Tax Compliance & Planning (TCP)

In this section

• PART I: Foundations and CPA Exam Essentials
  • Chapter 1: Introduction to the TCP Section
    • Exam Format, Weighting & Scoring
      Learn how the Tax Compliance and Planning (TCP) section of the CPA Exam is structured, including question types, time allocations, scoring methods, and topic weighting strategies.
    • Registration, Scheduling & Test-Day Best Practices
      Learn crucial steps for signing up for the CPA Exam, effective scheduling strategies, and best practices for a confident and stress-free test day.
    • CPA Ethical Guidelines & Professional Responsibilities
      Explore the essentials of the AICPA Code of Conduct for tax practice, real-world scenarios, and strategies for recognizing and resolving ethical dilemmas. Strengthen your professionalism and prepare for the CPA Exam with in-depth guidance on integrity, objectivity, confidentiality, and more.
    • Study Methodologies & Time Management for Success
      Optimize your CPA study approach with proven time allocation strategies, sample schedules, high-difficulty question tactics, and group study methods.
  • Chapter 2: Core U.S. Tax Frameworks
    • Overview of the Internal Revenue Code (IRC) & Treasury Regulations
      Learn the essential structure, interpretation, and practical applications of the Internal Revenue Code (IRC) and Treasury Regulations for the CPA Exam. This section provides comprehensive guidelines on navigating these authoritative tax frameworks, including real-world examples, exam tips, and best practices.
    • Navigating Administrative Guidance: IRS Publications & Rulings
      Discover how to effectively utilize IRS publications, revenue rulings, and revenue procedures as interpretative guides in tax law, while exploring real-world controversies and resolution tactics.
    • Judicial Interpretations: Court Hierarchy & Case Precedents
      Understand how U.S. courts interpret tax law, the role of judicial precedence, and best practices for citing authority in tax positions.
    • Legislative Changes & Their Impact on CPA Studies
      Explore how emerging tax legislation shapes the CPA Exam (TCP), emphasizing transitional, retroactive, and ongoing updates for optimal exam readiness.
• PART II: Individuals & Personal Financial Planning (Area 1)
  • Chapter 3: Gross Income & Adjusted Gross Income
    • Advanced Inclusions & Exclusions (Fringe Benefits, Compensation Structures)
      Explore complex fringe benefits, noncash compensation, and essential rules for discerning timing and tax treatment of ISO vs. NSO. Learn about key exceptions, including foreign earned income exclusions, to ensure robust CPA Tax Compliance & Planning readiness.
    • Complex Retirement Contributions & Phaseouts (HSA, SEP, SIMPLE)
      Discover advanced strategies for Health Savings Accounts (HSAs), SEP IRAs, and SIMPLE IRAs. Learn about contribution limits, phaseout nuances, and penalty triggers to navigate complex retirement planning with confidence.
    • Stock Options & Equity Compensation Nuances (ISO, NSO)
      Explore key differences in tax treatment for Incentive Stock Options (ISOs) vs. Nonqualified Stock Options (NSOs), including grant, vesting, exercise, and AMT pitfalls.
    • Alimony Post-TCJA & Other Special Adjustments
      Explore major changes to alimony taxation under the Tax Cuts and Jobs Act, including real-life calculations and compliance insights for CPA candidates. This comprehensive guide covers the shift from payer deductibility to updated rules on divorce settlement timing, offering practical examples to ensure exam readiness.
  • Chapter 4: Deductions & Taxable Income Computation
    • Business vs. Personal Deductions (Home Office, QBI Deduction)
      Comprehensive guidance on differentiating business from personal expenses, along with an in-depth exploration of the Qualified Business Income Deduction for CPA candidates and tax practitioners.
    • Itemized Deductions: SALT Caps, Medical Expenses, Charitable Strategies
      A comprehensive guide to SALT Caps, medical expenses, and sophisticated charitable giving strategies—comparing standard vs. itemized deductions for the CPA Exam.
    • AMT Mechanics & Planning (Preference Items & Adjustments)
      Explore Alternative Minimum Tax (AMT) fundamentals, how AMT interacts with standard tax deductions, and key preference items like Incentive Stock Options to effectively plan and minimize potential AMT liability.
