Table of Contents

Chapter 1 - 2016/2015 Easy Update & Inflation Adjustments – Section 1

Individual

Income Tax Rates - §1

Marriage Penalty

Same-Sex Marriage

Innocent Spouse Relief - §6015(f)

Standard Deduction - §63

Dependent Limit - §63(c)(5)

Personal Exemptions & Phaseout (Expired & Reinstated) - §151

Limitation on Itemized Deductions (Expired & Reinstated) - §68

Kiddie Tax - §1(g)

AMT Exemption for Children - §59(j)

Election to Report Child’s Income on Parent’s Return - §1(g)(7)

AMT - §55

Exemption Amounts & Permanent “Patch” - §55(d)(1)

AMT Exemption Phaseout - §55(d) & §59(j)

AMT & Personal Credits

Sales Tax Deduction for Qualified Vehicles (Expired) - §164

Wage Base for Social Security & Medicare Taxes

“Making Work Pay” Credit (Expired) - §36A

Earned Income Tax Credit - §32

Disqualified Income

Means-Tested Programs

Child Tax Credit - §24

Earned Income

AGI Phaseout

Child & Dependent Care Expenses Tax Credit - §21

State & Local General Sales Taxes - §164

Educator Expenses - §62

Higher Education Tuition Deduction - §222

Dollar Limitation & Phase Out

Tuition Deduction Or Education Credit Allowed

Hope/Lifetime Election If Lower Tax

Long-Term Capital Gains & Dividends - §1(h)

Tax on Net Investment Income - §1411

Final Regulations – TD 9644

Reduced Home Sale Exclusion - §121

Computation

Nonqualified Use

Post-May 6, 1997 Depreciation

Surviving Spouse Home Sale Exclusion - §121

Residential Mortgage Debt Relief – §108

Deductible Mortgage Insurance Premiums - §163

Phaseout

Insubstantial Charitable Benefits

Household Employees - §3121

Adoption Credit - §23 & §137

Chapter 1 - 2016/2015 Easy Update & Inflation Adjustments – Section 2

Coverdell Education Savings Accounts - §530

Hope & Lifetime Learning Credits - §25A

Lifetime Learning Credit

Phase Out

Hope (with American Opportunity modifications) Credit - §25A(b)(1)

Phase Out

Refundable

Educational Savings Bonds - §135

Student Loan Interest Deduction - §221

Phase Out

Scholarships with Service Requirements - §117

Qualified Tuition Programs - §529

Higher Education Expenses

Contributions To Qualified Tuition Programs

PATH Act Modifications

Foreign Earned Income Exclusion - §911

Conservation Base Expansion - §170(b)

Definitions

Grandfathered Archer Medical Savings Accounts - §220

Medical Expense Deduction - §213

Health Savings Accounts (HSAs) - §223

High Deductible Health Plan (HDHP)

Annual Limit On Contributions

Interaction with Obamacare

Health Coverage Tax Credit (Expired) - §35(a)

Long-Term Care Premiums - §213(d)(10)

Long-Term Care Payments - §7702B(d)(4)

ABLE Accounts - §529A

Qualified ABLE Program

Contributions

Distributions

Rollover

PATH Act Modification

Affordable Care Act (Obamacare)

Supreme Court Upholds Heath Care Act

Mandates

Individual

Health Plan Coverage Credit - §36B

Employers

Small Employers - Fewer Than 50 Employees

Large Employers - 50 or More Full-time Employees

Employer Excise Tax Penalty - §4980H

Large Employer Mandate Regulations

Marketplaces & The Protecting Affordable Coverage for Employees Act

Suspension Of Medical Device Excise Tax

Energy

Credit for Energy New Efficient Home - §45L

Energy Efficient Appliance Credit (Expired) - §45M

Residential Energy-Efficient Improvements & Property - §25C

Qualified Energy Efficiency Improvements

Qualified Energy Efficient Property

PATH Act Extension

Personal Solar Property - §25D

Energy-efficient Commercial Property Expenditures - §179D

Renewable Energy Production Tax Credit - §45 & §48

Investment Credit in lieu of Production Credit - §45 & §48

PATH Act Extension

Credit For Fuel Cell Vehicles - §30B

Alternative Fuel Vehicle Refueling Property - §30C

Plug-In Electric Drive Motor Vehicle Credit - §30

Plug-in Electric Motorcycles & 3-Wheeled Electric Vehicles - §30D(g)

Advanced Energy Investment Credit - §48C

Business

Expenses for Child Care Facilities & Services - §45F

Uniformed Services Wage Credit - §45P

Health Care Coverage

Credit - §45R

Reporting - §6051(a)(14)

Bonus (or Additional First-year) Depreciation - §168(k)

Initial 50% Additional First-year Depreciation

Temporary 100% Additional First-year Depreciation

Back to 50% Additional First-year Depreciation

PATH Act Extensions & Modifications

Qualified Property - §168(k)(2)

Depreciation Limits on Business Vehicles - §168(k)(2)(F)

Nonqualified Property - §168(k)(2)

Home Office Square Footage Safe Harbor - §280A

Vehicle Depreciation “Caps” - §280F(a)

