2021 Individual Federal Tax Update: Part 1

Author: Greg White

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

If last year was action packed, this year promises to be even more so. Join expert, Greg White, CPA, as he provides an update on the most recent changes affecting individuals that you’ll need to navigate through the maze of tax legislation.

Publication Date: October 2021

Topics Covered

  • Developments in cryptocurrency
  • Important new cases
    • Self-employment tax
    • Uber drivers
    • Passive activity limits
    • Noncash contributions
    • Phone and internet deductions allowed by the court under the "Cohan rule"
    • Loans" to an S corporation shareholder — were they really distributions that created large gains (distributions in excess of basis)
  • The net business loss limitation of §461(l) will return in 2021
    • We'll talk about the new rules that apply, and how this limitation relates to basis limits and passive activity loss limits
  • New draft Form 7203 (shareholder basis in S corporation stock)
  • How does the pandemic affect home office deduction?

Learning Objectives

  • Recognize the role of reasonable compensation in self-employment tax
  • Identify how home offices have been affected by the pandemic
  • Compute the §461(l) net business loss limitation
  • Determine when S corporation "loans" to a shareholder are treated as distributions
  • Identify the current gift tax annual exclusion
  • Identify the 2021 Unified Gift and Estate Tax Exclusion
  • Identify the 2022 family HSA limit
  • Recognize what percent of QBID is applicable to SSTB income, if married filing jointly pre-QBID taxable income is $429,801
  • Recognize the common exceptions to debt relief under §108
  • Identify the general welfare exception requirements
  • Recognize which Medicare part relates to prescription drug plans
  • Identify the annual Social Security benefit at full retirement age for average annual indexed earnings of less than $10,000
  • Describe approximately what percent of taxpayers itemize

Level
Update

Instructional Method
Self-Study

NASBA Field of Study
Taxes (4 hours)

Program Prerequisites
Basic understanding of federal income taxation concepts.

Advance Preparation
None

Registration Options
Quantity
Fees
Regular Fee $83.00

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