Income Tax short course

Earn 16 IRS-approved continuing education credit hours

• 2 ethics hours
• 3 federal tax law update hours
• 11 federal tax law hours
• 1 hour of MNDOR update (not reported to IRS).

Earn 18 Continuing Professional Education (CPE) credits

• 2 ethics hours
• 3 federal tax law update hours
• 11 federal tax law hours
• 1 hour of MNDOR update (not reported to IRS).

Earn 16 Certified Financial Planner (CFP) credits

• 2 ethics hours
• 3 federal tax law update hours
• 11 federal tax law hours

Earn 14 Continuing Legal Education (CLE) hours

• 1.5 ethics hours
• 12.5 standard hours

Ethics

Important issues that help tax practitioners comply with their ethical obligations:

• Beneficial ownership interest reporting and the unauthorized practice of law.
• Due diligence – report of foreign bank and financial accounts (FBAR).
• Due diligence – written information security plan (WISP).
• Practice continuation – planning for retirement, disability or death.
• Ten case studies that illustrate real-life ethical scenarios.

Trusts and estates

Tax consequences when a debt owed by a decedent is canceled and the tax implications of the cancellation of a debt owed to the decedent.

• Review when a taxpayer can get an income tax charitable contribution deduction or an estate tax charitable deduction for certain contributions, not in trust, of partial interests in a property.

• Planning techniques for the use of the increased basic exclusion amount before it sunsets in 2026.

• “Grantor trust” rules with sample language to determine if a trust is a grantor trust.

• How to determine the basis of property passing to a surviving joint owner when the jointly owned property is included in the gross estate.

• Explore a recent case that created a split in the circuit courts regarding when life insurance proceeds used to redeem a deceased owner’s interest are included in valuing the deceased owner’s interest in the company.

Related party issues

Related party rules frequently affect the timing or character of income or deductions and sometimes disallow a loss or deduction entirely.

• I.R.C. § 267 loss limits/income matching.
• Transactions between related persons and partnerships.
• Disallowance of the I.R.C.§ 179 deduction and bonus depreciation on property acquired from a related party.
• Ordinary income treatment of related party gain from the sale or exchange of depreciable property.
• Like-kind exchanges with a related party.
• Related party installment sales.

Limited Liability Company issues

• Default entity classifications, and how an entity can elect to change its default entity classification.

• How a change in LLC ownership may cause a change in its default entity classification and the tax consequences of a change in classification.

• Tax issues for an LLC owned by spouses.

• The impact of LLC owner compensation on the QBI deduction and the section 179 deduction.

• Review a recent Tax Court case that applies a functional analysis to determine if a partner is a limited partner whose distributive share of partnership income may not be subject to self-employment tax.

Business entity tax issues

Current issues for business entities, including beneficial ownership interest reporting and the pass-through entity tax deduction, and the tax benefit rule.

• How a tax practitioner can help a nonprofit organization maintain its tax-exempt status.

• New guidance that allows an I.R.C. § 501(c)(3) organization to change to another exempt entity type.

• An overview of the centralized partnership audit regime, focusing on how a partnership decides if it should elect out of that regime.

IRS issues

Key IRS issues for practitioners, including:

• When tax liens attach.
• Record retention requirements.
• IRS online accounts.
• E-filing requirements and exceptions.
• Taxpayer Advocate Service.
• IRS Stakeholder Liaison.
• Tax scams.

Business tax issues

Review the deduction for certain interest on indebtedness contingent on a future event, and the tax impact of conditions that arise after the sale.

• How to calculate the gain on a contingent payment installment sale, where the sale price has not been fixed in the year of the sale.

• What constitutes a business bad debt and the timing and amount of the deduction.

• When fringe benefits are available to small business owners on a tax-favored basis.

  • Eligibility for up to a $150,000 credit for employer-provided child care.

  • The business meal and entertainment expense deduction, including several important exceptions to deduction limits.

• How a marijuana business reports its income and expenses.

