Lesson 1Structure of Federal Corporate Tax Rates, Tax Calculation Process, and Estimated Tax PaymentsThis lesson details the uniform federal corporate tax rate, methods to derive taxable income from accounting income, application of credits, and determination of tax liability, followed by discussions on safe harbours for estimated taxes, 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 refundsSafe harbours and thresholds for estimated taxesDue dates for quarterly estimated paymentsLesson 2Mechanics of Estimated Tax Payments and Penalties for C-Corporations (Form 1120 Timing and Filings)This lesson examines how C-corporations calculate and remit estimated taxes, deadlines for Form 1120 submissions, extension provisions, and computations 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 on underpayment penalties and interestOptions for avoiding penalties and seeking reliefLesson 3Tax Treatment of Grants and Other Government Assistance (Gross Income vs. Exclusion Possibilities)This lesson reviews the tax implications of grants, forgivable loans, and various government incentives, differentiating between taxable income and exclusions, recognition timing, and disclosure needs 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 in disclosure and information reportingLesson 4Ordinary and Necessary Business Deductions with Documentation RequirementsThis lesson discusses what constitutes an ordinary and necessary business expense under Section 162, standards for documentation, substantiation for travel, meals, and home office use, and strategies to prepare audit-proof records supporting 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 DefinitionsThis lesson outlines eligibility for bonus depreciation, yearly applicable percentages, 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 IssuesThis lesson explains tax regulations 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 in tax accountingElections for deferral of advance paymentsSaaS subscriptions and multi-year contractsAllocating revenue in bundled arrangementsDeferred revenue and timing issues in taxModifications and renewals of contractsLesson 7Section 179 Expensing Rules and Limitations: Eligibility and Interaction with Bonus DepreciationThis lesson covers eligibility for Section 179 expensing, dollar limits, phase-outs, property types, and interactions with bonus depreciation and MACRS, including ordering rules and planning approaches.
Types of eligible property under 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 MethodsThis lesson explores eligibility for federal R&D credits, definitions of qualified research expenses, handling of wages and supplies, documentation requirements, and calculation approaches, including regular and alternative simplified methods for C-corporations.
Four-part test for qualified researchIdentifying and tracking QRE wagesSupplies, contract research, and softwareRegular credit versus alternative simplified methodDocumentation required at project levelInteraction with Section 174 capitalisationLesson 9Taxable Income vs. Financial Accounting Income: Permanent and Temporary DifferencesThis lesson clarifies why taxable income varies from GAAP income, addressing permanent differences such as fines and tax-exempt interest, temporary differences due to timing, and the creation of deferred tax assets and liabilities.
Examples of common permanent differencesTemporary differences and timing shiftsBasics of deferred tax assets and liabilitiesValuation allowances and realisabilityReconciliations via Schedule M-1 and M-3Impact on effective tax rate reportingLesson 10Federal Payroll Tax Obligations, FICA/FUTA Employer Responsibilities, and Reporting (Forms 941, 940, W-2)This lesson outlines federal payroll tax duties for employers, covering FICA and FUTA bases and rates, deposit schedules, and proper 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 Form 941 reportingAnnual FUTA reconciliation on Form 940Preparation and corrections for Form W-2Lesson 11Net Operating Losses (NOLs), Carrybacks/Forwards, and Limitations (Section 172/IRC Changes)This lesson reviews net operating loss rules for C-corporations, incorporating post-TCJA and CARES Act modifications, carryforward durations, the 80% limitation, and effects on estimated taxes, modelling, and financial disclosures.
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 Amortisation Basics: MACRS, Useful Lives, and Half-Year ConventionThis lesson introduces tax depreciation and amortisation, focusing on MACRS categories, 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 systemTax amortisation of Section 197 intangiblesDifferences between book and tax depreciationFixed asset registers and documentation
