1040 Preparation and Planning 6: Gross Income: Business, Farm, and Rental Income (2020)

Author: Barbara Weltman, Sidney Kess

CPE Credit:  4 hours for CPAs
4 hours Federal Tax Related for EAs and OTRPs
4 hours Federal Tax Law for CTEC

This on-demand course looks at expenses and deductions for business, including: travel, entertainment, home office, work-related education, depreciation, losses, farming, rents and royalties, investments and income-producing activities. It also covers research and development expenditures, the domestic activities deduction, expenses that are part business and part personal, and much more.

Publication Date: November 2019

Designed For
Tax practitioners.

Topics Covered

  • Schedule C and C-EZ
  • Domestic production activities
  • Vacation home rules
  • Home office deduction
  • Farming activities

Learning Objectives

  • Complete Schedule C or C-EZ
  • Apply the deduction for domestic production activities
  • Utilize the vacation home rules
  • Figure meal and entertainment deductions, including applicable limitations
  • Figure the home office deduction
  • Determine deductible expenses in connection with investments and income-producing activities
  • Explain property depreciation, first-year expensing, bonus depreciation, and depreciation recapture
  • Determine how employer-paid expenses are treated
  • Identify expenses subject to amortization
  • Figure depletion deductions
  • Apply the limits on trade or business losses
  • Figure the amount of casualty and theft losses that can be deducted
  • Determine net operating losses
  • Determine whether a debt is a business or nonbusiness bad debt
  • Determine whether a nonbusiness bad debt is deductible
  • Apply the statute of limitations on bad debts
  • List special deductions for farming activities
  • Apply the passive activity loss rules to businesses and rental activities
  • Determine when losses from the rental of a home are deductible


Instructional Method

NASBA Field of Study
Taxes (4 hours)

Program Prerequisites
1040 Preparation and Planning: Fundamentals or basic understanding of Form 1040.

Advance Preparation

Registration Options
Regular Fee $77

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