Vermont On-Premise Alcohol Server Training

At the conclusion of this course, you should be able to:

• Describe alcohol use.
• Recognize the effects of alcohol.
• Identify the server's role in the enhancement of public safety.
• Discuss the server's responsibilities and obligations under the law.
• Define blood alcohol concentration and how it is calculated.
• Describe the effects of mixing alcohol with other drugs.
• Recognize impaired individuals.
• Refuse a sale to someone with little conflict.
• Prevent disturbances in the establishment and handle difficult situations.
• Check IDs accurately, and recognize clues for when an individual is using a fake ID.
• Recognize second-party sales.
• Explain the requirements for a permit for outside consumption of alcoholic beverages in Vermont.
• Identify the requirements for serving flights in Vermont.

The answer is zero, because Smith received no boot. Since only the lesser of realized gain or boot received is taxable, Smith will not be required to report any income as a result of this trade.

Using the formula New basis ‘ old basis - boot received + boot paid + recognized gain, then New basis ‘ 440,000 old basis - 0 boot received + $80,000 cows + $10,000 tractor + $30,000 cash - 0 boot recognized, or $560,000.

Jones will also be taxed on the lesser of boot received or realized gain. He has received $120,000 boot (cash, tractor and cows), and has a realized gain of $ 440,000 (600,000 - 160,000 adjusted basis). Since the boot received is less than the realized gain ($120,000 vs. $440,000, only the $120,000 boot received is taxable.

New basis ‘ old basis - boot received + boot paid + recognized gain, or 160,000 old basis - 120,000 boot received + 0 boot paid + 120,000 recognized gain, which works out to be the same as his basis in Blackacre ($160,000).

New basis ‘ old basis - boot received + boot paid + recognized gain, or 160,000 old basis - 120,000 boot received + 0 boot paid + 120,000 recognized gain, which works out to be the same as his basis in Blackacre ($160,000).
Please move on to the next page and review the instructor commentary on this case scenario.

$20,000
(15,000 cash + 5,000 debt relief)

$10,000
(lesser of realized gain (10,000) or boot received (20,000))

$30,000
(new basis ‘ old basis - boot received + boot paid + recognized gain)

Because, under the internal revenue code, all purchases are assumed to be made in the middle of the month. Thus, even for a January 1 purchase, only 11.5 months are permitted for the first year of ownership.

When it is impossible for the not to be prepaid. This would occur if the note contains a lock-in clause which prohibits prepayment.

You can earn $2 per square foot (12-10) x 2,500 square feet, or $5,000 annually. If there are 10 years left on the lease, in essence this means you can earn an annuity of $5,000 per year for the next 10 years. The present value of annuity tables permit the following computation:
annuity amount x pv annuity factor ‘ present value of lump sum 5,000 x 6.144567 ‘ 30,123 (rounded)
Thus, if an investor can earn a 10% return, he would be equally well off under either scenario: (a) receiving $5,000 for 10 years and investing them at 10%, or (b) receiving an up-front payment of $30,723.

Deductions are subtracted from gross income to compute taxable income, and the relevant tax rate schedule is then applied to taxable income in order to compute one’s tax liability. Credits are then subtracted from this tax liability to compute the actual taxes due.

Postpones the payment of taxes until one’s newly-acquired property is sold, which keeps more funds in a taxpayer’s hands for investment. Also, if the newly-acquired property is kept until death, the heirs will receive an initial basis of fair market value, which results in the complete avoidance of income taxes.

Let's look at the following question for the answers.

This can be depreciated, so (500,000 - 60,000) x .036 ‘ 15,840 depreciation per year. The relevant formula becomes:
Adjusted basis ‘ initial basis - depreciation claimed adjusted basis ‘ 500,000 - (15,840 x 4) Adjusted basis ‘ 500,000 - 63,360 adjusted basis ‘ 436,640

Do not forget that income tax rules can and do change over time. Thus, it is critically important that licensees keep up to date and that licensees advise clients to consult with a competent tax adviser prior to entering into any transaction which has tax consequences.

