Episode Synopsis "5-1 Apply the concept of realization and explain when taxpayers recognize gross income."

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More episodes of the podcast GS 817 Audio: Personal Tax Planning-2017

• 1-1 Demonstrate the influence of taxes on basic business, investment, personal and political decisions.
• 1-2 Discuss what constitutes a tax and the general objectives of taxes.
• 1-3 Describe the different tax rate structures and calculate a tax.
• 1-5 Apply appropriate criteria to evaluate alternate tax systems.
• 2-1 Identify the filing requirements for income tax returns and the statute of limitations for assessment.
• 2-2 Outline the IRS audit process, how returns are selected, the different types of audits and what happens after the audit.
• 2-3 Evaluate the relative weights of the various tax law sources including the code, regulations, revenue rulings, private letter rulings and judicial decisions.
• 2-4 Describe the operation of the legislatives process in the consideration and passage of a tax bill.
• 2-7 Identify taxpay and tax professional penalties.
• 3-1 The objectives of basic tax planning strategies.
• 3-2 Apply the timing strategy and describe its applications and limitations.
• 3-3 Apply the concept of present value to tax planning.
• 3-4 Apply the strategy of income shifting and describe its limitations.
• 3-5 Apply the conversion strategy and describe its limitations.
• 3-6 Describe the basic judicial doctrines limiting tax planning strategies.
• 3-7 Contrast between legal tax avoidance and illegal tax evasion.
• 4-1 Describe the formula for calculating an individual taxpayer’s taxes and explain each component of the formula.
• 4-2 Explain the requirements for determining a taxpayer’s personal and dependency exemptions.
• 4-3 Determine the tax filing status of a taxpayer.
• 5-1 Apply the concept of realization and explain when taxpayers recognize gross income.
• 5-2 Understand the distinctions between the various sources of income, including income from services and property.
• 5-3 Apply basic income exclusion provisions to compute gross income.
• 6-1 Identify the common deductions necessary for calculating adjusted gross income (AGI).
• 6-2 Describe the different types of itemized deductions available and compute itemized deductions.
• 6-3 Explain the operation of the standard deduction, determine the deduction for personal and dependency exemptions, and compute taxable income.
• 7-1 Determine a taxpayer’s regular tax liability and identify tax issues associated with the process.
• 7-2 Compute a taxpayer’s alternative minimum tax liability and describe the characteristics of taxpayers most likely to owe the alternative minimum tax.
• 7-3 Calculate a taxpayer’s employment and self-employment taxes; explain the tax considerations determining the status of a taxpayer as either an employee or independent contractor.
• 7-4 Describe the general types of tax credits, identify specific tax credits, and compute a taxpayer’s allowable child tax credit, child and dependent care credit, American opportunity credit, lifetime learning credit, and earned income credit.
• 7-5 Explain taxpayer filing and tax payment requirements and describe in general terms how to compute a taxpayer’s underpayment, late filing, and late payment penalties.
• 8-1 Describe the general requirements for deducting business expenses and identify common business deductions.
• 8-2 Apply the limitations on business deductions to distinguish between deductible and nondeductible business expenses.
• 8-3 Identify and explain special business deductions specifically permitted under the tax laws.
• 8-4 Explain the concept of an accounting period and describe accounting periods available to businesses.
• 8-5 Identify and describe accounting methods available to businesses and apply cash and accrual methods to determine business income and expense deductions.
• 9-1 Explain the concept of basis and adjusted basis and describe the cost recovery methods used under the tax law to recover the cost of personal property, real property, intangible assets, and natural resources.
• 9-2 Determine the applicable cost recovery (depreciation) life, method, and convention for tangible personal and real property and calculate the deduction allowable under basic MACRS.
• 9-3 Explain the additional special cost recovery rules (§179, bonus, listed property) and calculate the deduction allowable under these rules.
• 9-4 Explain the rationale behind amortization, describe the four categories of amortizable intangible assets, and calculate amortization expense.
• 10-1 Calculate the amount of gain or loss recognized on the disposition of assets used in a trade or business.
• 10-2 Describe the general character types of gain or loss recognized on property dispositions.
• 10-3 Explain the rationale for and calculation of depreciation recapture.
• 10-4 Describe the tax treatment of unrecaptured Sec. 1250 gains and determine the character of gains sold to related parties.
• 10-5 Describe the tax treatment of Sec. 1231 gains or losses, including the netting process.
• 10-6 Explain common exceptions to the general rule that realized gains and losses are recognized currently.
• 11-1 Explain how interest income and dividend income are taxed.
• 11-2 Compute the tax consequences associated with the disposition of capital assets, including the netting process for calculating gains and losses.
• 11-3 Describe common sources of tax-exempt investment income and explain the rationale for exempting some investments from taxation.
• 11-4 Calculate the deduction for portfolio investment-related expenses, including investment expenses and investment interest expense.
• 11-5 Understand the distinction between portfolio investments and passive investments and apply tax basis, at-risk and passive-activity loss limits to losses from passive investments.
• 12-1 Discuss and explain the tax implications of compensation in the form of salary and wages from the employee’s and employer’s perspectives.
