Course Description
Includes corporate taxation and the transfer of assets from one form of entity into a corporation. Covers allowable corporate expenses and deductions applicable to corporations. Also includes trust and estate tax, forming and running subchapter S corporations, and computer-generated partnership tax returns. (Requirement: Must be enrolled in University Alliance.)
Course Objectives
After completing this course, students will be able to:
- Provide an understanding of corporate taxation and the transfer of assets from one form of entity into a corporation
- Explain gross income inclusions
- Determine allowable deductions to corporations
- Discuss the tax issues of incorporation
- Determine the alternative minimum tax, accumulated earnings tax, and personal holding company taxes
- Determine partnership allowable expenses and deductions
- Determine tax considerations of a partnership’s distributions
- Determine the tax considerations for forming and running subchapter S corporations
- Determine taxes of trusts and estates
- Prepare a regular corporation, a subchapter S, and Partnership tax returns using computer software
- Prepare a tax research memorandum
Week 1
Lecture: Introduction and Course Welcome
Outcomes
After completing this lecture, students will be able to:
- Set the tone for the course
- Describe learning objectives
- Provide practical tips on how to survive and thrive in the course
Lecture: Research and Planning: Working With Federal Tax Law – Part 1
Lecture: Research and Planning: Working With Federal Tax Law – Part 2
Outcomes
After completing this lecture, students will be able to:
- Explain the why of income and other taxes
- Identify and locate tax law sources
- Carry out and document basic tax research
- Apply tax research to tax planning situations
Lecture: Corporations: Introduction and Operating Rules
Outcomes
After completing this lecture, students will be able to:
- Compare the taxation of individuals and corporations
- Calculate corporate income tax and describe the reporting process
- Assess the financial statement impact of tax positions
Week 2
Lecture: Corporations: DPAD, AMT, and Other Special Situations – Part 1
Lecture: Corporations: DPAD, AMT, and Other Special Situations – Part 2
Outcomes
After completing this lecture, students will be able to:
- Calculate the Domestic Production Activities Deduction (DPAD)
- Know when to apply
- Corporate Alternative Minimum Tax (AMT)
- Explain accumulated earnings tax
- Explain personal holding company tax
Lecture: Corporations: Capitalization Issues
Outcomes
After completing this lecture, students will be able to:
- Explain the consequences of organizing as a corporation
- Identify corporate and stockholder basis issues
- Determine the tax treatment of shareholder debt and stock losses
- Utilize tax planning opportunities unique to corporations
Week 3
Lecture: E&P and Distributions
Outcomes
After completing this lecture, students will be able to:
- Explain the impact of Earnings and Profits (E & P) on corporate distributions
- Calculate E and P
- Determine the tax treatment of dividends
- Structure dividends to minimize tax impact
Lecture: Corporate Stock Redemptions and Liquidations
Outcomes
After completing this lecture, students will be able to:
- Explain the tax consequences of stock redemptions and corporate liquidations
- On the distributing corporation
- On the stockholder
- Structure redemptions and liquidations to minimize the tax impact
Week 4
Lecture: Corporate Reorganizations
Outcomes
After completing this lecture, students will be able to:
- Understand the general requirements corporate reorganizations
- Determine the tax consequences of corporate reorganizations
- Explain the statutory requirements for taxable and nontaxable reorganizations
- Structure corporate reorganizations to achieve the desired tax consequences
Lecture: Consolidations
Outcomes
After completing this lecture, students will be able to:
- Recognize the advantages and disadvantages of filing a consolidated tax return
- Account for consolidated group intercompany transactions
- Identify consolidated group tax planning opportunities
Week 5
Lecture: Partnerships: The Basis – Part 1
Lecture: Partnerships: The Basis – Part 2
Outcomes
After completing this lecture, students will be able to:
- Explain the tax effects of forming a partnership
- Identify the accounting, tax period, and other elections available to a partnership
- Calculate partnership income and partner basis
- Determine when it is tax-advantageous to choose the partnership form of business organization
Lecture: Partnerships: Distributions, Transfers, and Terminations
Outcomes
After completing this lecture, students will be able to:
- Determine the tax treatment of partnership distributions including
- Proportionate/disproportionate distributions
- Liquidating/nonliquidating distributions
- Determine the character and amount of a selling partner's gain or loss on sale/exchange of a partnership interest
- Calculate Section 754 basis adjustments
Week 6
Lecture: Subchapter S Elections
Outcomes
After completing this lecture, students will be able to:
- Describe which corporations can elect S status and the effect of the election on the shareholders
- Compute separately stated and non-separately stated income
- Make appropriate income, deduction, and credit allocations to shareholders
- Determine instances when distributions are taxable to shareholders
- Calculate shareholder basis
- Use S elections for tax planning purposes
Lecture: View video lecture Comparative Forms of Doing Business
Outcomes
After completing this lecture, students will be able to:
- Tax and nontax factors to consider in choosing form of business organization
- Differentiate between single and double taxation
- Integrate the following into the choice of organization decision
- Conduit vs. entity
- Entity operations and distributions
- Passive activity loss and at-risk rules
- Calculate tax effect of business dispositions
Week 7
Lecture: Tax Practice
Outcomes
After completing this lecture, students will be able to:
- Describe the structure of the IRS
- Use IRS administrative pronouncements in tax practice
- Explain the IRS audit and appeal process
- Determine interest and some of the penalties on tax deficiencies
- Comply with legal and ethical guidelines governing those in tax practice
Lecture: Gift and Estate Taxes
Outcomes
After completing this lecture, students will be able to:
- Explain the nature of federal gift and estate taxes
- Calculate federal gift and estate taxes
- Determine the components of gross and taxable estate
Week 8
Lecture: Trust and Estate Income Taxation
Outcomes
After completing this lecture, students will be able to:
- Define key trust and estate terms
- Calculate the accounting and taxable income of trusts, estates and their beneficiaries
- Describe distributable net income
- Apply Subchapter J to minimize income tax and maximize the grantor's/decedent's desired outcome
The course description, objectives and learning outcomes are subject to change without notice based on enhancements made to the course. November 2013
