ACNT 1347, Section ___, _____
FEDERAL INCOME TAX FOR PARTNERSHIPS AND CORPORATIONS
Term:
INSTRUCTOR AND COURSE INFORMATION
INSTRUCTOR:
E-MAIL:
BLACKBOARD COURSE WEBSITE: Can be accessed through www.austincc.edu homepage (lower right hand corner)
TEXTBOOK WEBSITE: http://wft.swlearning.com
WORK PHONE:
OFFICE LOCATION:
OFFICE HOURS:
COURSE DATES AND TIMES:
COURSE LOCATION:
CREDITS: 3; Lecture Hours: 3
COURSE LEVEL: Intermediate (Junior Level)
METHOD OF PRESENTATION: 3 lecture hours
PREREQUISITES: Before enrolling in ACNT 1347, you must have completed ACNT 1331 with a D or better grade. Basic computer skills utilizing internet, word processing, spreadsheet (Excel), and presentation (Power Point) software are recommended for all accounting courses. If you have any questions, consult with an accounting advisor.
REQUIRED TEXTBOOK/MATERIALS:
Required: Corporations, Partnerships, Estates & Trusts, 2008 Edition, Hoffman, Raabe, Smith, Maloney, Thomson South-Western
Required: Access to TurboTax Business
Required: Access to RIA Checkpoint
COMPUTER HARDWARE AND SOFTWARE REQUIREMENTS: This course will utilize Blackboard. You must have access to a computer that has internet capabilities. You will also need to be able to access various internet web sites. You will also need to complete your homework using Microsoft Excel, Word, TurboTax Business and RIA Tax Database.
COURSE DESCRIPTION: Introduction to the tax law as currently implemented by the Internal Revenue Service. Providing a working knowledge of applying and interpreting federal tax law for, as well as preparing taxes for, partnerships, S Corporations, and corporations.
COURSE OBJECTIVES:
COURSE RATIONALE: The goals and objectives of this course prepare students for (1) completing degree requirements; (2) obtaining or improving job skills; (3) qualifying for a business or accounting job; (4) working as an entrepreneur; (5) fulfilling personal goals; and/or (6) understanding tax research.
SCANS (SECRETARY’S COMMISSION ON ACHIEVING NECESSARY SKILLS): Please go to http://www.austincc.edu/mkt/scans.htm#whatis for complete definitions and explanation of SCANS. This list summarizes the SCANS competencies addressed in this particular course.
TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY
Austin Community College has received the designation of Qualifying Educational Credit for CPA Examination by the Texas State Board of Public Accountancy (Board). This course qualifies as one of the 30 required upper-level accounting courses, however for this course to be counted, the student MUST have completed a bachelor's degree PRIOR to taking this course. If this course is completed before a bachelor's degree is awarded, the Texas State Board of Public Accountancy will not accept it. Please review the information on our web site http://www.austincc.edu/accting/cpainfo.php. It is the responsibility of the student to understand and comply with the requirements of the Texas State Board of Public Accountancy.
To become a CPA in Texas, you must have a minimum of a bachelor’s degree that includes 150 hours of college credit, 36 hours of accounting, 3 hour ethics course and 21 hours of business; pass a uniform exam; and have experience working with a CPA.
Pursuant to Rule §511.57(a)(1)(c) from the Texas Administrative Code, an individual completing accounting course requirements for the CPA exam shall have no more than 15 hours of online instruction. This limit applies only to the 30 upper level accounting hours.
It is very important that you enroll in the Professional Accountant - Advanced Technical Certificate and that you see an advisor at the start of your program. Please be aware of enforcement of prerequisites. If you do not have the necessary prerequisites for this course, I will withdraw you from the course.
GRADING POLICIES
Your grade will be based on the following:
|
Exams (3 @ 130 points each) |
390 points |
60.0 % |
|
Corporation Tax Return (2) |
60 points |
9.2 % |
|
Partnership Tax Return |
30 points |
4.6 % |
|
Online Chapter Quizzes |
70 points |
11.2 % |
|
Chapter Discussion Questions, Problems, or Research Problems |
100 points |
15.0 % |
|
Total points |
650 points |
|
GRADING SCALE: 90% - 100% A
80% - 89% B
70% - 79% C
60% - 69% D
Below 60% F
CLASSROOM AND STUDENT POLICIES
WITHDRAWAL: from a course result in a grade of W and may be affected through action taken by the student, the course instructor, or the instructor’s immediate supervisor in the instructor’s absence. Students who wish to withdraw from specific courses should initiate withdrawal procedures with the Admissions and Records Office before the published deadline for withdrawals. Students who are not withdrawn as of the established deadline will receive a performance grade (A, B, C, D, or F). Students must present a picture ID to withdraw from the course.
