Taxation of Business
Accounting 332
Spring 2015
San Diego State University
College of Business Administration
Charles W. Lamden School of Accountancy
COURSE INFORMATION
Instructor:
Class Days:
Class Times:
Class Location:
E-mail:
Devona Newport, CPA
Tuesdays and Thursdays
5:30pm – 6:45pm
EBA-439
dnewport@mail.sdsu.edu
Office Hours Times:
Office Hours Location:
Units:
TTh - 5:00 -5:15;
W - 6:15-6:45;
and by appointment
SSE 2427
3
Course Overview
Taxes are a key component of the global economy. Taxation is pervasive, complex and dynamic. A significant portion of
business and individual wealth can be consumed by tax costs. Understanding the potential tax costs of a transaction is critical
to economic decision-making as nearly every economic decision involves tax considerations. The study of taxation is important
for any business major, but it has added importance for students interested in careers in accounting. This course is the
comprehensive study of mostly federal United States-based taxes. Topics focus heavily on taxation as it relates to business
entities (as opposed to individuals) and includes gross income, business deductions, cost recovery, property exchanges, gains
and losses, multi-state taxation, international taxation, tax sources, tax research and tax communication.
ACCTG 503 is strongly recommended as it is the study of mostly individual federal United States-based taxes. The interplay
between individual and entity taxation is important for accountants to know and critical for tax practitioners to understand.
Student Learning Outcomes
BSBA students will graduate being:

Effective Communicators

Critical Thinkers

Able to Analyze Ethical Problems

Global in their perspective

Knowledgeable about the essentials of business
ACCTG 332 contributes to these goals through its student learning outcomes. At the end of this course students should be
able to:
1.
2.
3.
4.
5.
Comprehend the rationale for tax laws by differentiating the types of tax bases and weighing the multiple objectives
tax policymakers consider when developing new tax law.
Apply analytical reasoning tools to assess how taxes affect economic decisions for business-related taxpaying entities:
a. Through the amount and timing of income recognition and deductions
b. Related to property transactions that generate recognized, deferred, or no taxable gains and losses
c. Related to organization form decisions.
Develop a fundamental understanding of the components of taxable income determination across taxable entities so
that the student builds a foundation for effectively learning future tax laws.
Draw supportable conclusions regarding tax issues by using research skills (including accessing and interpreting
sources of authoritative support) to identify and evaluate opportunities.
Communicate tax conclusions in a clear and concise manner to relevant stakeholders.
These Student Learning Outcomes can be found on the cba website
Enrollment Information
Prerequisites:
Admission to Accounting major, minor, or certificate. Minimum grade of C in Accountancy 201 and 202. Completion of
General Education requirement in Communication and Critical Thinking.
Adding/Dropping Procedures:
You are responsible for initiating action for your own schedule adjustments and for setting your schedule by the
deadline of February 3, 2015 at 11:59pm. Dropping and adding of classes must be done through your WebPortal
account. Check your schedule in the WebPortal to make sure you are enrolled in the right classes before the schedule
adjustment deadline of February 3, 2015 at 11:59pm.
Course Materials
Required Materials:
Essentials of Taxation, Individuals and Business Entities 2015 Ed., (Smith, Raabe, Maloney, Young)
CengageNOW.com. Information on how to sign up for CengageNOW.com will be posted to Blackboard.
Red ParScore Test Form F-289 is required for Midterms and the Final.
Green QuizzStrip Form No. 815-E is required for Quizzes.
You will be required to download and print various forms and tables from the Internal Revenue Service website. Links
to these materials will be provided. There is no charge for these publically available materials.
Optional Materials:
Gleim CPA Review: Regulation
Gleim Federal Tax Exam Questions & Explanations Twenty-Fourth Edition
Course Structure and Conduct
Class Lectures:
Classes will consist of lectures using PowerPoint slides and in-class problems/exercises that are designed to help students
better understand tax law and concepts.
Blackboard:
This course will be managed via the Blackboard course website. Therefore, each student needs an email account. Please make
sure that you update your email address in the SDSU database. You can check on your Blackboard email account (or
update/change it) by going to the SDSU Web Portal at WebPortal. The Blackboard website will be where announcements are
made, and class slides and solutions for assignments are posted. All points for assignments and exams that factor into the
students’ grades will be posted on Blackboard.
CengageNOW Homework:
The graded homework assignments must be completed and submitted online by the due date and time listed on the course
calendar. The homework system will not accept any homework submissions made after the assigned date and time. Students
will be allowed three attempts for each homework assignment.
Attendance:
I do not take attendance. If you are unable to attend class, do not expect that I will make up that lecture for you individually in
office hours.
Office Hours:
I will post any changes to the above listed office hours on Blackboard. However, I prefer that you make an appointment to see
me. This reserves a time for you and gives you priority over students who “drop in” without an appointment. However,
especially around exams, I will limit the length of any scheduled appointment in order to accommodate all students.
I am happy to help you but I expect you to come prepared to meetings during office hours. Try and write out your questions
beforehand. You may also e-mail me your questions. If I am able to answer your question by e-mail I will do so. More complex
questions are best addressed in person.
Students with Disabilities
If you are a student with a disability and believe you will need accommodations for this class, it is your responsibility to contact
Student Disability Services at (619) 594-6473. To avoid any delay in the receipt of your accommodations, you should contact
Student Disability Services as soon as possible. Please note that accommodations are not retroactive, and that accommodations
based upon disability cannot be provided until you have presented your instructor with an accommodation letter from Student
Disability Services. Your cooperation is appreciated.
Academic Honesty
The University adheres to a strict policy regarding cheating and plagiarism. These activities will not be tolerated in this class. It is
your responsibility to become familiar with the policy (http://www.sa.sdsu.edu/srr/conduct1.html).
Accounting is a profession that depends on trust – individuals, companies and society as a whole place reliance on the decisions
and opinions of accountants. For most of history, accountants were viewed among the most trusted members of society. In
recent years, certain events have eroded this trust. Rebuilding this trust will take a long time but can be accomplished if future
accountants ensure that such lapses do not recur. I take my role in this effort very seriously (and I expect you will as well).
The SDSU Standards for Student Conduct (http://www.sa.sdsu.edu/srr/conduct1.html) states that unacceptable student
behavior includes “cheating, plagiarism, or other forms of academic dishonesty that are intended to gain unfair academic
advantage.” Unprofessional conduct adversely impacts your fellow students, the accounting faculty, the Charles W. Lamden
School of Accountancy, SDSU, and the accounting profession. The Charles W. Lamden School of Accountancy takes academic
honesty very seriously and vigorously enforces university policy related to any such infractions. Any student suspected of
academic dishonesty will be reported to the SDSU Center for Student Rights and Responsibilities; if found responsible, the
student could receive an “F” on the assignment or an “F” in ACCTG 332.
Examples of Plagiarism include but are not limited to:

