BOSTONCOLLEGE
CARROLLSCHOOL OF MANAGEMENT
DEPARTMENT OF ACCOUNTING
FEDERAL TAXATION (MA 405)
SPRING 2007
INSTRUCTOR:Edward Taylor, CPA
CLASS HOURS:Mondays, Wednesdays and Fridays at 1:00 and 2:00
CLASSROOM:Fulton 115
PHONE/E-MAIL:Phone: (617) 552-2302
E-mail:
OFFICE:Fulton 224A
OFFICE HOURS:Mondays, Wednesdays and Fridays from 11:30 pm – 1:00 pm.
COURSE OBJECTIVES
The system of Federal taxation that has been developed in the United States is among the most sophisticated and complex national tax programs in the world today. This system of taxation has an impact on almost every business and investment decision as well as many personal decisions. Decisions a business enterprise must make cannot be made without consideration of the tax consequences. An individual’s decisions will also be affected by the various tax systems in place in our society. Even such personal decisions as housing, family size, marital relationships, and termination of these relationships by divorce or death involve some of the most complex rules of tax law. This complexity places a premium on knowledge of the various types of taxes imposed on those who must operate within its boundaries.
The purpose of this course is to introduce the student to the major elements of Federal taxation. A corollary objective is to aid the student in the development of his or her tax awareness. Such an awareness is not only an important attribute of accountants and lawyers - it is essential for everyone who chooses a career in business.
MA405, Spring Semester 2007
Page 2 of 5
TEXTBOOKS
Federal Taxation, 2007 Edition by James W. Pratt and William N. Kulsrud; South-Western, part of Thomson Corporation, Publisher.ISBN: 075936303X
COURSE OUTLINE
Part I. Introduction to the Federal Tax System
Week 1
Chapter 1: An Overview of Federal Taxation
Chapter 2: Tax Practice and Research
Chapter 3: Taxable Entities, Tax Formula, Introduction to Property Transactions
Weeks 2 and 3
Chapter 3: Taxable Entities, Tax Formula, Introduction to Property Transactions
Week 4
Exam #1 (approximately the first week of February)
Week 5
Chapter 4: Personal & Dependency Exemptions; Filing Status
MA405, Spring Semester 2007
Page 3 of 5
COURSE OUTLINE (continued)
Part II. Gross Income
Weeks 6 and 7
Chapter 5: Gross Income
Chapter 6: Gross Income: Inclusions and Exclusions
Part III. Deductions and Losses
Week 8
Chapter 7: Overview of Deductions and Losses
Week 9
Chapter 8: Employee Business Expenses
Week 10
Examination #2 (approximately the end of March)
Chapter 9: Capital Recovery: Depreciation & Amortization
Week 11
Chapter 9: Capital Recovery: Depreciation & Amortization
Week 12
Chapter 16: Property Transactions: Capital Gains and Losses
MA405, Spring Semester 2007
Page 4 of 5
Part IV. Property Transactions
Week 13
Chapter 17: Property Transactions: Dispositions of Trade or Business Property
Week 14
Chapter 14: Property Transactions: Basis Determination and Recognition of Gain or Loss
Chapter 12: Deductions for Certain Investment Expenses and Losses
Case study is due on Monday, April 30th
Final Examination: 1:00 Class -Tuesday, May 8th at 12:30 pm
2:00 Class – Friday, May 11th at 9:00 am
EXAMINATIONS
There will be two examinations during the semester and a final examination. All examinations will be comprehensive and consist of objective questions and short/long open-ended analytical problems with some discussion. You will be allowed one page of notes with each exam.
CASE PROJECT
A case study will be assigned on Monday, March 12, 2007. The case study will introduce real life case client situations into our course. A report will be prepared describing and analyzing a client situation and making tax and financial planning recommendations. Written communication skills are enhanced and the experience of working together as a team should help the students’ success rate early in their careers. Also, since the projects will be due near the end of the semester, it will integrate many of the topics studied throughout the semester.
MA405, Spring Semester 2007
Page 5 of 5
HOMEWORK
The key to success in the course will be the completion and comprehension of the homework problems. Homework problems will be discussed in class and every student will be expected to participate in this discussion. In addition, you are strongly encouraged to ask questions, make comments and present answers to questions raised in class.
CURRENT EVENTS
Our system of Federal taxation is dynamic and ever-changing. Read a daily newspaper, pick up a magazine or watch the daily news and chances are you will see some mention of current tax issues and proposed tax changes. As stated above, an awareness of the changing tax environment is an important attribute for all who choose a career in business. Accordingly, every class will begin with a discussion of current events. All students will be required to participate by bringing current articles into class for discussion.
GRADING
Grading will determined as follows:
Examinations (20% each) 40%
Case Study 30%
Final Examination 30%
100%
Class participation is a critical component of this course. Accordingly, active participants in classroom discussions will be rewarded for their efforts with additional points added to the ending grade.