ACC 551 TAX TREATMNT-CORP/PARTNER David Roberts

DePaul University, School of Accountancy and MIS
SYLLABUS– Tax Treatment of Corporations and Partnerships
David J. Roberts
Office: 6024 DePaul Center
Phone: (312) 362-8388
droberts@depaul.edu
COURSE DESCRIPTION:
This course covers the federal income tax treatment of corporations and partnerships. It includes ethics in tax
practice and exposure to international taxation and to the federal estate and gift taxes. Graduate Prerequisite:
Acc 548 or equivalent. Undergraduate prerequisite: Acc 360 or Acc 380.
COURSE OBJECTIVES:
This second course in federal taxes is intended to provide the participants with:
1. A more advanced and deeper understanding of the underlying concepts and principles of the income
tax laws which were introduced in the first course.
2. A basic technical competence in more advanced problems of individuals and the provisions for
partnership and corporations, along with a brief introduction to the taxation of U.S. persons doing
business abroad and to the federal estate and gift taxes.
3. A basis for further tax study.
TEACHING METHODS:
The primary teaching method is lecture, with some discussion and problem solving. An outline of the course
containing a list of assignments is included below. It is very important that you stay caught-up at all times.
During class, please stay focused: No texting, no checking email, and no other computer usage that’s not
related to classroom coverage. You are welcome to run a tape recorder during the lectures.
GRADING CRITERIA:
The midterm exam will count for 100 points and the final exam will count for 130 points. A paper on ethics in
tax practice will count for 20 points. The grade for the course will be based on the total points earned on both
exams and on the paper.
The University’s Academic Integrity Policy applies to all work in this course. See
http://offices.depaul.edu/oaa/faculty-resources/teaching/academicintegrity/Documents/AcademicIntegrityPolicy_2012.pdf
The School of Accountancy & MIS Student Code of Conduct applies to students taking this course. See
http://fac.comtech.depaul.edu/dgrant2/Acc_Code_of_Conduct_March_2007,%20Updated%20Oct%2022%202
010.pdf
BOOKS:
1. Federal Income Tax: Code and Regulations, Selected Sections or Internal Revenue Code. An online version
of the Code is available at http://www.taxalmanac.org/index.php/internal_revenue_code or
http://www.law.cornell.edu/uscode/26/usc_sup_01_26.html
2. Federal Tax Exam Questions and Explanations, 24th Edition, Gleim and Hasselback.
3. Optional text-Prentice Hall's Federal Taxation: Corporations, Partnerships, Estates and Trusts, 2015
edition by Anderson, Pope and Rupert.
Note re Gleim questions: The Gleim questions are for additional practice, to give you ideas of other ways of asking about these
topics. Starting with the 21st edition, I have assigned fewer questions, with a greater focus on likely exam topics. A syllabus
based on the 21st edition is posted on D2L. If you are using any other older edition, since the problem numbers change in each
edition, if you want to find the currently assigned questions, it would be good to coordinate with someone who has the 23d or
24th edition and match up the questions with this syllabus (or find someone with a 21st edition and match up the questions with
that syllabus). You may not be able to perfectly match up to all the newest questions, and you’ll need to pay attention to changes
in the law, but as an additional practice tool, any of the last few editions should be fine. Note that the exams are based on
material covered in class, not on the Gleim questions. So if some point is raised in a Gleim question but was never covered in
class, that point will not be tested.
