This course reviews tax treatment of employees' pay and fringe benefits, rent, interest, taxes, insurance, bad debts, and amortization.
Lesson and Objectives |
Reading
Assignment |
| Business Expenses |
|
1. Deducting Business Expenses |
Chapter 1 |
The learning objectives for this lesson are:
- Learn what you can deduct
- Learn how much you can deduct
- Understand when to deduct
|
|
2. Employees' Pay |
Chapter 2 |
The learning objectives for this lesson are:
- Learn the tests for deducting pay
- Learn about kinds of pay
|
|
3. Retirement Plans |
Chapter 3 |
The learning objectives for this lesson are:
- Understand simplified employee pension (SEP) plans
- Understand SIMPLE (Savings incentive match plan for employees) retirement plans
- Understand qualified plans (also called H.R. 10 or Keogh plans)
- Understand individual retirement arrangements (IRAs)
|
|
4. Rent Expense |
Chapter 4 |
The learning objectives for this lesson are:
- Learn the definition of rent
- Learn about taxes on leased property
- Understand the cost of getting a lease
- Learn about Improvements by the lessee
- Understand capitalizing rent expenses
|
|
5. Interest |
Chapter 5 |
The learning objectives for this lesson are to gain an understanding of:
- Allocation of interest
- Interest you can deduct
- Interest you cannot deduct
- Capitalization of interest
- When to deduct interest Below-market loans
|
|
6. Taxes |
Chapter 6 |
The learning objectives for this lesson are to gain an understanding of:
- When to deduct taxes
- Real estate taxes
- Income taxes
- Employment taxes
- Other taxes
|
|
7. Insurance |
Chapter 7 |
The learning objectives for this lesson are to gain an understanding of:
- Deductible premiums
- Nondeductible premiums
- Capitalized premiums
- When to deduct premiums
|
|
8. Costs You Can Deduct or Capitalize |
Chapter 8 |
The learning objectives for this lesson are to gain an understanding of:
- Carrying charges
- Research and experimental costs
- Intangible drilling costs
- Exploration costs
- Development costs
- Circulation costs
- Environmental cleanup costs
- Retired asset removal costs
- Barrier removal costs
|
|
9. Amortization |
Chapter 9 |
The learning objectives for this lesson are to gain an understanding of:
- How to deduct amortization
- Amortizing costs of going into business
- Amortizing costs of getting a lease
- Amortizing costs of section 197 intangibles
- Amortizing reforestation cost
- Amortizing costs of pollution control facilities
- Amortizing costs of research and experimentation
|
|
10. Depletion |
Chapter 10 |
The learning objectives for this lesson are to gain an understanding of:
- Who can claim depletion?
- Mineral property
- Timber
|
|
11. Business Bad Debts |
Chapter 11 |
The learning objectives for this lesson are to gain an understanding of:
- Definition of business bad debt
- When a debt becomes worthless
- How to treat business bad debts
- Recovery of a business bad debt
- Where to deduct business bad debts
|
|
12. Electric and Clean-Fuel Vehicles |
Chapter 12 |
The learning objectives for this lesson are to gain an understanding of:
- The deduction for clean-fuel vehicle property
- The deduction for clean-fuel vehicle refueling property
- Recapture of the deductions
- The electric vehicle credit
- Recapture of the credit
|
|
13. Other Expenses |
Chapter 13 |
The learning objectives for this lesson are to gain an understanding of:
- Travel, meals and entertainment
- Bribes and kickbacks
- Charitable contributions
- Education expenses
- Franchises, trademarks and trade names
- Lobbying expenses
- Penalties and fines
- Repayments (claim of right)
- Other miscellaneous expenses
|
|
| Employer's Tax Guide to Fringe Benenfits |
Chapter 1 |
| 1. Fringe Benefit Overview |
|
The learning objectives for this lesson are to gain an understanding of:
- Taxation of fringe benefits
- Cafeteria plans
|
|
| 2. Fringe Benefit Exclusion Rules |
Chapter 2 |
The learning objectives for this lesson are to gain an understanding of:
- Accident and health benefits
- Achievement awards
- Adoption assistance
- Atheletic facilities
- De Minimis benefits
- Dependent care assistance
- Eductional assistance
- Employee discounts
- Employee stock options
- Group-term life insurance coverage
- Lodging on your business premises
- Meals
- Moving expense reimbursements
- No-additional-cost services
- Retirement planning services
- Transportation benefits
- Tutition reduction
- Working condition benefits
|
|
| 3. Fringe Benefit Valuation Rules |
|
The learning objectives for this lesson are to gain an understanding of:
- General valuation rule
- Cents-per-mile rule
- Commuting rule
- Lease value rule
- Unsafe confitions commuting rule
|
|
| 4. Withholding, Depositing, and Reporting |
|
The learning objectives for this lesson are to gain an understanding of:
- Valuation of fringe benefits
- Choice of period for withholding, depositing, and reporting
- Withholding and depositing taxes
- Paying you employee's share of social security and Medicare taxes
- Special accounting rule
- Special rules for highway motor vehicles
|
|
8. MiniMee Company claims the welfare-to-work credit on their tax return, since they hire individuals who meet the requirements. MiniMee is not required to reduce their deduction for employee wages by the amount of the welfare-to-work credit.
9. In order to determine the reasonableness of pay, and to meet the reasonableness test for salaries, you base the test on:
A. The total salaries paid to all officers or all employees
B. The percentage of salaries to total business expenses
C. Each individual's salary and the service performed
D. None of the above
