FEDERAL INCOME TAX FOR
PARTNERSHIPS & CORPORATIONS
ACNT 1347
Instructor:_____________________________
Phone:
______________________________
Email:
_____________________________
Office:__________ Fax: _________________
Prerequisite:
Federal Income Tax: Individual, ACNT 1331
Materials Needed:
Corporations, Partnerships, Estates and Trusts, w/TaxCut© Tax Preparation Software
2010 Edition, by Hoffman. CENGAGE Learning Publishers.
Course Description and Objectives:
This course is designed to introduce students to the tax laws as currently implemented by the
Internal Revenue Service providing a working knowledge of preparing taxes for a partnership,
subchapter S, and corporation. Emphasis is placed on the determination of taxable income for
partnerships and S corporations and C corporations, as well as on tax research and planning.
Learning Outcomes: Federal Income Tax: Partnerships/Corporations
Upon the completion of this course, the student should be able to:
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Identify the determinants of taxable income and compute the minimal amount of
allocation or income tax due.
Choose and prepare the proper forms.
Research and report on assigned tax problems.
Course Competencies:
In order to accomplish the above objectives, it will be necessary for the student to meet the
following skills and competencies.
1. Distinguish between primary and secondary sources of tax law.
2. Identify appropriate citation for the following primary sources of tax law:
a.
Internal Revenue Code.
b.
Administrative interpretations by the Treasury Department and the Internal Revenue
Service.
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c.
Judicial interpretations of tax law by the Federal courts.
Compare and contrast the tax treatment of individuals and corporations.
Compute a corporations dividends received deduction.
Explain the tax treatment at organizational expenditures.
Prepare a complete Form 1120 for a corporation.
Describe the tax consequences of incorporating a new or existing business including transfers
of property to controlled corporations.
Describe the capital structure of a corporation and explain what it means for tax purposes.
Explain the concept of earnings and profits and its importance in measuring dividend income.
Discuss the tax consequences of cash and property dividends to the shareholder and to the
corporation making the distribution.
Explain the five basic situations in which a stock redemption is treated as a sale by the
shareholder instead of a dividend distribution.
Explain the tax treatment of complete liquidations on both the corporation and shareholders.
Explain and compute the alternative minimum tax for corporations.
Describe the circumstances under which a corporation could be subject to the accumulated
earnings tax and compute the tax.
Describe the circumstances under which a corporation could be subject to the personal
holding company tax and compute the tax.
Discuss partnership formation, including property contributions.
Compute partnerships ordinary income and separately stated income for a partnership.
Determine a partner’s basis in his partnership interest.
Prepare a complete Form 1065 with related K-1’s.
Explain the eligibility requirements for a corporation to make and keep the S election.
Compute S-Corporation ordinary income and separately stated income through to
shareholders.
Determine S shareholder’s basis in stock.
Determine the tax consequences of current distributions to shareholders including the
following:
a.
S Corporations with no AE&P
b.
S Corporations with AE&P
Prepare a complete Form 1120S.
Statement of Workplace and Foundation Competencies (SCANS Skills)
The Lone Star College System is committed to prepare you with the knowledge and skills you need to
succeed in today’s dynamic work environment. Towards this end, the following workplace competencies
and foundation skills have been designed into the curriculum for this course:
Common Workplace Competencies:
Manage Resources:
Allocates time (C1), Allocates money (C2), Allocates material
resources (C3), and Allocates human resources (C4)
Exhibits Interpersonal Skills:
Participates as a team member (C5), Serves Clients/Customers
(C7), Exercises leadership (C8), and Negotiates to get decisions
(C9)
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Manage Information:
Acquires and evaluates information (C11), Organizes and
maintains information (C12), Interprets and communicates
information (C13), and Uses computer to process information
(C14)
Uses Systems and Technology:
Understands systems (C15), Monitors and corrects performance
(C16), and Improves and designs systems (C17)
Foundation Skills:
Demonstrates Basic Skills:
Reading (F1), Writing (F2), Arithmetic (F3), Mathematics (F4),
and Listening (F5)
Demonstrates Thinking Skills:
Creativity (F7), Decision making (F8), Problem solving
(F9), Seeing things in the mind’s eye (F10), Knowing
how to learn (F11), Reasoning (F12), and Responsibility
(F13)
Exhibits Personal Qualities:
Integrity/Honesty (F17)
Means of Assessment
Means of Assessment will be determined by your instructor. Please see the attached Syllabus Addendum
if your instructor has provided one.
Evaluation Policies and Procedures
Your instructor will supply detailed testing and grading procedures. If you stop attending class, you must
withdraw at the Admissions Office before the official drop date. Failure to do so will result in a grade of
‘F’ for the course.
