This mini-course brings the practitioner information on tax issues affecting interest and debt. The various types of interest and their required allocation are explored and reviewed. For the economically troubled client, special attention is devoted to debt cancellation, repossession, discounts, and foreclosure. The program also discusses installment sales, taxable interest, and bad debts.
ASSIGNMENT
At the start of the materials, participants should identify the following topics for study:
* Deductible interest & debt
* Nondeductible interest
* Below-market interest rate loans
* Unstated or imputed interest on sales
* Original issue discount (OID)
* Allocation of deductible interest
* Taxable interest
* Installment sales
* Debt cancellation & foreclosure
* Bad debts
Learning Objectives
After reading the materials, participants will be able to:
1. Determine whether the various types of interest are tax deductible or nondeductible and cite the imputed interest rules in the context of debt instruments.
2. Identify the interest allocation rules and the allocation period for a loan and, recognize the allocation of loan proceeds that are deposited in an account.
3. Determine the tax treatment of interest that is earned on such items as income on frozen deposits and U.S. Savings Bonds.
4. Recognize what constitutes the installment method, specify the parts of each payment on an installment sale, and cite the consequences of pledging installment obligations.
5. Identify exceptions to the general income inclusion rule and specify bad debt categories specifying the impact of nonbusiness bad debt recovery.
To complete this course participants need to: Read the material provided and answer chapter review questions, successfully complete the qualified assessment with a minimum of 70% accuracy to receive your certificate. In Addition, no correct or incorrect feedback for any exam question will be provided.
Upon course completion A course evaluation form is provided for your feedback.
Participants have 1 year from the date of purchase/enrollment to complete this course
CPE Prime is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org