Outline
PH Text
Code
Gleim Questions
16-4, 6, 7, 8, 11, 16, 23
I. Corporations
A. General
2-1 thru 2-9
B. Formation
1. Section 351
2-9 thru 2-27
118; 351; 358; 362 ;
368(c); 357; 358;
1245(b)(3); 1250(d)(3);
1223(1); 1223(2)
2. Capital Structure
2-27 thru 2-34
385; 165(g) (3); 166(a);
166(b); 166(d); 1032;
1045; 1244; 1202
16-24, 25, 48, 124, 125
11-60, 61
1. Accounting Periods
and Methods
3-2 thru 3-5
441; 442; 446; 448
19-3
2. Computing Taxable
Income
3-5 thru 3-6
3. Capital gains and
losses; Special
recapture
3-7 thru 3-8
1201(a); 1212(a)(1);
291 (a)(1)
16- 114, 116, 118, 121;
12-34
4. Organizational
expenditures &
Start-up expenditures
3-8 thru 3-10
248; 195
16-26, 29, 141
5. Charitable
contributions
3-11 thru 3-13
170
16-87, 88
6. U.S .Production
Activities Deduction
3-14
199
7. Dividends received
deduction
3-14 thru 3-18
243(a); 246; 246A
16-66, 67, 68, 74, 77
8. Net operating loss
3-18 thru 3-20
172
16-96, 98, 99, 100
9. Accrued compensation; 3-10
Related parties
3-21 thru 3-22
404(b); 267; 1239
19-32
10. Compensation- Publicly 3-32
held corporation
162(m)
11. Rates & filing;
Alternative Minimum
Tax
11; 55; 56; 57
C. Operations
3-22 thru 3-24
3-35 thru 3-39
5-2 thru 5-14
16-128, 134, 150, 151,
152, 154, 156
Outline
PH Text
Code
Gleim Questions
12. Reconciliation of
taxable and net
income
3-39 thru 3-43
16-129, 137,138
139, 140, 145
13. Affiliated and
controlled groups
of corporations
3-24 thru 3-31
8-2 thru 8-8
1561; 1563; 1501; 1502;
1504
17-92, 93, 94, 97, 99, 100,
106, 107, 108
1. Dividends and earning
and profits
4-2 thru 4-13
301; 311; 312; 316
1059
17-6, 22, 25, 26, 28, 39,
40
2. Stock dividends
4-13 thru 4-16
305
17-23, 24, 38
3. Sec. 306 stock
4-27 thru 4-30
306
E. Redemptions
4-16 thru 4-27
302; 303, 318, 162(k)
17-2, 41, 43, 44, 53
F. Liquidations
6-1 thru 6-14
331; 332; 333; 334; 336;
337; 338
17-66, 67, 78, 79
G. Reorganizations
7-14 thru 7-20
7-34
7-40 thru 7-44
354; 356; 358; 361; 362;
368
17-80, 81, 83, 84, 85
H. Accumulated Earnings
Tax
5-23 thru 5-33
531-537; 561-565
I. Personal Holding Company 5-14 thru 5-23
541-547; 561-565
14. Miscellaneous
D. Distributions
II. S Corporations
A. Eligibility
11-2
11-4 thru 11-7
1361
17-127, 128, 132, 133
B. Election
11-7 thru 11-9
1362
17-135, 136
C. Termination
11-9 thru 11-13
1362
17-200 thru 203
D. Taxation
11-2 thru 11-4
11-13 thru 11-34
1363-1379; 267(b), (f)
17-134, 145, 146, 148,
152, 162, 166, 168,
172, 176, 183
Outline
PH Text
Code
Gleim Questions
III.Partnerships
A. General nature of
partnerships
9-2 thru 9-5
701; 761
14-15
1. Gain or loss, basis, etc.
9-5 thru 9-13
721; 722; 723; 705; 752
14-20, 21, 26, 28, 29, 30,
33, 34, 38
2. Syndication and
Organization
9-12
709
B. Formation
14-40, 50
C. Operations
1. Measuring and
reporting income
9-16 thru 9-17
702; 703; 724
14-66, 67, 69, 70, 71, 72,
73,74,75, 76, 77, 78,123
2. Allocating income/
loss
9-12 thru 9-15
9-17 thru 9-27
10-22 thru 10-25
704; 465; 705; 706;
708
14-51 thru 54, 57, 60,
79, 81, 100, 124 thru 128
15-8, 21, 37, 41
3. Transactions between
partners and
partnership
9-27 thru 9-29
707; 1239
14-110, 111, 112, 113
114, 140,141, 142
D. Distributions
10-2 thru 10-16
731; 732(a); 733; 737
751; 752
14-128, 129
15-1, 2, 7, 11, 13, 15, 16
E. Sale of partnership
interest
10-16 thru 10-19
741; 742; 751; 752;
754
15-43, 44, 45, 46
F. Retirement or Death
of Partner
10-19 thru 10-20
736
G. Family Partnerships
9-30 thru 9-31
H. Merger, Consolidation
& Division
10-25 thru 10-26
15-53, 55
708(b)
IV. Federal Estate and Gift Tax
A. General
12-2 thru 12-7
B. Gift tax
1. Transfers subject
to tax
12-7 thru 12-16
2511; 2512; 2516;
2518
21-1, 2, 7, 11
2. Exclusions
12-16 thru 12-18
2503
21-18, 22
Outline
PH Text
Code
Gleim Questions
3. Marital and charitable 12-18 thru 12-22
deductions
2522; 2523
4. Computations and
gift splitting
2501-2505; 2513
21- 28, 29
21-47, 49, 50, 54, 55, 56, 57, 59
12-22 thru 12-25
C. Estate Tax
1. General
13-2 thru 13-5
2. Gross Estate
13-6 thru 13-18
2033 thru 2043
3. Taxable Estate
13-18 thru 13-22
2053 thru 2056
4. Computation and
Payment
13-23 thru 13-25
D. Generation Skipping
Transfer Tax
13-30 thru 13-31
V. U.S. Taxation of
16-18 thru 16-36
Foreign-Related Transactions (light coverage)