IS: Vacation Homes & Home Office Deduction (472)

General Description:

The Individual Series of classes is designed for tax return preparers and new tax professionals. Participants will acquire an understanding of the underlying authority for, and possible complexity of, seemingly ­simple tax questions, and how that authority ties into tax software programs and preparation of the tax return for an individual. This course specifically addresses the deductions available to taxpayers related to home office and vacation home expenses.

Learning Objectives:

After completing this course the participant will be able to:

• Determine when a client qualifies for the home office deduction.
• Calculate the home office deduction using the simplified method of Rev. Proc. 2013-13.
• Describe the tax benefits available to those who qualify for the home office deduction.
• Determine when travel expenses are deductible, including commuting expenses.
• Determine the tax effect of selling the principal residence after taking the home office deduction, including like-kind exchanges.
• Summarize the vacation home rules of §280A and describe the tax benefit of increasing ­personal use after the Tax Cuts and Jobs Act.
• Define the term "residence" and describe when interest on debt incurred to purchase the ­vacation home is deductible.
• Define personal use of a vacation home.
• Differentiate between the Bolton and regulations methods for allocating expenses.
• Apply the passive activity loss rules to vacation homes, including for a client who is a real estate professional.
• Determine the tax effect of selling a vacation home, including the current status of like-kind exchanges.
• File Form 8829.
• Describe the problems encountered in leasing home office to a C corporation, S corporation, or tax ­partnership and how to avoid these problems.

Instructors:

Mark A. Vogel is a retired professor and director of the University of Denver Graduate Tax Program, where for 38 years he taught courses in individual, fiduciary, tax accounting, partnership, and corporate taxation. He is the author of Divorce Taxation Guide (John Wiley & Sons) and Individual Taxation (Shepards/McGraw-Hill). He received a J.D. and LL.M. in Taxation from the University of Denver College of Law and an undergraduate accounting degree from the University of Notre Dame. He is also a CPA licensed in Illinois.

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