Video instructions and help with filling out and completing Why Form 8815 Deductions

Instructions and Help about Why Form 8815 Deductions

Oh and welcome to this session this is Professor Farhad and the session would look at adduction from and for AGI AGI stands for adjusted gross income we would also look at standard deduction so we're going to be looking at a concept and a very important term called standard deductions this this lecture will apply to any income tax course if you're studying for the CPA regulation and this applies to the new tax law as well as if you are studying to be in an enrolled agent before we start I would like to remind you that I would like to connect with my viewers which is you I'm very active on LinkedIn I do have a LinkedIn account please connect with me on LinkedIn if you're a Facebook user like my Facebook page or you could connect connect with me personally obviously you want to subscribe to my YouTube channel so this way you can see all my lectures and stay up to date this is what I house all my lectures I do have a Twitter account and obviously you can go to my website where things are organized by chapter so the first thing we're going to look at today is income how do we define income and we're gonna have a whole actually two chapters about this topic two chapters which we're gonna have maybe 10 to 15 different lectures but when we say income it includes all tax payer income both taxable and non-taxable think about income from a tax perspective as gross receipts from a business okay it does not include though any return of capital now return of capital and AC return of capital I say Roc return of capital assets that when you make an investment and someone is giving you back your money that's not considered income just to give giving you back your money return of capital capital is money or receipts or borrowed fund if you lend money to someone and they're giving you back that money that's not income so two things we need to be aware of return of capital is not income and receipts of borrowed funds is not income so later on when we say this is a return of capital well you that's not income therefore it's not taxable okay now once again we're gonna have a whole two chapters about income but for now know this is a partial list of exclusion from gross income exclusion means they are not included in gross income because the way we define gross income let me show you how we defined singham gross income is defined as except as otherwise provided all income from whatever source derived so basically gross income is everything unless it's specifically excluded and this is the list that's ex occluded and don't worry we're going to talk about this list later on in details accident insurance proceeds certain annuities military allowances scholarship grant limited limited to to a limited extent Social Security benefit welfare payments gift received you're going to look at all these issues later on those are excluded from gross income and this is this this is the income that's broadly defined okay just just remember that gross income does not include unrealized gain what is unrealized gain unrealized gain is when something appreciated in value that you haven't sold it yet you bought a house for $300,000 a year later your house is worth 325 now you did not sell the house but you have an increase of twenty five thousand this is an unrealized gain yes you did the the house increase in value but you did not realize it its unrealized gain because you did not sell it that's why it's not realized once you sell it it becomes realized now this is a partial list of gross income basically there shouldn't be a list of gross income because everything is included in gross income unless it's executed but this is a list of the stuff that we have to deal with again we'll look at this later on okay and okay for example here this is an element is no longer taxable but it doesn't matter well we'll look at this later on okay individual taxpayer have two categories of deductions now we're going to get to what we need to know so first we have income so so what we were talking about here earlier is income then from income we are going to have deductions and here's here's what you need to know about taxes in taxes we like deductions we like deductions why because deductions they are they are going to reduce our taxable income the more deductions we have the lower is our taxable income what does that mean if we have lower taxable income well that's going to lead to lower tax the lower taxes so that's why we like deductions we like the duction Zinn in taxes so we have two types of the categories of deductions we're gonna have one type we're gonna call it deduction for AGI or AGI stands for adjusted gross income don't worry what adjusted growth the gross income yet we are going to cover how we get the adjusted gross income this is basically a broad overview think of this as like an overview chapter on overview session about this and adjusted from a deduction from AGI deduction from AGI okay sometimes those are known above the line sometime deductions for AGI is known above the line and you will see why in a moment on the tax payer they are taken before the line on the taxpayer so let me just on the tax payer tax return so let me show you what I mean by this maybe if I show you a picture of it it will make more sense so if this is the tax return and I know I have to 2017 but it will illustrate