2015 Income Tax Course Topics

New Legislation: Federal Tax Legislation enacted in late 2014 and in 2015.

Rulings and Cases: September 2014 to August 2015 issues under review by the IRS and the courts.

Affordable Care Act: Emphasizes on the employer mandate but also updates the individual mandate discussion. Topics include: marketplace excise tax, controlled groups and affiliated entities, and issues for separated spouses and new marriages.

Repair and Capitalization Regulations:  How the repair and capitalization regulations affect small and large businesses differently.  When Form 3115 is not required for changes made by small businesses, Rental property, and why does a “unit of property” matter?

Business Issues: Net investment income tax grouping considerations, Per diem rules, Sale of § 1250 property, Controlled groups, Amending and making late elections, Startup expenses, Correcting depreciation errors, and Methods of accounting.

Individual Taxpayer Issues: Mortgage interest, Schedule K-1 (Form 1041), Gift tax returns, Applicable federal interest rates for gifts and loans, Innocent spouse rules, Virtual currencies, and Basis and holding period for transferred assets.

Tax practice: Working with incomplete records, Pros and cons of extending statute of limitations, Audit triggers, Power of attorney issues, and Reporting tax practitioner misconduct.

Business Entities: Selection of business entity, Effect of entity selection on taxability of cancellation of debt income, and Allocation of partnership liabilities among partners or LLC members.

Agricultural and Natural Resources: Livestock transactions, Farmer net investment income tax issues, Inherited property, Payments to landowners: oil and gas issues, Income tax on farm transfers, and Commodity Credit Corporation loans.

IRS Issues: IRS’s “Dirty Dozen” list of tax scams, Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, Options for disclosing foreign financial assets, and Trust fund recovery penalty.

Retirement: Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.; Sale of business followed by retirement; Non-qualified annuities; and Checklist for retirement planning tax issues.

Net Operating Losses: Death of a spouse with an NOL from a joint return, Carryover/back planning, and Election out of carryback: effect of low or high taxable income in future years.

Provisions Limited by Amount of Income: The amount of a taxpayer’s income limits the benefit of several provisions in the Internal Revenue Code. For instance: IRA contributions, Student loan interest deduction, U.S. savings bond interest exclusion, Itemized deductions, Personal and dependent exemptions deduction, and Credits.

SCDOR:  SC Legislation, SCDOR Security Updates, Update on South Carolina EFile and MyDORWay.

Ethics: What practitioners can and should do in light of Circular 230 and what they cannot do.