Chapter 4: Deductions & Taxable Income Computation

In this section

• 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.