Federal and State Income Tax Institute

General Information | Registration | About the Instructors | Valuable Resource Materials

Valuable Resource Materials

The Attendees of the UNL Federal and State Income Tax Institute will be presented with the 2006 tax changes in effect and 2007 tax updates to expect.

"This seminar helped me identify and solve my clients' tax problems before tax season started"

All Tax Professionals, public and industry, who need the latest and necessary tax changes for their individual, partnership, corporate and estate clients should attend.

"The tax class more than paid for itself "

The registration fees include the following:

• 2006 National Income Tax Workbook, a production of the Land Grant University Tax Education Foundation, Inc.
• 2007 RIA Tax Handbook
• Nebraka Department of Revenue publication
• 2006 National Income Tax Workbook CD

"The instructor brought the new tax information down to earth with practical examples and helpful information to help me understanding the new developments"

The National Income Tax Workbook will be used as a resource and guide for instruction. Here is a brief highlight of this book. This should not be viewed as a comprehensive listing of all topics that will be covered in the Institute but it does provide a fundamental framework.

Highlights for 2006 National Income Tax Workbook

"Current developments and up-to-the-minute tax information of interest to all Tax Professional"."

New Legislation

This chapter reviews provisions from prior legislation that is effective for the first time in 2006 and explains the provisions in the legislation passed in 2006.

Domestic Production Activities Deduction (I.R.C. "199)

This chapter is a comprehensive discussion of the I.R.C. "199 deductions with examples to demonstrate how the deduction is calculated. It includes updated information and planning ideas for maximizing the benefit of the deduction.

Rulings and Cases

This chapter summarizes selected rulings and cases that were issued in 2005 to give the participants an update on issues that are being addressed by the IRS and the courts. The rulings and cases are organized under topic headings that match the other chapter titles.

Individual Taxpayer Issues

This chapter covers a variety of income tax issues that affect individual tax payers. Topics include:

• Cancellation of debt, including a discussion of Form 1099-C
• Health Savings Accounts
• Medical deductions
• Comparison of immigration standards for residency and federal tax standards for residency
• Life estates
  • Uniform basis issues
  • Gain or loss to life tenant and remainder person on sale
  • Effect of death of life tenant or remainder person
• Volunteer workers such as firefighters, reserve deputies, disaster workers
  • Treatment of minimal pay
  • Expenses and reimbursements
• Public employees
• Firefighters' cost of meals at fire stations
• Fringe benefits such as rent-free housing and personal use of vehicles

Questions and Answers

• Money borrowed from or deposited at an Islamic bank
• Money borrowed from a foreign lender to buy property in a foreign country.

Business Issues

• Depreciation of property received in a like-kind exchange
• Deduction of expenses on Schedule C (Form 1040)
• Review of Form 4797 reporting issues such as classification of property as I.R.C."1231, "1245, "1250
• Employer provided life insurance
• I.R.C. "125 plans
• Truck drivers
  • Record keeping, including lodging receipts
  • Per diem allowance
  • Requirement of needing sleep or rest and going in and out of zones
• NOL and worksheets

Investment Issues

This chapter covers income tax issues that practitioners face when preparing returns for taxpayers with investment income and expenses. Topics include like-kind exchanges, incentive stock options and interest income and expenses for related party transactions.

Agricultural Issues

Topics of current interest to practitioners who prepare farm income tax returns are discussed in this chapter. Topics include:

• Conservation Security Program payments
• What is farm income for different income tax purposes
• Gifts of farm products
• Deferred payments for livestock sales
• Renting equipment
• Tobacco quota buyout

Business Entities

This chapter is the second in a series of three. The first chapter (2005) covered formation of an entity, using an LLC as the example. This chapter covers the operation of an entity using an LLC as the example. Next year"s chapter will cover termination of an entity, using an LLC as the example.

IRS Issues

This chapter covers issues the IRS has targeted as key issues for practitioners. Topics include compliance issues, exam issues, offers in compromise, and the Electronic Funds Transfer Payment System.

Retirement

This chapter focuses on ways to increase tax-deferred retirement savings for a self employed person through establishing and funding three types of defined contribution plans"the Simplified Employee Pension (SEP), the Savings Incentive Match Plan for Employees (SIMPLE), and qualified (Keogh) plans with an I.R.C. "401(k) deferral feature. It also includes a question-and-answer section based on inquiries received from users of the 2005 National Income Tax Workbook.

Estate and Gift Taxes

This chapter covers estate and gift tax issues such as valuation of gifts and estates. Examples of gift tax returns illustrate filing issues such as starting the statute of limitations on the valuation of gifts and reporting gifts to I.R.C. "529 plans.

Tax Aspects of Divorce

Topics in this chapter include:

• Uniform definition of a child and its application for filing status, deductions and credits
• Tax attributes and carryovers: NOLs, capital loss carryforwards, passive losses, credit carryovers, estimated tax payments, and charitable contribution deduction carryovers
• Transfer or division of closely held business
• Child support versus alimony"tax treatment for each party
• Tax implications of property division, including basis and holding period
• Innocent spouse relief and implications of tax returns filed during marriage

Tax Practice

This chapter describes a few challenging clients and suggests ways for responding. Scenarios include a non filer, a client who pushes the limit on claiming expenses as business expenses and a client who received a Form 1099 instead of a Form W-2.

Tax Credits

This chapter gives a comprehensive discussion of tax credits. It discusses what it takes to qualify for each credit, the interaction of credits, the effect of the credit on the alternative minimum tax and which credits are refundable. There is a chart that summarizes the characteristics of each of the credits.

Tax Consequences of being a "Trade or Business"

This chapter continues the discussion (begun in the 2004 National Income Tax Workbook) of the term "trade or business" as it is used in various provisions of the Internal Revenue Code. It includes some recent cases that rule on whether a taxpayer has a trade or business. Some new topics include whether separate activities should be treated as one business and the I.R.C. "183 limit on deducting expenses of not-for-profit activities.

Ethics

This chapter discusses some ethical principles for deciding how to respond to issues that arise in a tax practice. Numerous examples illustrate how the principles can be applied.

Tax Rates and Useful Tables

This chapter reports the updated income tax rates and other income tax rates and thresholds that adjust each year. The table of information about elections that was in the Elections chapter of the 2005 National Income Tax Workbook will be updated and included in this chapter this year.

High Income Tax Payers

Details on this topic coming soon.