While characterization (identifying ordinary income, capital gain, exempt income, deductible expenses, etc.) understandably plays a central role in tax practice, timing issues (when an item is reflected on the tax return) are just as important. Since tax planning often involves deferral rather than exclusion, a solid understanding of income tax accounting rules is essential to maximizing tax benefits and minimizing tax costs. Practitioners are confronted with federal income tax accounting rules that differ substantially from GAAP, and mastering those rules is key to adequately advising clients with respect to both compliance and planning opportunities.
DESIGNED FOR
Public accounting staff, seniors and tax professionals in company finance or tax departments.
BENEFITS
- Select and change methods of accounting
- Identify deferral opportunities through the use of available accounting periods
- Recognize the doctrine of constructive receipt
- Apply the all events test to specific cases
- Handle installment sales with contingent price terms
- Utilize inventory cost flow assumptions for maximum tax benefit
- Identify qualified income offsets and minimum gain chargebacks
- Apply the new repair and capitalization regulations
HIGHLIGHTS
- Methods of accounting
- Maximizing tax benefits and minimizing tax costs
- Doctrine of constructive receipt
- Installment sales with contingent price terms
- Inventory cost flow assumptions
- Qualified income offsets
- Minimum gain chargebacks
- New repair and capitalization regulations
COURSE LEVEL
Intermediate
PREREQUISITES
Basic knowledge of federal income tax rules.
ADVANCE PREPARATION
None
ADDITIONAL NOTES
- *AICPA members deduct an additional $30 from applicable price.