Code Section:
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1221 – defines capital assets (including cryptocurrency, all personal assets). Every asset is capital
unless…)
1231 - real or depreciable business property held for more than one year. Has certain benefits…
(see slides)
162 – ordinary necessary, and reasonable expenses are deductible
7701(o) – transaction must have a business purpose other than tax avoidance (if not you don’t
get the deduction)
482 – gives IRS board power to “distribute, apportion, or allocate income” among businesses to
clearly reflect the income of each (specifically in the context of transfer pricing)
168 – tells us how to depreciate assets  MACRS cost recovery system, BONUS depreciation
199A – permits the QBI deduction
263A – capitalize indirect costs for tax purposes (UNICAP)
179 – fully expensing of certain depreciable personality
1031 – Like Kind Exchange
1033 – Involuntary conversion
351 - corporate formations
61 – everything is taxable unless there is an exception
2441 – form to report child and dependent care expense in order to claim a tax credit
4685 – file a form that gives you an automatic 6 month extension
501(c)(3) – gives IRS the right to review if a corporation is indeed a nonprofit
469 - allows an owner/investor who has more substantial participation in real estate activities to
be considered a real estate professional
1250 - unrecaptured section 1250 gain
469 – defines passive activities
1245 – gain from disposition of certain depreciable proprery
1250 - IRS will tax a gain from the sale of depreciated real property as ordinary income if the
accumulated depreciation exceeds the depreciation calculated with the straight-line method
Tax Forms:
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1040 – individual income tax return
o Schedule A – used to figure out itemized deductions
o Schedule B – interest and dividends
o Schedule C – income/loss from sole proprietorship, deduct interest expense on business
debt
o Schedule D – capital gains, dispositions of business assets
o Schedule E – rental income (front page), flow through income/loss (back page)
o Schedule F – used to report farm income and expenses
o 6251 – individual AMTI (attachment on 1040)
1120 – corporate tax return
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o Schedule M-1: Reconciliation of Income (loss) per books with income per return
o Schedule M-3: for corporations with >=$10m in assets (don’t need to file M1)
o 1120S – income tax return for S corporations
1120X – amended return
o Can be filed to apply unused credits carried back (get a refund from the gov’t)
4797 – dispositions of business assets
4562 – claim deductions for depreciation/amortization
1040-ES – used to figure and pay your estimated tax (income not subject to withholding, (e.g.
not wages) needs to be estimated)
1040-SE—used to report self-employment income
1065 – partnership income tax return  4 of these, 1 each quarter
o Each partner files a K-1 to report their share of earnings
o share of partnership income gets reported on Schedule E (attached to 1040, also reports
any rental income)
K-1 - federal tax document used to report the income, losses, and dividends of a business' or
financial entity's partners or an S corporation's shareholder
1023 – request tax-exempt status for corporations (nonprofit)
2553 – form to file to become an S Corporation (IRS election)
8814 – parent’s file to report children’s income (“kiddie tax”)
7004 – corporations file to get 6 month extension (still have to pay on time but get longer to file
the return)
4868 – extension for individuals to file tax return
8829 – home office deduction (cannot create loss for sole proprietor)
note:
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social security – 6.2%
Medicare – 1.45 %
self-employment – 15.3% (for taxpayers under 140,000)