WACO, TEXAS COURSE SYLLABUS AND INSTRUCTOR PLAN FEDERAL INCOME TAX ANNETTE BIGHAM AN EQUAL OPPORTUNITY INSTITUTION SPRING 2015
Course Description: A study of the laws currently implemented by the IRS, providing a working knowledge of preparing taxes for the individual. Basic accounting knowledge recommended. Semester Hours 3 (3 lec) Prerequisites and/or Corequisites: None. Course Notes and Instructor Recommendations: Students are expected to participate in class discussions, to study course material to complete assignments, to complete reading assignments, and to take tests and quizzes as required. Nonparticipation in the above items will have a detrimental impact on grades and credit. Students are encouraged to do outside reading in sources other than the text. Instructor Information: Instructor Name: Annette Bigham MCC E-mail: abigham@mclennan.edu Office Phone Number: 254-299-8690 Office Location: MAC 221 (Look for MAC 219 and walk through) Office/Teacher Conference Hours: Monday 3:30-4:30 Tues, Wednesday, Thursday 2:30-3:30 Required Text & Materials: Title: 2015 Income Tax Fundamentals with H&R Block Software Author: Whittenburg, Altus-Buller, Gill Edition: 2015 Publisher: Southwestern ISBN: 978-1-285-43953-5 Computer Storage Device MCC Bookstore Website Methods of Teaching and Learning: Lecture 2
Demonstration problems Evaluation and review of assignments of exercises and problems In class and lab work Exams Course Objectives and/or Competencies: CH 1 LEARNING OBJECTIVES LO 1.1 Understand the history and objectives of U.S. tax law. LO 1.2 Describe the different entities subject to tax and reporting requirements. LO 1.3 Understand and apply the tax formula for individuals. LO 1.4 Identify individuals who must file tax returns. LO 1.5 Determine filing status and understand the calculation of tax according to filing status. LO 1.6 Calculate the number of exemptions and the exemption amounts for taxpayers. LO 1.7 Calculate the correct standard or itemized deduction amount for taxpayers. LO 1.8 Compute basic capital gains and losses. LO 1.9 Access and use various Internet tax resources. LO 1.10 Understand the basics of electronic filing (e-filing). CH 2 LEARNING OBJECTIVES LO 2.1 Understand and apply the definition of gross income. LO 2.2 Identify the tax treatment of interest and dividend income. LO 2.3 Describe the tax treatment of alimony and child support. LO 2.4 Determine when prizes and awards are included in income. LO 2.5 Calculate the taxable and nontaxable portions of annuity payments. LO 2.6 Understand the tax treatment of life insurance proceeds. LO 2.7 Identify the general rules for the tax treatment of gifts and inheritances. LO 2.8 Describe the elements of scholarship income that are excluded from tax. LO 2.9 Understand the general tax treatment of health insurance. LO 2.10 Determine when meals and lodging may be excluded from taxable income. LO 2.11 Understand the tax treatment of municipal bond interest. LO 2.12 Describe the tax treatment of unemployment compensation. LO 2.13 Identify the common employee fringe benefit income exclusions. LO 2.14 Apply the rules governing inclusion of Social Security benefits as income. CH 3 LEARNING OBJECTS LO 3.1 Complete a basic Schedule C (Profit or Loss from Business). LO 3.2 Understand the tax treatment of inventories and cost of goods sold. LO 3.3 Identify the requirements for deducting transportation expenses. LO 3.4 Identify the requirements for deducting travel expenses. LO 3.5 Determine the requirements for claiming meals and entertainment deductions. LO 3.6 Identify the requirements for claiming business education expenses. 3
LO 3.7 Identify the tax treatment of dues and subscriptions. LO 3.8 Determine which clothing and uniforms may be treated as tax deductions. LO 3.9 Explain the special limits for business gift deductions. LO 3.10 Explain the tax treatment of bad debt deductions. LO 3.11 Ascertain when a home office deduction may be claimed and how the deduction is computed. LO 3.12 Describe the basic tax treatment of deductions for net operating losses. LO 3.13 Apply the factors used to determine whether an activity is a hobby, and understand the tax treatment of hobby losses. CH 4 LEARNING O B J E C T I V E S LO 4.1 Apply the tax rules for rental property and vacation homes. LO 4.2 Explain the treatment of passive income and losses. LO 4.3 Describe the self-employed health insurance deduction. LO 4.4 Understand how Health Savings Accounts (HSAs) can be used for taxadvantaged medical care. LO 4.5 Know the special rules applicable to moving expenses. LO 4.6 Understand the treatment of Individual Retirement Accounts (IRAs), including Roth IRAs. LO 4.7 Explain the general contribution rules for Keogh and Simplified Employee Pension (SEP) plans. LO 4.8 Describe the general rules for qualified retirement plans and 401(k) plans. LO 4.9 Explain the pension plan rollover rules. CH 5 LEARNING O B J E C T I V E S LO 5.1 Understand the nature and treatment of