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 explanations of safe harbours for estimated taxes, due dates, 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 (Timing and Filings for Form 1120)This lesson outlines how C-corporations calculate and make estimated tax payments, deadlines for filing Form 1120, rules for extensions, and computations for underpayment penalties and interest, including methods for instalment payments based on annualised income.
Who is required to pay corporate estimated taxesMethods for calculating quarterly instalmentsAnnualised income and considerations for seasonal businessesDue 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 versus Exclusion Options)This lesson examines the tax implications of grants, forgivable loans, and various government incentives, differentiating between taxable income and exclusions, timing for recognition, and disclosure requirements for federal and state programmes.
Types of grants and incentive programmesInclusion in gross income versus exclusion possibilitiesForgivable 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 RequirementsThis lesson discusses what constitutes an ordinary and necessary business expense under Section 162, standards for documentation, substantiation for travel, meals, and home office expenses, and strategies for creating audit-proof files to support 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 5Rules for Bonus Depreciation, Percentage Phases, and Definitions of Qualified PropertyThis lesson provides details on eligibility for bonus depreciation, applicable percentages 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 Issues with Deferred RevenueThis lesson explains 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 accountingAdvance payments and deferral electionsSaaS subscriptions and multi-year contractsAllocating revenue in bundled arrangementsDeferred revenue and timing issues for 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, and types of property, then explains interactions with bonus depreciation and MACRS, including ordering rules and planning strategies.
Types of property eligible for Section 179Annual dollar limits and phase-out rulesLimitation based on taxable income and carryoversOrdering with bonus and regular MACRSSection 179 for vehicles and listed propertyTrade-offs in planning for small businessesLesson 8Federal R&D Tax Credits: Qualified Research Expenses (QREs), Documentation, and Calculation MethodsThis lesson explores eligibility for federal R&D credits, definitions of qualified research expenses, treatment of wages and supplies, documentation standards, and calculation methods, including regular and alternative simplified credits 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 versus Financial Accounting Income: Permanent and Temporary DifferencesThis lesson 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 are created.
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)This lesson outlines 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 employees.
Components of FICA for employers and employeesFUTA coverage, wage base, and creditsSchedules and methods for payroll tax depositsDetails for quarterly reporting on Form 941Annual FUTA reconciliation on Form 940Preparation and corrections for Form W-2Lesson 11Net Operating Losses (NOLs), Carrybacks/Forwards, and Limitations (Changes under Section 172/IRC)This lesson reviews net operating loss rules for C-corporations, including changes from TCJA and CARES Act, carryforward periods, the 80% limitation, and impacts on estimated taxes, modelling, and financial statements.
Defining and computing an NOLNOL regimes before and after TCJACarryforwards and 80% limitation rulesInteraction with credits and AMT historyNOLs in calculations for estimated taxesImpacts on financial statements and disclosuresLesson 12Basics of Depreciation and Amortisation: MACRS, Useful Lives, and Half-Year ConventionThis lesson introduces depreciation and amortisation for tax purposes, 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 systemTax amortisation of Section 197 intangiblesDifferences between book and tax depreciationRegisters for fixed assets and documentation
