Basic Training Modules 

Introduction to Tax Preparation

This course is designed to train a tax professional new to tax preparation. With a step by step analysis of the Form 1040 and corresponding schedules, this course provides the basics of tax preparation. Some topics will be discussed more in-depth in an effort to clarify issues related to those select topics, such as filing requirements, dependency issues, filing status, credits, and more.  

Objectives
Upon completion of this course, you will be able to:  

• Determine filing status and exemptions.
• Identify and report income and adjustments to income.
• Identify the credits that reduce tax versus the refundable credits.
• Calculate an individual’s federal income tax liability.
• Complete Form 1040, U.S. Individual Income Tax Return.
• Complete Schedule A, Itemized Deductions.
• Complete Schedule B, Interest & Ordinary Dividends.

Introduction to Schedule C

This course is designed to help tax professionals who are new to sole proprietorship tax preparation. It will focus on individual income tax issues and the preparation of Schedule C, Profit or Loss from Business, and other major related forms. Special emphasis will be placed on vehicle expenses, depreciation, retirement plans, and business use of the home.      

Objectives
Upon completion of this course, you will be able to:  

• Determine whether a taxpayer’s activity is a hobby or a for-profit business venture.
• Consider the Schedule C effects of LLC ownership, the qualified joint venture election, and statutory and ministerial employment.
• Select the appropriate accounting method.
• Indicate whether an EIN is required.
• Distinguish between personal and business expenditures.
• Apply special rules relating to car and truck expenses.
• Evaluate depreciation and the §179 expense deduction.
• Complete Schedule C, Profit or Loss From Business.
• Complete Form 4562, Depreciation and Amortization.
• Complete Form 8829, Expenses for Business Use of Your Home.
• Complete Schedule SE, Self-Employment Tax.

Introduction to Schedule D  

This course is design to help tax professionals gain basic knowledge and understanding of Schedule D preparation relating to individual taxpayers. The main focus will be preparing the Schedule D (Form 1040) along with simple explanations on issues arising from the sale of capital assets. Topics discussed will clarify questions concerning capital gain rates for individual taxpayers.

Objectives
Upon completion of this course, you will be able to:  

• Identify transactions reported on Schedule D.
• Calculate the adjusted basis of property.
• Determine the holding period of assets.
• Identify disallowed losses.
• Explain how capital losses offset capital gains.
• Apply the appropriate tax rates to capital gains.

Introduction to Schedule E

Schedule E (Form 1040) is used primarily to report residential rental income and expenses, as well as pass-through items from S corporations, partnerships, and trusts. This course is designed to give new tax professionals a basic understanding of Schedule E.

Objectives
Upon completion of this course, you will be able to:  

• Identify the types of activities reported on Schedule E.
• Determine the allowable expenses and deductions claimed on Schedule E.
• Explain the vacation home rules.
• Identify rental loss limitations.

Basics of Basis

The course will introduce the tax professional to the role basis plays in capital recovery; gain realization and recognition; determination of an asset’s original and adjusted basis for regular tax and alternative minimum tax (AMT) purposes.

Objectives
Upon completion of this seminar, the tax professional will be able to: 

• Explain the theory of basis, the return of capital, and differences between realized and recognized gain.
• Identify the tax consequences that property type, holding of title, and means of acquisition can have on basis.
• Discuss the 2010 and 2011 changes related to basis tracking of securities.
• Calculate the cost, depreciable, and adjusted basis of most tangible and intangible assets.
• Recognize the effects a casualty, like-kind exchange, or business tax credit has on basis.
• Compute AMT adjustments to basis.
• Track basis in an interest in a pass-through entity.

Introduction to Fixed Assets

This course is designed to introduce the tax preparer to basic depreciation methods. The life of the asset is discussed from purchase or acquisition through the sale or retirement. Methods of depreciation and class life of the asset as well as §179 expensing will be discussed in detail. A detailed review of Form 4797 will discussed and referenced throughout the course.

Objectives
Upon completion of this course, you will be able to: 

• Determine if an asset is eligible for depreciation.
• Assign class life and convention assets.
• Identify assets eligible for the §179 expensing election.
• Determine the basis in the property at the time of acquisition and upon the sale of the asset.
• Calculate depreciation recapture at the time of sale.
• Properly complete Forms 4562 and 4797.