- NY Credits : 4.0
- TX Credits : 4.0
- IRS Enrolled Agent Credits : Federal Tax/Tax Related Matters - 4.0
This course takes a look at deductions that may be available to the corporation, including officers' compensation, salaries and wages paid to employees, and repair and maintenance expenses. In addition, it discusses the deductibility of bad debts, rents, taxes, and interest. It also reviews depreciation methods, the luxury auto rules, the IRC Sec. 179 expensing election, cost and percentage depletion, advertising expenses, as well as pension and profit-sharing plans, employee benefit programs, amortization of start-up costs, and expenses subject to the deduction limitation rules.
This course is most appropriate for the professional with detailed knowledge in S corporation taxation who may be at a mid-level position within an organization with operational or supervisory responsibilities, or both.
Upon successful completion of this course, the user should be able to:
properly report the various deductions on Page 1 of Form 1120S;
identify the factors in determining whether an officer's compensation is reasonable;
recognize the factors and consequences involved in classifying workers as independent contractors instead of employees;
recognize the key criteria used in determining whether an expense extends the life of an asset or adds to its value;
apply the methods and conventions of depreciation, including the auto rules, IRC Sec. 179 limits, and bonus depreciation; and
identify expenses subject to deduction limitations.