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2E2. Sole-Proprietorships Substantiation Issues

Course Price: N/A
CPE Credits
May 28, 2021
Course Time
10:00 AM
Advanced Preparation
None, but recommend NSTP's Webinar on Sole-Proprietorship Formation and Operation
Course Level
Knowledge of Federal Tax law
Paul La Monaca CPA, MST

Course Description

  • It discusses the reporting requirements for filing the Schedule C with IRS Form 1040 as well as what is an allowable deduction under the §162 Ordinary and Necessary business expense requirements.

  • It provides suggested Research Materials for preparing the Schedule C, including specific IRS Publications and Rulings as well as various Internal Revenue Code Sections.

  • It discusses why the Tax Professional should understand the audit issues surrounding the Schedule C and the easy "audit targets" that the IRS auditor is sure to be reviewing.

  • It gives the Tax Professional the general rules surrounding the deductibility of ordinary and necessary business expenses and the separate specific limitations of expenses that are limited or not deductible at all, under a different section of the law.

  • This course will provide specific data discussing the activities of a business versus a Hobby.

  • The course is important for determining the critical issue of "placed-in-service" dates for fixed assets being deductible and determining that they are deducted in the proper tax year.

  • In addition, the presentation provides the proper understanding of the issues related to the disposition of a fixed asset as to the proper period in which the remaining adjusted basis is allowed to be written off if discarded, as well as the §1245 recaptured depreciation when the fixed asset is sold in a taxable event or converted to personal use by the sole-proprietor.

  • The course is important in that it guides the Tax Professional in learning how to audit proof their clients' deductions, especially in the area of related party transactions.

  • IRS: Federal Tax Law Topics 1 CPE
  • CTEC: Tax Law 1 CPE
  • NASBA: Taxes 1 CPE

Learning Objectives

At the conclusion of this session, the Tax Professional will be able to better guide their Schedule C clients on how to properly substantiate their business expense deductions and recognize revenue in the proper tax year. In addition, they will be able to provide more knowledge on how to succeed in an IRS audit.

Administration Policies: NSTP follows strict administrative policies
Late Registration
  • Registrations must be received no later than 7 days prior to the seminar date.
  • Registrations received after this date will be subject to a $35 late fee.
  • NSTP provides refunds to registrants up to 7 days prior to the date of the course. For those registrants canceling within 14 days prior to the date of the course NSTP will allow attendance at another seminar site. If there are extraordinary circumstances NSTP will allow the participant to attend a future education course. An administrative charge of $25 will be assessed if canceled. For more information regarding refund, cancellation and complaint policies, please contact our offices at 800-367-8130
  • NSTP reserves the right to cancel any program or course for circumstances that are not under direct control of NSTP. If a course or program is canceled, participants will be refunded 100% of their registration fee.
  • We do not accept walk-in attendees. Payment must be received in advance of the class. Classes may not be retaken without payment.
  • Seminar materials and seminar presentations are intended to stimulate thought and discussion and to provide attendees the useful ideas and guidance in the areas of federal taxation and administration. These materials as well as the comments of the instructors do not constitute and should not be treated as tax advice regarding the use of any particular tax procedure, tax planning technique or device or suggestion or any of the tax consequences associated with them.
  • Although the NSTP has made every effort to ensure the accuracy of the materials and the seminar presentation, neither the author, the presenter nor the National Society of Tax Professionals assumes any responsibility for any individual's reliance on the written or oral information presented during the presentation. Each attendee should verify independently all statements made in the materials and during the seminar presentation before applying them to a particular fact pattern and should determine independently the tax and other consequences of using any particular device, technique or suggestion before recommending the same to a client or implementing the same on a client's or on his or her own behalf.
Attendance Policy
  • Only paid registrants are able to attend seminars. In consideration of your fellow attendees, guests will need to depart before the session begins. The seminar lunch is for paid registrants only and is included in the registration fee.