1040 Preparation and Planning 6: Gross Income: Business, Farm, and Rental Income (2021) (Currently Unavailable)

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 2020

Designed For
Tax practitioners.

Topics Covered

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

Learning Objectives

  • Complete Schedule C
  • Recognize how to determine eligibility for and report deductions on a range of business expenses
  • Identify report deductions for travel-away-from-home costs
  • Recognize how to figure meal cost limitations
  • Identify how to figure the home office deduction
  • Recognize how to calculate deductions for business vehicle use
  • Explain property depreciation, first-year expensing, bonus depreciation, and depreciation recapture
  • Recognize how to apply the rules for amortization, depletion, different types of losses, and bad debts
  • Identify expenses subject to amortization
  • Describe how to figure depletion deductions
  • Recognize how to apply the limits on trade or business losses
  • Identify how to determine net operating losses
  • Determine whether a debt is a business or nonbusiness bad debt
  • List special deductions for farming activities
  • Recognize how to apply the passive activity loss rules to businesses and rental activities
  • Determine when losses from the rental of a home are deductible
  • Figure the qualified business income deduction


Instructional Method

NASBA Field of Study
Taxes (4 hours)

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

Advance Preparation

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