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Tax Cuts and Jobs Act: What You Need to Know - 2018 Self Study  

CATEGORY: Taxation
Print Based
8 CPE Credits
Level: Basic

The Tax Cuts and Jobs Act represents the largest change in tax law since the big Tax Reform Act of 1986. This seminar will cover all the important details which tax professionals need in order to advise clients how they will be affected by this massive tax Act. The legislation is quite complicated but it will all be explained in plain English with many examples to make it understandable. The manual contains over 50 chapters covering all the changes that affect individuals as well as businesses. For individuals the seminar covers new tax rates and brackets, new standard deductions, new credits, big changes on Schedule A and much more. For business the seminar covers the new 20 % Qualified Business Income Deduction, new limitations on business losses and interest expense, restrictions on deducting certain expenses as well as the big changes in depreciation. For all businesses It has become necessary to revisit the choice of entity. The course shows how this should be tackled with examples which offer guidance to tax professionals. Finally the course also touches on changes in the areas of estate taxes and taxation of foreign income. As a bonus the seminar will cover more recent tax legislation such as the Bipartisan Budget Act of 2018 and The Consolidated Appropriations Act of 2018.

Available July 2018

CPE credit good for one year from release.

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Accreditation Information

Learning objectives

Course outline

CHAPTER 1: Rates and Brackets. 1

I.         Joint returns and surviving spouses. 1

II.        Heads of households. 2

III.      Single. 3

IV.      Married filing separate. 4

V.       Estates and Trusts. 5

VI.      Long term capital gain and qualified dividends. 6

Chapter 2: Kiddie Tax. 9

chapter 3: Alternative Minimum Tax (AMT) 13

I.         How is the AMT calculated?. 13

Chapter 4: The Child Tax Credit. 17

I.         Calculating the credit. 17

II.        Qualifying child. 17

Chapter 5: Increase in Standard Deduction and Repeal of
deduction for personal exemption.. 21

