Accounting 331

Introduction to Taxation

Manchester College

Professor Brad Pyrah

 

OFFICE:   AD 308

OFFICE PHONE: 5303

REQUIRED TEXT:    Concepts in Federal Taxation, 2002 Edition by Kevin E. Murphy and Mark Higgins (South-Western College Publishing Co., 2002)

 

COURSE OBJECTIVE:       This course in federal taxation is designed to introduce you to the dynamic discipline of federal income taxation.  The tax law changes almost daily as it is amended to address unique transactions, and to meet economic and social needs.  The study of taxes blends together accounting, economics, law and public finance concepts.

 

An introduction to federal income taxation can be challenging and difficult.  In the beginning study of the subject there is no obvious starting point.  The ever-changing tax laws add to the difficulty of the task.  The goal of this course is to assist you in building a strong foundation of basic tax principles and concepts.  It is not possible to address every exception to a particular law.  The goal is to provide a tax education, not tax training.  The fundamental concepts and more common transactions will be emphasized.  This should provide a good starting point for those planning additional study of taxation.  More importantly, it should also provide a better understanding and appreciation of the impact of tax laws on our daily activities and provide insight into how tax laws affect business and financial decisions.

 

GRADING:

Three exams @ 100 points                         300 points

Final exam                                                     200 points

Homework problems                                      50 points

Quizzes                                                            50 points

Class participation                                         50 points

Tax problem 3 parts @ 50 points                150 points

Total points                                                     800 points

 

Grading Scale is as Follows:

 

                                85%-100% = A          67% - 69% = C

                                81% - 84% = A-         64% - 66% = C-

                                78% - 80% = B+        60% - 63% = D+

                                76% - 78% = B          57% - 59% = D

                                73% - 75% = B-         55% - 57% = D-

                                70% - 72% = C+        Below 55% = F

 

CLASS PARTICIPATION:   Class discussion and exchange of ideas is greatly encouraged in this course.  Toward this end, an explicit incentive is built into the course grading scheme.  Daily participation grades are given.  Quality, as opposed to quantity, will dominate the grading criteria. 

 

HOMEWORK PROBLEMS:  Homework is essential to success and survival in this course. For each chapter there will be homework problems assigned.  Late homework will not be accepted.  Credit will be given for both correct and incorrect assignments.  Incomplete problems will be treated as not-handed-in.

 

FREE WRITING:  This type of writing is a form of thinking and speculating on paper.  It is expressive language written for oneself.  Expressive language is the closest to thought.  It is explorative and discovery oriented.  The only audience is one's self.  Free writing is the purest form of writing-to-learn.  You will find it will stimulate your imagination, reinforce learning experiences and clarify hazy issues.

 

Many class meetings will start with a 3 or 5 minute free-write.  The topic given will be a focus for the day.  Following the free write, discussion will usually occur in small groups.

 

DISCUSSION QUESTIONS:  The assigned discussion questions are to be used as a learning tool.  After your first reading of the assigned chapter material, write thoughts that occur about the questions.  Do not try to write extensive answers.  Phrases and brainstorming-type thought are a way to organize your understanding of the chapter material.

 

TAX PROBLEM: In addition to learning the concepts and law of tax, you need to learn how the results are reported.  This comprehensive problem is to be completed in two parts.  The first part will be turned in with the first exam; the second part with the second exam; the third part with the third exam. 

 

PEER REVIEW:  Research has shown that the writing process is greatly enhanced by getting feedback from others.  Accordingly, small groups will be utilized to provide a vehicle for discussion of ideas.

 

EXTRA CREDIT:  Each Day 2 extra credit points will awarded to the first two students to use the word of the day during class discussion.  Subscribe to the email service at wsmith@wordsmith.org.

 

Online helps:  The publisher has a web site that provides interactive quizzes and powerpoint slides.  Click here to access the site.

