Form 1040 Part 3: Property Income

Study Level:  Basic
Delivery Method:  Online self-study
Provider of Record: WebCE
Tax Year: 2018
Field of Study: Taxes
Prerequisite:  None

Course Description:

This course focuses on the tax treatment of transactions related to property owned by a taxpayer. Although such property may take many different forms such as real estate; financial instruments such as stocks, bonds, and mutual funds; motor vehicles, jewelry or collectibles; the course highlights the common principles that apply to handling income received from these sources. These principles are used to calculate the amount of a taxpayer’s gain or loss on a given property transaction as well as how the gain or loss should be treated for tax purposes. The course begins with a discussion of the rules that apply in relation to income and expenses from rental property, and then moves into discussing how to account for the sale of items of property of different types.

Topics include:
  • Rental income and expenses
  • Basis of property
  • Sale of property
  • Sale of a main home

Learning Objectives:

After completing this course students will be able to:
  • identify the general tax treatment of rental income and rental expenses
  • correctly apply the rules governing the tax treatment of rental property used for personal purposes by the taxpayer
  • correctly determine the basis in property acquired through such means as purchase, gift and inheritance
  • correctly calculate the gain or loss on the sale or trade of property
  • apply the general rules governing the tax treatment of gains and losses from investment transactions
  • apply the federal tax rules concerning the exclusion of gain on the sale of a main home to correctly calculate the taxable gain or loss on such sales

Revised: March 2018

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