Preparing 2017 Business Tax Returns

Transcription

1 Preparing 2017 Business Tax Returns Published and Distributed by The CPE Store, Inc.

2 Module 1 Chapters 1-3 Chapter 1 Corporations... 1 Learning Objectives... 1 Introduction... 1 Businesses Taxed as Corporations... 1 Property Exchanged for Stock... 2 Capital Contributions... 4 Filing and Paying Income Taxes... 4 Accounting Methods... 8 Accounting Periods... 9 Recordkeeping... 9 Income, Deductions, and Special Provisions... 9 Figuring Tax Accumulated Earnings Tax Distributions to Shareholders Review Questions Review Answers Chapter 2 Partnerships Learning Objectives Introduction Forming a Partnership Terminating a Partnership Exclusion from Partnership Rules Partnership Return (Form 1065) Partnership Distributions Transactions Between Partnership and Partners Basis of Partner s Interest Disposition of Partner s Interest Review Questions Review Answers Chapter 3 Limited Liability Companies Learning Objectives Introduction What is a Limited Liability Company? Classification of an LLC LLCs Classified as Partnerships LLCs Classified as Disregarded Entities LLCs Classified as Corporations Subsequent Elections Community Property Review Questions Review Answers Module 2 Chapters 4-6 Chapter 4 Tax Exempt Organizations: Filing Requirements & Required Disclosures Learning Objectives Introduction Types of Tax Exempt Organizations & Filing Requirements Annual Information Returns Unrelated Business Income Tax Return Employment Tax Returns... 68

3 Donee Information Return Information Provided to Donors Report of Cash Received Public Inspection of Exemption Applications, Annual Returns, and Political Organization Reporting Forms Required Disclosures Miscellaneous Rules Review Questions Review Answers Chapter 5 Tax Exempt Organizations: 501(c)(3) Organizations Learning Objectives Introduction Contributions to 501(c)(3) Organizations Application for Recognition of Exemption Articles of Organization Educational Organizations and Private Schools Organizations Providing Insurance Other Section 501(c)(3) Organizations Private Foundations and Public Charities Lobbying Expenditures Review Questions Review Answers Chapter 6 Tax Exempt Organizations: Excise Taxes Learning Objectives Introduction Prohibited Tax Shelter Transactions Excess Benefit Transactions Excess Business Holdings Taxable Distributions of Sponsoring Organizations Taxes on Prohibited Benefits Distributed from Donor Advised Funds Excise Taxes on Private Foundations Excise Taxes on Black Lung Benefit Trusts Excise Tax on Failure to Meet the Community Health Needs Assessment Requirements Review Questions Review Answers Module 3 Chapters 7-10 Chapter 7 Accounting Periods & Methods Learning Objectives Introduction Accounting Periods Accounting Methods Review Questions Review Answers Chapter 8 Business Expenses: Deducting Business Expenses Learning Objectives Introduction What Can I Deduct? How Much Can I Deduct? When Can I Deduct an Expense? Not-for-Profit Activities Review Questions Review Answers ii

4 Chapter 9 Business Expenses: Employees Pay Learning Objectives Introduction Tests for Deducting Pay Kinds of Pay Review Questions Review Answers Chapter 10 Business Expenses: Rent Expense Learning Objectives Introduction Rent Taxes on Leased Property Cost of Getting a Lease Improvements by Lessee Capitalizing Rent Expenses Review Questions Review Answers Module 4 Chapters Chapter 11 Business Expenses: Interest Learning Objectives Introduction Allocation of Interest Interest You Can Deduct Interest You Cannot Deduct Capitalization of Interest When to Deduct Interest Below-Market Loans Review Questions Review Answers Chapter 12 Business Expenses: Taxes Learning Objectives Introduction When to Deduct Taxes Real Estate Taxes Income Taxes Employment Taxes Other Taxes Review Questions Review Answers Chapter 13 Business Expenses: Insurance Learning Objectives Introduction Deductible Premiums Nondeductible Premiums Capitalized Premiums When to Deduct Premiums Review Questions Review Answers Chapter 14 Business Expenses: Costs You Can Deduct or Capitalize Learning Objectives Introduction Carrying Charges iii

