CPE06412 - Federal Tax Update

This text is divided as follows:

PART ONE
Exemptions 3
Child of Divorced or Separated Parents 3
Definition of Qualifying Child 3
FICA & Medicare Withholding 3
Divorce and Homebuyer Credit Recapture 4
Estate Tax Deduction (IRD) 4
Basis of Inherited Property 4
Parsonage Allowance - Multiple Homes 5
State Nonresident Military Spouse Income 6
Qualified Transportation Fringe Benefits 6
Capital Gains Rates 7
Schedule D Complications for 2011 7
Qualified Dividends 8
Reporting Requirements for Individuals with Foreign Assets 9
Reporting Receipt of Foreign Gifts 10
FBAR Reporting Requirements 11
Broker Basis Reporting 12
Qualified Small Business Stock 13
Home Sale Gain Attributable to Nonqualified Periods 13
Private Activity Bond Interest 14
Tipped Employees and Form 4137 "Gotcha" Program 15
Tax Character of Payments from Clubs to Taxi Drivers for Delivering Patrons 15
Payment Card and Third-Party Payment Transactions 15
Medicare B Payments 15
Section 179 Expense Deduction 16
Qualified Real Property Sec 179 Deduction 16
Bonus Depreciation 17
Special Depreciation Allowances through 2013 18
Cell Phones & Listed Property 20
Auto Mileage Rates 20
Luxury Auto Limits 22
Misclassified Workers - Interest Free Payroll Withholding Adjustment 22
2011 Per Diem Rates 23
Domestic Production Deduction 23
Self Employed Health Insurance Deduction 23
Rental as a Trade or Business 24
Farm Losses 24
Real Estate Professionals 24
Review Questions Part One 26

PART TWO
Partial Annuitization of Non-Qualified Annuity 28
Retirement Plans Can Be Converted to a Designated Roth Account 28
401(k) Plan Contribution Limits 29
Government Sec 457 Plans & Designated Roth IRS Accounts 29
60 Deadline Doesn't Apply to Direct Rollover Via Check 29
Tax-free IRA Distributions for Charitable Purposes 29
Health Savings Accounts 30
Small Employer Simple Cafeteria Plans 30
Traditional IRA Contribution Limits 31
Roth IRA Contribution Limits 32
Roth IRA AGI Conversion Limitations 32
Retirement Plan Limits 32
Coverdell Education Savings Accounts 32
Filing Requirements Form Series 5500 33
American Opportunity Credit 33
Sec 529 plans - Qualified Tuition Programs 35
Gift Tax Exemption 35
Higher Education Loan Interest 35
Teacher's Classroom Supplies Deduction 35
Education Above-The-Line deduction 36
Employer Education Assistance 36
Foreign Earned Income Exclusion 36
Standard Deduction 36
Long Term Care Insurance 37
Sales Tax 37
Mortgage Insurance Premiums 37
Charitable Contributions 38
IRA to Charity Distributions 38
Review Questions Part Two 39

PART THREE
Itemized Deductions Overall Limitation Phase-out 41
Lactation Supplies as a Medical Expense 41
Self-Employment Tax 41
Surtax on Unearned Income - Long Range Planning 42
Alternative Minimum Tax 42
AMT Refundable Credit 43
Federal Brackets 44
15% Bracket Marriage Penalty Adjustments 44
Child & Dependent Care Tax Credit 45
Child Tax Credit 45
Earned Income Credit 46
Adoption Credit 47
Homeowner Energy Credits 47
Review Questions Part Three 51

PART FOUR
Qualified Fuel Cell Motor Vehicle Credit 53
Credit for Building Energy Efficient Homes 54
Work Opportunity Tax Credit (WOTC) 54
First-time Homebuyer Credit 55
Plug-In Electric Vehicle Credit 58
Plug-In Conversion Kit 59
HIRE Act & Retention Credit 60
Small Business Health Insurance Tax Credit 61
Penalties Increased for Failure to Information Returns 64
Penalties Increased for Furnish Payee Statements 65
Dishonored Electronic Payment Penalty 65
Accuracy Related Penalty - Undisclosed Foreign Assets 65
Review Questions Part Four 66

FINAL EXAM 69

After completing this course, the student will be able to counsel clients on the individual and small business changes that will affect the preparation of a 2011 tax return and planning issues for the future years based on current law and sunset
provisions, including the potential effect of a multitude of provisions scheduled to expire if not extended by Congress.

CTEC
IRS - Enrolled Agents
RTRP