that are deductible for a session of play.
• Determine the expenses that are no longer deductible after TOBBB and options available for nondeductible expenses.