Using sources verbatim or paraphrasing without giving proper attribution (this can include phrases, sentences,
paragraphs and/or pages of work)

Copying and pasting work from an online or offline source directly and calling it your own

Using information you find from an online or offline source without giving the author credit

Replacing words or phrases from another source and inserting your own words or phrases

Submitting a piece of work you did for one class to another class
If you have questions on what is plagiarism, please consult the policy and this helpful guide from the Library
Turnitin
Students agree that by taking this course all required papers may be subject to submission for textual similarity review to
Turnitin.com for the detection of plagiarism. All submitted papers will be included as source documents in the Turnitin.com
reference database solely for the purpose of detecting plagiarism of such papers. You may submit your papers in such a way
that no identifying information about you is included. Another option is that you may request, in writing, that your papers not
be submitted to Turnitin.com. However, if you choose this option you will be required to provide documentation to
substantiate that the papers are your original work and do not include any plagiarized material.
Assessments and Grading
Course grades will be assigned in accordance with San Diego State University policy (see General Catalog, pp. 468-470).
Undergraduate grades shall be: A (outstanding achievement, available only for the highest accomplishment), B (praiseworthy
performance, definitely above average), C (average, awarded for satisfactory performance, the most common undergraduate
grade), D (minimally passing, less than the typical undergraduate achievement), F (failing).
Your primary assessment will be through exams, case studies, quizzes, and homework. Exams, homework, cases, etc. will be
given on the dates listed in the course calendar. Quizzes are not listed in the course calendar.
Table1. Your course grade will be based on the following weighted components
Component
Weight
Midterm Exam I
15%
Midterm Exam II
15%
Comprehensive Final Exam
30%
Quizzes
10%
Cases/Projects
10%
In-Class Assignments/Professional Conduct
10%
Homework
10%
Total for course
100%
Assessments and Grading Components Defined
Results:
As in the professional world, success is based on results not effort, although there is some correlation between the two.
Exams and quizzes are not handed back during class time for review by students. If you wish to go over your results, you must
make an appointment to review the item in my office.
There is no makeup or extra credit work if you did not pass or get the grade you wanted. Please don't ask for special
treatment because if I give it to one student, I have to offer it to all students in the class.
Midterm and Final Exams:
All exams will be cumulative for material presented up to that date. You MUST take your exam during the scheduled exam
time for your section. There are no provisions for missed exams other than those required under University policy. My exams
are long and difficult and may often test not only your ability to master the material but also to efficiently communicate your
knowledge back to me. Time management is an important element to success on my exams.



