Description:

This book is for preparing 2021 taxes. Take your tax preparation skills to the next level. This e-book is ideal for the tax preparer who knows the basics of tax preparation, but now realizes there are a seemingly never-ending number of tax forms and concepts to learn. You will learn how to navigate the client’s records and prepare a return for a sole proprietorship, a rental property activity, and pass-through income from Schedule K-1s. The ability to prepare these types of activities will increase your skills as a tax professional and add value for your clients.

View Table of Contents.

Topics include:

• Calculating basis of assets
• Applying basis adjustments
• Identifying the importance of basis tracking by the tax professional
• Determining material participation in an activity and why this is important
• Differentiating between taxation of passive income and nonpassive income
• Identifying when assets are depreciated, and know how to calculate depreciation including bonus and §179 expensing
• Identifying the difference between a deductible repair and a depreciable improvement
• Determining what qualifies as Qualified Business Income (QBI)
• Calculating the Qualified Business Income Deduction (QBID )
• Determining business use of home eligibility
• Calculating the deduction for business use of home
• Determining whether a taxpayer’s activity is a hobby or a for-profit business venture
• Completing Schedule C, Profit or Loss From Business
• Completing Schedule SE, Self-Employment Tax
• Completing Form 4562, Depreciation and Amortization
• Completing Form 8829, Expenses for Business Use of Your Home
• Identifying and report rental income and allowable rental expenses
• Determining the depreciable basis of property used in a rental activity
• Applying the vacation home rules
• Determining eligibility for the special $25,000 loss allowance
• Categorizing who meets the qualifications to be a real estate professional
• Identifying when a rental is eligible for the QBID
• Analyzing royalty income to determine whether to report on Schedule E or Schedule C
• Calculating the shareholder’s stock and debt basis in the S corporation
• Determining how much of a pass-through loss is deductible after applying the basis, at-risk and passive activity limitations
• Reporting various pass-through items from Schedule K-1 from a partnership and S corporation on Form 1040, and applicable schedules
• Completing Form 8995, Qualified Business Income Deduction Simplified Computation

Product Details:

Item Number: E21321

Level: Basic

Authors: NATP Staff

Published: 2021

Format: Electronic PDF - 416 Pages

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