ACCT 530G Business Taxation

General

• Understand why we have taxes.
• Explain how some of the key components of tax planning work.
• Explain various concepts regarding income, e.g., substance vs. form and assignment of income.
• Identify what type of entity pays federal income taxes.
• Understand the basic format of how property transactions are taxed.
• Understand the basic structure of the federal income tax paying entities.
• Understand the income tax structure.
• Differentiate between a trade or business activity, investment activity and a personal activity and why this is important.
• Explain what is income.
• Explain why indirect benefits are income and when they are taxable.
• Identify a primary source of tax law.
• Identify which items of income and deduction are likely to produce book/tax differences.
• Understand the basics of tax jurisdiction and the various courts.
• Understand the basics of tax research.
• Understand the importance of cash flow in doing tax analysis and how it works.
• Appreciate and be able to explain why the nondeductible criteria exist.
• Demonstrate how organizational expenses are handled for tax purposes?
• Describe the bad debt deduction for business bad debts and non-business bad debts and the tax treatment of such deductions.
• Explain how MACRS works.
• Explain how some of the key components of tax planning work.
• Explain the implications of having a qualified or a nonqualified retirement plan.
• Explain the importance of documentation.
• Explain the income tax effects to the borrower and to the lender from a below market loan.
• Explain the tax differences between qualified and nonqualified stock options.
• Explain what is a deduction.
• Explain what is compensation.
• Identify UNICAP activities and UNICAP expenses.
• Identify conditions under which and amounts of travel expenses which are deductible.
• Identify how much and when retirement plan contributions can be made.
• Identify if this is a taxable transaction i.e., is there recognized gain or loss?
• Identify the effects of qualified and nonqualified stock options upon the employer and employee.
• Identify the value or amount of compensation.
• Identify what are the effects from the sale of a business?
• Identify what are the effects of electing to file a consolidated tax return?
• Identify what are the requirements to file a consolidated tax return?
• Identify what is the adjusted basis of the property after acquisition?
• Identify what is the amount of realized gain or loss from disposition?
• Identify what is the amount of recognized gain or loss from disposition?
• Identify what is the basis of the property to the corporation?
• Identify what is the basis of the stock to the shareholder?
• Identify what is the character or type of gain or loss recognized?
• Identify what is(are) the appropriate entity(ies) to use in certain business situations?
• Identify when a cash basis taxpayer can take a deduction.
• Identify when gain or loss is recognized?
• Identify when loss deductions can be taken.
• Identify which accounting methods are permitted and appropriate for various businesses.
• Identify which business expenses are likely to produce book/tax differences.
• Identify which retirement plan is available for a specified source of income.
• Recognize and apply key factors when computing MACRS.
• Recognize situations in which the nondeductible criteria could cause an expenditure not to be deductible.
• Recognize when special rules apply, e.g., expensing, bonus, luxury cars, ADS, and leasehold improvements.
• Understand and apply the limitations upon a home office deduction.
• Understand and apply the requirements for an accrual method taxpayer to take a deduction (Economic Performance rules).
• Understand basic corporate tax attributes.
• Understand how to account for income under the cash and the accrual methods.
• Understand tax consequences of being a member of a controlled group.
• Understand that parent/subsidiary and brother-sister corporations are members of a controlled group.
• Understand what is depletion, the difference between cost and percentage, and be able to compute them.
• Understand what is the net operating loss deduction.