Starting fall 2007, students attending Texas public colleges can withdraw from no more than six courses during their undergraduate career. The withdrawal limit applies to first-time college students and follows them until they graduate. Current and returning students are not affected.
INCOMPLETE: an instructor may award a grade of I (incomplete) if a student was unable to complete all of the objectives for the passing grade in a course. An I cannot be carried beyond the established date in the following semester. The completion date is determined by the instructor buy may not be later than two weeks before the end of the semester. The department chair will approve a change from I to a performance grade (A, B, C, or D) for the course before deadline. Consideration should be given to course load, job, and family obligations when carrying an I into a new semester for completion. An I that is not resolved by the deadline will automatically be converted to an F.
ACADEMIC FREEDOM STATEMENT: Each student is strongly encouraged to participate in class. In any classroom situation that includes discussion and critical thinking, there are bound to be many differing viewpoints. These differences enhance the learning experience and create an atmosphere where students and instructors alike will be encouraged to think and learn. On sensitive and volatile topics, students may sometimes disagree not only with each other but also with the instructor. It is expected that faculty and students will respect the views of others when expressed in classroom discussions. (See Student Handbook: www.austincc.edu/handbook)
STUDENT DISCIPLINE: Classroom behavior should support and enhance learning. Behavior that disrupts the learning process will be dealt with appropriately, which may include having the student leave class for the rest of that day. In serious cases, disruptive behavior may lead to a student being withdrawn from the class. ACC's policy on student discipline can be found in the Student Handbook: www.austincc.edu/handbook
SCHOLASTIC DISHONESTY: Acts prohibited by the college for which discipline may be administered include scholastic dishonesty, including but not limited to cheating on an exam or quiz, plagiarizing, unauthorized collaboration with another in preparing outside work. Academic work submitted by students shall be the result of their thought, research or self-expression. Academic work is defined as, but not limited to tests, quizzes, whether taken electronically or on paper; projects, either individual or group; classroom presentations, and homework. Electronic devices may not be used for exams unless specifically authorized by the instructor. Penalties for scholastic dishonesty will depend upon the nature of the violation and may range from lowering a grade on one assignment to an F in the course and/or expulsion from this institution. See Student Handbook: www.austincc.edu/handbook
STUDENTS WITH DISABILITIES STATEMENT: Each ACC campus offers support services for students with documented physical or psychological disabilities. Students with disabilities must request reasonable accommodations through the Office for Students with Disabilities on the campus where they expect to take the majority of their classes. Students are encouraged to make their requests three weeks before the start of the semester. (See Student Handbook: www.austincc.edu/handbook)
GRADE CHANGE POLICIES: Please see link provided for more information: www.austincc.edu/handbook/policies2.htm
RULE OF THREE: Per state law, effective spring 2006 any student taking a class for the third time or more may be charged an additional $60 per credit hour unless exempted. Please see link provided for more information: http://www.austincc.edu/admiss/ruleofthree
INSTRUCTIONAL POLICIES AND SUPPORT
LEARNING OBJECTIVES: See Appendix 1
BLACKBOARD: You will access some course content through Blackboard. If you have not previously taken a course utilizing Blackboard, you will find a link to the login procedures on the Blackboard login page: http://acconline.austincc.edu. Otherwise, the login username and password you previously used will still work.
You must have an activated ACC eID number to log into blackboard. For information on how to activate your ACC eID please refer to http://www.austincc.edu/acceid/.
To use Blackboard, you do not have to have Internet access at home. You can work with this system in our ACC open lab or at any LRS computer.
RIA CHECKPOINT SOFTWARE: We will be using RIA Checkpoint software substantially throughout this course. A complementary copy six months access to RIA’s Checkpoint Student Edition came with the purchase of your book. You may access this website by logging in to http://checkpoint.riag.com and entering the supplied user ID and password.
Austin Community College has also purchased a license to the RIA Checkpoint software. This is accessible through the library website at http://library.austincc.edu/. To access the software click on Find Articles and Research Information; the link is listed under the Business & Economics area.
TURBOTAX BUSINESS SOFTWARE: We will be using TurboTax Business software throughout this course. A complimentary copy of the software has been provided with the purchase of a new book.
HOMEWORK: All students are expected to attend each class and to have their homework completed when assigned. Your success depends on being prepared for and participating in each class session. Your success requires your careful attention to and use of the course outline and assignment sheet that accompanies this syllabus. It is your guide through the material in your textbook. Systematic preparation for each class is an absolute must for success. This will require a minimum of 10 hours outside of class. Please arrange your outside commitments and personal situation to allow yourself to devote the necessary time to be successful in this class.
