Participants will review the rules, regulations, and forms required for the filing of the individual income tax return. This two-day program will use the Form 1040 to highlight commonly encountered problems.
- Discuss the latest changes and legislative developments affecting individuals, including the Coronavirus Response and Recovery Act (Dec. 27, 2020), the American Rescue Plan (March 11, 2021), and the tax changes in the Infrastructure Bill (Nov. 5, 2021). Various changes proposed by the Build Back Better Act (House passed Nov. 19, 2021) will also be discussed as the changes would affect the 2021 filing season.
- Calculate the Kiddie Tax and complete Form 8615 and Form 8814.
- Calculate depreciation, including bonus depreciation, half-year and mid-quarter conventions, and Â§179 additional first-year depreciation, as well as Rev. Proc. 2020-25 and filing an amended return to take bonus depreciation, and DCN 244 for using Form 3115 to claim bonus depreciation in 2021.
- Discuss the treatment of expenses paid from the PPP loan that has either been or is expected to be forgiven and how to treat the expenses paid in 2021 on a Schedule C or a Schedule F where the owner has received a PPP loan.
- Determine the deductibility of travel and entertainment expenses, inclduing qualified transportation fringe benefits and the deductibility of a meal provided by a restaurant.
- Discuss the proposed changes to the Â§199A deduction.
- Identify individuals likely to be affected by AMT.
- Discuss capital gains and losses, sale of business property and Form 4797, sale of principal residence and like-kind exchanges using Form 8824.
- Discuss marital dissolutions, including Â§1041 and the dependency exemption for minor children.
- Describe filing requirements, including penalties and payments of estimated tax.
- Calculate itemized deductions, including qualified residence interest, charitable contributions, and miscellaneous itemized deductions.
- Explain the deductibility of losses, including passive activity losses, vacation homes, office in the home, and hobby losses.
- Describe the tax effect of contributions to and distributions from qualified plans, including IRAs and penalty taxes.
- Determine if income is subject to self-employment tax.
- Describe when a Form 1099-NEC is required to be issued when payments are made for services associated with rental property listed on Schedule E.
- Calculate common refundable/nonrefundable credits, including all changes made by the American Rescue Plan.