Schedule D in the Real World All audio is streamed through your computer speakers. There were several attendance verification questions presented during the LIVE webinar to qualify for CPE of the LIVE event only. For the archived/recorded version of this webinar, the link at the end of this presentation will be to final exam on the topics and learning objectives covered during this webinar plus there are also 3 online review questions to answer per hour.

Schedule D in the Real World 2 Presented by: Kathy Hettick, EA, ABA, ATP, RTRP Gene Bell, EA, ATA, CFP®, RTRP National Society of Accountants 1010 N. Fairfax Street Alexandria, VA

Learning Objectives Upon completion of this webinar you will be able to: Identify the basics of capital asset sales and the 2011 reporting requirement changes as they relate to Schedule D and the new Form Describe schedule D hot issues including form 8949, covered vs. not covered, basis and adjustment codes. Identify basis issues to get it right when the form is wrong. Determine who has the burden of proof. Correct the Form 1099-B when it is wrong. Read Form 1099-B. Ask the right questions. Be confident when you file Schedule D and Form 8949 in the real world of your practice.

Schedule D Hot Issues! Form 8949 Covered vs. Non Covered Basis, Basis & more Basis Adjustment Codes 4

Schedule D Just a summary form now –Other forms flow to Schedule D Unlike the Schedule E –The devil is in the details! More on that in our Schedule E webinar October 22,

Why do we have a Schedule D? Tax Code Complexities Capital Gains Tax Rates Netting Rules Tax Computation Worksheet 6

What is a Capital Asset? IRC§1221 –List of assets that will never be capital assets –Congress never defined the term U.S. Supreme Court Workable Distinction – Malat v. Riddell, 383 U.S. 569 (1966) 7

Practice Management Tip Have a Process Have Procedures Do your Due Diligence Ask the Right Questions 8

New Form 8949 Why do we need it? The 2011 Changes Required Basis Reporting Separate Pages to Report Short Term & Long Term IRS Matching Program Covered vs. Non Covered 9

Basis Issues Form 1099 B How Do I Read It Got It Didn’t Get It Correcting It 11

12

Basis Issues Getting it Right when the form is WRONG! Adjustment Codes –How do I use them –When do I use them –Where do I put them –Will they cause IRS correspondence Asking the right questions to get the right answers 13

15 Basis Issues Burden of Proof! WHO?? –Preparers Asking the right questions –Clients Documents for supporting basis –Brokers Communicating changes

Carry What? Where? Reportable or Non Reportable Losses Carryover of Losses Carryback of Losses Prior Year Due Diligence Corporation vs vs

Forms Summarized on Schedule D Form 4797 Business Assets Form 6252 Installment Sales Form 8824 Like-Kind Exchanges 17

Forms Summarized on Schedule D Form K-1 Partnerships, S Corps, Estates, Trusts Form 1099-DIV Capital Gain Distributions

Who’s Doing the Return? Preparers Beware Software Input \ Tax Return Output Check the Result of Your Input Did It Show Up Where Expected Be Diligent 19

Review Questions for Self Study CPE: Now’s the time to answer the review questions 1-3. Click here: *Once all questions are complete submit and close quiz window.

Practice Management Tip Ask yourself, have you; Been Reasonable Been Prudent Been Ethical Asked the Right Questions 21

Upcoming Webinars presented by Kathy Hettick & Gene Bell October 22 nd : Schedule E in the Real World November 14 th : Self-Rental Tax Traps-Are you in Danger? Are Your Clients?

Thank you for participating in this webinar. Below is the link to the online survey and CPE quiz: Use your password for this webinar that is in your confirmation. You must complete this survey and the quiz or final exam (for the recorded version) to qualify to receive CPE credit. National Society of Accountants 1010 North Fairfax Street Alexandria, VA Phone: (800)