    • Estimated Tax Payments, Safe Harbor Rules & Underpayment Penalties
      Understand safe harbor thresholds for estimated tax payments, special rules for high-income taxpayers, and how to avoid underpayment penalties through practical planning strategies.
  • Chapter 5: Passive Activity & At-Risk Rules
    • Material Participation & Passive vs. Active Income Definitions
      Explore the seven tests for material participation under IRC §469, distinguish active vs. passive income, and discover practical insights on short-term rentals, grouping rules, and borderline scenarios.
    • Suspended Losses, Carryforward Mechanics & Special Real Estate Exceptions
      Explore the core principles of suspended passive losses, the indefinite carryforward provisions, and critical real estate professional exceptions under U.S. tax law. Understand when and how suspended losses can be released, as well as the AGI-based special allowances for real estate investments.
    • Interplay Between Passive Losses & At-Risk Limitations
      Master the interplay between passive activity losses and at-risk limitations, covering ordering rules, real-world K-1 examples, and Form 8582 calculations.
    • K-1 Allocations in Partnerships & S Corporations: Layering for Passive vs. Active Activities
      A comprehensive guide to how K-1 allocations in Partnerships and S Corporations are classified as passive or active, including detailed steps for verifying material participation in each entity type.
  • Chapter 6: Transfers During Life – Gift Taxation & Strategy
    • Unified Transfer Tax System & Unified Credit Limits
      Gain an in-depth understanding of how the unified transfer tax system seamlessly integrates gift and estate taxes, including current annual and lifetime exclusions, practical examples, best practices, and key strategies for CPA exam success.
    • Valuation Techniques & Discounts (Minority, Marketability)
      Explore key valuation methodologies, understand minority and marketability discounts, and learn how these concepts are applied in gift taxation and estate planning.
    • Lifetime Gifting Strategies: Grantor Retained Annuity Trusts (GRATs), Crummey Powers
      A comprehensive overview of Grantor Retained Annuity Trusts (GRATs) and Crummey Powers, their mechanics, tax implications, and strategies for effectively transferring wealth—including family business interests—under the U.S. gift tax framework.
    • Compliance: Completing Form 709 & Record-Keeping
      Master the intricacies of Form 709, gift tax filings, and thorough documentation procedures to ensure seamless future estate calculations and compliance in the Unified Credit system.
  • Chapter 7: Personal Financial Planning
    • Retirement Vehicles & Tax-Deferred Growth (401(k), 403(b), 457 Plans)
      Understand 401(k), 403(b), and 457 plans' benefits, tax implications, statutory contribution limits, and catch-up provisions. Explore employer-sponsored plan differences, best practices, and real-world CPA exam scenarios.
    • Educational Funding (529 Plans, Coverdell ESAs, Student Loan Interest)
      In-depth exploration of 529 Plans, Coverdell ESAs, and Student Loan Interest for comprehensive tax compliance and planning. Learn effective strategies, pitfalls, and best practices surrounding educational funding accounts and interest deductions.
    • Insurance & Risk Management (Life, LTC, Disability)
      Explore how life, long-term care, and disability insurance protect against financial risks, including key tax treatments of policy premiums and payouts.
    • Investment Allocation & Tax-Efficient Asset Placement
      Master tax-savvy tactics for allocating interest-bearing and growth-oriented assets among taxable, tax-deferred, and tax-exempt accounts to optimize your portfolio and meet CPA Exam requirements.
• PART III: Entity Tax Compliance (Area 2)
  • Chapter 8: C Corporations
    • Corporate Income Computation & Special Deductions (DRD, Charitable Limits)
      Explore the fundamentals of calculating corporate taxable income, focusing on rules for the Dividends Received Deduction (DRD) and Charitable Contributions, including limitations and practical examples.
    • NOL & Capital Loss Utilization; §382 Limitations on Ownership Changes
      Explore C Corporation Net Operating Loss (NOL) rules, capital loss carryovers, and Section 382 limitations triggered by ownership changes, with practical examples and decision-tree diagrams.
