Income Tax Accounting I—AC 423

 

Fall, 2006

 

Meeting Time:  7:458:50  MWF                       Instructor:  Paul Magnall

 

Place:  Business Center 217                                      Office:  Business Center 108

 

Office Phone:  352-8428                                       Home Phone:  352-2197 (before 10 PM)

 

Office Hours:   M   10:4511:45                          e-mail:  paul.magnall@wartburg.edu

                              T      1:002:00

                             W                1:152:15

                              H     8:209:20

      F     10:4511:45

 

Prerequisites:  Principles of Accounting II (AC 122) and 4th year status.

 

Textbook:  West Federal Taxation—Comprehensive Volume by Willis, Hoffman, Maloney, and Raabe (2007 edition)

 

Course Objective:  Determination of individual tax liability in accordance with current tax law.  Includes the discussion and understanding of gross income, business and nonbusiness deductions, dependency exemptions, capital gains and losses, net operating loss, and tax credits.

 

Assignments:  We will be spending two or three days on each chapter of the textbook covered this semester.  It is expected that students will have read the text material and attempted the questions assigned for the first day on the chapter.  For the second (and third) day(s) on the chapter, students are expected to complete the assigned questions and computational problems.  It is hoped that the selected questions and problems will highlight the material covered in the textbook.  Students are encouraged to complete additional questions/problems from the book.  If you have questions which are not resolved by assigned material, make sure that you ask your questions in class.  The keys to success in this course will be (1) regular class attendance and (2) diligence in working assigned problems.

 

Your assignments for the whole semester are attached to the syllabus.

 

The material covered this semester will be divided up into three units as follows:

 

Unit 1—Chapters 1, 3, 4, & 5—Exam Date is planned for Friday, October 6, 2006

1.  Introduction to Taxation and Understanding the Federal Tax Law

3.  Tax Determination; Personal and Dependency Exemptions; An Overview of Property Transactions

4.  Gross Income—Concepts and Inclusions

5.  Gross Income—Exclusions

 

Unit 2—Chapters 6 through 9—Exam Date is planned for Wednesday, Nov. 8, 2006

 

6.  Deductions and Losses:  In General

7.  Deductions and Losses:  Certain Business Expenses and Losses

8.  Depreciation, Cost Recovery, Amortization and Depletion

9.  Deductions:  Employee and Self-Employed-Related Expenses


Unit 3—Chapters 10 through 13—Exam Date is planned for Wednesday, Dec. 13, 2006

10.   Deductions and Losses:  Certain Itemized Deductions

11.   Passive Activities Losses

12.   Tax Credits

13.   Property Transactions; Determination of Gain or Loss, Basis Considerations, and

Nontaxable Exchanges

 

FINAL EXAM PERIOD IS Wednesday, December 13, 2006, 8:3010:30 a.m. 

 

Part 1 of the final exam is an exam on unit 3 and students can use textbook and notes for this portion.

 

Part 2 of the final exam will consist of 50 multiple choice questions.  Students will not be allowed to use any reference material for the final exam.

 

Evaluation Process:  Students will be evaluated on 4 examinations (3 unit exams and a comprehensive final) as indicated on the assignment sheets that follows, completion of the special tax returns that will be expected throughout the semester, and the student’s preparation for class.

 

For the 3 unit exams, students may use their textbook and notes as reference material, but too much reliance on this material will not be helpful in preparing for the CPA exam or for the comprehensive final exam.  The format of the exams will be primarily multiple choice questions with at least one essay question on each exam.  The exams will comprise 80% of your final grade for this course.

 

To get you into the preparation of the tax returns, you will be assigned several sets (3 are planned) of tax returns that will need to be completed throughout the semester.  These should be prepared before coming to class; on that day we will discuss how to handle various items on the tax returns; and they will be turned in to be graded.  Your performance on completing these tax returns will comprise 15% of your final grade.

 

The final 5% of your grade will be based on your preparation for class.  Students will be responsible for presenting solutions to the assigned questions/problems to the rest of the class—using the board if required by your classmates to show how you arrive at your solution.  I have prepared a series of random lists to be used each day to determine which questions students will be asked to present.  It is important that you have prepared each question/problem for each session.

 

The final grade will be based on a weighted average of your performance in each of the above three areas.

 

General Conduct in Class:

Hats are not to be worn during exams or presentations.  PDAs and other hand-held devices are not allowed during exams—you will be given a calculator to be used during exams—use your own during quizzes.  Students are not to leave the room without permission during exams.  As a courtesy to others, please turn off cell phones and other electronic devices during all class activities.  

