Course Learning Objectives
Chapter 1 Tax
Economics
Learning
Objectives
After
reading Chapter 1, participants will be able to:
1. Determine what constitutes
building an estate, preserving wealth and distributing assets in the context of
financial fundamentals and tax planning elements.
2. Identify types of income, from a
financial and tax perspective, to be budgeted into cash so that
income-producing assets can be acquired and managed for an effective investment
plan.
3. Recognize the types of fringe
benefits that employers can provide to employees tax-free.
4. Specify budget rules, ways that
cash can be used, guidelines that should be applied when purchasing assets and
money management rules.
Chapter 2 Installment
Sales & Time Value of Money
Learning
Objectives
After
reading Chapter 2, participants will be able to:
1. Recognize the importance of the
installment method, select requirements set forth in §453 to determine whether
the installment method may be used, and specify terminology associated with the
installment method.
2. Determine the impact of §483
(imputed interest rules) and §§1271 through 1274 (original issue discount
rules) on installment sales.
3. Specify the rules associated with
real property sales and casual sales of personality, the superstructure of
provisions associated with the related party rules of §453 and the exceptions
that override basic installment planning.
4. Identify how the contingent
payment sales have changed due to the Installment Sales Revision Act of 1980,
specify other contingent payment rules, and determine circumstances when
dispositions of installment obligations occur.
Chapter 3 Mortgage
Finance
Learning
Objectives
After
reading Chapter 3, participants will be able to:
1. Identify mortgage financing noting
advantages and disadvantages and determine how to amortize mortgage costs.
2. Determine interest using Deputy v. DuPont, 308 U.S. 488, and
specify key aspects of personal interest, investment interest, prepaid
interest, and points.
3. Recognize interest-free or
below-market interest rate loans and how they relate to lenders’ interest
income and borrowers’ interest paid under §7872.
4. Identify long-term financing
techniques and characteristics of a shared appreciation mortgage and their
impact on lenders and borrowers.
5. Specify tests that determine what
constitutes interest and their effect on the tax treatments of equity
participation, and identify equity participation debt.
Chapter 4 Home
Sales & Like-Kind Exchanges
Learning
Objectives
After reading
Chapter 4, participants will be able to:
1. Identify the elements of the
$500,000 home sale exclusion noting how to apply it, and specify safe harbor
regulations associated with the home sale exclusion.
2. Determine the advantages of §1031
exchanges, its requirements and the types of true exchanges, and cite the rules
of boot noting their effect on like kind exchanges.
3. Recognize the regulations for
related party exchanges, foreign real property exchanges and personal and
multiple property exchanges, and specify the codification systems noting how
they relate to exchanged depreciable tangible properties.
4. Identify the regulations for
delayed (deferred) exchanges, specify safe harbors that can be used without
risk of actual or constructive receipt, and determine what partnership
interests may be exchanged under §1031 and those that may not.
Chapter 5 Involuntary
Conversions
Learning
Objectives
After
reading Chapter 5, participants will be able to:
1. Identify condemnations and
involuntary conversions under §1033 noting their impact on the recognition of
gain or loss.
2. Specify variables of a
condemnation award including their effect on income and the cost of newly
acquired property.
3. Determine severance damages and
recognize the complexity of their treatment.
4. Cite the rules on the reporting of
payments associated with involuntary conversions, determine gain postponement
choices, and specify the related party rule.
Chapter 6 Passive
Loss & At-Risk Rules
Learning
Objectives
After
reading Chapter 6, participants will be able to:
1. Identify basic type of income and
the “buckets” of income and loss under §469 that can control what a taxpayer
can deduct against other income.
2. Recognize the suspension of
disallowed losses noting how it relates to passive losses, and specify the
special rules for types of transfers that are not deemed to be fully taxable
dispositions.
3. Identify taxpayers subject to §469
noting whether clients fall into one of the categories of taxpayers who are
subject to the passive loss rules.
4. Specify ways that a taxpayer can
avoid having an activity become subject to the passive loss limits identifying
the requirements for each, and recognize the effects of the §469 limitations on
credits and losses from passive activities.
5. Identify an activity and passive
activity loss, determine the treatment of carryover losses and the allocation
process, recognize the characterization of gain from the exchange, sale or
other disposition of an interest in property used in an activity or held
through a partnership or S corporation, and cite the special rule for rental
real estate.
6. Specify the recharacterization
rules under the regulations, determine passive activity credits, recognize the
benefits and uses of the passive activity audit guide, and identify the impact
of the at-risk limit rules.
Chapter 7 Sales
by Foreign Investors
Learning
Objectives
After
reading Chapter 7, participants will be able to:
1. Recognize the requirements of
Foreign Investment in Real Property Tax Act of 1980, determine a United States
real property interest using §897 to determine what dispositions by foreign
investors will be taxed.
2. Identify interests in foreign
corporations that can be used to avoid taxes on their disposition, and improve
reporting of U.S. real property interests by foreign investors.
Chapter 8 REITS
Learning
Objectives
After
reading Chapter 8, participants will be able to:
1. Cite reasons for establishing a
REIT that generate annual income that is tax-sheltered and is apt to grow over
time, specify advantages that REITs have over limited partnerships and their
effect on investments and shareholders, and recognize the development of the
self-liquidating REIT.
2. Identify how management operates a
REIT, determine ways that REITs and the fees they pay their advisers can grow,
and specify requirements with regards to organization, operation, assets and
income that are set forth in §856 through §858.