medical expenses. LO 5.2 Calculate the itemized deduction for taxes. LO 5.3 Apply the rules for an individual taxpayer s interest deduction. LO 5.4 Determine the charitable contributions deduction. LO 5.5 Compute the deduction for casualty and theft losses. LO 5.6 Identify miscellaneous itemized deductions. LO 5.7 Understand the treatment of employee business expenses. LO 5.8 Understand the tax implications of using educational savings vehicles. CH 6 LEARNING O B J E C T I V E S LO 6.1 Calculate the child tax credit. LO 6.2 Determine the earned income credit (EIC). LO 6.3 Compute the child and dependent care credit for an individual taxpayer. LO 6.4 Apply the special rules applicable to the American Opportunity and lifetime learning credits. LO 6.5 Understand the operation of the foreign tax credit. LO 6.6 Determine the proper use and calculation of the adoption credit. LO 6.7 Recognize the basic individual credits for energy efficiency. LO 6.8 Understand the basic alternative minimum tax calculation. LO 6.9 Apply the rules for computing tax on the unearned income of minor children and certain students. LO 6.10 Distinguish between the different rules for married taxpayers residing in community property states when filing separate returns. CH 7 LEARNING OBJECTIVES 4
LO 7.1 Determine the different accounting periods allowed for tax purposes LO 7.2 Determine the different accounting methods allowed for tax purposes. LO 7.3 Understand the concept of depreciation. LO 7.4 Understand the calculation of depreciation expense using the MACRS tables. LO 7.5 Identify when a Section 179 election to expense the cost of property may be used. LO 7.6 Apply the limitations placed on depreciation of listed property. LO 7.7 Apply the limitations on depreciation of luxury automobiles. LO 7.8 Understand the tax treatment for goodwill and certain other intangibles. LO 7.9 Determine whether parties are considered related for tax purposes, and classify the tax treatment of certain related-party transactions. CH 8 LEARNING OBJECTIVES LO 8.1 Define the term capital asset. LO 8.2 Know the holding period for long-term and short-term capital gains. LO 8.3 Calculate the gain or loss on the disposition of an asset. LO 8.4 Compute the tax on capital gains. LO 8.5 Understand the treatment of capital losses. LO 8.6 Understand the treatment of Section 1231 assets. LO 8.7 Describe the depreciation recapture rules. LO 8.8 Know the general treatment of casualty losses for both personal and business purposes. LO 8.9 Understand the provisions allowing deferral of gain on installment sales. LO 8.10 Know the general treatment of like-kind exchanges. LO 8.11 Understand the basic tax treatment of involuntary conversions. LO 8.12 Know the rules governing the exclusion on gain from personal residence sales. CH 10 LEARNING OBJECTIVES LO 10.1 Define a partnership for tax purposes. LO 10.2 Understand the basic tax rules for partnership formation and operation. LO 10.3 Summarize the rules for partnership income reporting. LO 10.4 Describe the tax treatment of partnership distributions. LO 10.5 Determine partnership tax years. LO 10.6 Identify the tax treatment of transactions between partners and their partnerships. LO 10.7 Understand the application of the at-risk rule to partnerships. LO 10.8 Analyze the advantages and disadvantages of limited liability companies (LLCs). CH 11 LEARNING OBJECTIVES LO 11.1 Employ the corporate tax rates to calculate corporate tax liability. LO 11.2 Compute basic capital gains and losses for corporations. LO 11.3 Ascertain how special deductions may affect corporate taxable income. LO 11.4 Identify the components of Schedule M-1 and how they are reported to the IRS. LO 11.5 Know the corporate tax return filing and estimated tax payment requirements. LO 11.6 Understand, in general, how an S corporation is taxed and operates. LO 11.7 Understand the basic tax rules for the formation of a corporation. LO 11.8 Describe the rules for the accumulated earnings tax and the personal holding company tax. 5
LO 11.9 Define the elements of the corporate alternative minimum tax (AMT) calculation. CH 12 LEARNING OBJECTIVES LO 12.1 Identify the organizational structure of the IRS. LO 12.2 Understand the IRS audit process. LO 12.3 Define the common penalties for taxpayers and tax preparers and be able to apply them to specific situations. LO 12.4 Apply the general rule for the statute of limitations on tax returns and the important exceptions to the general rule. LO 12.5 Describe the rules that apply to tax practitioners. LO 12.6 Describe the Taxpayer Bill of Rights. LO 12.7 Understand the basic concepts of tax planning. Course Outline or Schedule: This is a tentative semester schedule. Students will be notified of changes through an announcement in class. Homework is to be done in CNOW. Date Chapter Homework Due 1/12/15 1 The Individual Tax Return 1/14/15 1 1/19/15 MARTIN LUTHER KING DAY Homework to be done in CNOW due 1/21/15 2 Gross Income and Exclusions CH 1 1/26/15 2 1/28/15 TEST 1 CH 1-2 CH 2 2/2/15 3 Business Income and Expenses, Part 1 2/4/15 3 2/9/15 4 Business Income and Expenses, Part 2 CH 3 2/11/15 4 2/16/15 Review for Test 2 CH 4 2/18/15 TEST 2 CH 3-4 2/23/15 5 Itemized Deductions and Other Incentives 2/25/15 5 3/2/15 6 Credits and Special Taxes CH 5 3/4/15 6 3/9/15 3/11/15 SPRING BREAK 6
