Hobby or Business
We will discuss Code Sec. 183 and the seven factors under Treas. Reg. 1.183-2 that IRS will use in determining if an activity is “engaged in a for profit activity”.
We will give real life examples of how the audit and appeals process works in dealing with Code Sec. 183 issues.
1. Tipped Employees – Tips and service charges – what is the difference and how are they taxed differently. Annual reporting by employers. Employer credit.
2. Workers with Travel & Transportation Expenses - Tax home defined, temporary vs. permanent job description – meal deductions
3. Home Based Businesses – New office in home rules – allowable deductions – commuting vs. business expense – sale of home with office in the home
An understanding of Form 4797 made easy. Tips on how to apply all the different code sections of 1245, 1231, 1250, etc.
Entity choices – a basic look at LLCs and then a comparison of how taxpayers should operate their businesses – Sole Proprietor – Partnership – S Corp – C Corp including a look at Fringe Benefits and the new rules for health insurance paid for by the employer. Notice 2013-54
How to handle missed depreciation plus new regs on capitalization vs. repairs.
Reasonable wages – fringe benefits – basis issues (when distributions exceed basis or when losses exceed basis)
Substantiation required for IRS correspondence. Who gets the credit and what are the requirements. Lifetime Learning Credit, American Opportunity Credit or the deduction for education expenses.
This session will look at the preparation of 1099s and the penalties for not preparing 1099s but we will also discuss what happens when a taxpayer receives an incorrect 1099 and how you handle that on the return to avoid IRS correspondence.
This session will be a look at the most popular and troublesome areas of divorce – dependency issues, sale of assets, and retirement plan distributions.