1040Module 2 Expenses, Deductions, & Accounting

We have taken our large 1040 Workshop and broken it down into 4 seperate courses for your convenience. Please note this learning module is a section of the 1040 Workshop.  You can only receive credit for each individual learning module or the 1040 Workshop in its entirety. You may not double the credits as they are the same course. 

Learning Objectives

After reading Chapter 2, participants will be able to:

1. Recognize the tax treatment of rental property expenses noting 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, determine deductible health insurance costs and the requirements of the home-office deduction, and specify self-employment taxes and available business and investment credits.

3. Determine how to properly deduct travel and entertainment 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 noting the Reg. §1.162 deduction of convention and meeting expenses;

c. Identifying §274 entertainment deductibility tests, determining the limits on home entertaining,  ticket purchases, and meals and entertainment noting eight exceptions to the percentage reduction 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 nonaccountable plans including the requirements for an accountable plan particularly adequately accounting for travel and other employee business expenses.

5. Determine what constitutes local transportation and commuting including how nondeductible personal commuting relates to local business transportation expenses.

6. Identify the apportionment of automobile expenses between personal 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 increase 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 noting their impact on income and expenses, and identify expensing, depreciation, and amortization.

Additional Contents : Complete, no additional material needed
Advance Preparation : None
Intended Participants : Any CPA looking to maintain or enhance their professional competence
Course Declaration : Participants must complete the final examination within one year of purchase. A minimum passing grade of 70% or better is required to receive CPE
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