    • Transactions Between Shareholder & Corporation (Property Contributions, Stock Redemptions)
      Explore the tax implications, corporate-level gains, and shareholder-level consequences of property contributions and stock redemptions in C corporations, while avoiding disguised ‘bailout’ pitfalls.
    • Corporate E&P Calculations & Dividend Treatment
      Explore the foundational concepts of Earnings & Profits (E&P), learn how to calculate current vs. accumulated E&P, and understand how these figures affect dividend versus return of capital classifications.
  • Chapter 9: Consolidated Returns & Advanced Corporate Issues
    • Affiliated Groups, Membership & Filing Requirements
      Explore the criteria for parent-subsidiary control, consolidated return eligibility, and the complexities of partial-year acquisitions for CPA exam success.
    • Intercompany Eliminations & Deferred Gains
      Learn how to remove intercompany transactions from consolidated returns while properly deferring gains, ensuring a more accurate representation of economic reality in a corporate group’s tax computations.
    • SRLY (Separate Return Limitation Year) Rules & NOL Interactions
      Explore Separate Return Limitation Year (SRLY) rules for pre-acquisition net operating loss (NOL) usage under consolidated return regulations, and understand how these rules impact corporate tax planning and compliance.
    • International Corporate Tax: FDII, GILTI, BEAT, CFCs
      Discover the intricacies of FDII, GILTI, BEAT, and CFCs in international corporate tax. Understand compliance thresholds, inclusion rules, Subpart F, and planning strategies crucial for the CPA Exam (TCP).
  • Chapter 10: S Corporations
    • Eligibility Requirements, Elections & Terminations
      Explore S Corporation permissible shareholders, single-class stock requirements, election procedures, and common pitfalls leading to unintended terminations. Master the essentials for tax compliance and planning under the TCP CPA blueprint.
    • Shareholder Basis, AAA, Debt Basis & Distributions
      Master essential S Corporation shareholder basis calculations, manage the Accumulated Adjustments Account (AAA) and debt basis intricacies, and learn to properly apply distribution ordering rules from AAA and E&P.
    • Built-In Gains Tax & Historical C Corp E&P Integration
      A comprehensive guide to understanding the built-in gains tax, tracking recognized built-in gains, and integrating historical C corporation earnings and profits when transitioning to or operating as an S corporation.
    • Ownership Changes & Mid-Year Allocations
      Explore how to handle partial-year ownership transitions in S corporations, focusing on daily vs. specific allocation methods and best practices for compliance.
  • Chapter 11: Partnerships & LLCs
    • Formation & Contributions (§721) with Built-In Gain/Loss Property
      Explore how §721 impacts nonrecognition of gain or loss upon formation of partnerships and LLCs, with a focus on carrying over basis, built-in gains/losses, disguised sale rules, and intangible contributions.
    • Partner’s Outside Basis vs. Partnership Inside Basis
      Comprehensive coverage of how partners track outside basis and how partnerships maintain inside basis, including formulaic approaches and the role of ownership percentages in basis adjustments.
    • Special Allocations, Guaranteed Payments & §704(b)/(c) Rules
      Essential insights into special allocations of partnership items, guaranteed payments, and 704(b) and (c) rules, with in-depth discussions on substantial economic effect testing, and illustrative examples of guaranteed payments versus distributive share.
    • Distributions (Liquidating, Nonliquidating) & Disguised Sales
      Deep dive into partnership and LLC distributions, focusing on basis adjustments, liquidating vs. nonliquidating distributions, and disguised sales under the IRC.
  • Chapter 12: Trusts & Tax-Exempt Organizations
    • Simple vs. Complex Trusts, Grantor Trust Rules
      Explore how income flows through simple and complex trusts, key distribution requirements, and essential reversionary powers causing grantor trust status for CPA exam readiness.
    • Fiduciary Accounting Income & Distributable Net Income
      Master key concepts of fiduciary accounting income, trustee authority over principal vs. income, and line-by-line DNI computations to excel in the CPA Exam’s Tax Compliance & Planning section.
