AICPA’s 2007 Individual Tax Review & Update: Real World Applications!

• Chapter 1 - 2007 Inflation-Adjusted Tax Figures
  • Learning Objectives
  • Introduction
  • 2007's Key Inflation-Indexed Figures and New Law Changes
    • Standard Mileage Rates per Mile
    • High Low Per Diem Rates for Business Travel
    • Depreciation Dollar Caps for Business Vehicles
    • Qualified Plans
    • Other Indexed Amounts
    • Changes Scheduled by Statute
    • Individual Income Tax Rates for 2007
• Chapter 2 - Recent Tax Law Changes Affecting Individuals
  • Learning Objectives
  • Introduction
  • Small Business and Work Opportunity Tax Act of 2007
    • Section 179 Deduction Rules Extended and Made Even Better
    • Taxpayer-Friendly S Corporation Changes
    • Simplified Tax Compliance for Husband-Wife Businesses
    • Work Opportunity Tax Credit (WOTC) Changes
    • Employer Tip Credit Change
    • WOTC and Employer Tip Credit Can Reduce AMT Liabilities
    • Gulf Opportunity Zone Tax Incentive Changes
    • Revenue Raisers
  • Tax Relief and Health Care Act of 2006
    • Itemized State and Local Sales Tax Deduction Reinstated
    • Above-the-Line Higher Education Expense Deduction Reinstated
    • Above-the-Line $250 Educator Expense Deduction Reinstated
    • Election to Treat Tax-Free Combat Pay as Earned Income for EIC Purposes Extended
    • New Contribution Rules for Health Savings Accounts (HSAs)
    • New Refundable Credit for Individuals with Long-Term AMT Credit Carryovers
    • New (but Temporary) Itemized Deduction for Mortgage Insurance Premiums
    • Specialized Home Sale Rules
    • Excise Tax on CRTs
    • R&D Credit Reinstated and Modified
    • Employment Credits Reinstated and Modified
    • 15-Year Depreciation for Qualified Leasehold Property and Restaurant Improvements
    • Reinstated
    • New (but Temporary) Section 199 Deduction for Puerto Rico
    • Extensions and Modifications of Energy-Related Provisions
    • Extensions of Miscellaneous Other Provisions
    • Some TIPRA Changes Made Permanent
  • Pension Protection Act of 2006
    • Taxpayer-Friendly Retirement Plan Rules Made Permanent
    • Updated Retirement Savings Advice for Clients
    • Made Permanent: Taxpayer-Friendly Section 529 Plan Rules
    • Charitable Donations Can Be Made Directly from IRAs Owned by Seniors
    • Non-Spousal Retirement Plan Beneficiaries Can Roll Over Inherited Retirement Account Balances into IRAs
    • Direct Deposits of Tax Refunds into IRAs
    • Liberalized Rules for Rolling Over After-Tax Contributions
    • Inflation Adjustments to Phase-Out Ranges for Deductible Traditional IRA Contributions and Roth IRA Contributions
    • Beginning In 2008: Direct Rollovers from Retirement Plans into Roth IRAs Allowed
    • Favorable Rules for Retirement Account Distributions Received by Military Reservists
    • Penalty-Free Early Distributions for Public Safety Workers
    • Encouragement to Automatically Enroll Employees for 401(k) Contributions
    • Changes Intended to Strengthen Pension Plans and Other Revised Rules for Retirement Arrangements
    • Changes for Charitable Donors and Charitable Organizations
  • Tax Increase Prevention and Reconciliation Act
    • Favorable Tax Rates for Capital Gains and Dividends Extended Through 2010
    • Alternative Minimum Tax Band Aid for 2006 Only
    • For 2006 and 2007: Kiddie Tax Rules Apply Until Age 18
    • No Income Restriction for Roth Conversions in 2010 and Beyond
    • Other Changes Affect Only Targeted Taxpayers
• Chapter 3 - Other Tax Developments Affecting Individuals
  • Learning Objectives
  • Introduction
  • IRA Contributions Can Be Based on Tax-Free Combat Pay
  • Debt Discharge Income from Short Sale of Principle Residence
  • Children of Divorced or Separated Parents
  • Contributions to SIMPLE Plans
  • Out-of-Town Travel Expenses
  • Section 199 Domestic Producer Deduction
  • Section 409A Rules for Nonqualified Deferred Compensation Arrangements
  • Controversy Regarding Proper Treatment of Health Insurance Premiums for More-Than-2% S
  • Corporation Shareholder-Employees
    • Rules for Partners Apply to More-Than-2% Shareholder-Employees
    • IRS Says No Section 162(l) Deduction for Health Insurance Obtained in More-Than-2%
    • Shareholder-Employee's Name
    • Should You Pay Attention to the IRS Position?
