Timing Rules for Income Tax Compliance and Planning-Part 1 2024

Overview

Master the critical tax accounting method rules and concepts. Timing rules are crucial knowledge for computing taxable income, tax planning and accounting for income tax. Discover favorable methods for small businesses. Learn how to select and adopt a method of accounting. Plus, review method versus error, timing rules for income and expenses, and inventory accounting. Examples and exercises are used throughout the course to illustrate relevant Internal Revenue Code, regulations, IRS rulings and court cases. Tax planning ideas and the relevance of tax timing rules to the income tax provision for financial accounting are covered. Formerly titled: Tax Accounting Methods. Be sure to register for both courses in this series: Timing Rules for Income Tax Compliance and Planning-Part 1 Timing Rules for Income Tax Compliance and Planning-Part 2

Highlights

• What is a method of accounting, and why is the answer important?
• How to select and adopt a method of accounting
• When can income be reported for both cash and accrual method businesses?
• When are expenses to be reported for cash and accrual method businesses?
• How and when to account for inventory
• How and when to change a method of accounting
• Avoiding accounting method problems
• California-Federal timing differences
• Relevance of timing rules to the income tax provision for financial reporting

Prerequisites

None

Designed For

CPAs, attorneys and tax professionals.

Objectives

• Understand the importance of tax accounting methods in financial reporting, tax compliance and planning
• Understand how to identify "small businesses" including the application of the rules on tax shelters and aggregation of gross receipts, and the favorable methods available to small businesses
• Determine when both cash and accrual method taxpayers report income and claim deductions, and add amounts to basis of assets
• Distinguish between method changes, changes in facts and errors; learn how to make a method change
• Understand the special rules for inventory
• Identify when interest capitalization and long-term contract accounting may apply
• Identify accounting method differences between federal and California and how to manage them

Preparation

None

Notice

This course is offered by a 3rd party vendor. Login instructions will not be accessible in the My CPE Tracker section of the ISCPA website. Login instructions will be emailed directly to you by California Education Foundation (CalCPA).