5 Research and Experimental Costs Intangible Drilling Costs Exploration Costs Development Costs Circulation Costs Business Start-Up and Organizational Costs Reforestation Costs Retired Asset Removal Costs Barrier Removal Costs Film and Television Production Costs Repair and Maintenance Costs Review Questions Review Answers Module 5 Chapters Chapter 15 Business Expenses: Amortization Learning Objectives Introduction How to Deduct Amortization Starting a Business Getting a Lease Section 197 Intangibles Reforestation Costs Geological and Geophysical Costs Pollution Control Facilities Research and Experimental Costs Optional Write-Off of Certain Tax Preferences Review Questions Review Answers Chapter 16 Business Expenses: Depletion Learning Objectives Introduction Who Can Claim Depletion? Mineral Property Timber Review Questions Review Answers Chapter 17 Business Expenses: Business Bad Debts Learning Objectives Introduction Definition of Business Bad Debt When a Debt Becomes Worthless How to Claim a Business Bad Debt Recovery of a Bad Debt Review Questions Review Answers Chapter 18 Business Expenses: Other Expenses Learning Objectives Introduction Reimbursement of Travel, Meals, and Entertainment Miscellaneous Expenses Review Questions Review Answers iv

6 Module 6 Chapters Chapter 19 Sales & Other Dispositions of Assets: Gain or Loss Learning Objectives Introduction Sales and Exchanges Gain or Loss from Sales and Exchanges Abandonments Foreclosures and Repossessions Involuntary Conversions Nontaxable Exchanges Other Nontaxable Exchanges Transfers to Spouse Rollover of Gain from Publicly Traded Securities Gains on Sales of Qualified Business Stock Review Questions Review Answers Chapter 20 Sales & Other Disposition of Assets: Ordinary or Capital Gain or Loss Learning Objectives Introduction Capital Assets Noncapital Assets Sales and Exchanges Between Related Persons Other Dispositions Review Questions Review Answers Chapter 21 Sales & Other Dispositions of Assets: Ordinary or Capital Gain or Loss for Business Property Learning Objectives Introduction Section 1231 Gains and Losses Depreciation Recapture Review Questions Review Answers Chapter 22 Sale & Other Dispositions of Assets: Reporting Gains and Losses Learning Objectives Introduction Information Returns Schedule D and Form Form Review Questions Review Answers Module 7 Chapters Chapter 23 Installment Sales Learning Objectives What Is an Installment Sale? General Rules Other Rules Reporting an Installment Sale Review Questions Review Answers v

7 Chapter 24 Passive Activity and At-Risk Rules Learning Objectives Introduction Passive Activity Limits At-Risk Limits Review Questions Review Answers Module 8 Chapters Chapter 25 Depreciation: An Overview Learning Objectives Introduction What Property Can Be Depreciated? What Property Cannot Be Depreciated? When Does Depreciation Begin and End? What Method Can You Use To Depreciate Your Property? What Is the Basis of Your Depreciable Property? How Do You Treat Repairs and Improvements? Do You Have to File Form 4562? How Do You Correct Depreciation Deductions? Review Questions Review Answers Chapter 26 Depreciation: Figuring Depreciation Under MACRS Learning Objectives Introduction Which Depreciation System (GDS or ADS) Applies? Which Property Class Applies Under GDS? What Is the Placed in Service Date? What Is the Basis for Depreciation? Which Recovery Period Applies? Which Convention Applies? Which Depreciation Method Applies? How Is the Depreciation Deduction Figured? How Do You Use General Asset Accounts? When Do You Recapture MACRS Depreciation? Review Questions Review Answers Chapter 27 Depreciation: Additional Rules for Listed Property Learning Objectives Introduction What Is Listed Property? Can Employees Claim a Deduction? What Is the Business-Use Requirement? What Records Must Be Kept? How Is Listed Property Information Reported? Review Questions Review Answers Glossary Appendix Index vi