Federal Taxation I

Catalog description

Study of income determination concepts for individuals and corporations, impact of taxation on decisions, elementary research techniques, and ethical standards. ACCTG 310 Principles of Taxation (3) This course is directed to the study of concepts relative to: (a) the determination of taxable income and tax liability, (b) the influence of tax considerations on the decisions of taxpayers, and (c) elementary tax research techniques. Primary emphasis is given to concepts that are fundamental to the federal taxation of income with respect to business entities. Also, basic aspects of the taxation of individuals are introduced.The objectives of this course are to enable students to do the following: 1) apply basic tax rules and regulations to compute the taxable income and federal income tax liability for corporate and individual taxpayers, 2) incorporate tax costs and tax benefits into calculations of the net present value of cash inflows and outflows from taxable activities, 3) recognize tax planning opportunities or problems inherent in common transactions, and 4) appreciate the impact of the basis of accounting on both tax and financial reporting.Typical topics include sources of authority, structure of an income tax, property transactions, choice of entity, distribution of income, selection of jurisdiction, means of financing, and taxation of individuals. Students should be familiar with basic accounting concepts, should understand the nature of financial instruments, and should be able to apply the concept of present value and future value in estimating cash inflows and outflows.This is a required course for accounting majors and, for many of them, the only tax course that they take. Other students who meet the prerequisite requirements may take this course as an elective. Also, this principles course in taxation is a prerequisite requirement for an advanced course in taxation.Evaluation is based primarily on periodic examinations. No special facilities are required. However, students have on-line access to tax laws and regulations, tax cases, and administrative guidance. This course is generally offered every semester with enrollments of twenty to thirty students per section.