Study guide-1001 Deductions & Tax Breaks
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