SEE 2 · Businesses

Entities, business returns and specialized taxpayers. 100 multiple choice questions in 3.5 hours.

1. Business Entities and Considerations

Entity choice and accounting methods

Sole proprietorships, partnerships, C and S corporations, LLCs: how each forms, is taxed, pays out and ends.

Example. An S corp generally uses a calendar year.

2. Business Tax Preparation

Income, deductions and depreciation

Business income, ordinary and necessary expenses, depreciation, Section 179 and bonus, and employment taxes.

Example. Meals with clients are generally 50% deductible.

3. Specialized Returns and Taxpayers

Trusts, estates, exempt orgs, retirement plans

Form 1041, Form 990 series, employer retirement plans, farmers and rental property.

Example. A SEP IRA lets small employers contribute for employees.

Chapters

Choosing the entity: sole proprietors to exempt groups. Sole proprietorships; partnerships and qualified joint ventures; corporations and S corporations; LLCs; exempt entities; default classification and Form 8832; the EIN
Tax years, information returns and hobby losses. Required tax years; section 444 and Form 1128; Forms W-2, W-4, W-9 and the 1099 series; hobby versus business; the 3-of-5 presumption
Forming a partnership. Partnership agreements; general and limited partners; section 721 contributions; property with debt; services for an interest; family partnerships; special allocations
Running a partnership: flow-through and partner basis. Separately stated items and the K-1; self-employment income; guaranteed payments; partner dealings; outside basis; loss limits in order
Partnership distributions, exits, filing and audits. Distributions; hot assets and sale of an interest; section 754; death and dissolution; filing and penalties; cancelled debt; the centralized audit regime and opt-out
Forming a corporation. Section 351 and the 80% control test; services for stock; boot; liabilities under section 357; controlled groups; closely held and personal holding companies
The C corporation return. Form 1120, due dates and penalties; capital losses; dividends received deduction; charitable limit; estimated tax; accumulated earnings tax; CAMT and the minimum tax credit
Earnings, dividends, redemptions and liquidations. Earnings and profits; distribution ordering; property and constructive dividends; stock dividends; section 302 redemptions; sections 331, 332 and 336 liquidations
S corporations: qualifying, electing and terminating. Shareholder and stock rules; Form 2553 and late relief; revocation and termination; inadvertent termination relief; built-in gains and passive income taxes
S corporations: income, basis and distributions. Per-share per-day allocation; reasonable compensation and 2% shareholders; stock and debt basis; Form 7203; AAA and distributions; debt discharge
Business income, inventory and at-risk. Gross receipts and advance payments; cost of goods sold; inventory methods; uniform capitalization; at-risk limits; cancellation of business debt
Pay, fringe benefits, insurance, rent and the ACA. Reasonable compensation; family employment and statutory employees; fringe benefits; health plans; insurance; rent and self-rentals; employer shared responsibility
Workers, employment taxes and other taxes. Employee or contractor; FICA and FUTA; Forms 941, 940 and 944; deposit schedules; trust fund penalty; deductible taxes; excise tax deposits
Depreciation, section 179, bonus and amortization. MACRS classes and conventions; section 179; OBBBA bonus; listed property and section 280F; startup costs, section 197 and section 174A; depletion; correcting errors
Travel, cars, interest, bad debts and the home office. Travel and per diem; meals and gifts; vehicles; section 163(j); business bad debts; home office; mileage logs and accountable plans
The qualified business income deduction. QBI; thresholds; W-2 wage and UBIA limits; specified service businesses; aggregation; rental safe harbor; loss carryovers
Casualties, net operating losses and business credits. Casualties, thefts and condemnations; business NOLs; the general business credit; small employer credits; research credit; foreign tax credit
Business assets: basis, sales, exchanges and repairs. Basis; section 1231; recapture under 1245, 1250 and 291; installment and asset sales; like-kind exchanges; involuntary and personal-use conversions; capitalization and repair rules
Reading the books: statements, methods and reconciliations. Business codes and year-to-year review; income statement; balance sheet proof; cash, accrual and hybrid; Form 3115; K-1 review; Schedules M-1, M-2 and M-3; related parties and owner loans
Advising the business taxpayer. Extended returns and penalties; international returns and Form 8300; choosing an entity; commingling; moving property in and out; the business life cycle; timing and depreciation planning
Trusts and estates: Form 1041. Simple, complex, grantor and foreign trusts; income and corpus; DNI and the distribution deduction; exemptions and deductions; the K-1; filing and penalties; abusive trusts
Exempt organizations. Section 501(c) status; public charities and private foundations; Forms 1023 and 1024; the Form 990 series; revocation; unrelated business income and Form 990-T
Retirement plans for businesses. Qualified and nonqualified plans; SEP and SIMPLE; contribution and deduction limits; self-employed math; nondiscrimination; prohibited transactions; Form 5500
Farmers. Farm income; crop insurance and disaster rules; livestock; farm depreciation; Form 4835; Schedule J, Schedule SE and farmer estimated tax
Rental property. Rental income; expenses, repairs and allocation; vacation homes; commercial and residential property; passive losses and the $25,000 allowance; real estate professionals
IRS forms workshop. Forms SS-4, 8832, 2553, 3115, 7004; 1065, 1120, 1120-S and K-1s; 4562, 4797, 8824, 6252; 941, 940, W-2, 1099s, 8300, 1095-C; 3800, 8990, 8995-A; 1041, 990 series, 5500, Schedules F and J; 5471, 5472, 8865