    • Charitable Entities, §501(c)(3) Requirements & Private Foundations
      Explore the essentials of achieving and maintaining tax-exempt status under §501(c)(3), the operational and organizational tests, Form 990 compliance, and private foundation excise tax rules in the context of the Uniform CPA Examination (TCP).
    • Unrelated Business Income & Exceptions (Volunteer Labor, Research)
      Discover the intricacies of Unrelated Business Income (UBI) for tax-exempt organizations, focusing on volunteer labor, research exceptions, net operating losses, and fragmentation rules through comprehensive analysis and real-world examples.
• PART IV: Entity Tax Planning (Area 3)
  • Chapter 13: Entity Choice & Formation Strategies
    • C Corp vs. S Corp vs. Partnership vs. LLC: Tax Impact & Liability
      Explore crucial distinctions among C Corporations, S Corporations, Partnerships, and LLCs in terms of double taxation, pass-through taxation, liability, ownership constraints, and self-employment taxes. Gain insights to make informed entity selection decisions aligned with strategic tax planning objectives.
    • §351 & §721 Nonrecognition Transactions & Built-In Losses
      Discover how IRC §§351 and 721 enable tax-deferred entity formation, including decision trees for intangible and IP property transfers, built-in gains, and built-in losses.
    • Leveraging Special Allocations & Ownership Classes for Optimal Outcomes
      Discover advanced strategies for shifting income, optimizing deductions, and structuring effective ownership classes. This comprehensive guide explores IRC provisions, partnership allocations, multi-tiered share classes, and real-world case studies tailored for CPA candidates seeking mastery in tax compliance and planning.
    • Planning Around Qualified Small Business Stock (QSBS) Exclusions
      Comprehensive guidance on maximizing tax benefits from Qualified Small Business Stock (QSBS), exploring holding periods, percentage exclusions, and entity conversions for optimal planning.
  • Chapter 14: Ongoing Planning for C Corporations
    • Timing of Income & Deductions; Using Fiscal vs. Calendar Years
      Explore key tax considerations in choosing and managing accounting periods, including method changes, deferral of advanced payments, and IRS forms relevant for changing accounting methods.
    • Deferral vs. Dividend Planning & Shareholder Compensation Balances
      Explore strategic methods for balancing wages, bonuses, and dividends in C corporations—examining deferral techniques, potential IRS scrutiny, and best practices for shareholder compensation.
    • Multi-State & Nexus Considerations; Apportionment & Allocation
      Explore how states determine nexus and utilize various apportionment formulas—such as three-factor and single-sales factor—to calculate a C corporation’s multi-state tax liabilities. Learn to optimize planning strategies and minimize potential risks through real-world examples and clear illustrations.
    • Cross-Border Structuring, Branch vs. Subsidiary, Treaty Positions
      Explore key considerations in cross-border structuring for CPA candidates, contrasting immediate branch-level inclusion with deferred subsidiary profits, and examining permanent establishment definitions.
  • Chapter 15: Advanced S Corporation Planning
    • Avoiding Inadvertent Terminations, Updating Shareholder Agreements
      Learn how to safeguard your S Corporation status by preventing inadvertent terminations and updating shareholder agreements with robust clauses, ensuring compliance with IRS regulations.
    • Built-In Gain Timing & Monitoring AAA vs. E&P for Distributions
      Explore built-in gain recognition periods, the Accumulated Adjustments Account, and Earnings & Profits interplay. Understand multi-year AAA tracking, distribution ordering rules, and strategic planning to minimize tax pitfalls for Advanced S Corporation Planning.
    • Owner Compensation, Reasonable Salary & Employment Tax Minimization
      Explore how S corporation owners can set and justify reasonable wages, minimize employment taxes, and mitigate risks of IRS reclassification, with comparative salary and distribution examples across various states.
    • Conversions to/from C Corp & Planning for Mergers or Acquisitions
      Explore essential tax considerations, short-year returns, and strategic insights for switching between C and S corporations, with guidance on mergers, acquisitions, and best practices for CPA exam readiness.
  • Chapter 16: Partnership & LLC Tax Planning
    • Special Allocations to Shift Income/Loss Gains to Advantageous Partners
      Learn how and why partnerships strategically allocate income and losses to specific partners, the substantial economic effect rules, safe harbor conditions, and common pitfalls in special allocations.
