LAW 215: FEDERAL INCOME TAX

Transcription

1 LAW 215: FEDERAL INCOME TAX Schedule: Professor: Tuesdays and Thursdays, 5:30pm 7:00pm Christine Kim Phone: Office: Room 439 Office hours: Required texts: Tuesdays and Thursdays, 4pm 5pm or by appointment Freeland, Lathrope, Lind, and Stephens ( FLLS ), Fundamentals of Federal Income Taxation (Seventeenth Edition) I. Course Description Lathrope, Selected Federal Taxation Statutes and Regulations (2015 Edition) This is an introductory course in federal income taxation. Students will become familiar with the major sources of tax law, including the Internal Revenue Code (the Code ), Treasury Regulations, and administrative rulings of the Internal Revenue Service (the IRS or the Service ). Over the course of the semester, students will learn about the definition of gross income, certain statutory and administrative exclusions from gross income, allowable deductions and restrictions on deductions, characterization of income as capital gain or loss or ordinary income or loss, and timing rules that determine when income is recognized. By the end of the semester, students will be able to calculate tax liability, given a taxpayer s particular set of facts and circumstances. II. Syllabus The following syllabus is for planning purposes but is subject to change: CLASS 1: INTRODUCTION AND DEFINITION OF GROSS INCOME Reading: Skim FLLS Chapter 1, p FLLS Chapter 2, p Code Section 61

2 Treas. Reg (a); (d)(1); (a) Assignment: p. 54 Problems 1 6 p. 57 Problems 1 2 Reading: FLLS Chapter 3, p CLASS 2: EXCLUSION OF GIFTS AND INHERITANCES Code Section 102 Treas. Reg Assignment: p. 69 Problem 2 p. 70 Problems 1 3 p. 77 Problems 1 3 CLASS 3: EXCLUSION OF FRINGE BENEFITS AND AWARDS Reading: FLLS Chapter 4, p Code Sections 119; 132 Skim Code Sections 79; 83; 105; 106; 125; 127; 129; 137 Treas. Reg (a) and (b); (a), (c); (a)(1) (4), (e); (a)(1)(i), (a)(1)(iv); (b)(1); (a) (c); (e) Skim Treas. Reg (b)(1) FLLS Chapter 5, p Assignment: p. 87 Problem 1 Code Sections 74, 102(c), 132(a)(4), (3), 274(j) Treas. Reg ; Prop. Reg (b) p. 91 Problems 1 3 p. 98 Problems 1 2 p. 100 Problems 1 2 Reading: FLLS Chapter 6, p CLASS 4: GAIN FROM DEALINGS IN PROPERTY

3 Code Sections 1001; 1011; 1012; 109; 1016(a)(1); 1019 Treas. Reg (a); (a) (c); (a); (d)(2)(i) Assignment: p. 106 Problems 1 2 p. 113 Problems 1 2 p. 115 Problem 1 p. 118 Problem 1 p. 135 Problems 1 2 Reading: FLLS Chapter 8, p CLASS 5: DISCHARGE OF INDEBTEDNESS Code Sections 61(a)(12); 102(a); 108(a), (b)(1) (3), (d)(1) (5), (e)(1), (e)(5); 1017(a), (b)(1), (2), (3)(A), (3)(B) Skim Code Sections 108(c), (f), and (g); 385 Assignment: p. 162 Problems 1 4 Reading: FLLS Chapter 10, p CLASS 6: SEPARATION AND DIVORCE Code Sections 71(a) (c); 215(a) and (b); 7701(a)(17); 1041 Treas. Reg T(a) and (b); T(b) Assignment: p. 184 Problems 1 2 p. 197 Problem 1 p. 198 Problem 1 CLASS 7: ADDITIONAL STATUTORY EXCLUSIONS FROM GROSS INCOME Reading: FLLS Chapter 11, Code Sections 121, 25A, 135, 529, 530; 103; 115; 141(a) and (e) Skim Code Sections 911; 72(e)(2)(B), (e)(8)(b) and (e)(9); 117, 127, 132(c)(3); 221; 222; 141, 142, 148, 149 Treas. Reg

