2001 Income Tax Seminar Book - Part I

Table of Contents / Page No.

ALTERNATIVE MINIMUM TAX
Overview 1
Constitutionality of AMT 2
Computing the Alternative Minimum Tax 4
AMT Preferences and Adjustments 4
Alternative Tax Net Operating Loss Deduction 21
AMT Credit, Form 8801 21
Exclusions Preferences versus Deferral Preferences 22
SALE OF A BUSINESS
Overview 31
Business Valuation 32
Form 4797 – Review of Relevant Definitions 45
Recapture of Depreciation under Code Sec. 1245 and 1250 49
Comparative Example 54
Capital Gains and Losses on Schedule D – Overview 58
Example 62
NET OPERATING LOSSES
Overview 73
Computing the NOL Deduction 81
Carryback versus Carryforward 82
Examples of NOL Carryback & Carryforward Calculations 84
TAX BREAKS FOR EDUCATION
Overview 91
Education Tax Breaks for IRAs 92
Higher Education Expense Deduction 98
Education Savings Bonds 98
Qualified State Tuition Programs 101
HOPE and Lifetime Learning Credits 104
Student Loan Interest Deduction 119
Scholarships and Tuition Reductions 122
Employer-Provided Educational Expenses 125
THE KIDDIE TAX
Purpose of Kiddie Tax 127
Examples 128
Form 8615 Instructions 137
Form 8814 and Instructions 141
BANKRUPTCY AND INCOME TAX
Overview 143
Discharging Personal Income Tax 144
Income Tax Concerns – Discharge of Indebtedness 146
NOLs 147