- NY Credits : 4.0
- TX Credits : 4.0
- IRS Enrolled Agent Credits : Federal Tax/Tax Related Matters - 4.0
Form 1065 - Deductions and Credits
Most practitioners deal with Form 1065, U.S. Return of Partnership Income, on a regular basis. This program explores the multitude of deductions that may be available to the partnership, including compensation, repair and maintenance expense, bad debt expense, rents, taxes, interest expense, depreciation, depletion, expenses for retirement plans and employee benefit programs, amortization of start-up costs and IRC Sec. 197 intangibles, meals, travel and entertainment expenses, and the IRC Sec. 199 deduction. It also contains the IRS tables on the limitations on depreciation deduction for passenger automobiles, trucks, and vans, and in the case of leased vehicles, tables containing the inclusion amount that is added to gross income for passenger automobiles, trucks, and vans.
Upon successful completion of this course, the user should be able to:
determine payments for compensation deductible as salary expense, deductibility of taxes paid by a partnership, and proper treatment of fringe benefits paid to partners;
describe requirements for deducting guaranteed payments, key criteria used in determining if an expense extends the life of an asset or adds to its value, requirements for claiming deductions for bad debts, various methods of writing off bad debt, proper reporting of interest expense, and eligibility for taking depletion deduction;
explain requirements for deducting rents and depreciating property (including the methods and conventions), auto rules, new IRC Sec. 179 limits, how IRC Sec. 199 deduction impacts partnerships and partners;
calculate lease inclusion amount for vehicles leased in 2009; and
apply capitalization and amortization rules relating to start-up costs and IRC Sec. 197 intangible assets.