• 12-2 Describe and distinguish the tax implications of various forms of equity-based compensation from the employer’s and employee’s perspectives.
• 12-3 Compare and contrast taxable and nontaxable fringe benefits and explain the employee and employer tax consequences associated with fringe benefits.
• 13-1 Describe the tax and nontax aspects of employer-provided defined-benefit plans from both the employer’s and employee’s perspective.
• 13-2 Explain and determine the tax consequences associated with employer-provided defined-contribution plans, including traditional 401(k) and Roth 401(k) plans.
• 13-3 Describe the tax implications of deferred compensation from both the employer’s and employee’s perspective.
• 13-4 Determine the consequences of traditional and Roth individual retirement accounts and explain the differences between them.
• 13-5 Describe the retirement savings options available to self-employed taxpayers and compute the limitations for deductible contributions to retirement accounts for self-employed taxpayers.
• 13-6 Compute the saver’s credit.
• 14-1 Determine whether a home is considered a principal residence, a residence (not principal), or a non-residence for tax purposes.
• 14-2 Compute the taxable gain on the sale of a residence and explain the requirements for excluding gain on the sale.
• 14-3 Determine the amount of allowable interest expense deductions on loans secured by a residence.
• 14-4 Discuss the deductibility of real property taxes.
• 14-5 Explain the tax issues and consequences associated with rental use of the home, including determining the deductibility of residential rental real estate losses.
• 14-6 Describe the requirements necessary to qualify for home office deductions and compute the deduction limitations on home office deductions.
• 15-1 Identify the fundamental differences in tax characteristics across entity types.
• 15-2 Describe the different types of entities for tax purposes.
• 15-3 Identify the fundamental differences in tax characteristics across entity types.
• 16-1 Describe the corporate income tax formula, compare and contrast the corporate to the individual tax formula, and discuss tax considerations relating to corporations’ accounting periods and accounting methods.
• 16-2 Identify common book-tax differences, distinguish between permanent and temporary differences, and compute a corporation’s taxable income and regular tax liability.
• 16-3 Describe a corporation’s tax return reporting and estimated tax payment obligations.
• 16-4 Explain how to calculate a corporation’s alternative minimum tax liability.
• 18-1 Explain the basic tax law framework that applies to property distributions from a corporation to a shareholder.
• 18-2 Compute a corporation’s earnings and profits and calculate the dividend amount received by a shareholder.
• 18-3 Identify situations in which a corporation may be deemed to have paid a “constructive dividend” to a shareholder.
• 18-4 Comprehend the basic tax rules that apply to stock dividends.
• 18-5 Comprehend the different tax consequences that can arise from stock redemptions.
• 18-6 Contrast a partial liquidation from a stock redemption and describe the difference in tax consequences to the shareholders.
• 19-1 Recall the general tax rules that apply to property transactions.
• 19-2 Compute the tax consequences to the parties to a tax-deferred corporate formation.
• 19-3 Identify the different forms of taxable and tax-deferred acquisitions.
• 19-4 Determine the tax consequences to the parties to a corporate acquisition.
• 19-5 Calculate the basic tax law consequences that apply to the parties to a complete liquidation of a corporation.
• 20-1 Determine whether a flow-through entity is taxed as a partnership or S corporation, and distinguish the entity approach from the aggregate approach for taxing partnerships.
• 20-2 Resolve tax issues applicable to partnership formations and other acquisitions of partnership interests, including gain recognition to partners and tax basis for partners and partnerships.
• 20-3 Determine the appropriate accounting periods and methods for partnerships.
• 20-4 Calculate and characterize a partnership’s ordinary business income or loss and its separately stated items, and demonstrate how to report these items to partners.
• 20-5 Explain the implications of a partner’s tax basis and the adjustments that affect it.
• 20-6 Apply the basis, at-risk, and passive activity loss limits to losses from partnerships.
• 21-1 Determine the tax consequences to the buyer and seller of the disposition of a partnership interest, including the amount and character of gain or loss recognized.
• 21-2 List the reasons for distributions, and compare operating and liquidating distributions.
• 21-3 Determine the tax consequences of proportionate operating distributions.
• 21-4 Determine the tax consequences of proportionate liquidating distributions.
• 21-5 Explain the significance of disproportionate distributions.
• 21-6 Explain the rationale for special basis adjustments, determine when they are necessary, and calculate the special basis adjustment for dispositions and distributions.
• 22-1 Describe the requirements and process to elect S corporation status.
• 22-2 Explain the events that terminate the S corporation election.
• 22-3 Describe operating issues relating to S corporation accounting periods and methods, and explain income and loss allocations and separately stated items.
• 22-4 Explain stock-basis calculations, loss limitations, determination of self-employment income, and fringe benefit rules that apply to S corporation shareholders.
• 22-5 Apply the tax rules for S corporation operating distributions and liquidating distributions.
• 22-6 Describe the taxes that apply to S corporations, estimated tax requirements, and tax return filing requirements.
• 25-4 Apply fundamental principles of wealth planning and explain how income and transfer taxation interact to affect wealth planning.