3/16/15 Review for Test 3 CH 6 3/18/15 TEST 3 CH 5-6 3/23/15 7 Accounting Periods and Methods of Depreciation 3/25/15 7 3/30/15 8 Capital Gains and Losses CH 7 4/1/15 8 4/6/15 Review for Test 4 CH 8 4/8/15 TEST 4 CH 7-8 4/13/15 10 Partnership Taxation 4/15/15 10 4/20/15 11 Corporate Income Tax CH 10 4/22/15 11 4/27/15 12 Tax Administration and Tax Planning CH 11 4/29/15 Review for Final Exam 5/6/15 FINAL EXAM CH 1-8 and 10-12 Course Grading Information: 4 unit exams 30% Final exam 20% Other 50% Total 100% Grades in the course will be based upon a grading system that includes objective tests, homework problems, computer problems, classwork (participation, attitude, and preparedness), and a comprehensive final exam. The following percentages relate to demonstrated proficiencies in the objectives and course content: Proficiency Grade 90-100% A 80-89% B 70-79% C 60-69% D Less than 60% F Late Work, Attendance, and Make Up Work Policies: 7
Any assignment not turned in by the due date will be considered late and is subject to a penalty of 25%. Student Behavioral Expectations or Conduct Policy: Students are expected to maintain classroom decorum that includes respect for other students and the instructor, prompt, and regular attendance, and an attitude that seeks to take full advantage of the education opportunity. MCC Academic Integrity Statement: The Center for Academic Integrity defines academic integrity as a commitment, even in the face of adversity, to five fundamental values: honesty, trust, fairness, respect, and responsibility. From these values flow principles of behavior that enable academic communities to translate ideals into action. Individual faculty members determine their class policies and behavioral expectations for students. Students who commit violations of academic integrity should expect serious consequences. For further information about student responsibilities and rights, please consult the McLennan website and your Highlander Student Guide. Academic Integrity Statement: Specific cheating and plagiarism definitions and policies used in your class sections; if you do not have a statement you can delete this section and leave only the MCC Academic Intergrity Statement MCC Attendance Policy: Regular and punctual attendance is expected of all students, and each instructor will maintain a complete record of attendance for the entire length of each course, including online and hybrid courses. Students will be counted absent from class meetings missed, beginning with the first official day of classes. Students, whether present or absent, are responsible for all material presented or assigned for a course and will be held accountable for such materials in the determination of course grades. Please refer to the Highlander Guide for the complete policy. ADA Statement: 8
In accordance with the requirements of the Americans with Disabilities Act (ADA), and the regulations published by the United States Department of Justice 28 C.F.R. 35.107(a), MCC s designated ADA coordinators, Dr. Drew Canham Vice President, Student Success and Mr. Gene Gooch - Vice President, Finance and Administration shall be responsible for coordinating the College s efforts to comply with and carry out its responsibilities under ADA. Students with disabilities requiring physical, classroom, or testing accommodations should contact Ms. Renee Jacinto, Disabilities Specialist, Student Services Center, Student Development Department, Room 211 or at 299-8122 or disabilities@mclennan.edu. TITLE IX No person in the United States shall, on the basis of sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any education program or activity receiving Federal financial assistance. Legal Citation: Title IX of the Education Amendments of 1972, and its implementing regulation at 34 C. F. R. Part 106 (Title IX) In accordance with the requirements of the Title IX Education Amendments of 1972 MCC s designated Title IX Coordinator, Al Pollard Vice President, Program Development/EEO Officer and Deputy Coordinator, Drew Canham Vice President, Student Success shall be responsible for coordinating the College s effort to comply with and carry out its responsibilities under Title IX. Contact information Al Pollard, Title IX Coordinator Drew Canham, Title IX Deputy Coordinator Vice President, Program Development Vice President, Student Success McLennan Community College McLennan Community College Administration Building, Room 417 Administration Building, Room 408 1400 College Drive 1400 College Drive 254-299-8669 254-299-8645 FAX 254-299-8654 FAX 254-299-8654 apollard@mclennan.edu dcanham@mclennan.edu 9