ACC-207 Income Tax Accounting

This course is designed to familiarize accounting students with aspects of income taxation of individuals and provide a foundation upon which they can act in either an advisory or functional capacity.

Credits

3

Prerequisite

ACC-101

Department

• Business

Semesters Course Will Be Offered

• Fall
• Spring

For more detailed course information view the Course Outline

ACC 207: Income Tax Accounting

Department

Business

Course Description

This course is designed to familiarize accounting students with aspects of income taxation of individuals and provide a foundation upon which they can act in either an advisory or functional capacity.

Credit Hours

3

Contact Hours

Lecture	3
Lab	0
Other	0

Grading Scheme

Letter

Semester(s) Course Will Be Offered

Fall, Spring

Prerequisites

ACC-101

Course Learning Outcomes

1. Prepare simple and more complex Federal 1040 Income Tax returns for most individuals, including associated schedules
2. Calculate Federal Withholding, Social Security Tax, and Medicare Tax related to payroll
3. Demonstrate various aspects of tax planning and identify the differences between tax avoidance and tax evasion
4. Research tax issues as they relate to individual tax returns

Topic Outline

1. History and Objectives of the Tax System
   1. Introduction to Taxes
   2. Understanding the Federal Tax Law
   3. Reporting and Taxable Entities
2. Tax Formula for Individuals
   1. Who Must File
   2. Filing Status and Tax Computation
   3. Overview of Property Transactions
   4. Standard Deductions
   5. Tax and the Internet
   6. Electronic Filing
3. Gross Income Inclusions and Exclusions
   1. Nature of Gross Income
   2. Interest and Dividend Income
   3. Prizes and Awards
   4. Annuities
   5. Life Insurance
   6. Gifts and Inheritances
   7. Scholarships
   8. Accident and Health Insurance
   9. Meals and Lodging
   10. Municipal Bond Interest
   11. Unemployment Compensation Tax
   12. Employee Fringe Benefits
   13. Social Security Benefits
4. Business Income and Expenses
   1. Schedule C
   2. Inventories
   3. Transportation
   4. Travel Expenses
   5. Meals and Entertainment
   6. Educational Expenses
   7. Dues, Subscriptions, and Publications
   8. Special Clothing and Uniforms
   9. Business Gifts
   10. Bad Debt
   11. Office in the Home
   12. Net Operating Losses
   13. Hobby Losses
5. Other Business Income and Expenses
   1. Rental Income and Expenses
   2. Passive Loss Limitations
   3. Self-employed Health Insurance Deduction
   4. Health Savings Accounts
   5. Small Business and Self-Employed Retirement Accounts
   6. Qualified Retirement Plans
      1. Rollovers
6. Itemized Deductions and Other Incentives
   1. Medical Expenses
   2. Taxes
   3. Interest
   4. Charitable Contributions
   5. Casualty and Theft Losses
   6. Miscellaneous Deductions
   7. Educational Incentives
   8. Phase-Out of Itemized Deductions
7. Credits and Special Taxes
   1. Child Tax Credit
   2. Earned Income Credit
   3. Child and Dependent Care Credit
   4. The Affordable Care Act
   5. Education Tax Credits
   6. Foreign Tax Credit
   7. Adoption Expenses
   8. Energy Credits
      1. Individual Alternative Minimum Tax (AMT)
   9. Unearned income of minor children
8. Depreciation, Amortization, and Depletion
   1. Methods of Depreciation
   2. MACRS- Modified Accelerated Cost Recovery System
   3. Election to Expense (Section 179)
   4. Listed Property
   5. Limitation of Depreciation of Luxury Automobiles
   6. Intangibles
9. Capital Gains and Losses
   1. Capital Asset
   2. Holding Period
   3. Calculation of Gains or Losses
   4. Net Capital Gains
   5. Net Capital Losses
   6. Section 1231 Gains and Losses
   7. Depreciation Recapture
   8. Casualty Gains and Losses
      1. Installment Sales
   9. Like-Kind Exchanges
   10. Involuntary Conversion Sale of a Personal Residence
10. Withholding, Estimated Payments, and Payroll Taxes
    1. Withholding Methods
    2. Estimated Payments
    3. FICA Tax
    4. Federal Deposit Tax System
    5. Employer Reporting Requirements
    6. Self-Employment Tax
    7. FUTA Tax
    8. Nanny Tax
11. Tax Administration and Tax Planning
    1. The Internal Revenue Service
    2. The Audit Process
    3. Interest and Penalties
    4. Statue of Limitations
    5. Taxpayer Bill of Rights
    6. Tax Planning