Reference no: EM13497416

Part -1:

General Scheme of Taxation of Capital gains and losses

Definition of Capital Asset

Sale or exchange requirement for capital gain (loss) treatment

Options

Patents

Franchises, Trademarks, Trade-names

Lease Cancellation Payments

Holding Period Rules

Treatment of Capital Gains (Losses) of non-corporate taxpayers

        Netting process

        Qualified Dividend Income

        Tax on Net Capital Gain

        Treatment of Capital Losses

        Reporting

Treatment of Capital Gains (losses) of Corporate Taxpayers

Part-2:

Gifts and Inheritances

Life Insurance

        Transfer for Value rule

        Acceleration

Compensation for injury and sickness

        What may be excluded from income

Employer sponsored health insurance

        What may be excluded from income

        Employer's after tax cost to provide

Foreign earned Income Exclusion

        Calculate exclusion

State and Local Bonds

        Federal tax treatment

        After tax rate of return

Tax Benefit Rule

Income from Discharge of Indebtedness

Part -3:

 Classification of Deductible expenses

        "For" AGI

        "From" AGI

Trade or Business expenses

Cash Accounting issues

        Capitalized expenses

        Pre-paid items; pro-rated items

Accrual Accounting issues

        Economic Performance test - determining timing of deductions

        All Events Test for deductions

        Recurring items exception

Hobby Loss Rule

Vacation Homes

Disallowance of Personal Expenses

Part -4:

Bad Debt Deduction

Loss allowed for Worthless Securities

Loss allowed for § 1244 stock

Personal Casualty losses & gains

Losses sustained with respect to property used in Taxpayer's trade or business or transaction entered into to produce income          

Net Operating Loss

        Calculation of Loss for the current tax year

        Calculation of allowable Loss for a carryback year

Note:  students are not responsible for 7.4 Research and Experimental expenses and 7.5 Domestic Production Activities deduction

Part -5:

Depreciation of tangible personal property

        Applicable Methods, Recovery Periods, Conventions

Computation under Mid-Month, Mid Quarter and Half Year

        Conventions

Additional  1^st year depreciation (2011 and 2012 tax years only)

§ 179 current expense

        Amount allowable 2011 and 2012

        Limitations

Amortization of intangibles

Note:  students are not responsible for Business and Personal Use of Automobiles and Other Listed Property (pages 8-15 through 8-20);  the Alternative Depreciation System (pages 8-21 through 8-22) or Depletion (pages 8-24 through 8-28)

Part -5:

Taxes

        Property Taxes

        State & Local Income Taxes

Interest

        Allowed and Disallowed

        Restrictions of Deductibility and Timing

        Classification of Interest Expense

Charitable Contributions

        Qualified Organizations

        Timing of Deduction

        Limitations (20%, 30%, 50% x AGI)

Miscellaneous Itemized Deductions