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Federal Tax Accounting

ACC 215W

Federal Tax Accounting

ACC 215W

Course Description

Prerequisite: ACC 212. Studies the Federal income tax law. Emphasizes core income tax principles and relates them to individual and business entity applications. Includes preparation of individual and business entity tax returns. (45-0)

Outcomes and Objectives

Describe an introduction to taxation.

Objectives:

  • Identify several types of common taxes imposed on individuals, corporations, and partnerships at both the federal and state levels.
  • Describe the reasons for and uses of tax revenue at the government level.
  • Describe the guiding principles of tax planning.

Identify and apply processes involved in working with the tax law.

Objectives:

  • Identify the primary sources of tax law.
  • Perform tax research on an introductory spectrum of tax issues.
  • Apply the steps in effective tax research and communication.
  • Recognize the nature of tax research coverage on the CPA examination.

Describe and apply the tax concept of gross income.

Objectives:

  • Apply tax formulas in deriving income tax liability.
  • Describe the timing of income recognition.
  • Identify and analyze specific taxable income items.
  • Identify and analyze specific nontaxable income items.
  • Discuss tax planning strategies regarding various income items.

Describe and apply the tax concepts of business deductions and losses.

Objectives:

  • Describe the timing of expense and loss deductibility.
  • Identify and analyze specific deductible expense and loss items.
  • Identify and analyze specific nondeductible expense and loss items.
  • Apply cost recovery principles in computing depreciation deductions.
  • Discuss tax planning strategies regarding various deduction items.

Describe and apply the concepts associated with property transactions.

Objectives:

  • Explain the concept of, and calculate, basis relating to property transactions.
  • Calculate gain or loss on disposition of property.
  • Differentiate between taxable property transactions and nontaxable exchanges and conversions.
  • Determine gain or loss classification upon disposition of property for noncorporate taxpayers.
  • Determine gain or loss classification upon disposition of property for corporate taxpayers.
  • Discuss tax planning strategies regarding disposition of property.

Describe and analyze the tax issues of business entities.

Objectives:

  • Describe and analyze the different types of business formation and the rationale involved in choosing a structure.
  • Explain the tax consequences of the various types of business formation.
  • Corporations: a. Describe corporate formation, structure, operational issues, and procedural matters. b. Prepare basic tax returns. c. Explain the accounting for income taxes in the financial statements.
  • Partnerships and Limited Liability Entities: a. Describe partnership formation and operational issues. b. Prepare basic tax returns.
  • Subchapter S Corporations: a. Describe Subchapter S qualification requirements. b. Describe Subchapter S operational issues. c. Prepare basic tax returns.

Describe and analyze the tax issues of individuals.

Objectives:

  • Explain and analyze personal and dependency exemptions.
  • Calculate tax liability using the tax formulas and tables.
  • Identify items of includible and excludible income relevant to individuals.
  • Identify certain itemized deductions available to individuals.
  • Identify and explain issues regarding self-employed individuals.
  • Prepare basic tax returns.