1120 Preparation and Planning 3: Deductions-Part 1 (2026 Edition)

Author: Barbara Weltman, Greg White

This 2 hour course provides a refresher on the preparation of corporate income tax returns. This is the third in a series on Form 1120 preparation, focusing on deductions.

The course reflects the extensive changes effective for 2025 that were made by the One Big Beautiful Bill Act of 2025 (OBBB Act) and other legislation, court cases, and IRS pronouncements. These changes impact 2025 tax year returns that will be filed during the 2026 filing season and refund opportunities for earlier years; as well as point the way to strategic planning in 2026 and beyond. This course brings the tax preparer "up-to-speed" in preparing 2025 tax returns for the 2026 filing season.

Publication Date: October 2025

Designed For
Tax Practitioners

Topics Covered

• Compensation
• Accrued and Deferred Compensation
• Worker Classification
• Repairs and Maintenance
• Bad Debts
• Rents
• Taxes and Licenses
• Interest Expense
• Charitable Deductions
• Depreciation and Depletion
• Vehicles
• Depreciation Recapture
• Amortization
• Depletion

Learning Objectives

• Identify the information on Form 1125-E
• List limitations on deducting compensation
• Explain the IRS test for worker classification
• State how to distinguish between ordinary repairs and capital expenditures
• Identify the rules for deducting rents, taxes, interest expense, and charitable contributions
• Explain the rules for depreciation and depletion
• Determine the applicable rules for writing off the cost of machinery and equipment, including the Section 179 deduction and bonus depreciation
• List the rules for deducting the cost of buying, leasing, and using vehicles

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None