 

 

 

Accounting 331

Introduction to Taxation

Assignment Sheet

Date

Chapter

Topic

Assignment

 

 

 

 

31-Jan

 

Introduction to the Course

 

1-Feb

1

Types of Taxes;Sources of Law

1,5,14,38,41,43,46

4-Feb

1

Tax Formula

16,19,21,53,55,65

5-Feb

1

Tax Planning

29,39,62,64,67,80

7-Feb

2

General Concepts

2,4,5,13,18,21,22

8-Feb

2

Accounting Concepts

8,15,25,27,31,35,37

11-Feb

2

Income Concepts

9,10,12,43,45,48,52

12-Feb

2

Deduction Concepts

16,17,40,53,54,56,61

14-Feb

3

Income Sources

1,3,7,30,35,39,46,51

     15-Feb

3

Income Sources

9,11,14,20,64,67

18-Feb

3

Income Sources

24,26,79,80,82

19-Feb

4

Donative Exclusions

1,2,4,5,22,24,26,27

21-Feb

4

Employment Exclusions

7,11,12,33,35,37,40,43,48

22-Feb

4

Exclusions

18,19,52,53,56,61,65

25-Feb

5

Business Deductions

 1,3,7,10,27,28,32,36

26-Feb

1-4

Exam 1--Hand in 1st part of Tax Return Problem

 

28-Feb

5

Tests for Deductibility

8,12,38,40,43,47,50

01-Mar

5

Limited Mixed-Use Expenses

19,20,52,54,58,61,63,72

4-Mar

6

Business Expenses

1,3,24,31,36,39,42

5-Mar

6

Business Expenses

9,11,44,46,49,50,52,55

7-Mar

6

Individual Deductions for AGI

19,57,59,60,62,64,67,69,73

       8-Mar

7

Annual Losses--NOL's

2,3,17,20

11-Mar

7

Passive Activity Losses

8,26,29,30,39

12-Mar

7

Transaction Losses

14,47,50,51,57,60,75

     14-Mar

8

Exemptions and Filing Status

1,2,5,30,31,32,33

15-Mar

8

Deductions from AGI

8,9,10,34,38,40,44,49,52,55

18-Mar

8

Limitations for High Income

19,20,60,62,65

19-Mar

8

Tax Liability and Credits

22,25,28,64,65,70,72,75

21-Mar

 

Review

 

22-Mar

 

Exam 2--Hand in Part 2 of Tax Return Problem

 

2-Apr

9

Classes of Property

2,3,20,21

4-Apr

9

Basis Determination

5,8,22,27,30,34

5-Apr

9

Specially Valued Acquisitions

11,15,17,43,48,50,59

8-Apr

9

Personal-Use:Converted to Business

63,64

9-Apr

10

Cost Recovery and Section 179

1,3,6,21,24,25,27

11-Apr

10

MACRS

4,9,11,31,33,35,37

12-Apr

10

Depletion and Amortization

17,19,59,60,61

      15-Apr

11

Property Disposition

1,4,7,10,22,26,33,36,53

16-Apr

11

Section 1231 Gains and Losses

13,15,56,58

18-Apr

11

Deprecation Recapture

17,18,61,64

19-Apr

12

Like Kind Exchanges

1,3,5,8,19,20,23,29

22-Apr

12

Involuntary Conversions

12,13,41,43,46

23-Apr

12

Sale of Personal Residence

14,15,50,53

25-Apr

 

Exam 3—Hand in Part 3 of Tax Return Problem

 

26-Apr

13

Non Tax Factors

1,2,4,6,9,34

29-Apr

13

General Income Tax Factors

11,17,18,35,39,43,45,47

30-Apr

13

Formation

19,20,24,29,32,50,51,55,57,58,60

2-May

14

Operations

1,2,4,5,8,14,15,16,18

3-May

14

Operations

20,23,25,30,33,34

6-May

14

Entity Distributions

12,13,42,44,46,49,51,53,56

7-May

15

Compensation Plans

1,2,5,6,7,48,50,52,54,56,58

9-May

15

Compensation Plans

10,12,15,22,60,64,67,69,72,73

10-May

15

Other Tax Liability Considerations

25,30,43,74,77,79,84,91,93,96