4 Assignment: p. 210 Problems 1 5 p. 219 Problems 1 2 Reading: FLLS Chapter 12, p CLASS 8: ASSIGNMENT OF INCOME Code Sections 1(a) (e), 1(h); 6013(a) Skim Code Sections 1(g), 63, 66, 73 Assignment: p. 238 Problem 1 p. 255 Problems 1 3 CLASS 9: BUSINESS DEDUCTIONS: EXPENSES OR CAPITAL EXPENDITURES? Reading: FLLS Chapter 14, p Code Sections 162(a); 263(a); 195; 262 Skim 263A Treas. Reg (a); T(a); 1.263(a) 2T(d)(1), (d)(2) (not in Lathrope Statutes and Regulations); 1.263(a) 3T(d), (e)(2)(i) and (e)(3)(i), (g)(1), (h)(1), (4), (i)(1), (5) examples 12 and 13, (j)(1) (not in Lathrope Statutes and Regulations); 1.263(a) 4(a) (c)(1), (d)(1), (e)(1)(i), (4)(i); 1.263(a) 5(a), (b)(1); (b) Assignment: p. 293 Problems 1 2 p. 310 Problems 1 3 p. 317 Problems 1 2 Reading: FLLS Chapter 14, p CLASS 10: SPECIFIC BUSINESS DEDUCTIONS Code Sections 162(a); 262; 274(a), (d), (e), (k), (l), (m)(2), (n)(1); 165(a) (c); 280B Skim Code Sections 162(m); 280G; 162(h); 274(c), (h), (m)(1) and (3) Treas. Reg ; ; ; ; (a); (a), (b)(1), (2)(i), 3(i), (c), (e)(1); (a)(2); (a)(1), (c), (d) Assignment: p. 330 Problem 1 p. 346 Problems 1 5

5 p. 358 Problems 1 4 p. 365 Problems 1 3 p. 368 Problem 1 Reading: FLLS Chapter 14, p CLASS 11: DEPRECIATION AND AMORTIZATION Code Sections 167(a), (c); 168(a) (c), (e)(1) and (2), (f)(1) and (5), (g)(1), (2), and (7), (i)(1); 1016(a)(2) Skim Code Sections 62(a)(1) and (4); 168(d); 263(a); 263A Treas. Reg ; 1.167(a) 1(a); 1.167(a) 10; 1.167(b) 0(a); 1.167(b) 1(a); 1.167(b) 2(a) Assignment: p. 391 Problems 1 2 CLASS 12: SPECIAL DEPRECIATION RULES AND BONUS DEPRECIATION Reading: FLLS Chapter 14, p Code Sections 167(a), (c)(1); 168(a) (c), (d)(1), (3) and (4)(A) and (C), (e)(1) (3), (f)(1) and (5), (g)(1)(e), (2), (3)(D), and (7), (i)(1), (k)(1), (2)(A), and (5); 179; 280F(a), (b), (d); Skim Code Section 197; 42; 46(1); 47(a) and (c) Assignment: p. 400 Problems 1 4 p. 405 Problem 1 CLASS 13: DEDUCTIONS FOR PROFIT MAKING, NONBUSINESS ACTIVITIES Reading: FLLS Chapter 15, Code Sections 212; 274(h)(7); 121(a), (d)(6); 165(a), (b), (c)(2); 167(a)(2); 168(a) Skim Code Sections 195; 280A Treas. Reg (g), (k), (l), (m); (b)(7); (b); 1.167(g) 1; (h) Assignment: p. 425 Problems 1 3 p. 433 Problems 1 3 CLASS 14: OTHER DEDUCTIBLE PERSONAL EXPENSES INTEREST AND TAXES