    • Advice for Affected Clients
  • Update on Gambling Losses
    • Tax Treatment of Gambling Winnings
    • Tax Treatment of Gambling Losses
    • Professional Gambler Status May Not Help
    • Identifying and Documenting Gambling Losses
  • Update on Securities Traders Gains and Losses
    • Advantages of Mark-to-Market Election
    • When to Make the Election
    • Tax Reporting Issues for Traders
    • Traders Should Segregate Their Longer-Term Investments
  • Update on Tax Credits for Energy-Efficient Vehicles
    • Credits for Hybrid Vehicles
    • Credits for Alternative Fuel Vehicles
    • Credits for Fuel Cell Vehicles
    • Credits for Advanced Lean Burn Technology Vehicles
    • Bad News for AMT Victims
• Chapter 4 - Kiddie Tax Update
  • Learning Objectives
  • Introduction
  • Child's Age Is the Key Factor
  • Kiddie Tax Rules for 2007
    • Kiddie Tax Avoidance Strategy for 2007
  • Stricter Kiddie Tax Rules for 2008 and Beyond
  • Kiddie Tax Avoidance Strategies for 2008 and Beyond
    • Finesse the Age Rules
    • Invest Carefully and Avoid Triggering Substantial Unearned Income in Kiddie Tax Years
    • Exploit Unearned Income Threshold (Currently $1,700)
• Chapter 5 - Update on Health Savings Accounts (HSAs)
  • Learning Objectives
  • Introduction
  • How HSAs Work in a Nutshell
    • Basics on Contributions by Individuals
    • Basics on Contributions by Employers
  • Determining Eligibility for HSA Contributions
    • Must Have HDHP Coverage
    • Cannot Have Non-HDHP Health Coverage
  • HSA Contributions for Married Individuals
  • HSA Contribution Eligibility Can Be Determined at Yearend (but Watch Out for Nasty Recapture Rule)
    • Nasty Recapture Rule
  • New HSA Rollover Deal for FSA and HRA Balances (but Watch Out for Nasty Recapture Rule)
    • Rollover Basics
    • Tricky Qualification Rules
    • Nasty Recapture Rule
  • New IRA-to-HSA Rollover Deal (but Watch Out for Nasty Recapture Rule)
    • Rollover Limitations and Mechanics
    • Nasty Recapture Rule
  • Pay Attention to HSA Timing Considerations
  • Summary Client Advice on HSAs and HDHPs
• Chapter 6 - Cool Tax-Saving IRA Maneuvers
  • Learning Objectives
  • Introduction
  • IRA Rollover Privilege for Non-Spousal Retirement Account Beneficiaries
    • General Rollover Mechanics
    • Required Minimum Withdrawal Rules Apply to Receiving IRA
    • Special Considerations When Plan Participant Dies before RBD
    • Special Rollover Mechanics When Plan Participant Dies before RBD
    • Charitable Contributions from IRAs
    • Qualified Charitable Distribution (QCD) Definition
    • Sunset Date and Annual Limitation Rules
    • Senior IRA Beneficiaries Can Do QCDs Too
    • QCDs Offer Income and Estate Tax Advantages
    • Who Can Benefit?
    • Do QCDs from Roth IRAs Make Sense?
    • "Bad Old Rules" Will Return in 2008 Unless Congress Acts
• Chapter 7 - Cool Tax-Saving Ideas for Husband-Wife Businesses
  • Learning Objectives
  • Introduction
  • Sole Proprietors Can Hire Their Spouses and Save Taxes
    • Set Up Section 105 Medical Reimbursement Plan
    • Mind the Details When Compensating the Employee-Spouse
  • Advantages of Combining Section 105 Plan with Health Savings Account (HSA)
    • Section 105 Plan Can Pay First-Dollar Reimbursements for Certain Health Expenditures without
    • Jeopardizing Employee-Spouse's HSA Contribution Privilege
    • Putting the Tax-Saving Pieces Together
    • Do Not Forget to Account for Client's Age
    • Special SE-Tax-Saving Opportunity for Husband-Wife Businesses in Community Property
    • States
    • The Potential Problem
    • The Possible Solution
    • SE Tax Planning Strategies
    • Implications for Unincorporated Husband-Wife Businesses in Non-Community Property States
  • Parents Who Own Businesses Can Hire Their Kids and Save Taxes
• Chapter 8 - Ethics Focus: Taxation
  • Ethics Overview
  • Recent Developments
  • Spotlight on Independence in Tax Services
  • Key Ethical Dilemmas and Judgment Calls
  • Addressing Ethical Dilemmas
  • Available Resources
• Chapter 9 - Latest Developments

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