2006 Income Tax Seminar Material - Part I

Table of Contents / Page No.

LIKE-KIND EXCHANGES  1-50
Overview  1-2
Why 1031 Exchange is so popular  2
When to Avoid  2-3
Basic Requirements for a Like-Kind Exchange  3
Examples of non-qualified (not like-kind) properties  4
Holding Period  5-7
Like-Kind Property  8
Undivided fractional interest in property  16
Boot  17-20
Splitting property to be exchanged  20
Related Parties  21
Like Kind Exchanges – Not a Farmers Friend  22
The Transaction as a Practical Matter  23-24
The Three-Corner Exchange  24
Reverse – Starker Transactions  25-26
Real Estate Depreciation Concerns  27-29
Comparative Example  32-50
TAXING TOPICS  51-94
Overview  51
EA Exam  52-55
Claim of Right  56-63
Domestic Employees  64-70
Federal Developments  71-73
Collection of taxes by private companies  73-74
Charitable contribution deductions – substantiation  73-74
Unreported Tip Income  74
Unreimbursed employee business expense deductions  74
Dependency Exemption cannot be purchased  75
Deduction Disallowed, Taxpayers Had No Home  75
Employer Cash Incentives for Hybrid Vehicles Are Taxable  75
Final Regulations on Reporting Payments to Attorneys  76
IRS Establishes e-Mail Box for Taxpayers to Report Phony e-Mails  77-78
New Law Requires Partial Payment When Submitting Offers in Compromise  78-79
IRS and States Join Forces to Combat Money Laundering  79-81
Money Services Business – FinCEN Form 107  82-83
Qualified Roth Contribution Programs  84-90
Energy Efficient New Home Construction Credit - Form 8908  91-94
NET OPERATING LOSS  95-124
Overview  95
Who may take an NOL  96
Calculating the NOL  96-102
Carryback and Carryforward Provisions  103-104
Election to forego the NOL Carryback  105-108
Carryover and Carryback Rules When Filing Status Changes  108-111
How does an NOL affect the domestic production activity deduction  111
NOL Calculation & NOL Carryback  112-123
RESIDENTIAL RENTAL PROPERTY  125-178
Overview  125
Rental Income  126-127
When To Report Rental Income on Schedule C  128
Rental Expenses  128
Repairs and Improvements  128-130
Condominiums and Cooperatives  133-134
Timeshare Units  134-136
Property Changed to Rental Use  137
Schedule E (Form 1040)  138-141
Personal Use of Dwelling Unit (Including Vacation Home)  146-148
How To Figure Rental Income and Deductions  153
Vacation Home Rules  154-156
Depreciable Basis  160
Limits on Rental Losses  162
Real Estate Professionals  166-176
Charging Rent to Yourself  177
Property Rented to Related Parties  178
WHY MY RETURN WAS EXAMINED  179-212
Overview  179
Selection of Returns for Audit  180-181
Market Segment Specialization Program (MSSP) Guides  182
Audit Techniques Guides  182-183
Third Party Authorization  183
Power of Attorney – Form 2848  184-187
Limited Practice Before the IRS   188
S Corporations under IRS Microscope  189
Examination of Return  189-190
Understanding IRS Correspondence  190-205
What To Do When You Disagree  206
Individual Filer Notices  207-209
Business Filer Notices  209-211