Rental activities

Information essential for a tax practitioner who prepares tax returns claiming income and expenses from rental activities, including:

• Residential real estate rentals.
• Passive activity loss limits.
• Self-employment tax on rental activities.
• Repairs/capital expenditures.
• Reporting rental activities on Schedule E (Form 1040).

Agricultural and natural resource tax issues

Current issues for tax practitioners preparing returns for farmers and ranchers, including:

• Breweries, distilleries, and wineries, inventory and capitalization.
• Vines, fruit trees, UNICAP, bonus depreciation.
• Oil and gas depletion.
• Farm and ranch tax elections.
• Easements.
• Qualified conservation easement contributions.

Individual tax issues

Current issues for tax practitioners preparing individual income tax returns, including:

• Clean vehicle credits.
• Energy credits.
• Digital assets.
• Due diligence for head of household filing status, earned income tax credit, and other credits.
• Cancellation of debt.
• Health savings accounts.
• Section 529 qualified tuition programs.

International tax issues

Common tax issues for U.S. taxpayers with income or assets abroad and non-U.S. taxpayers with income or assets in the U.S.

• The requirements to withhold tax under the Foreign Investment in Real Property Tax Act.

• When a taxpayer needs an individual taxpayer identification number (ITIN).

• Reporting requirements for gifts or bequests from a foreign person and FBAR filing requirements.

• How to prepare Form 1040-NR, U.S. Nonresident Alien Income Tax Return, focusing on the different reporting requirements that apply.

New and expiring legislation

Recently enacted tax legislation and procedures organized by subject to help participants quickly find topics of interest. Includes a table of tax provisions that expired or are set to expire.

Rulings and cases

Summaries of selected rulings and cases issued from September 2023 through August 2024. Includes updates on issues currently being addressed by the IRS and the courts.

Tax rates and useful tables

Tax rates, deduction limits, credit limits, and income thresholds and limits that change each year.

Why take a University of Minnesota tax course?

Exceptional value and reputation.

• This is the only statewide course developed and delivered in cooperation with the Internal Revenue Service and the Minnesota Department of Revenue.
• The U of M is an IRS-approved continuing education provider for updated instruction on ethics, federal tax, and federal tax law (provider #XODXH).
• We have 82 years of experience providing income tax information and resources.

What type of continuing education credit will I earn for attending University of Minnesota tax courses?

We have applied for the following continuing education credits for the Income Tax course:

• Internal Revenue Service (IRS): 16 IRS credit hours including 2 ethics hours, 11 federal tax law hours, and 3 federal tax law update hours
• Continuing Professional Education credits (CPE): 18 hours including 2 ethics hours, 11 federal tax law hours, 3 federal tax law updates hours, and a 1-hour MNDOR presentation. The MNDOR hour will not be reported to the IRS.
• Certified Financial Planner (CFP) 1:6 continuing education credits
• Continuing Legal Education (CLE): 14 hours

The University has not been pre-approved as a provider for insurance or real estate credits. However, you may apply for credit through the Minnesota Department of Commerce and approval may be granted.

The University’s tax course is exempt from having a NASBA “provider number.” According to the MN Administrative Rules 3300, the Minnesota Board of Accountancy accepts our courses accepted for CPE credit. Participants should list “University of Minnesota” in the area for the provider number on the application.

CLEs are self-reported and should be reported through the Minnesota State Board of Continuing Legal Education. To find a course, use the course title “University of Minnesota Income Tax Short Course” and enter the start date of your respective course. The sponsor name is University of Minnesota.

Will my continuing education credits be reported to the IRS?

If you are a CPA, enrolled agent, or tax return preparer with a PTIN and would like to have your credits reported, you must provide your PTIN when you register or on-site at the course. After completing the course, your name, PTIN, and the number of credits you received will be reported to the IRS.

Please ensure that you use the same name on your short course registration form as you used to obtain your PTIN or you will not receive credit from the IRS.

How will I receive my certificate?

Your certificate will be emailed, so please register with your correct email address to ensure you receive your certificate after the course. If you would prefer to have your certificate mailed to you, please email a request to taxschool@umn.edu.