You are allowed one 8 ½ x 11 sheet of paper with handwritten notes on both sides. Your name and RED ID must be in
the top right-hand corner and you must turn in your notes at the end of the exam.
You may have 1 (one) pencil [2 (two) if you’re superstitious], 1 (one) eraser, and a non-programmable calculator on
your desk along with your sheet of notes.
Red ParScore Test Form F-289 is required.
If your score on the Final is substantially better than you score on either Midterm I or Midterm II, the score on the Final will be
substituted for the score on the lowest Midterm. Under no circumstances will the score on the Final be substituted for the
score on both Midterms. For purposes of this course, substantial improvement means a raw score on the Final that is at least
40 points higher than the raw score on the Midterm. I reserve the right to adjust this point differential lower but will not adjust
it higher.
Quizzes:
The quizzes are intended to be a test of how thoroughly you have understood previously discussed material. They are intended
to assist you in preparing for the exams. Quizzes cannot be made up; no exceptions. It is my intention to have 4 quizzes and
drop the lowest quiz score. If you miss a quiz, that quiz will be the one I drop.
Cases/Projects/In-Class Assignments:
The cases may focus on: (1) successfully researching a tax issue using SDSU’s online tax research system (RIA Checkpoint); (2)
completing tax return or related information in good form; (3) some combination of the above or (4) some other topic. The
cases will be prepared during time outside of class. Typically, your case solutions will be collected in class or using Turnitin in
Blackboard. Late submissions will not be accepted.
Homework:
Homework assignments are largely prepared using the CengageNOW online homework manager associated with your textbook.
In some instances, homework may also be due in written or typed format. Due dates will be listed on the course calendar. Late
homework will not be accepted. I will drop your lowest homework grade.
Professional Conduct:
In order to be successful in the accounting profession, you must conduct yourself in a professional manner. Professional
conduct means showing respect for your colleagues and for the discussion leader. A key component of professionalism is
respect for the thoughts, feelings, and needs of others. Students are expected to behave in a professional manner at all times.
Disruptive behavior is disrespectful to those around you. Questions and comments are encouraged but under no circumstances
will I tolerate any derogatory comments aimed at a fellow student. There are no stupid questions in this class.
I am happy to answer your questions via e-mail. However, if you have a question, please make an attempt to find an answer
before sending me an e-mail. I will respect your time and ask that you respect mine. Please do not e-mail me questions that are
adequately addressed in class, in Blackboard, or on the SDSU website. I reserve the right to ignore e-mails that ask such things
as “Are we having a quiz today?”, “When is the final?”, or “Please explain Chapter 4 to me.”
Professional conduct points are yours to lose. Repeated disruptive behavior or inappropriate e-mail communications will result
in the loss of professional conduct points.
Grade of Incomplete. A grade of Incomplete (I) indicates that a portion of required coursework has not been completed and
evaluated in the prescribed time period due to unforeseen, but fully justified, reasons and that there is still a possibility of
earning credit. It is your responsibility to bring pertinent information to the instructor and to reach agreement on the means by
which the remaining course requirements will be satisfied. The conditions for removal of the Incomplete shall be reduced to
writing by the instructor and given to you with a copy placed on file with the department chair until the Incomplete is removed
or the time limit for removal has passed. A final grade is assigned when the work agreed upon has been completed and
evaluated. An Incomplete shall not be assigned when the only way you could make up the work would be to attend a major
