TROY UNIVERSITY
MASTER SYLLABUS
SORRELL COLLEGE OF BUSINESS
SCHOOL OF ACCOUNTANCY
TAX 6688
Taxation of Corporations and Shareholders
Prerequisite or Co-requisite
TAX 6684 Federal Tax Research
Description
The course is a study of the federal taxation of corporations and shareholders. The course covers
the tax aspects of forming a corporation, operating a corporation, distributions in respect of
stock, redemptions of stock, and corporate liquidations. The course requires the writing of a tax
research paper, which would be suitable or submission to a high quality professional tax journal.
Objectives
On completion of the course, the student should be able to:
1. Explain the requirements for a tax-deferred transfer of assets to a controlled corporation
2. Calculate the gain or loss realized on tax-deferred transfer of assets to a controlled
corporation
3. Calculate the gain or loss recognized on a tax-deferred transfer of assets to a corporation
4. Calculate the corporation’s basis in assets received in a tax-deferred transfer of assets to a
controlled corporation
5. Calculate the shareholder’s basis in stock on a tax-deferred transfer of assets to a
controlled corporation
6. Calculate the taxable income of a corporation, including special deductions for
organization costs, start-up costs, dividends received, and charitable contributions
7. Explain the requirements for a distribution in respect of stock to be a dividend
8. Calculate how much of a distribution in respect of stock is a dividend and how much is a
return of capital
9. Calculate the gain or loss on a distribution of property in respect of stock
10. Determine a shareholder’s basis in property received in respect of stock
11. Determine the effect of a distribution in respect of stock on a corporation’s earnings and
profits
12. Explain the requirements for a payment to a shareholder in exchange for stock to be
treated as a sale of the stock
13. Calculate the effect of a redemption of stock on a shareholder
14. Calculate the effect of a redemption of stock on a corporation’s earnings and profits
Master Syllabi are developed by the senior faculty in each business discipline. This Master Syllabus must be used as the basis for developing the
instructor syllabus for this course, which must also comply with the content specifications outlined in the Troy University Faculty Handbook.
The objectives included on this Master Syllabus must be included among the objectives on the instructor’s syllabus, which may expand upon the
same as the instructor sees fit. The statement of purpose seeks to position the course properly within the curriculum and should be consulted by
faculty as a source of advisement guidance. Specific choice of text and other details are further subject to Program Coordinator guidance.
1 August 2005
Master Syllabus: TAX 6688
2
15. Explain the effects of making the S election
16. Explain how to make the S election
17. Explain the accumulated earnings tax and the personal holding company tax
18. Explain the tax effects of a complete liquidation of a corporation
19. Prepare sample tax research memoranda regarding tax issues involving corporations
20. Write a tax research paper on a corporate tax issue suitable for submission to a highquality professional tax journal
Purpose
To provide students with an in-depth understanding of the tax aspects of corporations and
shareholders other than corporate divisions and reorganizations.
Approved Text
Federal Income Taxation of Corporations and Shareholders by Boris I. Bittker and James S.
Eustice. Warren, Gorham & Lamont. ISBN: 0-7913-6028-8
Supplements (optional)
James E. Smith, Internal Revenue Code of 1986 and Treasury Regulations: Annotated and
Selected (current edition). Mason, OH: South-Western Cengage Learning.
CPA Exam Review Manual: Regulation
Course Outline
Chapter 1:
Introductory
Chapter 2:
Definition of “Corporation”
Chapter 3:
Organization of a Corporation: Section 351 and Related Problems
Chapter 4:
Corporation’s Capital Structure: Debt vs. Equity
Chapter 5:
The Corporation Income Tax
Chapter 6:
Corporate Elections Under Subchapter S
Troy University Faculty Handbook (2010): Section 3.9.2.8 [extract] — essential elements of the syllabus (somewhat modified for space):
1. Course title
2. Course number +
section
3. Term
4. Instructor
5. Prerequisites
6. Office hours
7. Class days, times
8. Classroom
location
9. Office location +
e-mail address
10. Office telephone
11. Course
description,
objectives
12. Text(s)
13. Other materials
14. Grading methods, 16. General supports
criterion weights,
(computer works,
make-up policy,
writing center)
mid-term grade
17. Daily assignments,
reports
holidays, add/drop
15. Procedure, course
& open dates, dead
requirements
day, final exam
18. ADA statement
19. Electronic device
statement
20. Additional
services,
statements
21. Absence policy
22. Incomplete-work
policy
23. Cheating policy
24. Specialization
requirements
(certification,
licensure, teacher
competencies)
Master Syllabus: TAX 6688
3
Chapter 7:
Penalty Taxes on Undistributed Corporate Income
Chapter 8:
Dividends and Other Nonliquidating Distributions
Chapter 9:
Stock Redemptions
Chapter 10: Complete Liquidations and Other Taxable Dispositions of Corporate Stock and
Assets in Bulk
Troy University Faculty Handbook (2010): Section 3.9.2.8 [extract] — essential elements of the syllabus (somewhat modified for space):
1. Course title
2. Course number +
section
3. Term
4. Instructor
5. Prerequisites
6. Office hours
7. Class days, times
8. Classroom
location
9. Office location +
e-mail address
10. Office telephone
11. Course
description,
objectives
12. Text(s)
13. Other materials
14. Grading methods, 16. General supports
criterion weights,
(computer works,
make-up policy,
writing center)
mid-term grade
17. Daily assignments,
reports
holidays, add/drop
15. Procedure, course
& open dates, dead
requirements
day, final exam
18. ADA statement
19. Electronic device
statement
20. Additional
services,
statements
21. Absence policy
22. Incomplete-work
policy
23. Cheating policy
24. Specialization
requirements
(certification,
licensure, teacher
competencies)