Note: Read chapter one before first class meeting.
This course focuses on identifying issues that affect the taxation of businesses. Ten Chapters are covered: foundation of taxation, including types of taxes, structure of the income tax, taxpayers, and general concepts of income and deduction; business income and expenses; taxation of property transactions; and overview of corporations, S corporations, partnerships, and entity choice. Planning options are emphasized.
- From a conceptual perspective, explain how the federal tax system works and its impact on businesses.
- Demonstrate an understanding of the tax practice environment by engaging in basic tax planning activities, by conducting research using CCH IntelliConnect, and by communicating research results orally and in writing.
- Explain the professional and ethical standards that govern accountants engaged in tax practice.
- Compare general accounting, income, and deduction concepts in the federal tax system to those in financial accounting.
- Evaluate whether sources of income are taxable or excluded from federal gross income.
- Identify expenses as business, production of income, or personal and analyze their deductibility.
- Explain the business entity choices and assess the tax consequences of operating as a C corporation, S corporation, partnership, or sole proprietor.
- Explain the various forms of compensation and evaluate their financial and tax consequences.
- Describe and evaluate different tax elections and methods of cost recovery for business assets.
- Categorize assets as business, capital, ordinary, or personal and analyze the tax consequences of the disposition of these types of assets.