K17E10CTECO - 2010 Krusemark CTEC Pub 17 Course w/ Ethics

This text is divided as follows:

FEDERAL SUPPLEMENT
PART ONE
2010 Inflation Adjustments 3
Exemptions 3
Definition of qualifying child revised 3
FICA & Medicare withholding 4
Differential pay not subject to FICA 4
Unemployment 4
Qualified transportation fringe benefits 4
One-time social security payments 4
Capital gains rates 5
Cash for Clunkers 5
Broker basis reporting 5
ISO & ESPP employer required reporting 6
Qualified small business stock 6
Home sale gain attributable to nonqualified periods 6
Private activity bond interest 7
Insurance life settlements 8
Foreign bank account reporting 10
Special depreciation allowances 11
Section 179 expense deduction 12
Auto mileage rates 12
Luxury auto limits 12
Domestic production deduction 13
Real estate professionals 13
COBRA continuation premium subsidy 14
Extended NOL carryback period 15
Review Questions Part One 17

PART TWO
401(k) plan contribution limits 19
Required minimum distributions 19
Tax-free IRA distributions for charitable purposes 20
Health savings accounts 21
IRA contribution limits 21
Roth IRA AGI conversion limitations 21
American Opportunity Credit 22
Sec 529 plans – Qualified tuition programs 23
Gift tax exception 23
Higher education loan interest 23
Foreign earned income exclusion 23
Qualified motor vehicle taxes deduction 24
Standard deduction 25
Long-term care insurance 26
Sales tax 26
Home mortgage interest 27
Home mortgage interest & audits 28
haritable contributions 28
Credit and debit card fees related to tax payments 29
Attorney fees in opt-out class action lawsuits 29
Casualty losses 29
Disaster losses 29
Review Questions Part Two 30

PART THREE
Tax treatment of frozen bank deposits 32
Ponzi scheme losses 32
How casual slots player determines wagering gains and losses 35
Itemized phase-out reduced 35
Self-employment tax 35
Alternative minimum tax 35
AMT refundable credit amount 36
Federal brackets 38
Child tax credit 38
Earned income credit 38
Homeowner energy credits 40
Special issues 43
Review Questions Part Three 44

PART FOUR
Alternative motor vehicle credits 46
Work opportunity tax credit (WOTC) 47
First-time homebuyer credit 48
Differential pay credit – uniformed services 52
Making work pay credit 53
Plug-in electric vehicle credit 55
Underpayment of estimated taxes 57
New federal law benefits nonresident military spouse 58
Review Questions Part Four 58

CALIFORNIA SUPPLEMENT
2009 Standard Deduction 4
2009 & 2010 SDI Rates 4
2009 Exemption & Itemized Deduction Phase-out 4
Alternative Minimum Tax 4
Military 5
Requirements for Children with Investment Income 7
IRA Phase-out AGI 7
Tax-Free IRA Distributions for Charitable Purposes 7
Sales Tax Deduction Non-conformity 7
Qualified Motor Vehicle Taxes Deduction 7
Claim-of-Right Provision 7
State, Local and Foreign Income Taxes Paid 7
Domestic Production Deduction 8
American Indians Per Capita Payments 8
Higher Education Above-the-Line Deduction 8
Student Interest Deduction 8
Foreign-Earned Income and Housing Expense Exclusion 8
Educator Expense 8
California Lottery Winnings 8
Foreign Income of Nonresident Aliens 8
U.S. Social Security Benefits 8
Railroad Retirement Benefits 8
Unemployment Compensation 8
Paid Family Leave (PFL) Insurance Benefits 9
IRA Basis Adjustments 9
State Income Tax Refund 9
United States Obligations 9
Non-California State Bonds 9
Income Exempted by U.S. Treaties 9
Asset Expense Election 9
MACRS Recovery Period for Nonresidential Real Property 10
Depreciation of Assets Acquired Prior to 1/1/87 10
Additional First-Year Depreciation 10
Credit for Employer-Paid Child Care Plan 10
Business Expense 10
Exclusion of Gain on the Sale of Qualified Small Business Stock 10
Disabled Access Credit for Eligible Small Businesses 10
Roth IRAs 11
Canadian Registered Retirement Savings Plans 11
Child and Dependent Care Expenses Credit 11
Withholding on Real Property Sales 11
Tax on Early Distributions 13
Tax Benefits of Registered Domestic Partners 13
Registered Domestic Partners Must File Jointly or MS 13
Holocaust Restitution Payments 5
Energy Rebates 15
Ridesharing Fringe Benefits 15
Capital Gains and Qualified Dividends Tax Rate 15
Health Savings Accounts 15
Federal Estate Tax Deduction 15
Use Tax 15
Head of Household Filing Status 16
Dependent Exemption Credit 17
Persecution on the Basis of Race or Religion 17
Mental Health Services Tax 17
Underpayment of Estimated Tax Penalty 17
Mandatory E-pay For High-Income Taxpayers 17
Environmental Tax Credit 18
Net Operating Loss 18
Deduction for Clergy’s Rental Allowance 18
Public Safety Officer Death Benefit 18
Home Mortgage Debt Forgiveness 18
Business Tax Credit Limitation 19
California New Jobs Tax Credit 19
New Registration and Reporting Requirement for Certain Businesses 20

ETHICS SUPPLEMENT

Related IRS Publications and Forms 2

IRS Pub 230
§ 10.3 - Who May Practice 2
§ 10.6 - CPE Requirements 2
§ 10.20 - Information to be Furnished 3
Section 7525 - Confidentiality Privilege 4

IRS Pub 230
§ 10.21 - Knowledge of Client’s Omission 5
§ 10.22 - Diligence as to Accuracy 5
§ 10.23 - Prompt Disposition of Pending Matters 5
§ 10.24 - Assistance from or to Disbarred or Suspended Persons and Former IRS Employees 5
§ 10.25 - Practice by Former Government Employees, Their Partners and Their Associates
§ 10.26 - Notaries 6
§ 10.27 - Fees 6
§ 10.28 - Return of Client’s Records 7
§ 10.29 - Conflicting Interests 8
§ 10.30 - Solicitation 8
§ 10.31 - Negotiation of Taxpayer Checks 10
§ 10.32 - Practice of Law 10
Review Questions – Part One 11
§ 10.33 - Best Practices for Tax Advisors 13
§ 10.34 - Standards - Tax Returns and Documents, Affidavits and Other Papers 13
§ 10.35 - Requirements for Covered Opinions 14
§ 10.36 - Procedures to Ensure Compliance 16
§ 10.37 - Requirements for Other Written Advice 16
§ 10.50 - Sanctions 17
§ 10.51 - Incompetence and Disreputable Conduct 17
§ 10.52 - Violations Subject to Sanction 19 § 10.60 - Rules Applicable to Disciplinary Proceedings 19
§ 6694 & 6695 Tax Return Preparer Penalties 19
Review Questions – Part Two 23

By completing this course the student will learn what is new in taxes and obtain a general review and update of rules associated with filing a federal individual income tax return. The course uses IRS Publication 17 along with supplemental materials covering new tax law and California differences.

CTEC