PWX1028: Study guide-1001 Deductions & Tax Breaks

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The study guide is provided to guide you through the course material in a step by step format.

Reading assignments are for 1001 Deductions & Tax Breaks by Babara Weltman

1) Introduction and You and Your Family

Reading Assignment: Introduction and Chapter 1 <<>> Review Question: # 1-6

The learning objectives for this lesson are to gain an understanding of:

• Personal exemption
• Dependency exemption
• Child tax credit
• Earned income credit
• Dependent care credit
• Adoption costs
• Foster care
• Child support
• Alimony

2) Medical Expenses

Reading Assignment: Chapter 2<<>> Review Question: # 7-13

The learning objectives for this lesson are to gain an understanding of:

• Itemized medical expenses
• Self-employed health insurance deduction
• Health insurance credit for eligible recipients
• Long-term care coverage
• Flexible spending arrangements
• Health reimbursement arrangements
• Health savings accounts
• Archer medical savings accounts
• COBRA coverage
• Medicare
• Continuing care facilities
• Accelerated death benefits
• Decedent's final illness

 

3) Education Costs

Reading Assignment: Chapter 3<<>> Review Question: # 14-21

The learning objectives for this lesson are to gain an understanding of:

• Employer-paid courses
• Scholarships, fellowships and grants
• American Opportunity credit
• Lifetime learning credit
• Job-related education
• Tuition and fees deduction
• Student loan interest
• Interest on U.S. savings bonds
• Coverdell education savings accounts
• Qualified tuition programs
• Seminars
• Education travel
• Cancellation of a student loan
• Penalty-free withdrawals from IRAs
• Government reimbursement

4) Your Home

Reading Assignment: Chapter 4<<>> Review Questions: # 22-32

The learning objectives for this lesson are to gain an understanding of:

• Mortgages
• Home equity loans
• Points
• Refinancing
• Prepayment penalties
• Late payment penalties
• Mortgage insurance
• Reverse mortgages
• Cancellation of mortgage debt
• Penalty-free IRA withdrawals for home-buying expenses
• Home buyer credit
• Real estate taxes
• Cooperative housing Minister's housing allowance
• Home sale exclusion
• Moving expenses
• Energy improvements

 

5) Retirement Savings

Reading Assignment: Chapter 5<<>> Review Questions: # 33-41

The learning objectives for this lesson are to gain an understanding of:

• Traditional IRAs
• Roth IRAs
• IRA rollovers
• 401(k)s
• Self-employed retirement plans
• SEPs
• SIMPLEs
• Retirement saver's credit
• Custodial/trustee fees
• Employer-paid retirement planning advice
• Charitable transfers of IRA distributions

 

6) Charitable Giving

Reading Assignment: Chapter 6<<>> Review Questions: # 42-48

The learning objectives for this lesson are to gain an understanding of:

• Cash donations
• Appreciated property donations
• Used clothing and car donations
• Intellectual property donations
• Real estate donated for conservation purposes
• Bargain sales
• Volunteer expenses
• Tickets to fund-raisers, raffles and sporting events
• Membership fees to nonprofit organizations
• Student exchange program
• Special inventory donations
• Donor-advised funds
• Appraisal fees and other costs
• IRA transfers to charity

7) Your Car

Reading Assignment: Chapter 7<<>>Review Question: # 49-54

The learning objectives for this lesson are to gain an understanding of:

• Business use of your personal car
• Employer-provided car
• Vehicle registration fees
• Car accidents and other car-related problems
• Donating your car
• Hybrid vehicle credit
• Credit for plug-in electric drive vehicles
• Credit for low-speed electric vehicles
• Credit for plug-in vehicle conversions
• "Cash for Clunkers" incentive

 

8) Investing

Reading Assignment: Chapter 8<<>> Review Question: # 55-61

The learning objectives for this lesson are to gain an understanding of:

• Penalty on early withdrawal of savings
• Loss on bank deposits
• Capital losses
• Capital gains and qualified dividends
• Worthless securities
• Loss on Section 1244 stock
• Margin interest and other investment-related borrowing
• Safe-deposit box rental fee
• Subscriptions to investment newsletters and online services
• Home computer used for investments
• Fees for financial advice
• Amortization of bond premium
• Municipal bonds
• Savings bonds
• Gain on the sale of small business stock
• Gain on empowerment zone assets
• Foreign taxes on investments
• Exercise of incentive stock options
• Losses from investment Ponzi schemes

9) Travel

Reading Assignment: Chapter 9<<>>Review Questions: # 62-65

The learning objectives for this lesson are to gain an understanding of:

• Business travel
• Temporary work assignments
• Conventions
• Medical travel
• Charitable travel
• Moving
• Educational travel
• National Guard and military reservist travel
• Frequent flier miles

10) Entertainment

Reading Assignment: Chapter 10 <<>>Review Questions: # 66-72

The learning objectives for this lesson are to gain an understanding of:

• Meals and entertainment
• Company holiday parties and picnics
• Sporting and theater events
• Home entertainment
• Entertainment facilities and club dues
• Record keeping for meals and entertainment expenses
• Gambling losses

 

11) Real Estate

Reading Assignment: Chapter 11<<>>Review Questions: # 73-77

The learning objectives for this lesson are to gain an understanding of:

• Vacation home
• Home office
• Rentals
• Low-income housing credit
• Rehabilitation credit
• Deduction for energy-efficient commercial buildings
• Special breaks for certain disaster victims

 

12) Borrowing and Interest

Reading Assignment: Chapter 12<<>>Review Questions: # 78-79

The learning objectives for this lesson are to gain an understanding of:

• Home mortgage interest
• Student loan interest
• Investment-related loans
• Business interest
• Accrued interest on bond purchases
• Below-market loans
• Bad debts
• Loan forgiveness

 

13) Insurance and Catastrophes

Reading Assignment: Chapter 13<<>>Review Questions: # 80-83

The learning objectives for this lesson are to gain an understanding of:

• Casualty and theft losses
• Disaster losses
• Disaster relief payments
• Damages
• Disability coverage
• Accelerated death benefits
• Legal fees
• Appraisal fees

 

14) Your Job

Reading Assignment: Chapter 14<<>>Review Questions: # 84-89

The learning objectives for this lesson are to gain an understanding of:

 

• Making work pay credit
• Job-hunting expenses
• Dues to unions and professional associations
• Work clothes and uniforms
• Subscriptions to professional journals and newsletters
• Work tools and equipment
• Miscellaneous job-related expenses
• Home office deduction
• Prizes and awards
• Performing artists
• State and local government officials paid on a fee basis
• Repayment of supplemental unemployment benefits

 

15) Your Business

Reading Assignment: Chapter 15<<>>Review Questions: # 90-96

The learning objectives for this lesson are to gain an understanding of:

 

• Start-up costs
• Equipment purchases
• Payment for services
• Supplies
• Gifts
• Hobby losses
• Self-employment tax deduction
• Home office deduction
• Farming-related breaks
• Domestic production activities deduction
• Other business deductions
• Other business credits
• Net operating losses

 

16) Miscellaneous Items

Reading Assignment: Chapter 16<<>>Review Questions: # 97-100

The learning objectives for this lesson are to gain an understanding of:

 

• State and local income taxes
• State and local sales taxes
• Certain federal taxes
• Tax refunds
• Tax preparation costs
• Tax audit
• Legal fees
• Gifts you receive
• Inheritances
• Life insurance proceeds
• Estate tax deduction on income in respect of a decedent
• Rebates and discounts
• Government benefits
• Alternative minimum tax