EA Exam Prep Part 1: Basis (Currently Unavailable)

Author: Eva Rosenberg

This is the eleventh class of the EA Exam Prep Part 1 series. Are you struggling with the basics of basis? Do you know what to do if your client has lost the purchase details of an asset? What happens when a building is demolished or modified? When is basis not equal to cost? Join TaxMama® for everything you ever wanted to know about basis but were afraid to ask. Learn when to expense and when to capitalize. Find out the basic components of basis. Discover the details on adjustments to basis, and more!

Publication Date: June 2019

Designed For
Tax practitioners of all levels, regardless of experience, who want to learn about income tax preparation and more. Excellent training for staff working in tax offices, accounting practices, and corporate settings, as well as independent bookkeepers. This course provides an in-depth look at the basis of assets. It is especially helpful to those with no hands-on experience preparing tax returns – and those who are returning to tax preparation after years in corporate or other jobs. This course is also designed to help CPAs earn their Enrolled Agent credential so they can practice anywhere in the country without re-certifying.

Topics Covered

• Classes of assets
• Types of basis
• Components of basis
• Basis of stock
• Basis of real estate
• Adjustments to basis
• Basis other than cost
• Uniform capitalization rules
• Like-kind exchanges
• Understand settlement costs incurred during the sale of real estate
• Installment sales
• Constructed assets
• Intangible assets
• Allocating basis among assets purchased as a group
• Demolition of and major improvements to a building
• Subdividing land
• Employee stock options

Learning Objectives

• Recognize the importance of properly calculating basis
• Identify the types of basis
• Recognize how to determine adjustments to basis
• Identify expenses versus capital expenditures
• Compute the basis of stock post splits and dividends
• Recognize the appropriate treatment of reinvested dividends
• Identify how to interpret the HUD Settlement Statement for real estate sales
• Recognize how to classify points paid for real estate loans
• Compute the gross profit percentage of an installment sale
• Identify how to calculate basis of constructed assets
• Identify the basis of intangible assets
• Recognize how to allocate basis when purchases of multiple assets occur
• Identify the classes of assets
• Describe taxable exchanges
• Recognize involuntary conversions

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None