    • §754 Elections & Step-Ups in Basis on Transfers & Distributions
      Discover how Section 754 elections allow partnerships to adjust inside basis when ownership transfers or certain distributions occur. Explore triggers like a partner’s death or sale and learn to track step-ups for newly admitted partners.
    • Debt Reallocation & Impact on At-Risk & Passive Losses
      Explore how partnership debt arrangements influence at-risk calculations and passive loss deductions under U.S. tax law, focusing on recourse vs. nonrecourse allocations and real-world planning strategies.
    • Roll-Up Strategies, Partnership Mergers & Divisions
      Learn how multiple smaller partnerships can be combined into a single entity or split apart efficiently while addressing disguised sale rules, liability reallocations, and other key tax considerations.
• PART V: Property Transactions (Area 4)
  • Chapter 17: Nontaxable Dispositions
    • §1031 Like-Kind Exchanges (Real Estate, Timelines, Intermediaries)
      A comprehensive guide to §1031 Like-Kind Exchanges, detailing real estate eligibility, strict timelines, and the critical role of qualified intermediaries. Explore step-by-step processes, multi-property examples, best practices, and advanced strategies for CPA exam success.
    • §1033 Involuntary Conversions: Condemnations, Disasters & Replacements
      Explore the intricacies of §1033 involuntary conversions, including eminent domain, condemnation awards, replacement deadlines, partial conversions, and real-world best practices.
    • Boot & Basis Adjustments in Partial Exchanges
      Learn how to handle boot and compute basis adjustments when exchanging property under IRC §1031 with cash or non-like-kind consideration.
  • Chapter 18: Character of Gains & Losses
    • §1231, Capital vs. Ordinary & Netting High-Level Overview
      Learn how Section 1231 gains and losses are characterized, the netting process, and how prior net 1231 losses can reclassify gains as ordinary. Understand capital versus ordinary treatment, the five-year lookback rule, and practical strategies for CPA exam success.
    • Depreciation Recapture under §1245 & §1250
      Comprehensive exploration of depreciation recapture rules under Sections 1245 and 1250, including practical scenarios for equipment (personal property), real estate (real property), partial dispositions, and multiple depreciation methods.
    • Installment Sales: Imputed Interest, Dealer Dispositions & Exceptions
      Comprehensive guide to installment sales, covering the gross profit ratio formula, imputed interest rules, dealer disposition exclusions, and significant exceptions, with practical examples and best practices for CPA exam success.
    • Section 1202 (QSBS) Exclusions & Holding Period Requirements
      Explore how to achieve the 100% QSBS Exclusion under IRC Section 1202, including holding period requirements, eligibility thresholds, and state-level nuances.
  • Chapter 19: Related Party Issues & Other Complexities
    • Disallowed Losses, Constructive Ownership & Deferred Gains
      Explore how direct or indirect family relationships can disallow immediate losses or gains, along with a practical cheat sheet on ownership attribution for CPA exam success.
    • Wash Sales & Worthless Securities Treatment
      A thorough exploration of wash sale mechanics, the 30-day re-purchase rule, and the distinctions between partial and complete worthlessness in corporate stock and debt for CPA exam success.
    • Abandonments & Partial Dispositions of Real Property
      Explore key tax considerations, examples, and strategies for handling abandonments and partial dispositions of real property—including how to allocate basis between disposed and retained components.
    • State & Local Nuances in Multi-Jurisdictional Dispositions
      Explore how gains from property transactions are taxed across multiple states, including allocation vs. apportionment rules, best practices, and practical case studies to master state and local tax complexities.
• PART VI: Special Topics, Legislative Updates & Exam Strategies
  • Chapter 20: Recent Legislative Developments & Sunset Provisions
    • Temporary Rate Changes, Inflation Adjustments & Phaseouts
      Explore the intricacies of temporary tax rate changes, annual inflation adjustments, and phaseout thresholds, along with scheduled ‘sunset’ provisions critical for CPA exam success.
