Accounting 341

Federal Income Taxation

Fall 1999

Classroom: Education Center Room 120, MW 12:15 noon-1:30 p.m.

Instructor: Linda Jacobsen Bradley, Ph.D., CPA

Office: 9 Liberty Street, Room 121

Email: bradleyl@cofc.edu

Office telephone: 843-953-8039

Office assistant: 843-953-7835

Home telephone: 843-886-4977 (before 10:00 p.m. please)

Office hours: Tuesday, Wednesday, Thursday 9:00-11:30 a.m., 1:30-4:00 p.m.

Wednesday 4:00-5:00 and by appointment

Prerequisites: ACCT 203, ACCT 204, Junior standing

(Note: ACCT 316 and/or ACCT 317 are difficult to combine with ACCT 341

Required Texts:

Kramer and Phillips, Prentice Hall's Federal Taxation 2000, Comprehensive.

Suggested Text:

Gleim or Delaney CPA Review Materials

Course Description:

A study of federal income taxation as applied to individuals and sole proprietorships.

Course Objectives:

This course is designed to be a comprehensive introduction to the federal income tax system. Primary emphasis will be on those provisions that affect the individual taxpayer.

It is hoped that you will gain from this course:

1. An understanding of the basic income tax provisions that affect different classes of taxpayers.

2. An appreciation of the legislative, administrative, and judicial development of important provisions.

3. An awareness of the impact of taxation on the economy and financial planning.

4. A familiarity with the means by which tax information is transferred.

5. How to research a basic tax question.

Course Format:

The material in this course is presented in a discussion format. The basis of discussion will be the assigned problems. Handouts may be used to clarify or supplement text materials. Comments and questions are welcomed, both in class and outside of class.

Course Requirements:

Your final grade will be determined from your performance on two exams, a tax return, a research project, a final exam, and your class participation. The points allocated to each of these requirements are as follows:

Exam 1 100 Tax Return #1 25

Exam 2 100 Tax Return #2 25

Exam 3 100 Research Project 25

Final Exam 150 Class Participation 15

& Homework/Quiz ______

Total Points 540

Note: Roll will be taken daily. Unexcused absences in excess of 10% (i.e., over 3) will carry a pro-rata point penalty.

Exams will be given at the times indicated on the schedule of assignments. Absence from an exam must be approved by the instructor in advance. Make-up exams will not be given and an unapproved absence will result in a zero on the exam. For those with approved absences from an exam, the final exam grade will be recorded in place of the missed exam. The final exam will normally be ineligible for a pre-approved absence.

Tax Research Project: The research project should follow the following format:

I. Facts V. Explanation

II. Issue VI. Alternate authority (if any)

III. Authority VII. Alternate conclusion (if any)

IV. Conclusion VIII. Alternate explanation (if any)

The paper should be a maximum of three pages typewritten. Single or double spaced is acceptable. Please do not right-justify your lines.

Final Thoughts:

The study of taxation can be very different from the study of accounting. While there are some important underlying principles in our tax system, there are also strong economic, social, and political forces that influence the structure of our system. Because taxation involves the collection and distribution of real money, these forces are all vying for their "piece of the pie." The net result is that our tax system reflects a great many compromises that are intended to accommodate all of these factions. It is not surprising, then, that many provisions in our tax laws defy logic, description, or even human comprehension. This can lead to exasperation, confusion, and general feelings of inadequacy. But, if you hang in there, I think you will find that the study of taxation, far from being dull and boring, can be both challenging and fascinating. When the concepts get fuzzy, feel free to stop by and talk about them.

A Word About Cheating: DON'T!

Students caught cheating in this class will receive a failing grade for the course and will have their behavior reported to the Dean of Students for appropriate disciplinary action. The Honor Code of the College of Charleston is expected to be followed. Plagiarism is also cheating. Plagiarism and cheating refer to the use of unauthorized books, notes, or otherwise securing help on a test; copying tests, assignments, reports or term papers; representing the work of another person as one's own; collaborating, without authority, with another student during an examination or in preparing academic work; signing another student's name on an attendance sheet; or otherwise practicing dishonesty.

POST HURRICANE FLOYD (CLASSES CANCELLED) AMENDED SCHEDULE:

The instructor reserves the right to alter the following assignment schedule:

Accounting 341

Federal Income Taxation

Fall 1999 (AMENDED)

Meting # Date Activity/Assignment

1 8/24 T Chapter 1 (Introduction): 1-31, 33,34,37,38

2 8/26 Th Chapter 2 (Tax Determination): 1-25,33,38,47,55,56

3 8/31 T Chapter 3 (Gross Income Inclusions): 1-30,32,34,35,37,40,41,44,49,53,55

4 9/2 Th Chapter 4 (Gross Income Exclusions): 1-28,29,31,32

5 9/7 T Chapter 4 (Gross Income Exclusions): 33,35,36,37,39,40,42,44,46,48,49,52

6 9/9 Th Test #1 Review

9/14 T Hurricane Floyd---classes cancelled

9/16 Th Hurricane Floyd---classes cancelled

7 9/21 T Test 1, Chapters 1-4

8 9/23 Th Chapter 5 (Capital Gains/Losses): 1-30,34,35,38,39,40,45,47,48,55

9 9/28 T Chapter 6 (Deductions/Losses): 1-29,35,36,37,38,39,40,42

Chapter 6 (Deductions/Losses): 43,44,46,47,49,50,51,56,57

10 9/30 Th Chapter 7 (Itemized Deductions): 1-31,32,36,39,41,42,44

11 10/5 T Chapter 7 (Itemized Deductions—Interest): 45,46,47,48,49,50,52,53,56

12 10/7 Th Chapter 8 (Losses/Bad Debts): 1-34,39,52,53,54,55

10/8 F Last Day to Drop with a Grade of "W"

13 10/12 T Chapter 8 (Passive Losses): 42,43,44,45,46,47

14 10/14 Th Chapter 9 (Employee Compensation): 1-43,44,45,47,51

Tax Return # 1 Due

15 10/19 T Test #2 Chapters 5-8

16 10/21 Th Chapter 9 (Employee Expenses): 53,57,58,59,60,64,66,69,70

17 10/26 T Chapter 10 (Depreciation):1-24,25,26,27,28,29,31,36

18 10/28 Th Chapter 10 (Cost Recovery): 43,44,46,47

19 11/2 T Chapter 11 (Acct Periods/Methods): 1-32,43,45

20 11/4 Th Chapter 11 (Acct Periods/Methods): 46,48,49,52,54,55,56

21 11/9 T Chapter 12 (Nontaxable Prop Trans): 1-24,26,28

22 11/11 Th Chapter 12 (Nontaxable Prop Trans): 29,31,35,36,37,38,39,41,42,43,44

23 11/16 T Chapter 13 (Depr Recapture): 1-25,30

Tax Return # 2 Due

24 11/18 Th Chapter 13 (Depr Recapture): 32,33,36,37,38,51,53

25 11/23 T Test #3 Chapters 9-12

11/25 Th Thanksgiving Holiday

26 11/30 T Part 2 Chapter 1 (Tax Research): Part II pg 1-44-1-50 (middle of book) 1-32

27 12/2 Th Final Exam Review

28 12/7 T Part 2 Chapter 1 (Tax Research): 34,46

Tax Research Problem Due

Final Exam December 15^th, Wednesday, 12 noon-3:00 pm, Education Center Room 120

Alternate time: Wednesday, Dec 15^th, 7:30-10:30 p.m. Education Center Room 120