You are in class approximately 3 hours a week: you can expect to work and additional 10 - 15 hours outside of class.
LATE HOMEWORK POLICY: Late work will NOT be accepted.
CHAPTER QUIZZES: After completion of each chapter, a quiz will be given utilizing blackboard. These quizzes will be completed outside of class. You may use your notes and book to complete the quiz. You will have until the night of the exam to complete the quizzes. No late quizzes will be accepted. These quizzes will be an excellent review for the exam and should be used as a study guide.
MAKE-UP TESTS: Attendance is mandatory on exam days. If you are unable to attend on an exam day, notify the instructor on or before the exam day. If a student is absent on an exam day and has not notified the instructor her/his score on that exam will be a “0”. A make-up exam will be available for those students who gave prior notification. The make-up exam must be completed within a week of missing the exam (unless circumstances warrant a different time frame). The make up exam will be completed in the Academic Testing Center. Please review the student guidelines on the testing center website http://www.austincc.edu/testctr/ prior to taking a make up exam.
Materials/support include:
v Book companion site: http://wft.swlearning.com
v The computer lab in the library or any of the other open computer labs is also available for your use. http://library.austincc.edu/
Appendix 1 – Learning Objectives
Chapter 1:
LO.1 Realize the importance of revenue needs as an objective of Federal tax law.
LO.2 Appreciate the influence of economic, social, equity, and political considerations on the development of the tax law.
LO.3 Understanding how the IRS, as the protector of the revenue, has affected tax law.
LO.4 Recognize the role of the courts in interpreting and shaping tax law.
LO.5 Identify tax law sources- statutory, administrative, and judicial.
LO.6 Locate tax law sources.
LO.7 Be able to carry out tax research.
LO.8 Assess the validity and weight of tax law sources.
LO.9 Make use of various tax planning procedures.
LO.10 Be aware of the role of taxation on the CPA examination.
Chapter 2:
LO.1 Summarize the various forms of conducting a business.
LO.2 Compare the taxation of individuals and corporations.
LO.3 Discuss the tax rules unique to corporations.
LO.5 Explain the rules unique to computing the tax of multiple corporations.
LO.6 Describe the reporting process for corporations.
LO.7 Evaluate corporations for conducting a business.
LO.4 Compute the corporate income tax.
Chapter 3:
LO.1 Understand the reasons for the production activities deduction (PAD).
LO.2 Identify the components of the production activities deduction (PAD).
LO.3 Recognize and work with the different types of domestic production gross receipts (DPGR).
LO.4 Make the necessary adjustments to DPGR to arrive at qualified production activities income (QPAI).
LO.5 Cope with the collateral problems associated with production activities deduction (PAD).
LO.6 Explain the reason for the alternative minimum tax.
LO.7 Calculate the alternative minimum tax applicable to corporations.
LO.8 Understand the function of adjusted current earnings (ACE).
LO.9 Evaluate the current status of the penalty taxes on corporate accumulations.
LO.10 Understand the accumulated earnings tax.
LO.11 Understand the personal holding company tax.
Chapter 4:
LO.1 Identify the tax consequences of incorporating a business.
LO.2 Understand the special rules that apply when liabilities are assumed by a corporation.
LO.3 Recognize the basis issues relevant to the shareholder and the corporation.
LO.4 Appreciate the tax aspects of the capital structure of a corporation.
LO.5 Recognize the tax differences between debts and equity investments.
LO.6 Handle the tax treatment of shareholder debt and stock losses.
LO.7 Identify tax planning opportunities associated with organizing and financing a corporation.
Chapter 5:
LO.1 Understand the role that earnings and profits play in determining the tax treatment of distributions.
LO.2 Compute a corporation’s earnings and profits.
LO.3 Apply the rules for allocating earnings and profits to distributions.
LO.4 Understand the tax treatment of dividends for individual shareholders.
LO.5 Understand the tax impact of property dividends on the recipient shareholder and the corporation making the distribution.
LO.6 Understand the nature and treatment of constructive dividends.
LO.7 Distinguish between taxable and nontaxable stock dividends and stock rights.
Chapter 6:
LO.1 Identify the stock redemptions that qualify for sale or exchange treatment.
LO.2 Understand the tax impact of stock redemptions on the distributing corporation.
LO.3 Recognize the restrictions on sale or exchange treatment for certain redemption-like transactions.
LO.4 Understand the tax consequences of complete liquidations for both the corporation and its shareholders.
LO.5 Understand the tax consequences of subsidiary liquidations for both the parent and the subsidiary corporations.