Attendance and Participation Policies
Class attendance is important. Generally, the course material is covered in the textbooks;
however, lectures and small group exercises augment and clarify the textbook material. You are
encouraged to get to know your fellow students in order to have a source for lecture notes and
handouts if you cannot attend a class session.
Students are expected to assume the responsibility for learning. Your instructor will assist you,
but the actual responsibility rests with you. Students are also expected to devote their energy to
attaining the skills and knowledge required for their particular career goals.
The Lone Star College System Policy & Procedure Manual [Student Conduct, Section 562.0ld]
states, “Disruptive activity that hinders other students’ learning or deters an instructor from
effective teaching will not be tolerated under any circumstances.”
To provide equal-opportunity learning situation for all students enrolled in this class, children are
not allowed in the labs or classrooms.
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Academic Integrity
The college’s academic integrity policy states, the Lone Star College System is committed to a
high standard of academic integrity in the academic community. In becoming a part of the
academic community, students are responsible for honesty and independent effort. Failure to
uphold these standards includes, but is not limited to, the following:
1.
2.
3.
4.
Plagiarizing written work projects.
Cheating on exams or assignments.
Collusion on an exam or project.
Misrepresentation of credentials or prerequisites when registering for a course.
Virus Protection.
The college will not be held liable for any corruption of data caused by virus contamination. The
college computers are regularly screened and are protected against computer viruses to the best
of our ability. However, we do not guarantee that viruses do not exist on our systems. Procedures
are in place in all labs for you to scan your diskettes. It is your responsibility to protect your data
from corruption due to viruses.
Student Services
Library
The Library at each college provide print and non-print resources and services for students. The
materials have been selected to serve the curricular, vocational, and recreational needs of the
college community. Each college provides computer access to a variety of information in
electronic form including bibliographic indexes to journals, Internet resources, and multimedia
publications.
Learning Support Centers
Learning Support Center at each college provide print and audio-visual materials as well as
tutorial assistance and computer labs for students who need academic support services.
Materials from other disciplines are available in each center including reading, writing, math and
college study skills.
Internet & E-mail
The Lone Star College System provides computing and network resources to students. Students
are encouraged to use the computers, software packages, and electronic mail (e-mail), for
educational or System-related activities and to facilitate the efficient exchange of useful
information. However, the equipment, software and network capacities provided through the
System computer services are and remain the property of the System, and access may be denied
to any student who fails to comply with the System’s policies and procedures regarding its use.
Access to the System’s e-mail and similar electronic communication systems are a privilege and
certain responsibilities accompany that privilege. System users are expected to demonstrate the
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same level of ethical and professional manner, as is required in face-to-face or written
communications. Anonymous or forged messages will be treated as a violation of this policy.
Equal Opportunity Statement
It is the policy of the Lone Star College System to provide equal employment, admission and
educational opportunities without regard to race, color, religion, national origin, sex, age or
disability.
Lone Star College System strives to provide an excellent learning environment free from
harassment or intimidation directed at any person’s race, color, religion, national origin, sex, age,
or disability. Any form of harassment will not be tolerated.
ADA Statement
The Lone Star College System is dedicated to providing the least restrictive learning
environment for all students. The college system promotes equity in academic access through
the implementation of reasonable accommodations as required by the Vocational Rehabilitation
Act of 1973, Title V, Section 504 and the Americans with Disabilities Act of 1990 (ADA) which
will enable students with disabilities to participate in and benefit from all post-secondary
educational activities.
If you require reasonable accommodations because of physical, mental, or learning disability,
please notify the instructor of this course as soon as possible and preferably before the end of the
first two weeks of class to arrange for reasonable accommodations.
Guaranteed Graduate Policy
The Lone Star College System guarantees that graduates of its Associate of Arts, Associate of
Science, or Associate of Applied Science and all Certificate programs, will provide under certain
circumstances, additional education and training tuition free to students lacking appropriate
master of specified competencies.
Drops/Excessive Absences:
Under Section 51.907 of the Texas Education Code, "an institution of higher education may not
permit a student to drop more than SIX courses, including any course a transfer student has
dropped at another Texas public institution of higher education." This statute was enacted by the
State of Texas in Spring2007 and applies to students who enroll in a public institution of higher
education as first-time freshmen in the Fall 2007 semester or later. Students enrolled prior to Fall
2007 are not affected. Any course that a student drops is counted toward the six-course limit
unless the student is completely withdrawing from the institution or meets one of the eligible
criteria for a waiver. A "drop" in this instance is considered when a student is dropped or
withdrawn from a course after official day resulting in a grade of "W." Please refer to the catalog
for any additional information regarding the eligible criteria for a waiver.
For additional information, refer to the Lone Star College System catalog.
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