Lesson 1: Introduction
Lesson 2: How Alcohol Affects the Body
Lesson 3: Recognizing Impaired Customers
Lesson 4: Preventing Disturbances
Lesson 5: Minors and Liability
Lesson 6: How to Refuse a Sale
Lesson 7: Vermont Specific Regulations

The answer is zero, because Smith received no boot. Since only the lesser of realized gain or boot received is taxable, Smith will not be required to report any income as a result of this trade.

Using the formula New basis ‘ old basis - boot received + boot paid + recognized gain, then New basis ‘ 440,000 old basis - 0 boot received + $80,000 cows + $10,000 tractor + $30,000 cash - 0 boot recognized, or $560,000.

Jones will also be taxed on the lesser of boot received or realized gain. He has received $120,000 boot (cash, tractor and cows), and has a realized gain of $ 440,000 (600,000 - 160,000 adjusted basis). Since the boot received is less than the realized gain ($120,000 vs. $440,000, only the $120,000 boot received is taxable.

New basis ‘ old basis - boot received + boot paid + recognized gain, or 160,000 old basis - 120,000 boot received + 0 boot paid + 120,000 recognized gain, which works out to be the same as his basis in Blackacre ($160,000).

New basis ‘ old basis - boot received + boot paid + recognized gain, or 160,000 old basis - 120,000 boot received + 0 boot paid + 120,000 recognized gain, which works out to be the same as his basis in Blackacre ($160,000).
Please move on to the next page and review the instructor commentary on this case scenario.

$20,000
(15,000 cash + 5,000 debt relief)

$10,000
(lesser of realized gain (10,000) or boot received (20,000))

$30,000
(new basis ‘ old basis - boot received + boot paid + recognized gain)

Because, under the internal revenue code, all purchases are assumed to be made in the middle of the month. Thus, even for a January 1 purchase, only 11.5 months are permitted for the first year of ownership.

When it is impossible for the not to be prepaid. This would occur if the note contains a lock-in clause which prohibits prepayment.

You can earn $2 per square foot (12-10) x 2,500 square feet, or $5,000 annually. If there are 10 years left on the lease, in essence this means you can earn an annuity of $5,000 per year for the next 10 years. The present value of annuity tables permit the following computation:
annuity amount x pv annuity factor ‘ present value of lump sum 5,000 x 6.144567 ‘ 30,123 (rounded)
Thus, if an investor can earn a 10% return, he would be equally well off under either scenario: (a) receiving $5,000 for 10 years and investing them at 10%, or (b) receiving an up-front payment of $30,723.

Deductions are subtracted from gross income to compute taxable income, and the relevant tax rate schedule is then applied to taxable income in order to compute one’s tax liability. Credits are then subtracted from this tax liability to compute the actual taxes due.

Postpones the payment of taxes until one’s newly-acquired property is sold, which keeps more funds in a taxpayer’s hands for investment. Also, if the newly-acquired property is kept until death, the heirs will receive an initial basis of fair market value, which results in the complete avoidance of income taxes.

Let's look at the following question for the answers.

This can be depreciated, so (500,000 - 60,000) x .036 ‘ 15,840 depreciation per year. The relevant formula becomes:
Adjusted basis ‘ initial basis - depreciation claimed adjusted basis ‘ 500,000 - (15,840 x 4) Adjusted basis ‘ 500,000 - 63,360 adjusted basis ‘ 436,640

Do not forget that income tax rules can and do change over time. Thus, it is critically important that licensees keep up to date and that licensees advise clients to consult with a competent tax adviser prior to entering into any transaction which has tax consequences.

Upon successful completion of the course, you will be able to print a certificate of completion from your training page.

All quizzes must be passed with a 70% or higher to move to next lesson.

The final exam must be successfully passed with a 80% or higher.