LO.6 Identify planning opportunities available to minimize the tax impact in stock redemptions and complete liquidations
Chapter 7:
LO.1 Understand the general requirements or corporate reorganizations.
LO.2 Determine the tax consequences of a corporate reorganization.
LO.3 Explain the statutory requirements for the different types of reorganizations.
LO.4 Delineate the judicial and administrative conditions for a nontaxable corporate reorganization.
LO.5 Apply the rules pertaining to the carryover of tax attributes in a corporate reorganization.
LO.6 Structure corporate reorganizations to obtain the desired tax consequences.
Chapter 8:
LO.1 Apply the fundamental concepts of consolidated tax returns.
LO.2 Identify the sources of the rules for consolidated taxable income.
LO.3 Recognize the major advantages and disadvantages of filing consolidated basis.
LO.4 Describe the corporations that are eligible to file on a consolidated basis.
LO.5 Explain the compliance aspects of consolidated returns.
LO.6 Compute a parent’s investment basis in a subsidiary.
LO.7 Account for intercompany transactions of a consolidated group.
LO.8 Identify limitations that restrict the use of losses and credits of group members derived in separate return years.
LO.9 Derive deductions and credits on a consolidated basis.
LO.10 Demonstrate tax planning opportunities available to consolidated groups.
Chapter 10:
LO.1 Discuss governing principles and theories of partnership taxation.
LO.2 Describe the tax effects of forming a partnership with cash and property contributions.
LO.3 Identify elections available to a partnership, and specify the tax treatment of expenditures of a newly formed partnership.
LO.4 Specify the accounting methods available to a partnership and the methods of determining a partnership’s tax year.
LO.5 Calculate partnership taxable income and describe how partnership items affect a partner’s income tax return.
LO.6 Determine a partner’s basis in the partnership interest.
LO.7 Explain how liabilities affect a partner’s basis.
LO.8 Describe the limitations on deducting partnership losses.
LO.9 Describe the treatment of transactions between a partner and the partnership.
LO.10 Provide insights regarding advantageous use of a partnership.
Chapter 11:
LO.1 Determine the tax treatments of proportionate nonliquidating distributions from a partnership to a partner.
LO.2 Determine the tax treatment of proportionate distributions that liquidate a partnership.
LO.3 Describe the tax treatment that applies to distributions treated as disguised sales and distributions of marketable securities and precontribution gain property.
LO.4 Describe the general concepts governing tax treatment of disproportionate distributions.
LO.5 Determine the tax treatment under 736 of payments from a partnership to a retiring or deceased partner.
LO.6 Calculate the selling partner’s amount and character of gain or loss on the sale or exchanged of a partnership interest.
LO.7 Describe tax issues related to other dispositions of partnership interests.
LO.8 Calculate the optional adjustments to basis under 754.
LO.9 Outline the methods of terminating a partnership.
LO.10 Describe the special considerations of a family partnership.
LO.11 Describe the application of partnership provisions to limited liability companies (LLCs) and limited liability partnerships (LLPs).
Chapter 12:
LO.1 Explain the tax effects that S corporation status has on shareholders.
LO.2 Identify corporations that qualify for the S election.
LO.3 Understand how to make an S election.
LO.4 Explain how an S election can be terminated.
LO.5 Compute nonseparately stated income and identify separately stated items.
LO.6 Allocate income, deductions, and credits to shareholders.
LO.7 Understand how distributions to S corporation shareholders are taxed.
LO.8 Calculate a shareholder’s basis in S corporation stock.
LO.9 Explain the tax effects that losses have on shareholders.
LO.10 Compute the built-in gains tax.
LO.11 Compute the passive investment income penalty tax.
Chapter 13:
LO.1 Identify the principal legal and tax forms for conducting a business.
LO.2 Appreciate the relative importance of nontax factors in making business decisions.
LO.3 Distinguish between the forms for conducting a business, according to whether they are subject to single taxation or double taxation.
LO.4 Identify techniques for avoiding double taxation and for controlling the entity tax.
LO.5 Understand the applicability and the effect of the conduit and entity concepts on contributions to the entity, operations of the entity, entity distributions, passive activity loss and at-risk rules and special allocations.
LO.6 Analyze the effect of the disposition of a business on the owners and the entity for each of the forms for conducting a business.
Chapter 17:
LO.1 Understand the nature of the Federal gift and estate taxes.
LO.2 Work with the Federal gift tax formula.
LO.3 Work with the Federal estate tax formula.
LO.4 Explain the operation of the Federal gift tax.
Chapter 19:
LO.1 Use working definitions with respect to trusts, estates, beneficiaries, and other parties.