Overview:
This course reviews how professionals in private practice, such as doctors, dentists, lawyers, engineers, architects, chiropractors and accountants can maximize tax deductions. The course also discusses the pros and cons to different business entity choices, as well as setting up retirement accounts.
This course would be valuable to tax professionals, personally, as well as the clients they serve. Summary of Contents:
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Section 1 - Tax Deduction Basics
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Section 2 - Choice of Business Entity
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Section 3 - Operating Expenses
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Section 4 - Meal and Entertainment Expenses
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Section 5 - Car and Local Travel Expenses
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Section 6 - Long Distance Travel Expenses
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Section 7 - The Home Office Deduction
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Section 8 - Deductions for Outside Offices
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Section 9 - Deducting Long Term Assets
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Section 10 - Start-Up Expenses
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Section 11 - Medical Expenses
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Section 12 - Retirement Deductions
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Section 13 - Inventory
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Section 14 - More Deductions
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Section 15 - Hiring Employees and Independent Contractors
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Section 16 - Professionals Who Incorporate
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Section 17 - How You Pay Business Expenses
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Section 18 - Amending Tax Returns
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Section 19 - Staying Out of Trouble With the IRS
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Section 20 - Record Keeping and Accounting
Sample Exam Questions:
1. Cindy, an attorney who has recently passed the bar exam, decides to open his own practice. The start up expenses cost Cindy $30,000. Which of the following is true?
a. Cindy can deduct all $30,000 the first year she is in business.
b. Cindy can deduct $2,000 each year over the next 15 years ($30,000/15 = $2,000)
c. Start-up costs are not deductible.
d. Cindy can deduct $5,000 the first year she is in business and deduct the remainder over the first 180 months she is in business.
2. To calculate your home office deduction, you need to determine what percentage of your home you use for business. Which of the following is true about calculating the percentage?
a. The room method will always yield a larger deduction.
b. The square footage method is the most precise method of measuring your office space.
c. The square footage method can be used only if all of the rooms in your home are about the same size.
d. The law says you must use the square footage method to calculate the percentage.
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