Income Tax - Individual
Course Description
This course is a basic introduction to federal taxation. The purpose is to familiarize the student with fundamental tax issues and provide the student with a general understanding of the history, laws, and policies of federal taxation.
Topics and Objectives
Income Tax Foundations
- Define the objectives of U. S. tax law.
- Locate sources for information on U.S. tax law.
- Distinguish between instances of tax avoidance and tax evasion.
- Compare and contrast Generally Accepted Accounting Principles (GAAP) and income tax accounting.
- Identify the major components of Form 1040.
- Discover answers to tax questions using outside reference sources.
- Use tax preparation software.
Filing Status, Exemptions, and Gross Income part I
- Determine a taxpayer's filing status.
- Determine personal and dependency exemptions.
- Determine if a taxpayer must file a return.
- Determine all included, excluded, and exempt gross income items.
- Determine net business income.
- Determine net rent and other pass through income.
Property Transactions, Passive Activities, and Gross Income part II
- Recognize what constitutes a passive activity.
- Calculate basis.
- Determine gain or loss.
- Identify non-taxable property transactions.
- Determine taxable implications of the purchase, sale or exchange of property.
- Differentiate between deductible and non-deductible losses.
- Calculate taxable capital gains and losses.
- Compute gross income.
Adjustments to Gross Income and Itemized Deductions
- Identify deductions allowed in computing Adjusted Gross Income (AGI).
- Calculate itemized deductions
- Compute taxable income.
Tax Computations and Analysis
- Identify tax preferences with regard to the Alternative Minimum Tax (AMT).
- Calculate applicable tax credits, payments and penalties.
- Calculate tax liability, refund, or amount due using a Form 1040
- Propose year-end tax strategies to decrease taxable income.