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 1st 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