AP/ADMS 4563 3.00 Introduction to US Federal Income Taxation ...

AP/ADMS 4563 3.00 Introduction to US Federal Income Taxation Day

Time

Wednesdays

7 – 10PM

Course director: Start date:

Location Health Nursing & Environmental Studies (HNES), Room 032

Mark Feigenbaum ([email protected]) Wednesday, September 7, 2011 (at 7PM)

COURSE DESCRIPTION An introduction to the taxation of individuals and corporations in the United States of America. COURSE OBJECTIVES This course will: 1. introduce students to a broad range of tax concepts and types of taxpayers; 2. emphasize the role of taxation in the business decision-making process ; 3. provide students with the ability to conduct basic tax research and tax planning; 4. expose students to professional standards and ethics; and 5. provide students with a knowledge of the interrelationship and differences between financial accounting and tax accounting

This course is suitable for those who wish to study for the U.S. CPA. It has been designed so as to fulfill the tax course requirements imposed by some CPA state societies in order to write the U.S. CPA Examination. The course will be taught by Mark Feigenbaum who is a U.S. CPA specializing in U.S. Taxation and Estate Planning. This course is an intensive course which will require 100% attendance and devoting time each evening to studying problems which will be taken up in class the following day.

PREREQUISITES: 1) Students in an Honours program, 78 credits including 2500 3.0 or 3520 3.0; or 2) other students, a grade of "C+" or better in one of the above-listed courses. TEXT/S Required: Willis, Hoffman, Maloney & Raabe, "West Federal Taxation: Comprehensive Volume, 2008 Edition", West Publishing (ISBN 0324365764). Tax law changes almost every day; the examinations in this course will be based on the law current in this edition of the textbook. If you use a previous edition of this book or the Code book below, you will be entirely responsible for knowing the current law for purposes of the examinations and take all such risks upon yourself. Photocopied versions of this text will not be permitted in the classroom under any circumstances Internal Revenue Code (IRC): A condensed Internal Revenue Code is available in the bookstore: James E. Smith, Internal Revenue Service Code of 1986 and Treasury Regulation 2008 Edition. 24th Edition, July 2006 (ISBN: 0324640307 ). IRC's are published by many publishers, if you have access to use one during the course from any publisher dated 2004 or later, feel free to bring that copy instead. Most of the classroom lecture will be utilizing this publication. Practice Sets to accompany "Hoffman, Smith, Willis, Maloney & Raabe, 'West Federal Taxation Comprehensive Volume, Study Guide'", Prepared by Wacker, 2008 edition, West Publishing (ISBN 0324380615 ) Optional: Willis, Hoffman, Maloney & Raabe, "West Federal Taxation Comprehensive Volume, Study Guide", Prepared by Maloney and Raabe, 2008 edition, West Publishing (ISBN0324365708) Photocopying more than 10% of a textbook is illegal, and may involve penalties. Do not duplicate textbooks or obtain these photocopies.

HOMEWORK PROBLEMS Homework problems will be assigned. These must be completed on time. While no marks are awarded, a penalty of one mark per assignment will be levied on those who do not do assignment problems.

PRACTICE SET

The Practice Set (see Nixon text above) should be purchased in advance if possible. It contains a family scenario with various sorts of income and expenses and includes blank tax forms. Students are required to complete the a family's income tax return. It is an important exercise which gives exposure to the compliance side of tax. It will probably take an average of approximately 5 hours to complete. Deadline for submission is Session 12 (two weeks earlier if you require feedback prior to the final exam).

RESEARCH PROBLEM This will be a handout problem which will require research using tax sources.

COURSE SCHEDULE Session 1 – September 7 Chapter 1: Introduction to course, the IRS, to Tax Law, Types of Taxpayers

Chapter 2: Introduction to Tax Research Session 2 - September 14 Chapter 16: Accounting Periods and Methods

Chapter 3: Tax Determination, Personal and Dependency Exemptions Session 3 - September 21

Read prior to class (posted on course website): Zarin v. Commissioner, 916 F.2d. 110 (CA-3, 1990). Chaper 4: Gross Income - Inclusions Session 4 – September 28 Chapter 5: Gross Income – Exclusions Session 5 – October 5 Chapter 6: Deductions and Losses

Chapter 7: Deductions and Losses – Business Expenses Session 6 – October 19 Chapter 8: Cost Recovery

Session 7 – October 26 Mid Term Exam Session 8 – November 2 Chapter 9: Deductions: Employee and Self-Employment Expenses

Chapter 10: Deductions:

Itemized Deductions

Session 9 – November 9 Chapter 11: Passive Activity Losses

Chapter 13: Property Transactions- Determination of Gain/Loss Session 10 – November 16 Chapter 14: Capital Gains/Losses; §1231 Transactions

Chapter 17: Introduction to Corporations – Operating Rules Session 11 – November 23 Chapter 18: Corporations- Organization, Capital Structure

Chapter 19: Corporations- Distributions not in Complete Liquidation Session 12 – November 30 Chapter 26: Tax Administration and Practice

Miscellaneous topics: Students choice of interest (not on exam) from chapters 21, 22, 23, 24, 25, 27 and/or 28. There will be a three-hour final examination in a room and location to be announced. Date and location are to be announced. The exam period for Fall term courses, for ALL Faculties, will be from Thursday, December 8 to Thursday, December 22, 2011 inclusive. Those who live beyond commuting distance from Toronto may be able to write the final exam in their own city provided they cover the additional cost of courier and honorarium.

WEIGHTING OF COURSE The grade for the course shall be determined as follows:

Research Assignment 15% Practice Set 20% 2 hours Midterm test 25% Final Examination 40%

TERM WORK DEADLINES AND FEEDBACK

Component

Weight

Date due

To be returned or feedback to be provided

Research Assignment 15%

Session 12 at the start of class

After the final exam except students who hand in early by Session 10 will receive their feedback at the last class.

Mid Term Exam

25%

Session 7

Session 8

Practice Set

20%

Session 12 at the start of class

After the final exam except students who hand in early by Session 10 will receive their feedback at the last class.