Table of Contents

Course Learning Objectives v

Description / Introduction to the Course v

Chapter 1 - TCJA Provisions Affecting Tax Preparation. 8

Chapter Learning Objectives 8

Introduction. 8

New Individual and Capital Gains Tax Rates 8

Standard Deduction Increased and Filing Requirements Changed. 10

Standard Deduction for Dependents 10

Standard Deduction for Blind and Senior Taxpayers 10

Standard Deduction Eligibility. 10

Federal Income Tax Return Filing Requirements 11

Personal Exemption Temporarily Reduced to Zero. 11

Alimony. 11

Moving Expense Deduction & Reimbursement 12

Moving Expenses in Military Relocations 12

Itemized Deductions Schedule A. 12

Medical Expense AGI Threshold. 12

State and Local Tax Deductions 13

Home Mortgage Interest Deduction. 13

Exception for Binding Contracts 14

Indebtedness Refinancing. 14

Charitable Contributions 14

60% AGI Limit for Cash Contributions 15

Deduction for Athletic Tickets 15

Exception to Contemporaneous Written Acknowledgement 15

Content and Timing of Contemporaneous Written Acknowledgement 15

Casualty and Theft Loss Deduction. 16

Miscellaneous Itemized Deductions Subject to 2% of AGI Threshold. 16

Itemized Deductions Phase-Out Amounts 16

Enhanced Child Tax Credit 16

Increase in Tax Credit Amount to $2,000. 17

Child Tax Credit Phaseout and Refundable/Nonrefundable Amounts 17

Social Security Number Requirement 17

Partial Child Tax Credit for Other Than Qualifying Child with SSN. 18

Alternative Minimum Tax (AMT) 18

Alternative Minimum Tax Exemption Amount Increased. 18

Summary. 19

Chapter 1 Review Questions 21

Chapter 2 - TCJA Provisions Affecting Individuals 23

Chapter Learning Objectives 23

Introduction. 23

Kiddie Tax Modifications 23

Section 529 (Qualified Savings Plan) Changes 24

ABLE Account Changes 24

Tax-Deferred Account 24

ABLE Account Distributions 24

ABLE Account Contributions 25

TCJA Changes to ABLE Accounts 25

Additional Designated Beneficiary Contributions Permitted. 25

Savers Credit 25

Discharge of Student Loan Indebtedness 26

Affordable Care Act (ACA) Provisions 26

Individual Requirement to Maintain Health Coverage 27

Penalty for Failure to Maintain Health Coverage 27

Penalty Examples 28

Exemptions from Penalty for Failure to Maintain Health Coverage 29

Individual Mandate Penalty  2019 and Later 29

Roth Recharacterization. 29

Changes in Employee Fringe Benefits 29

Real Property Depreciation. 30

Estate and Gift Tax Exclusion. 31

Summary. 31

Chapter 2 Review Questions 33

Chapter 3  Business-Related TCJA Provisions Affecting Individual Taxes 35

Chapter Learning Objectives 35

Introduction. 35

Nature of the 20% Deduction for Qualified Business Income 35

Deduction Eligibility. 36

Pass-Through Deduction for Qualified Trade or Business 36

Pass-Through Business 36

Qualified Trade or Business 37

Exception for Specified Service Trade or Business Based on Taxpayers Income 37

Qualified Business Income 38

Exceptions to Qualified Business Income 39

Combined Qualified Business Income 40

Qualified REIT Dividend. 40

Qualified Publicly Traded Partnership Income 40

Qualified Property. 40

Depreciable Period. 40

W-2 Wage Limitation. 40

Determining W-2 Wages 41

Unmodified Box Method. 41

Modified Box 1 Method. 41

Tracking Wages Method. 41

Calculating the Deduction. 42

Schedule C Provisions 45

Entertainment Expenses 45

Food and Beverage Expenses 45

Section 179 Expense Limits 45

100% Expensing. 46

Qualified Property. 47

Luxury Auto Limits 47

Listed Property Updates 47

Net Operating Loss Changes 48

Summary. 48

Chapter 3 Review Questions 50

Answers to Review Quizzes 52

Glossary. 63

Index. 66

CPE Exam Answer Sheet 67

Final Examination. 69

CPASelfstudy.com Course Evaluation. 76