Lesson 1Federal corporate tax rate structure, tax calculation workflow, and estimated tax paymentsIt describes the fixed federal corporate tax rate, methods to determine taxable income from accounting income, applying credits, and establishing liability, followed by explanations of estimated tax safe harbours, deadlines, and cash flow strategies for C-corporations.
Overview of the flat 21% federal corporate tax rateComputing taxable income from book incomeApplying credits and other tax reductionsCalculations for annual tax liability and refundsEstimated tax safe harbours and thresholdsDue dates for quarterly estimated paymentsLesson 2Estimated tax payment mechanics and penalties for C-Corporations (Form 1120 timing and filings)It details the process for C-corporations to calculate and make estimated tax payments, deadlines for Form 1120 submissions, rules for extensions, and calculations for underpayment penalties and interest, including methods for instalment income based on annualised figures.
Who is required to pay corporate estimated taxesMethods for calculating quarterly instalmentsAnnualised income and seasonal business considerationsDue dates and extensions for Form 1120Rules for underpayment penalties and interestOptions for avoiding penalties and seeking reliefLesson 3Tax treatment of grants and other government assistance (gross income vs. exclusion possibilities)It examines the tax handling of grants, forgivable loans, and various government incentives, differentiating between taxable income and exclusions, timing for recognition, and disclosure requirements for federal and state initiatives.
Types of grants and incentive programmesInclusion in gross income versus exclusionsForgivable loans and debt cancellationEvents for timing income recognitionBook-tax differences for assistance receivedIssues with disclosure and information reportingLesson 4Ordinary and necessary business deductions with documentation requirementsIt covers what counts as an ordinary and necessary business expense under Section 162, standards for documentation, substantiation for travel, meals, and home office use, and building files ready for audits that justify corporate deductions.
Standard for ordinary and necessary under Section 162Reasonable compensation and related party transactionsSubstantiation for travel, meals, and entertainmentAllocations for home office and mixed-use costsSystems for recordkeeping and digital evidenceAudit risk areas for common deductionsLesson 5Bonus depreciation rules, percentage phases, qualified property definitionsIt explains eligibility for bonus depreciation, percentages applicable each year, definitions of qualified property, phase-down schedules, and interactions with Section 179 and MACRS in corporate tax planning.
Tests for qualified property and placed-in-servicePhase-downs in bonus depreciation percentagesLimits on used property and related partiesCoordination with Section 179 expensingInteraction with standard MACRS methodsStrategic timing for capital investmentsLesson 6Treatment of business receipts: revenue recognition for SaaS and deferred revenue issuesIt clarifies tax rules for recognising business receipts, with emphasis on SaaS and subscription models, advance payments, deferred revenue, and differences between tax methods and GAAP while ensuring compliance and consistency.
Cash versus accrual methods for tax accountingElections for deferral of advance paymentsSaaS subscriptions and multi-year contractsAllocating revenue in bundled arrangementsIssues with deferred revenue and tax timingModifications and renewals of contractsLesson 7Section 179 expensing rules and limitations: eligibility and interaction with bonus depreciationIt addresses eligibility for Section 179 expensing, dollar limits, phase-outs, and property types, then describes interactions with bonus depreciation and regular MACRS, including ordering rules and planning approaches.
Types of property eligible for Section 179Annual dollar limits and phase-out rulesLimitations based on taxable income and carryoversOrdering with bonus and regular MACRSSection 179 for vehicles and listed propertyTrade-offs in planning for small businessesLesson 8R&D tax credits (federal): qualified research expenses (QREs), documentation, calculation methodsIt investigates eligibility for federal R&D credits, defining qualified research expenses, handling of wages and supplies, documentation standards, and calculation methods, including regular and alternative simplified credit options for C-corporations.
Four-part test for qualified researchIdentifying and tracking QRE wagesSupplies, contract research, and software developmentRegular credit versus alternative simplified methodDocumentation required at project levelInteraction with Section 174 capitalisationLesson 9Taxable income vs. financial accounting income: permanent and temporary differencesIt explains reasons why taxable income differs from GAAP income, including permanent differences like fines and tax-exempt interest, temporary differences from timing, and how deferred tax assets and liabilities emerge.
Examples of common permanent differencesTemporary differences and timing shiftsBasics of deferred tax assets and liabilitiesValuation allowances and realisabilityReconciliations using Schedule M-1 and M-3Impact on reporting effective tax rateLesson 10Federal payroll tax obligations, FICA/FUTA employer responsibilities, and reporting (Forms 941, 940, W-2)It summarises federal payroll tax duties for employers, covering FICA and FUTA bases and rates, deposit schedules, and correct completion and reconciliation of Forms 941, 940, and W-2 for corporate staff.
Components of employer and employee FICAFUTA coverage, wage base, and creditsSchedules and methods for payroll tax depositsDetails of quarterly reporting on Form 941Annual FUTA reconciliation on Form 940Preparation and corrections for Form W-2Lesson 11Net operating losses (NOLs), carrybacks/forwards, and limitations (Section 172/IRC changes)It reviews rules for net operating losses in C-corporations, including changes from post-TCJA and CARES Act, carryforward periods, the 80% limitation, and effects on estimated taxes, modelling, and financial statements.
Defining and computing an NOLNOL regimes before and after TCJARules for carryforwards and 80% limitationInteractions with credits and AMT historyNOLs in calculations for estimated taxesImpacts on financial statements and disclosuresLesson 12Depreciation and amortization basics: MACRS, useful lives, and half-year conventionIt introduces tax depreciation and amortisation, focusing on MACRS classes, recovery periods, conventions, and methods, plus amortisation of intangibles and differences from book depreciation.
MACRS property classes and recovery periodsRules for half-year, mid-quarter, and mid-monthGeneral versus alternative depreciation systemsAmortisation of Section 197 intangibles for taxDifferences between book and tax depreciationRegisters for fixed assets and documentation