6 Reading: FLLS Chapter 16, p Code Sections 163(a), (h); 280A(d)(1); 7872; 164(a), (b)(1) and (5), (c), (d)(1); 275; 1001(b)(2) Skim Code Sections 163(d) and (f); 221; 263A; 265(a)(2) (4); 266 Treas. Reg (a) (d) Prop. Reg (a) Assignment: p. 465 Problems 1 5 p. 469 Problems 1 5 CLASS 15: OTHER DEDUCTIBLE PERSONAL EXPENSES DEDUCTIONS FOR INDIVIDUALS ONLY Reading: FLLS Chapter 18, p Code Sections 62(a), (c) and (e); 274(n)(1); 82; 132(a)(6) and (g); 217; 213(a), (b), (d)(1) (4) and (9); 263(a)(1); 25A(f); 222; 151; 152; 63; 67 Skim Code Sections 86(a) (c); 21; 152; 162(l); 213(d)(5) and (e); 25A; 135; 151(d)(2); 529; 530; 71(a), (c); 215; 6013(a), (d); 7703; 68 Treas. Reg T(b) and (d); (b) and (e)(3); (b) and (c)(2); T(a) Skim Treas. Reg ; (b)(2) (4), (8); (a)(1), (e)(1) (4)(i)(a) Assignment: p. 513 Problem 1 p. 517 Problems 1 3 p. 527 Problems 1 3 p. 529 Problems 1 2 p. 533 Problems 1 5 p. 543 Problems 1 7 CLASS 16: RESTRICTIONS ON DEDUCTIONS AT RISK RULES AND HOBBY LOSSES, HOME DEDUCTIONS, PASSIVE ACTIVITY LOSSES, AND ILLEGAL OR PROPERTY ACTIVITY Reading: FLLS Chapter 17, p

7 Code Sections 465(a), (b), (d), (e)(1); 183(a) (d); 280A(a), (b), (c)(1), (3), and (5), (d)(1), (e) (g); 469(a), (b), (c)(1), (2) and (7), (d), (e)(1), (f), (g), (h)(1) and (2), (i)(1) (3)(A) and (6), (j)(1), (l)(1); 162(c), (f), (g) Skim Code Sections 1(a); 152(f)(3); 162(e); 165(d); 280E; 6013 Treas. Reg (a) and (b); (a), (c), (e), and (f)(1); T(a), (b)(2)(ii), (iii), (c), (d) Assignment: p. 477 Problems 1 2 p. 486 Problem 1 p. 490 Problems 1 3 p. 502 Problems 1 7 CLASS 17: TIMING OF INCLUSION OR DEDUCTION CASH METHOD OF ACCOUNTING Reading: FLLS Chapter 19, p Code Sections 441(a) (e); 442; 446; 451(a); 461(a) Skim Code Sections 448; 460 Treas. Reg (a)(1) and (2), (b)(1), (c)(1)(i), (iv); (a), Assignment: p. 573 Problems 1 2 CLASS 18: TIMING OF INCLUSION OR DEDUCTION ACCRUAL METHOD OF ACCOUNTING Reading: FLLS Chapter 19, p Code Sections 451(a); 448(d)(5); 455; 456; 458; 461(a), (f) and (h) Treas. Reg (a); (a)(2); (a); (a) and (b)(1) Assignment: p. 602 Problems 1 4 p. 605 Problems 1 2 Reading: FLLS Chapter 20, p CLASS 19: THE TAXABLE YEAR Code Sections 1341(a), (b)(1) and (2); 111(a) Skim Code Sections 111(b) and (c); 172