    • Major Acts (e.g., CARES Act, TCJA) & Rolling Modifications
      Explore how the Tax Cuts and Jobs Act (TCJA) and the CARES Act shape modern U.S. tax compliance, highlighting key provisions, transitional rules, and ongoing legislative amendments relevant to CPA exam readiness.
  • Chapter 21: Practice & Procedure
    • Examination by IRS: Statute of Limitations, Appeals & Court System
      This comprehensive guide covers essential procedures, deadlines, and strategies related to IRS examinations, including the 3-year and 6-year statute of limitations rules, administrative appeals, and navigating the U.S. Tax Court system. Perfect for CPA exam candidates.
    • Penalties & Compliance Triggers for Entities & Individuals
      A thorough exploration of common IRS penalties, including accuracy-related, underpayment, and fraudulent failure to file, with real-world examples, penalty rates, and practical strategies to maintain compliance for both entities and individuals.
    • Ethical Considerations for CPAs (Circular 230 & AICPA Standards)
      Explore the in-depth ethical requirements under Circular 230 and AICPA Standards, focusing on conflicts of interest, diligence, and confidentiality. Includes practical scenarios and detailed compliance guidance for tax professionals.
    • Preparing for Real-World Tax Season vs. Exam Day
      Discover key strategies for navigating contrasting expectations in exam solutions versus real client deliverables, and learn how to bridge the gap between textbook scenarios and the complexities of tax season.
  • Chapter 22: Integrative Planning Case Studies
    • Multi-Entity Family Business Transitions
      Explore comprehensive strategies for passing down multi-entity family businesses across generations involving S corporations, partnerships, and trusts.
    • Real Estate Partnerships with Multiple Like-Kind Exchanges
      Explore advanced 1031 layering, partial condemnation scenarios, and stepped-up basis strategies in real estate partnerships, including practical examples and visual diagrams for deeper CPA exam preparation.
    • Cross-Border Operations & Permanent Establishment Issues
      Explore how cross-border activities can trigger permanent establishment status, the nuances of FDII, GILTI, and Subpart F, and tax treaty provisions that limit withholdings for multinational businesses.
    • Estate & Gift Integration with Corporate Ownership
      Explore advanced strategies for integrating estate and gift planning with corporate ownership, including QSB stock, trusts, lifetime gifting, and synergistic techniques for tax efficiency.
• PART VII: Additional & Specialized Topics
  • Chapter 23: Expanded State & Local Tax (SALT) Topics
    • Pass-Through Entity Taxes & Elective Workarounds
      Explore how states have evolved pass-through entity tax regimes to mitigate SALT deduction limits and discover key CPA exam insights on elective workarounds.
    • Nexus & Apportionment Formula Variations
      Explore how state tax nexus is established and the diverse methods states use to apportion income, including single-sales factor, cost-of-performance, and market-based sourcing, with practical multi-state corporate examples and illustrations.
    • Local Jurisdiction Compliance & Credits
      City-level taxes, specialized local tax credits, and strategies for navigating combined compliance burdens in CPA Tax Compliance and Planning.
    • SALT Planning Opportunities & Risk Areas
      Explore key SALT planning strategies, proactive measures to minimize double taxation, and potential risk areas or conflicts that CPAs should carefully navigate for optimal compliance and planning.
  • Chapter 24: Specialized Industry Applications
    • Agriculture & Farming (Special Deductions, Depreciation)
      Explore farm income averaging, soil and water conservation expenses, and specialized depreciation schedules for agricultural machinery and livestock. Learn how these rules interconnect with CPA exam requirements to ensure accurate tax compliance and planning in the farming industry.
    • Oil & Gas Ventures (IDCs, Percentage vs. Cost Depletion)
      Explore Oil & Gas Accounting for Intangible Drilling Costs (IDCs) and the nuances between Percentage and Cost Depletion. Learn typical partnership structures in resource extraction, including tax implications, best practices, and real-world illustrations.
    • Real Estate Professionals & Tax Complexities
      A comprehensive guide for CPA candidates on the real estate professional classification, passive activity exceptions, and depreciation grouping strategies under IRC §469.
