Framework for Business Tax Deductions

Learning Objectives

After completing this course, you should be able to:

• Distinguish whether an expense is related to a business, investment, or personal activity.
• Distinguish between expenses that are not deductible from those that are deductible.
• Estimate taxable income accurately by applying appropriate tax accounting methods for deductions.
• Recall the requirements taxpayers must meet to deduct business expenses.
• Estimate the allowable deduction for business interest expense.
• Recall the limitation on the deduction of business losses.
• Distinguish the amount of deductions allowed for a home office.
• Indicate whether an activity is a hobby or a business.
• Recall the tax consequences for the three different categories of vacation homes.
• Estimate basis and at-risk amounts used to limit loss deductions.
• Recall how to apply passive loss rules when computing taxable income.
• Distinguish the cost recovery deduction for personalty and realty under the MACRS rules and utilizing and applying Section 179 and bonus depreciation.
• Identify intangible assets that are eligible for amortization and calculate the deduction.

Major Topics

• Framework for deductions
• Business expenses
• Limitation on business losses and expenses
• Introduction to passive losses
• Calculation of depreciation and amortization

Who Should Attend

This course is designed for entry level tax practitioners and any tax practitioner who needs a refresher on the framework for business tax deductions.

Fields of Study

Prerequisites

None

CPE Credits

Level