Accounting Methods: Crucial Issues Many Tax Pros Are Missing
Author: Greg White
| CPE Credit: |
8 hours for CPAs
8 hours Federal Tax Related for EAs and OTRPs
8 hours Federal Tax Law for CTEC |
This is a hands-on approach to unleashing large deductions for your clients, and helping your clients avoid significant tax risks before they mushroom into major tax issues. Buried deep in the Internal Revenue Code are the mysteries of accounting methods. Once, the province of only large accounting firms, you can bring this critical tax tool to your clients. We’ll cover the big issues, and how to make these changes.
This course is excluded from the following subscription programs:
Value Pass, Self-Study Package, Webinar Package, Self-Study & Webinar Package, and Firm Package.
Publication Date: June 2020
Topics Covered
- Accounting method rules and the statute of limitations
- Converting your accrual method clients to cash method
- Converting clients to a method where they don't keep inventories
- Catching up on depreciation that should have been taken on land improvements and personal property
- Taxable years that must be used by entities like S corps, partnership, trusts and estate
- The "four-year" spread for "positive" accounting method adjustments
- Form 3115 — with several examples
- Surprising facts about the cash method
Learning Objectives
- Differentiate whether the accounting method rules override the statute of limitations
- Recognize how to convert your accrual method clients to cash method
- Identify how to compute the deduction for who discontinue keeping inventory
- Recognize how to compute the deduction for clients who failed to identify the portion of real estate that was attributable to land improvements and personal property. They've missed significant deductions, but it's not too late to correct.
- Identify the taxable years that must be used by entities like S corps, partnership, trusts and estate
- Recognize how to compute the "four-year" spread for "positive" accounting method adjustments
- Identify how to complete Form 3115 utilizing several examples
- Describe some surprising facts about the cash method
- Recognize potential issues which arise with a change from the accrual basis to the cash basis of accounting
- Identify the first step in classifying costs as either repairs or capital improvements
- Identify the four hurdles related to repairs vs. capital improvements
- Describe de minimis rules
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (8 hours)
Program Prerequisites
None
Advance Preparation
None
