ACT4494 Income Tax Accounting I

TROY UNIVERSITY SORRELL COLLEGE OF BUSINESS ACT 4494 TRWA Income Tax Accounting I Spring 2011 Instructor: Dr. Eddy J. Burks, DBA, CPA

Office Hours: TTh 9:45-11:30 Wed 8:30-3:00 Office Location: McCartha 201 Office Phone #: 334-670-3149 Instructor Email: [email protected] Classroom Location: GAB 301 Class Time: TT 11:30-12:45 Prerequisites: ACT 3391

Troy University School of Accountancy Mission Statement:

The mission of the School of Accountancy is to advance the accounting profession by providing quality accounting education to both undergraduate and graduate students, publishing quality research and providing service to the professional community. We prepare students for successful careers with increasing professional and managerial responsibility in public accounting as well as government and industry and prepare undergraduate students for admission to graduate programs in accounting and business.

Troy University Mission Statement: Troy University is a public institution comprised of a network of campuses throughout Alabama and worldwide. International in scope, Troy University provides a variety of educational programs at the undergraduate and graduate levels for a diverse student body in traditional, non-traditional and electronic formats. Academic programs are supported by a variety of student services which promote the welfare of the individual student. Troy University’s dedicated faculty and staff promote discovery and exploration of knowledge and its application to lifelong success through effective teaching, service creative partnerships, scholarship and research.

SCOB Mission Statement: Through operations that span the State of Alabama, the United States, and the world, the Sorrell College of Business equips our students with the knowledge, skills, abilities and competencies to become organizational and community leaders who make a difference in the global village and global economy. Through this endeavor, we serve students, employers, faculty, and Troy University at large as well as the local and global communities.

SCOB Vision Statement: Sorrell College of Business will be the firs choice for higher business education students in their quest to succeed in a dynamic and global economy. Sorrell College of Business will create the model for 21st century business education and community service.

Prerequisite: ACT 2292.

Description

The student will be introduced to the development U.S. taxation of income. Primary emphasis on the individual, including filing status and exemptions. The components of personal and business income and allowable deductions will be discussed in detail. The taxation of property and capital will also be introduced. Objectives

This course is intended to help students acquire basic knowledge of income taxation for individuals. Additionally, students will be required to prepare individual income tax returns and conduct tax research.

After completing this course students should:

1. Understand and apply basic income tax rules and regulations related to business income and deductions

2. Be able to determine the tax consequences of property transactions

3. Understand the basic principles of individual income taxation

4. Understand the differences between the various types of tax entities

5. Understand the sources of tax law

6. Be able to perform basic tax research: Identify relevant facts, identify issues, locate and analyze authority and formulate conclusions

7. Be able to prepare a comprehensive individual income tax return

8. Be able to write a tax research memorandum

Purpose

To introduce the concepts and practices related to income tax law, regulation, and practice for individuals. BABA/BSBA Accounting major requirement.

Approved Texts

South-Western Federal Taxation: Comprehensive 2011, 34th Edition

Eugene Willis | William H. Hoffman, Jr. | David M. Maloney | William A. Raabe

ISBN- 1111195854 Bundled with Aplia

Required

Other Materials Needed: Aplia, Pencils, Paper, Calculators

ATTENDANCE POLICY:

Attendance will be taken daily. For any quizzes, problems, exams, or other activities that are completed in class, you must be present to receive credit.

MAKE-UP WORK POLICY: There is no make up work. If you miss a quiz or exam, it’s history. If an exam is missed, the comprehensive exam will count twice. A grade of zero will be recorded for the second or third missed exam. METHOD OF INSTRUCTION : The chapter material will be discussed in class. Lecture notes and powerpoint slides are posted for your use in Blackboard. Gleim CPA review will be used in the lab. Tax software will also be used in the lab.

METHOD OF EVALUATION:

Exams - 3 at 100 points each = 300 points Aplia homework = 100 Tax returns = 100 Comprehensive Final = 200 Total 700

Homework: Aplia software will be used for your homework grade. Due by exam date. Go to www.aplia.com , click new student link. The course key: 3KDM-JQK6-H7CH Information sheet attached No late homework accepted.

Tax Software: We will use ATX2010 tax software to prepare tax returns. Then when you open a new return use your name (FIRST NAME LASTNEAME) with the Tax return number attached to your lastname, example John BrownTR1 for John Brown tax return number 1, JOHN bROWNTR2 for tax return #2. DO NOT USE YOUR SOCIAL SECURITY NUMBER. If a social security number is needed make up a fictional number.

ASSIGNMENT OF GRADES: All grades will be posted in the student grade book in Blackboard and will be assigned according to the following or similar scale:

A 90 – 100% B 80 – 89% C 70 – 79% D 60 – 69% F 59% and below

You may withdraw from this course with a DP anytime before the last day of class, just complete the drop form and get it signed.

Check Blackboard on a regular basis for your scores. After a score is posted in Blackboard, you have 5 days to notify me of an error.

NON-HARASSMENT, HOSTILE WORK/CLASS ENVIRONMENT: Troy University expects students to treat fellow students, their instructors, other TROY faculty, and staff as adults and with respect. No form of “hostile environment” or “harassment” will be tolerated by any student or employee.

AMERICANS WITH DISABILITY ACT (ADA): Any student whose disabilities fall within ADA guidelines must inform me at the beginning of the term of any specials needs or equipment necessary to accomplish the requirements for this course. Students must also provide written proof of their disability to the instructor. For assistance in applying for Adaptive Needs services for students submitted through the eCampus, students should contact Dr. Barbara Echord at [email protected] or call (334) 670-5875.

