Upon successful completion of this course, participants will be able to: Chapter 1 Determine what constitutes "interest" specifying its key components Identify whether the various types of interest are tax deductible or nondeductible Recognize how to deduct interest that is paid or accrued during the tax year applying different methods of accounting Specify the applicable federal rate Recognize the effects of unstated interest on transactions Cite the imputed interest rules in the context of debt instruments Chapter 2 Identify the interest allocation rules and the allocation period for a loan Recognize the difference between an allocation of loan proceeds that are deposited in an account and the allocation of loan proceeds received in cash Cite loan repayments in the order they are deemed repaid Chapter 3 Determine when certain distributions commonly referred to as "dividends" are actually interest and the tax treatment of interest that is earned on such items as income on frozen deposits and U.S. Savings Bonds Chapter 4 Recognize an installment sale transaction Determine what constitutes the installment method Specify the parts of each payment on an installment sale Cite the related party sales rules of Section 453 Chapter 5 Identify exceptions to the general income inclusion rule and their effect on a taxpayer Determine the different effects of nonrecourse indebtedness from the effects of recourse indebtedness on foreclosure Chapter 6 Specify bad debt categories specifying the impact of nonbusiness bad debt recovery Identify when a business deducts its bad debts from gross income Recognize which accounting method to apply to business bad debts

Deductible Interest and Debt Allocation of Deductible Interest Taxable Interest Installment Sales Debt Cancellation and Foreclosure Bad Debts