(NOTE: All chapters include sections on Tax Planning Considerations, Compliance and Procedural Considerations, and Problem Materials except Chapter 1.)
1. An Introduction to Taxation.
History of Taxation in the United States. Types of Tax Rate Structures. Other Types of Taxes. Criteria for a Tax Structure. Objectives of the Federal Income Tax Law. Entities in the Federal Income Tax System. Tax Law Sources. Enactment of a Tax Law. Administration of the Tax Law and Tax Practice Issues. Components of a Tax Practice. Computer Applications in Tax Practice.
2. Determination of Tax.
Formula for Individual Income Tax. Deductions from Adjusted Gross Income. Determining the Amount of Tax. Corporate Tax Formula and Rates. Treatment of Capital Gains and Losses.
3. Gross Income: Inclusions.
Economic and Accounting Concepts of Income. Tax Concept of Income. To Whom Is Income Taxable? When Is Income Taxable? Items of Gross Income: Sec. 61(a). Other Items of Gross Income.
4. Gross Income: Exclusions.
Items That Are Not Income. Major Statutory Exclusions.
5. Property Transactions: Capital Gains and Losses.
Determination of Gain or Loss. Basis Considerations. Definition of a Capital Asset. Tax Treatment for Capital Gains and Losses of Noncorporate Taxpayers. Tax Treatment of Capital Gains and Losses: Corporate Taxpayers. Sale or Exchange. Holding Period. Preferential Treatment for Net Capital Gains.
6. Deductions and Losses.
For Versus from Adjusted Gross Income (AGI) Classification. Criteria for Deducting Business and Investment Expenses. General Restrictions on the Deductibility of Expenses. Proper Substantiation Requirement. When an Expense Is Deductible. Special Disallowance Rules.
7. Itemized Deductions.
Medical Expenses. Taxes. Interest. Charitable Contributions. Casualty and Theft Losses. Miscellaneous Itemized Deductions. Reduction of Certain Itemized Deductions.
8. Losses and Bad Debts.
Transactions That May Result in Losses. Classifying the Loss on the Taxpayer's Tax Return. Passive Losses. Casualty and Theft Losses. Bad Debts. Net Operating Losses.
9. Employee Expenses and Deferred Compensation.
Classification of Employee Expenses. Travel Expenses. Transportation Expenses. Entertainment Expenses. Reimbursed Employee Business Expenses. Moving Expenses. Education Expenses. Office in Home Expenses. Deferred Compensation.
10. Depreciation, Cost Recovery, Amortization, and Depletion.
Depreciation and Cost Recovery. Amortization. Depletion, Intangible Drilling, and Development Costs.
11. Accounting Periods and Methods.
Accounting Periods. Overall Accounting Methods. Inventories. Special Accounting Methods. Imputed Interest. Change in Accounting Methods.
12. Property Transactions: Nontaxable Exchanges.
Like-Kind Exchanges. Involuntary Conversions. Sale of Principal Residence.
13. Property Transactions: Section 1231 and Recapture.
History of Sec. 1231. Overview of Basic Tax Treatment for Sec. 1231. Section 1231 Property. Involuntary Conversions. Procedure for Sec. 1231 Treatment. Recapture Provisions of Sec. 1245. Recapture Provisions of Sec. 1250. Additional Recapture for Corporations. Recapture Provisions--Other Applications.
14. Special Tax Computation Methods, Tax Credits, and Payment of Tax.
Alternative Minimum Tax. Self-Employment Tax. Overview of Tax Credits. Personal Tax Credits. Miscellaneous Credits. General Business Credits. Refundable Credits. Payment of Taxes.
15. Tax Research.
Overview of Tax Research. Steps in the Tax Research Process. Importance of the Facts to the Tax Consequences. The Sources of Tax Law. Tax Services. Citators. Computers as a Research Tool. Statements on Standards in Tax Practice. Sample Work Papers and Client Letter.
Definition of a Corporation. Similarities and Differences between Corporations and Individuals. Specific Rules Applicable to Corporations. Computation of Tax. Transfers of Property to Controlled Corporations. Capitalization of the Corporation. Earnings and Profits. Nonmoney Distributions. Stock Redemptions. Corporate Distributions in Complete Liquidation.
17. Partnerships and S Corporations.
Types of Flow-Through Entities. Taxation of Partnerships. Partnership Elections. Taxation of S Corporations.
18. Taxes and Investment Planning.
Investment Models. Other Applications of Investment Models. Implicit Taxes and Clienteles.