HONESTY AND PLAGIARISM: The awarding of a university degree attests that an individual has demonstrated mastery of a significant body of knowledge and skills of substantive value to society. Any type of dishonesty in securing those credentials therefore invites serious sanctions, up to and including suspension and expulsion (see Standard of Conduct in each TROY Catalog). Examples of dishonesty include actual or attempted cheating, plagiarism*, or knowingly furnishing false information to any university employee.

*Plagiarism is defined as submitting anything for credit in one course that has already been submitted for credit in another course, or copying any part of someone else’s intellectual work – their ideas and/or words – published or unpublished, including that of other students, and portraying it as one’s own. Proper quoting, using strict APA formatting, is required, as described by the instructor. All students are required to read the material presented at: http://troy.troy.edu/writingcenter/research.html

 Students must properly cite any quoted material. No term paper, business plan, term project, case analysis, or assignment may have no more than 20% of its content quoted from another source. Students who need assistance in learning to paraphrase should ask the instructor for guidance and consult the links at the Troy Writing Center.

 This university employs plagiarism-detection software, through which all written student assignments are processed for comparison with material published in traditional sources (books, journals, magazines), on the internet (to include essays for sale), and papers turned in by students in the same and other classes in this and all previous terms. The penalty for plagiarism may range from zero credit on the assignment, to zero in the course, to expulsion from the university with appropriate notation in the student’s permanent file.

LIBRARY SUPPORT: The Libraries of Troy University provide access to materials and services that support the academic programs. The address of the Library Web site is https://library.troy.edu This site provides access to the resources of all Campus and Regional Libraries, as well as to resources such as the Library’s Catalog and Databases. Additionally, the Library can also be accessed by choosing the “Library” link from the University’s home page, www.troy.edu, or through the eLibrary tab within Blackboard.

FACULTY EVALUATION: At the end of term, students will be notified of the requirement to fill out a course evaluation form. These evaluations are completely anonymous and are on-line.

ACT 4494 TAX 1 Course Content

Chapter 1 An Introduction to Taxation Chapter 2 Working with the Tax Law Chapter 3 Tax Determination; Personal and Dependency Exemptions Chapter 4 Gross Income: Concepts and Inclusions Chapter 5 Gross Income: Exclusions Chapter 6 Deductions and Losses: In General Chapter 7 Deductions and Losses: Certain Business Expenses and Losses Chapter 8 Depreciation, Cost Recovery Chapter 9 Deductions: Employee and Self-Employed- Related Expenses Chapter 10 Deductions and Losses: Certain Itemized Deductions Chapter 11 Investor Losses: Passive Activity Losses Chapter 12 Tax Credits and Payments First day of class: August 12, 2010

Homework Assignment: from the book

ACT 4494 Fall 2010

CHAPTER DQ'S PROBLEMS 1 1,2,3,6,17,19,22,26,29,32,40,44 2 1,2,3,4,5,6,7,8,9,10 3 1,3,4,17 28,29,30,31,32,34,46

4 2,5,7,10 26,28,29,35,37,40,42,43,56

5 3,5,9,13 29,32,34,35,36,44,48

6 5,6,7,10,15 33,34,37,40,42,43,47,49,51,53

7 1,5,8,9 31,33,36,38,39,43

8 1,2,6,7,8,9,10,11,12 31 thru 47, 60, 61

9 2,5,6,15,21 40,45

10 2,3,4,11 24,26,31,34,38,45,46

11 1,2,5,9,12,13 26,33,36,37,38,42,43,56,57

12 1,2,3,4,12,13,14,17,18,20 Student Registration and Payment Instructions

Course Name: Burks-ACT4494 Federal Income Tax I Spring 2011 Start Date: 08/09/2010 Instructor: Eddy J Burks Course Key: 3KDM-JQK6-H7CH

You can begin working on your homework as soon as you register! • In this course, you will use a textbook and Aplia's website. • In most cases, you can save money if you buy Aplia and your textbook together. See payment options below. • You will have access to a digital version of your textbook using Aplia.

Registration If you have never used Aplia before... 1. Connect to http://www.aplia.com. 2. Click the Create a New Account link and choose Student Account. You will then enter your course key: 3KDM-JQK6-H7CH Continue following the instructions to complete your registration. If you have used Aplia before... 1. Connect to http://www.aplia.com. 2. Sign in with your usual e-mail address and password and enter your Course Key when prompted: 3KDM- JQK6-H7CH If you are not prompted for a new Course Key, click the Enroll in a New Course button at the top of your My Courses page to enroll in a new Aplia course. Enter your Course Key when you are prompted. * You will have different payment options after you register for your course. If you choose to pay later, you can use Aplia without paying until 11:59 PM on 08/29/2010.

Payment Option 1: Digital Textbook with Aplia Access • From Aplia: Purchase access to your course from Aplia's website for $80.00 USD. Option 2: Physical Textbook with Aplia Access (also includes digital textbook) • From Aplia: Purchase access to your course for $80.00 USD and a physical book for $99.00 USD from Aplia's website. • From Bookstore: Purchase an Aplia Access Card and a physical book together as a bundle from your campus bookstore. * If you purchased an Aplia Access Card from a bookstore, enter the Access Card's payment code on Aplia's website as payment for your Aplia course. * You will have access to your digital textbook up until the end of this course.