chapter 6: Items Affecting Education.. 25

I.         IRC Section 529 qualified tuition programs. 25

II.        Discharge of student loan indebtedness. 25

III.      Rollover from IRC Sec. 529 Account to A qualified ABLE account. 25

Chapter 7: Retirement and ABle Accounts. 29

I.         Recharacterization of IRA contributions Under old law.. 29

II.        Taxation of retirement plan distributions – plan loans. 30

III.      Modification of rules for public safety volunteers. 31

chapter 8: Exclusions from and adjustments to Income. 35

I.         Suspension of exclusion for qualified bicycle reimbursement. 35

II.        Repeal of exclusion for qualified moving expense reimbursement. 35

chapter 9: Itemized Deductions. 39

I.         Repeal of limit on itemized deductions. 39

II.        Home mortgage interest. 39

III.      Deduction for State and local taxes. 42

IV.      Repeal of deduction for personal casualty and theft losses. 43

V.       Limitation on wagering losses. 44

VI.      Modifications to deduction for charitable contributions. 44

VII.     Repeal of certain miscellaneous itemized deductions
subject to 2% floor. 47

VIII.    Expenses for the production or collection of income. 47

IX.      Medical expenses. 50

Chapter 10: Relief for 2016 Federally Declared Disaster Areas. 53

I.         Distributions from tax-favored retirement plans. 53

II.        Itemized deduction for casualty loss. 54

Chapter 11: Like-kind Exchanges Limited to Real Estate. 57

Chapter 12: Certain Self-Created Property Not Treated
as a Capital Asset. 61

Chapter 13: Elimination of Shared Responsibility Payment
for Individuals. 65

Chapter 14: Tax Planning for individuals. 69

I.         tax avoidance vs Tax Deferral. 69

II.        Hobby Losses. 69

III.      Trustee fees for an IRA if separately billed and paid. 71

IV.      Unreimbursed employee business expenses. 71

V.       Home Equity Debt. 72

VI.      Limitation on deducting State and local tax. 73

VII.     Qualified charitable distributions from an IRA. 73

VIII.    Medical Expenses. 74

IX.      Tax preparation fees. 74

X.       Bunching itemized deductions. 75

XI.      REnegotiating alimony agreements. 77

Chapter 15: Qualified Business Income Deduction (QBID) 81

I.         What income qualifies. 81

II.        What does not qualify. 81

III.      Combining Net Qualifying Income and Loss for all businesses. 82

IV.      Carryover net business loss. 82

V.       Reasonable compensation to S corporation shareholders. 82

VI.      Guaranteed payments to partners. 83

VII.     Qualified REIT dividends, cooperative dividends and publicly traded partnership income. 83

VIII.    Three limitations. 84

IX.      The first limitation applies to all business income. 84

X.       The second limitation applies to all business income. 85

XI.      Definition of W-2 Wages. 86

XII.     Definition of qualified property. 86

XIII.    Doing the calculation for the second limitation. 87

XIV.   The third limitation applies only to specified service
trade or business. 89

XV.     Specified agricultural Or horticultural cooperatives. 92

XVI.   trusts and estates. 93

XVII.  Information required to be disclosed on K-1. 93

XVIII. Alternative minimum tax. 93

XIX.   Increased threshold for substantial underpayment penalty. 93

CHAPTER 16: Limitation on Losses of Certain Businesses. 97

Chapter 17: Interest Expense LimitationS. 101

I.         Applications to pass through entities. 102

II.        Carryforward of disallowed business interest. 102

III.      Exceptions to the Interest expense limitation. 103

CHapter 18: Limitations on Certain Deductions. 107

I.         Repeal of domestic production activities deduction – IRC Sec. 199. 107

II.        Repeal of deduction for local lobbying expenses. 107

III.      net operating loss (nol) 108

IV.      Entertainment expenses. 109

V.       Excludable fringe benefits. 110

VI.      Employee achievement awards. 112

VII.     Deductions in connection with sexual abuse or harassment. 113

VIII.    Excessive employee remuneration. 113

chapter 19: Increased deduction under IRC Sec. 168(k)
Bonus depreciation.. 117

I.         Election to accelerate AMT credits in lieu of bonus depreciation. 118

II.        Application to used property. 118

III.      Application to film, television and live theatrical productions. 119

IV.      Exception for certain businesses not subject to limitation
on interest expense. 119

V.       Modifications to depreciation limitations on luxury
automobiles and personal use property. 120

VI.      Electing out of IRC Sec. 168(k) 122

Chapter 20: Modification to treatment of certain farm property. 125

I.         Alternative depreciation system for electing farm businesses. 126

II.        Expensing costs of replanting citrus trees lost by casualty. 126

Chapter 21: Depreciation life for qualified real
estate improvements. 129

I.         Qualified improvement property. 129

II.        Qualified LEASEHOLD improvement property. 129

III.      Qualified restaurant property. 130

IV.      Qualified retail improvement property. 130

chapter 22: Expansion of IRC sec. 179 expensing and
Amortization of Research and Experimental Expenditures. 135

chapter 23: Accounting Methods. 141

I.         General rule for methods of accounting.. 141

II.        Cash and accrual methods. 141

III.      Accounting for inventories. 143

IV.      Uniform capitalization rules. 143

V.       Accounting for long-term contracts. 144

VI.      Special Rules for taxable year of Inclusion of income. 146

Chapter 24: C Corporations. 149

I.         C Corporation tax rates. 149

II.        Capital gains. 152

III.      Personal service corporations. 152

IV.      Accumulated earnings tax. 153

V.       Personal holding company tax. 154

VI.      Dividends received deduction. 155

chapter 25: S Corporations. 159

I.         Termination of S corporation election. 159

II.        Post-termination Transition Period distributions. 159

III.      Electing Small Business Trusts – Charitable Contributions. 160

chapter 26: Partnerships. 163

I.         Repeal of technical termination of partnerships. 163

II.        Carried Interest. 164

III.      Definition of substantial built-in loss modified. 167

IV.      Partnership Basis. 168

CHAPTER 27: Business Credits. 171

I.         Reduction of credit for drug testing.. 171


III.      Employer Credit for paid family and medical leave. 172

CHAPTER 28: Choice of entity. 177

I.         C Corporations. 177

II.        Qualified Business Income Deduction (QBID) 178

CHAPTER 29: TAX planning for businesses. 183

I.         tax avoidance vs Tax Deferral. 183

II.        qualified business income deduction (QBID) 184

III.      Interaction between QBID and Depreciation. 185

IV.      choice of accounting method. 185

V.       Reasonable compensation of S corporation shareholders. 186

VI.      Guaranteed payments to partners for services. 187

Chapter 30: Modification to Estate, Gift, and Generation-Skipping Transfer Taxes. 191

I.         In general. 191

II.        Unified credit. 191

III.      Common tax rate table. 191

IV.      Generation-skipping transfer tax exemption and rate. 191

V.       Transfers between spouses. 192

VI.      Transfers to charity. 192