- NY Credits : 6.0
- TX Credits : 6.0
- IRS Enrolled Agent Credits : Federal Tax/Tax Related Matters - 6.0
Most individuals incur interest expense from a variety of personal indebtedness items. The interest expense is deductible in some cases and not deductible in other cases when calculating federal income tax liability for an individual. This course discusses the deductibility of interest expense arising from items such as business, investment, home mortgage, below-market loans, capitalized interest and AMT, and even self-charged interest. In addition, the changes introduced by the Tax Cuts and Jobs Act of 2017 and applicable for tax year 2018 through 2025 are discussed and illustrated. This intermediate level course is most appropriate for the professional with detailed knowledge in federal income taxation of individuals or the professional seeking to expand his or her knowledge base and who may be at a mid-level position within an organization with operational or supervisory responsibilities, or both. The final exam for this course includes many hands-on, scenario-based questions that may require extensive calculations.
Upon successful completion of this course, the user should be able to:
identify deductible mortgage interest under pre- and post-TCJA,
determine investment interest expense under pre- and post-TCJA,
identify unstated, understated, and below-market interest,
classify capitalized interest and the alternative minimum tax,
apply the rules of allocation to the interest calculation, and
calculate self-charged interest.