Learning Objective :
The objective of this course is to gain an understanding the tax consequences of investment income and expenses
Prerequisite: None
Course level: Basic
Advanced preparation: None
Teaching method: Text and Online study
Recommended hours: 10
Summary of Contents:
Lesson and Objectives |
Reading
Assignment |
1. Investment Income |
Part 1 |
The learning objectives for this lesson are to gain an understanding of:
- General Information
- Interest Income
- Discount on Debt Instruments
- When To Report Interest Income
- How To Report Interest Income
- Dividends and Other Corporate Distributions
- How To Report Dividend Income
- Stripped Preferred Stock
- REMICs, FASITs, and Other
CDOs
- S Corporations
- Investment Clubs
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2. Tax Shelters and Other Reportable Transactions |
Part 2 |
The learning objectives for this lesson are to gain an understanding of:
- Abusive Tax Shelters
- Investor Reporting
- Penalties
- Whether to Invest.
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3. Investment Expenses |
Part 3 |
The learning objectives for this lesson are to gain an understanding of:
- Limits on Deductions
- Interest Expenses
- Bond Premium Amortization
- Expenses of Producing Income
- Nondeductible Expenses
- How To Report Investment
- Expenses
- When To Report Investment Expenses
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4. Sales and Trades of Investment Property |
Part 4 |
The learning objectives for this lesson are to gain an understanding of:
- What Is a Sale or Trade?
- Basis of Investment Property
- How To Figure Gain or Loss
- Nontaxable Trades
- Transfers Between Spouses
- Related Party Transactions
- Capital Gains and Losses
- Capital or Ordinary Gain or Loss
- Holding Period
- Nonbusiness Bad Debts
- Short Sales
- Wash Sales
- Options
- Straddles
- Sales of Stock to ESOPs orCertain Cooperatives
- Rollover of Gain From Publicly Traded Securities
- Gains on Qualified Small
- Business Stock
- Rollover of Gain From Saleof Empowerment Zone Assets
- Reporting Capital Gains and Losses
- Special Rules for Traders in Securities
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Sample Exam Questions:
1.You loaned your neighbor $75,000 to establish a worm habitat to raise fishing worms in his back yard, so you would have a ready supply of bait. Unfortunately all the worms escaped and he wasn't able to repay the loan. This loan would be considered a business bad debt, since the loan proceeds were used to start a business.
a. True
b. False
2.When reporting your capital gains and losses, sale expenses include all EXCEPT:
a) Broker's fees
b) Commissions
c) Costs of insider trading info
d) State and local transfer taxes
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