Wiley CPAexcel Exam Review 2014 Study Guide, Regulation

Module 35: Individual Taxation

Overview

This module covers the area of individual taxation in the same order in which topics appear in the individual tax formula. The module begins with exclusions and progresses to items to be included in gross income, tax accounting periods and methods, business income and deductions including depreciation, and deductions subtracted from gross income to arrive at adjusted gross income. Next reviewed is the standard deduction as well as the various categories of itemized deductions, together with personal and dependency exemptions, all of which are subtracted from adjusted gross income to arrive at taxable income. This is followed by a review of filing status, alternative minimum tax, and the various tax credits for which an individual might be eligible. The module concludes with an overview of farming income and expenses, tax procedures including assessments and claims for refund, choice of courts, and taxpayer penalties.

I. Gross Income on Individual Returns

A. In General

B. Exclusions from Gross Income

C. Items to Be Included in Gross Income

D. Accounting Periods

E. Tax Accounting Methods

F. Business Income and Deductions

G. Depreciation, Depletion, and Amortization

H. Domestic Production Activities Deduction

(DPAD)

II. “Above the Line” Deductions

A. Reimbursed Employee Business Expenses

B. Expenses Attributable to Property

C. Self-Employment Tax

D. Self-Employed Medical Insurance

Deduction

E. Moving Expenses

F. Contributions to Certain Retirement ...