Gross Income, Capital Exchanges, and Property Basis

This class provides seven hours of tax law continuing education for tax preparers and others in the field. The course concentrates on the topics of recording and reporting tip income, investment income, the sale and exchange of capital assets, taxable and nontaxable exchanges, reporting the sale of a home and much more.  

Specifically, the topics of interest in the course include: 

• Tip income and professions receiving tips, the daily tip record and recommended practices, IRS form 4070A, reporting tip income, monthly reports, associated penalties for failures, and examples for context; 
• Social Security and Medicare tax concerns, additional Medicare tax and IRS form 8959, allocated tips, and reporting on tax returns; 
• Interest income, including dividends, money markets, CDs and deferred interest accounts, recordkeeping requirements, unearned income of certain children, associated IRS forms, trust or estate beneficiaries, managing interest income, backup withholding, joint account issues, interest income paid to a child, and IRS form 1099-INT; 
• Interest income: OID and Other Situations, debt instruments and OID, De Minimis OID, reporting OID and exceptions, IRS Form 1099-OID, CDs, other interest situations for interest income, including dividends, Alternative Minimum Tax and IRS form 6251, IRAs, early withdrawal penalties, borrowed funds, gifts for opening accounts, interest on insurance proceeds and dividends, frozen deposits, bonds, unstated interest and OID, and other taxable interest; 
• Taxable bonds, other debt instruments, savings bonds, co-owners of savings bonds, transfer of ownership and joint ownership, transfers to trusts, interest reporting, decedents and associated issues; 
• Taxable interest and education bonds, federal securities, qualified U.S. savings bonds, qualified higher education expenses and related reductions, Coverdell ESAs, modified adjusted gross income limits, IRS form 8815, recordkeeping, Treasury Bills, notes, and bonds; 
• Other taxable items or events, including insurance settlements and other insurance concerns, state or local government bonds, stripped bonds and coupons, when to report interest, cash method, constructive receipt, accrual method, IRS Schedule B (form 1040), reporting tax-exempt interest; 
• Basis of property and taxpayer’s basis in property, cost basis, loans with no or low interest, treatment of unstated interest and related rules, adequate stated interest, the applicable federal rate (AFR), IRC section 1274 and 483 applicable to installment contracts, real property, lump-sum purchases, Fair Market Value (FMV), assumptions of mortgages and settlement costs, real estate taxes and points, basis for valuation, assessments, casualty theft losses, easements, adjustments to basis; 
• Basis other than cost, property received for services, bargain purchases, restricted property, vesting, year of transfer, dividends on restricted stock, taxable exchanges, involuntary conversions, non-taxable and partially non-taxable exchanges (IRS Section 1031), transfers from a spouse, property received as a gift, business property, inherited and community property, property changed from personal to business or rental use, sale of property, stocks and bonds, mutual funds; 
• The sale of property, including foreign income, sales and trades, redemption of stock, bonds, worthless securities and how to report, how to figure gain or loss, non-taxable trades, like-kind exchanges, multiple party transactions, qualifying properties, deferred exchanges, actual and constructive receipt, and replacement property; 
• Deferred exchanges and disregards, receipt requirements, interest income, disqualified persons, like and unlike property transfers, corporate stocks and reorganizations, convertible stocks and bonds, insurance policies and annuities (IRS Section 1035), U.S. Treasury notes or bonds, transfers between spouses, related-party transactions, losses on sales or trades of property, constructive ownership of stock; 
• Character of a gain or loss, capital or ordinary gain or loss, capital and non-capital assets, investment property, musical works, discounted debt instruments, state and local government bonds, market discount bonds, deposits in insolvent or bankrupt financial institutions, casualty losses, recoveries, income tax refunds, mortgage interest refunds, interest on recovery, joint state or local tax returns, registered domestic partners; 
• Sales of annuities, losses on small business stock (Section 1244), holding periods for long- or short-term gains and losses, traded securities, U.S. Treasury notes and bonds, real property bought or repossessed, stock dividends, nonbusiness bad debts, when they are deductible, and how to report, wash sales, options and futures contracts, warrants, short sales, rollover of gain from publicly traded securities and how to report; 
• Selling a home, including qualifying home sale for the exclusion of gain, transfer of a home to a spouse or ex-spouse, eligibility test, separated and widowed taxpayers, service, intelligence and Peace Corp personnel, vacant land next to home, home destroyed or condemned, 1031 exchanges, unforeseeable events, other facts and circumstances and worksheets use; 
• Figuring gain or loss, basis adjustments, improvements, repairs, energy credits and subsidies, foreclosure, repossession, abandonment, divorce situations, homes received as gifts or inheritances, business or rental use of home and exceptions, what is taxable, reporting the home sale, IRS form 8949 (Sales and other dispositions of capital assets), Schedule D, deductions related to home sales, other income related to home sales, paying back credits and subsidies; 
• Reporting capital gains or losses, using the proper forms, exceptions to filings, installment sales, at-risk rules, passive activities, form 1099B, CAP, and S transactions, nominees, sales of property bought at various times, long-term gains or losses, capital loss carryover and how to determine, capital gains tax rates and exceptions, investment interest deductions, collectibles, small business stock, unrecaptured gains (Section 1250), and computing taxes.