portion of the class when it is next offered. Contract forms for Incomplete grades are available at the Office of the Registrar
website
Tentative Course Schedule
Table 2. The course schedule, including topics and class activities listed by week, is presented in the following table
Week
Topics
1: January 22
Course Introduction
2: January 27
Introduction to Taxation
Reading
Chapter 1:
Skip Section 1-4 and The
Big Picture example
I.R.C.
Code
Homework
CengageNOW Homework
Chapter 1
Due Monday February 2nd
by 5:30 p.m. (1730)
Week
Topics
2: January 29
Gross Income
Reading
Chapter 2:
I.R.C.
Code
§61
Section 2-1 only
CengageNOW Homework
Chapters 2 and 4
Due Monday February 9th
Chapter 4:
by 5:30 p.m. (1730)
Skip Section 4-5a
January 30
Homework
Accounting Orientation
1:00 p.m. (1300)
MANDATORY ATTENDANCE
FOR 331 ONLY
February 3
Last day to add, drop, or
change grading basis (11:59
p.m. deadline.)
3: February 3
Gross Income continued
3: February 5
Business Deductions
Chapter 5:
§162
Skip Sections 5-3e, 5-3f,
5-3g, 5-3h, 5-5, 5-6
CengageNOW Homework
Chapter 5
Due Monday February 16th
by 5:30 p.m. (1730)
4: February 10
Cost Recovery Allowances
4: February 12
Cost Recovery Allowances
continued
5: February 17
Property Transactions: Basis,
Gain and Loss
5: February 19
Property Transactions:
Capital Gains and Losses
Chapter 7:
CengageNOW Homework
Chapter 7
Skip Sections 7-2b, 7-2c,
7-2d Related Taxpayers,
7-2e, 7-3, 7-4, 7-5, 7-6
Due Monday February 23rd
by 5:30 p.m. (1730)
Chapter 8:
§1231
Skip Sections 8-3c, 8-4a,
8-5, 8-10, 8-11
§1245
§1250
CengageNOW Homework
Chapter 8
Due Monday March 2nd
by 5:30 p.m. (1730)
6: February 24
Property Transactions:
Capital Gains and Losses
continued
6: February 26
To be announced
7: March 3
To be announced
7: March 5
Midterm Exam I
8: March 10
Individuals
Chapters 9 and 10:
Sections 9-1, 9-5b first
paragraph only, 9-6a, 96b only; Sections 10-1,
10-3a, 10-4 only (not 104a, etc.)
Chapter 8:
Section 8-5
8: March 12
Individuals continued
CengageNOW Homework
Chapters 9 and 10
Due Monday March 16th
by 5:30 p.m. (1730)
Week
Topics
9: March 17
Individuals and Sole
Proprietors
Reading
Chapter 11:
Skip Sections 11-2m, 113e, 11-4d, 11-4f
Chapter 10:
I.R.C.
Code
Homework
CengageNOW Homework
Chapter 11
Due Monday March 23rd
by 5:30 p.m. (1730)
Section 10-4e
Chapter 1:
Re-read Section 1-2b
9: March 19
Individuals and Sole
Proprietors continued
10: March 24
Corporations and
Introduction to Entities
Chapter 12:
Case 1
Skip Section 12-5
Due at the beginning of
class
Chapter 18:
Sections 18-1 and 18-2
only
5:30 p.m. (1730)
CengageNOW Homework
Chapter 12
Due Monday April 6th
by 5:30 p.m. (1730)
10: March 26
Corporations continued
March 30 to
April 3
Spring Recess
11: April 7
Partnerships and SCorporations
Campus Closed
Chapter 14:
Skip Sections 14-1c Tax
Reporting Rules, 14-2e,
14-3a DPAD and
Distributions,
Withdrawals, 14-3d, 143e, 14-4
Chapter 15:
Skip Sections 15-2b, 152c, 15-2d, 15-3c, 15-3d,
15-3f, 15-3g, 15-4
11: April 9
Partnerships and SCorporations continued
12: April 14
Distributions and Employee
Attributes
Chapter 14:
14-4a Distributions,
Withdrawals, 14-4
Chapter 15:
15-3c first paragraph
only, 15-3g
12: April 16
To be announced
13: April 21
Midterm Exam II
CengageNOW Homework
Chapters 14 and 15
Due Monday April 13th
by 5:30 p.m. (1730)
Week
Topics
13: April 23
Book-Tax Differences
Reading
I.R.C.
Code
Chapter 3:
3-1, 3-1c
Chapter 12:
12-5c
14: April 28
Losses and Treatment of
Passive Activities
Chapter 6:
Skip sections 6-1c, 6-2a,
6-4, 6-7a “Carryovers of
Suspended Losses”
heading and all
subsequent headings, 67g, 6-7h
Homework
CengageNOW Homework
Chapter 3 et al
Due Monday April 27th
by 5:30 p.m. (1730)
CengageNOW Homework
Chapter 6
Due Monday May 4th
by 5:30 p.m. (1730)
Chapter 14:
14-3e
Chapter 15:
15-3f
14: April 30
Losses and Treatment of
Passive Activities continued
15: May 5
Review Sources and
Research Information
Chapter 18:
Case 2
18-5, 18-5a, 18-5b, 18-5c,
18-5d, 18-5e, 18-5f, 185g
Due at the beginning of
class
Review Concept
Summary 18.2
(ignore topics not
covered in course)
15: May 7
To be announced
May 14
Final Exam
3:30 p.m. – 5:30 p.m.
(1530 – 1730)
Changes to the course schedule, if any, will be announced in class.
5:30 p.m. (1730)