Level 2 will broaden your tax knowledge in the areas of multistate taxation, C Corporations, accounting methods and periods and choice of entity. Key subject matters covered include Inventory Valuation and Property Transactions which will be essential for servicing more complex clients. The Tax Staff Essentials courses establish a strong set of skills necessary to grow the abilities and confidence of junior and senior level staff, allowing them to work with greater independence and expand their role in your firm.
▪ Identify the benefits of forming a corporation.
▪ Understand reasonable compensation issues with respect to a Closely Held Business
▪ Analyze the best retirement plan recommendation for a corporation.
▪ Describe how partnerships and LLCs opting to be treated as partnerships will report their federal taxable income to the IRS.
▪ Determine the tax basis of assets transferred to a partnership or LLC at formation.
▪ Explain the deferral of realized gain or loss on a like-kind property exchange.
▪ Recognize the potential impact of depreciation recapture
▪ Explain the allowable inventory valuation methods for tax purposes and how to choose the most beneficial in various scenarios.
▪ Estimate the tax value of ending inventory under the chosen method.
▪ Understand and apply the basic rules for a change in accounting method
▪ Prepare the Federal Form 3115 – Application for Change in Accounting Method and understand how and when this form should be filed by the taxpayer.
▪ Understand the key principles of multistate taxation
▪ Distinguish differences between apportionment and allocation of income.
▪ Develop basic approaches to state income tax planning with emphasis on the latest developments in economic nexus.
▪ C Corporation formation and Section 1244 Stock
▪ Corporate net operating losses
▪ Salaries, employee benefits, and retirement plans
▪ Taxation of property transactions under IRC sections 1231, 1245, 1250
▪ LLC formation and Check-the-Box rules
▪ Partnership and LLC profit and loss allocations
▪ Partnership and LLC contributions and distributions
▪ Multistate Income apportionment and allocation
▪ Nexus, UDITPA, MTC
▪ Section 263A, Inventory methods
▪ Choosing an Accounting Method
▪ Accounting Method changes