    • Niche Credits & Deductions for Specific Industries
      Explore rarely used federal tax credits, including Orphan Drug and Short-Line Railroad, addressing qualification, calculation, compliance, and advanced planning scenarios for specialized sectors.
  • Chapter 25: Advanced IRS Procedures & Controversies
    • FAST Track Settlement, Appeals & Mediation Methods
      Learn about the intricacies of alternative dispute resolution processes within the IRS framework, including timelines, success rates, and mediation best practices for CPA candidates.
    • Formal Protest Letters & Litigation Tactics
      Learn how to craft effective protest letters and navigate litigation pathways in U.S. Tax Court vs. District Court to resolve complex IRS disputes.
    • Exam-Triggers & Strategies to Minimize Adjustments
      Discover common IRS red flags, from large Schedule C losses to disproportionate charitable deductions, and learn proven strategies with thorough documentation to minimize tax adjustments during examinations.
    • Working with Private Letter Rulings & Technical Advice
      Explore the formal IRS request process for Private Letter Rulings and Technical Advice, including best practices for presenting legally precise facts and questions to ensure clarity and compliance.
  • Chapter 26: Expanded Tax Credits & Incentives
    • R&D Credit (Qualified Expenses, Start-Up Rules)
      Explore the nuances of qualifying research under IRC Section 41, understand the techniques for identifying allowable R&D expenditures, and learn about reduced credit implications for wages already counted under other credits.
    • Energy Efficiency Credits (Renewable Energy, Electric Vehicles)
      Discover key insights into U.S. federal credits for renewable energy systems and electric vehicles, including eligibility, filing procedures, basis reductions, and recapture considerations.
    • Employment Credits (Work Opportunity, Employee Retention)
      Explore essential employment tax credits, including WOTC and Employee Retention, with eligibility requirements, targeted groups, COVID provisions, and practical examples for CPA candidates.
    • Interplay with Deductions & Recapture Triggers
      Explore how tax credits intersect with deductible expenses and trigger partial recaptures when credit requirements are not maintained.
  • Chapter 27: Advanced Estate & Gift Integration
    • Business Valuation & Estate Freezes (FLPs, GRATs)
      Learn how careful business valuation and estate freeze strategies, including Family Limited Partnerships (FLPs) and Grantor Retained Annuity Trusts (GRATs), can help shift future appreciation out of an estate and reduce transfer tax liabilities.
    • Closely Held Entities, FLP Discounts & IRC §2701–2704 Rules
      Examination of Family Limited Partnerships, closely held entity valuations, and the impact of IRC §§2701–2704 on estate and gift tax planning strategies.
    • Coordinating Trusts & Entity Structures for Generational Shifts
      Explore advanced planning techniques for intergenerational wealth transfer, integrating QTIP trusts, IC-DISCs, and charitable components to optimize tax efficiency and preserve family legacies.
    • Advanced Post-Mortem Planning (QSST, ESBT)
      Explore in-depth how Qualified Subchapter S Trusts (QSST) and Electing Small Business Trusts (ESBT) handle S corporation ownership transfers after a shareholder’s death, including distribution vs. retention strategies.
  • Chapter 28: Extended Illustrative Worksheets & Schedules
    • Complex K-1 Computations & Special Allocations: Mastering Guaranteed Payments and Basis Adjustments
      Dive deep into advanced Form K-1 reporting intricacies, including guaranteed payments, special allocations, and carryover basis changes to ensure accurate partnership taxation and CPA exam success.
    • AAA/E&P Multi-Year Tracking & Dividend Classification
      Explore multi-year Accumulated Adjustments Account (AAA) fluctuations in S corporations, how Earnings & Profits (E&P) interrelate with distributions, and when leftover E&P can trigger capital gains—all through detailed examples and diagrams.
    • Multi-State Apportionment Worksheets & Partnerships
      Explore multi-state apportionment factors, worksheets, and partial nexus considerations for partnerships, with step-by-step examples and best practices.
    • Comprehensive End-to-End Examples & Step-by-Step Calculations
      Explore integrated, real-world tax scenarios combining partnership distributions, 1031 exchanges, multi-jurisdiction compliance, and more, with step-by-step guidance and calculations.