Expensing - §179

Chapter 1 - 2016/2015 Easy Update & Inflation Adjustments – Section 3

Special Film & TV Production Expensing - §181

Reporting Rental Property Expenses (Repealed) - §6041

Reporting Business Expense Payments (Repealed) - §6041

Estimated Tax Payments - §6654

Temporary 90% Limit (Expired)

Standard Mileage Rates

Self-Employment Tax & CRP Payments - §1402

Final Repair Regulations - §162

Health Insurance Deduction in Computing SE - §162

General Business Credit - §38

Five-Year Carryback of Business Credits (Expired) - §38(b)

AMT Exemption for Business Credit - §38(c)(4)

Social Security, Medicare & FUTA (or Payroll) Taxes

FICA - §3111 & §3121

Temporary Employee OASDI Cut

SECA - §1401

Temporary Sole Employer OASDI Cut

Wage Base

Additional Hospital Insurance Tax On Certain High-Income Individuals

Final Regulations – TD 9645

FUTA - §3301 & §3306

Credit for Retention of Newly Hired (Expired) - §38(b)

Research Tax Credit - §41

Incremental

Alternative Simplified Credit

Relation to §174

Qualified Expenses

Low-Income Housing Tax Credit - §42

Rate Freeze

Basis Amount

Military Allowances & Low-Income Housing - §42(h) & §142(d)

Employer-Provided Educational Assistance - §127

Parking Exclusion & Passes - §132

Bicycle Commuters Fringe Benefit - §132(f)

Cents-per-Mile Valuation Method - §61

Travel Per Diem Rates

Work Opportunity Tax Credit (WOTC) - §51

Targeted Groups

Credit Amount

Special Long-Term Family Assistance Recipients Calculation

Special Veterans Calculation as a Result of “VOW”

Leasehold Improvement, Retail Improvement & Restaurant Property - §168

Qualified 15-Year Leasehold Improvement Property - §168(e)(3)(E)(iv)

Qualified Leasehold Improvement Property

Subsequent Owner

Qualified 15-Year Retail Improvement Property - §168(e)(E)(ix)

Qualified Retail Improvement Property

15-Year Restaurant Improvement Property - §168(e)(3)(E)(v)

Qualified Restaurant Property

Expensing & Bonus Depreciation Permitted

Expensing - §179

Bonus Depreciation - 168

Recapture Considerations - §1245 & §1250

Enhanced Charitable Deduction for Food - §170

Enhanced Charitable Deduction for Books (Expired) - §170

Corporate Donation of Computer Equipment (Expired) - §170

Delay of Certain Cancellation of Debt Income (Expired) - §61

Qualified Small Business Capital Gains - §1202

75% Exclusion - February 17, 2009 to September 27, 2010

100% Exclusion - September 27, 2010, to Present

Domestic Production Activities Deduction - §199

New Markets Tax Credit - §45D

Qualified Equity Investment

Qualified Low-Income Community Investments

Qualified CDE

Credit Amount

Motorsports Entertainment Complexes - §168

Imputed Interest Small Transaction Exception - §1274

S Corporation Built-In Gain Period - §1374

S Corporation Charitable Contributions - §1367

Payments To Controlling Exempt Organizations - §512(b)

Dividends Of Regulated Investment Companies (RIC's) - §871

Retirement Plans

Defined Benefit Plans - §415(b)(1)(A)

Defined Contribution Plans - § 415(c)(1)(A)

Compensation Limit - §401, §404 & §408

IRA Contribution Limit - §219

IRA AGI Phaseout Limits - §219

Individual is an Active Plan Participant

Spouse is an Active Plan Participant

Charitable Distributions from IRAs - §408

Roth Contribution Limit - §408A(c)(2) & §219

Roth AGI Phaseout Limits - §408A(c)(3)

Rollovers to Roth IRAs

In-Plan Rollovers to Roth Accounts

Roth IRA Conversions for Retirement Plans

Designated Roth Accounts for §457 Plans

my Retirement Account (myRA) - §408A

§401(k), §403(b) & §457 Elective Deferral Limit

SIMPLE Plans

Simplified Employee Pensions (SEPs)

Contribution Limit

Compensation Limit

Retirement Savings (Saver’s) Credit - §25B

Nonspouse Rollovers - §402

Estate, GST & Gift Taxes - §2001, §2601 & §2501

Estate Tax - §2001

Repeal & Reinstatement of Estate & GST Taxes

Applicable Exemption Amount - §2010

Basis of Inherited Property - §1014

2010 Special Election

Portability - §2010(c))

State Death Tax Credit Replaced with Deduction - §2058

Real Property Valuation - §2032A

Interest on Estate Tax Installments - §6166 & §6601

Estate & Trust Income Tax Rates - §1(e)

GST Tax - §2601

Rates

Applicable Exemption Amount - §2010

Gift Tax - §2501

Reunification of Estate & Gift Taxes

Applicable Exemption Amount - §2505

Annual Exclusion for Gifts - §2503

Noncitizen Spouse Exclusion - §2523(i)(1)

Notice of Large Gifts Received from Foreign Persons - §6039F

Answers & Explanations………………………………………………………………………………….84

Glossary……………………………………………………………………………………………………93

Index of Keywords & Phrases……………………………………………………………………………..a

Exam Score Sheet…………………………………………………………………………………………..d

CPE Exam…………………………………………………………………………………………………..e