8 Treas. Reg (a), (b)(1)(i) and (ii), Assignment: p. 617 Problems 1 2 Reading: FLLS Chapter 21, p CLASS 20: CAPITAL GAINS AND LOSSES Code Sections 1(c), (h); 1222; 1211(b); 1212(b)(1), (2)(A)(i); 1222; 1221(a)(1) (4); 1223(1), (2), (9); 102(b); 273; 1001(e); 1241 Skim Code Sections 1(a) (e), (i)(3)(b); 1201(a); 1202(a) (e); 1221(a)(1) (4); 1411; 165(c) and (f); 1211(a); 1212(a)(1) (4); 1222; 1221(a)(5) (8), (b); 1235; 1241; 1253; 1271; 1014(a); 1015(a); 1041(b)(2); 1233; 1259 Assignment: p. 646 Problems 1 3 p. 651 Problem 1 p. 666 Problem 1 p. 671 Problems 1 3 p. 683 Problems 1 4 CLASS 21: CAPITAL GAINS AND LOSSES, CONTINUED Reading: FLLS Chapter 21, p CLASS 22: STATUTORILY CREATED CAPITAL GAINS AND LOSSES Reading: FLLS Chapter 21, p Code Sections 1231 Skim Code Sections 165(g); 166(d); 1222; 1234; 1234A; 1235; 1236; 1237; 1241; 1253; 1271; 1(h); 1060; 1211(b); 1221(a)(1) (4); 1222 Assignment: p. 705 Problems 1 3 CLASS 23: CHARACTERIZATION ON THE SALE OF DEPRECIABLE PROPERTY Reading: FLLS Chapter 22, p Code Sections 267(b)(3), (10), (11) and (12) and (c); 318(a)(3)(B)(i); 1239; 64; 1245(a)(1) (3), (b)(1) and (2), (c), (d); 1(h)(1), (3), and (6); 1250(a)(1)(A) and (B)(v), (b)(1), (3) and (5), (c), (d)(1) and (2), (g) and (h)

9 Skim Code Sections 179(d)(10); 1041(b); 1222; 1231; 64 Treas. Reg (a)(1), (b), (c)(1), (d); (a)(1) (3)(i) and (7); (a) Assignment: p. 712 Problem 1 p. 717 Problems 1 2 p. 720 Problems 1 3 Reading: FLLS Chapter 23, p CLASS 24: CHARACTER OF CERTAIN DEDUCTIONS Code Sections 165(g)(1) and (2); 166(a) (e); 6511(d)(1); 170(a)(1), (b)(1)(a) (D), (G), (b)(2), (c), (e)(1), (2), and (5), (f)(8), (11), and (12), (i) and (j); 1011(b); 165(a) (c), (e), (h), (i), (k) Skim Code Sections 62; 111(a); 271(a); 448(d)(5); 67(b)(4); 162(b); 170(d)(1)(A), (f)(1) (4), (g), (l), 501(k); 67(b)(3); 123 Treas. Reg (a) (c), (e); (a)(1) (3), (5), (b)(1) and (3) ex. 1; (a)(1) (2), (c), (d); (c), (d)(1), (e) (g); (a) (b); (a) (b); (d)(1) (3); (a) and (d) Assignment: p. 735 Problems 1 2 p. 755 Problems 1 5 p. 765 Problems 1 2 Reading: FLLS Chapter 26, p CLASS 25: NONRECOGNITION PROVISIONS Code Sections 1001(c); 1031; 1223(1); 1033(a)(1), (a)(2), (b)(2), (g)(1), (2), and (4), (h)(2); 1223(1) Skim Code Sections 121(d)(10); 1245(b)(4); 1250(d)(4); 357(d)(1); 1231; 1245(b)(4); 1250(d)(4); 1038; 1044; 1045 Treas. Reg (a) 1; (a) 2(a); (b) 1(b) ex. 1; (d) 1; (k) 1(a) (c)(1) and (4)(i), (f); (d); (b) 1(b) Skim Treas. Reg (b) 1(c); (d) 2 Assignment: p. 841 Problems 1 5

10 p. 851 Problems 1 6 CLASS 26: COMPUTATIONS CALCULATING TAX LIABILITY Reading: FLLS Chapter 27, p Code Sections 1; 2; 68; 151(d)(3) and (4); 1411; 6013(a) and (d); 55(a) (d); 56(a)(1), (3), (4), and (6); (b)(1) and (3); 57(a)(5), (6), and (7); 58(b) Skim Code Sections 3; 63; 66; 67; 73; 6012; 7703; 21; 23; 24; 25A; 32; 31; 35; 6315; 6654 Assignment: p. 871 Problems 1 4 p. 889 Problem 1