  

Special Needs:

The Americans with Disabilities Act of 1990 (ADA) provides protection from illegal discrimination for qualified individuals with disabilities.  Students requesting instructional accommodations due to disabilities must arrange for such accommodations by contacting the Dean of Students Alexander (Lex) Smith.  He can be reached at the Student Life office, Wartburg College, Luther Hall 206, 352-8260, <Alexander.smith@wartburg.edu>.  Accommodations should be requested PRIOR to affected assignment due dates. 

 

 

 

Monday

Wednesday

Friday

9/4/2006

9/6/2006

9/8/2006

 

First Day of Class

Chapter 1

 

Introduction to the Class

Introduction to Taxation

 

 

Q. 1, 5, 6, 14, 15, 20, 21

9/11/2006

9/13/2006

9/15/2006

Chapter 1

Chapter 3

Chapter 3

Q. 22, 24, 30, 32, 34, 37, 50, 53

Tax Determination

Q. 30, 31, 32, 36, 42, 51, 54

 

Q. 3, 4, 8, 10, 19, 23,24

 

9/18/2006

9/20/2006

9/22/2006

Chapter 4

Chapter 4

Tax Research Day

Gross Income

Q. 19, 20, 23, 25, 26, 29, 32

No Class

Q. 1, 4, 5, 10, 12, 15, 16

HAND OUT TAX RETURN 1

 

9/25/2006

9/27/2006

9/29/2006

Chapter 4

Chapter 5

Chapter 5

Q. 39, 43, 45, 53, 57, 58

Gross Income Exclusions

Q. 21, 22, 26, 28, 29, 34,36

 

Q. 3, 6, 9, 11, 16, 17, 19

 

10/2/2006

10/4/2006

10/6/2006

Chapter 5

Review for Exam 1

Exam 1

Q. 38, 40, 46, 49, 51, 58, 60

 

Chapters 1, 3, 4 & 5

 

Tax Return 1 Due

 

10/9/2006

10/11/2006

10/13/2006

Chapter 6

Chapter 6

Homecoming Panels

Deductions and Losses:  In General

Q. 22, 30, 32, 33, 34, 38, 40

10:45 Accounting

Q. 2, 6, 10, 12, 13, 16, 20

 

Noon Management

 

 

1:15  Marketing

10/16/2006

10/18/2006

10/20/2006

Chapter 6

Chapter 7

Chapter 7

Q. 42, 48, 55, 57, 59, 60, 63

Deductions & Losses:  Certain Business Exp.

Q. 11, 14, 26, 32, 33, 36, 43

 

Q. 2, 6, 8, 9, 10, 19, 25

 

10/23/2006

10/25/2006

10/27/2006

Chapter 8

Makeup day for Outfly

 

Depreciation

 

FALL BREAK

Q. 2, 3, 6, 11, 14, 19, 21

 

 

10/30/2006

11/1/2006

11/3/2006

Chapter 8

Chapter 9

Chapter 9

Q. 25, 26, 30, 34, 45, 52, 54

Deductions:  Employee Expenses

Q. 24, 27, 37, 39, 41, 45, 49

Handout Tax return 2

Q. 2, 6, 11, 14, 16, 18, 21

 

 

 

 

11/6/2006

11/8/2006

11/10/2006

Review Day for Exam 2

Exam 2

Chapter 10

 

Chapters 6, 7, 8, & 9

Deductions and Losses:  itemized Deductions

Tax Return 2 Due

 

Q. 1, 4, 5, 8, 13, 16, 19

11/13/2006

11/15/2006

11/17/2006

Chapter 10

Chapter 11

Chapter 11

Q. 24, 27, 28, 31, 38, 45, 49

Pasive Activity Losses

Q. 13, 15, 17, 22, 26, 30, 31

 

Q. 1, 2, 5, 8, 9, 10

 

11/20/2006

11/22/2006

11/24/2006

Chapter 11

 

 

Q. 35, 38, 43, 48, 52, 55, 56

Tax Research Day

THANKSGIVING BREAK

Hand out Tax Return 3

 

 

11/27/2006

11/29/2006

12/1/2006

Chapter 12

Chapter 12

Chapter 13

Tax Credits

Q. 26, 30, 31, 33, 36, 38, 40

Determination of Gain & Loss

Q. 1, 2, 11, 12, 17, 20, 22

 

Q. 2, 3, 5, 6, 8, 13

12/4/2006

12/6/2006

12/8/2006

Chapter 13

Chapter 13

Review for Final Exam

Q. 16, 18, 19, 25, 28, 35, 39

Q. 46, 50, 57, 67, 72, 82, 86

 

 

 

 

 

Tax return 3 Due

 

FINAL EXAM PERIOD--Wednesday, December 13th--11:30--1:30

 

Exam Part 1--Questions from Chapters 10--13

 

Exam Part 2--Multiple choice questions (no textbook or notes)