2007 Income Tax Seminar Material - Part I

Table of Contents / Page No.

CHARITABLE CONTRIBUTIONS  1-42
Overview  1-2
Qualified Organizations  2-3
Nondeductible Contributions  3-4
Contributions of Property  7-8
Determining the Fair Market Value  9-10
Car Donations  10-14
Giving Property That Has Decreased in Value  15
Giving Property That Has Increased in Value  15-17
Bargain Sale Rules  17
IRA distributions donated to charity in 2006 and 2007 may be tax-free  18-20
Substantiation and Disclosure Requirements  21-23
Penalty for Overstated Values  24
Quid Pro Quo 25-26
Donor Advised Funds  26-28
Deductible Limits  29
Carryover Rules  30
Deduction or No Deduction  31-33
Comprehensive Example  33-41
TAX TREATMENT FOR INVESTMENTS  43-90
Overview  43
Mutual Funds  44-59
Capital Gains Rates  50
Basis of Mutual Funds  51-54
Stocks  63-64
Wash Sale Rules  63
Effect of Gifts  65
Effect of Inherited property  65
Annuities  66-70
Fees and Expenses  69-70
Taxation of Annuity Payments  70
Exclusion Ratio  71
Taxation of Non-annuity Payments  72
Premature Distributions  76
No Step-Up In Basis  76
Puts & Calls  77
Income Tax Reporting  79-82
Net Unrealized Appreciation (NUA)  87-89
DECEDENT’S FINAL 1040  91-130
Overview  91
Final Income Tax Return for the Decedent  92-93
Filing for Refunds  93
Income Tax Return of an Estate (Form 1041)  94-96
Estate Tax Return (Form 706)  96-98
Income in Respect of a Decedent  98-104
Wages and the proper reporting of federal withholding  102
Expenses in respect of a decedent  103
Holding Title to Property  104
Separate Property  104
Joint Tenancy  104
Community property  104-105
Tenancy in common  105
Paid on Death Accounts  105
Beneficiary Designations  105
Comprehensive Example  106-130
TAXING TOPICS  131-168
Overview  131
Attributed Tip Income Program  132-134
Form 8027 –Annual Information Return of Tip Income and Allocated Tips  134
IRS Enforcement Programs  135-139
Tax Return Preparer Fraud  135
Statistical Information on Return Preparer Fraud  135
How to Report Suspected Tax Fraud Activity  138
Press Releases on Civil and Criminal Actions Taken  138
Preparer penalties  140-142
Transitional relief - Notice 2007-54  142
Federal Developments  143-144
Recent Court Cases  143-144
Treasury Delivers Tax Gap Plan  144
Revised Innocent Spouse Form Now Available  145
Form 8857 – Request for Innocent Spouse Relief  148-151
Injured Spouse  152
Form 8379 - Injured Spouse Allocation  153
Energy Credits  154-168
Alternative Motor Vehicle Credit  154-161
Form 8910 – Alternative Motor Vehicle Credit  161
Residential Energy Credits  162-165
Form 5695 – Residential Energy Credits  164-165
Form 8908 – Energy Efficient Home Credit  167
Form 8909 – Energy Efficient Appliance Credit  168
DISABILITY BENEFITS  169-190
Overview  169
Disability Benefits  170-172
Compensation for Injuries or Sickness  170-171
Social Security Benefits  171
Supplemental Security Income (SSI)   171-172
Lump-Sum Social Security – Section 86(e) Election  173
Section 86(e) Election - Example  173-181
What is “Disability"  182
Presumptive Disability  183
Cost of Living Adjustment (COLA) rider  183
Taxation of Disability Benefits  184-185
Worker’s Compensation Benefits  186
Worker’s compensation benefits paid to survivors  187
Retroactive exclusion of retirement pay for D.V.A. disability benefits  188
DVA disability compensation letter  189