Self-Employment Tax: Today’s World of Sharing, LLCs, & Tax Reform

Author: Annette Nellen

CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC

Self-employment tax has become a more frequent issue today. Every year we see court decisions involving LLCs as well as whether certain activities are businesses or hobbies. Short-term rentals, such as via Airbnb, may generate SE tax obligations. This webinar reviews the rules and issues regarding self-employment taxes, how to avoid problems, and how tax reform might change the rules and practice considerations.

Publication Date: May 2018

Designed For
Practitioners seeking better understanding of the self-employment rules and common issues that arise and how to avoid them.

Topics Covered

  • Basics of the self-employment tax statute and regulations
  • Types of taxpayers and activities subject to self-employment tax
  • A review of recent cases
  • Relevance of SE tax in tax reform
  • Due diligence considerations and avoiding problems

Learning Objectives

  • Identify when an individual is subject to self-employment tax
  • Recognize due diligence steps to avoid problems in the SE tax area
  • Identify the rate of tax on old-age, survivors and disability insurance
  • Differentiate regulations prescribing the requirements with respect to dividends and interest
  • Recognize when individuals are subject to self-employment tax
  • Describe characteristics of a hobby (instead of a business) as it relates to self-employment tax rules
  • Identify real case scenarios and how they relate to self-employment tax issues
  • Recognize which congressional acts amended Section 1502 with the purpose of making SECA taxes economically equivalent to FICA taxes
  • Identify chapters of the Internal Revenue Code relates to tax on self-employment income
  • Describe the additional Medicare tax due on self-employment income in excess of what amount if the tax payer is married and filing jointly
  • Identify the 2018 social security wage limit
  • Differentiate regulations relating to the net operating loss deduction with respect to self-employment activities
  • Identify the computation method with respect to self-employment tax
  • Recognize when self-employment tax is due when self-employment income exceeds what amount
  • Describe factors determined to be neutral in the eight factor analysis related to the Ryther court case
  • Identify one of the key due diligence considerations

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None

Registration Options
Quantity
Fees
Regular Fee $55

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