This course is a part of the program leading to:
Master of Science in Taxation
Master of Science in Legal Studies
Master of Science in Compliance Law
TAX-501: Federal Income Taxation
FIN-501: Financial Accounting
This course is intended to introduce the student to the fundamentals of the U.S. taxation of corporations. The course will focus on Subchapter C of the Internal Revenue Code, covering the tax aspects of organizing a C corporation, the taxation of its operations (including the computation of its taxable income), the ramifications of distributing property from the corporation to its shareholders, the partial and complete liquidation of the corporation, and the taxable and nontaxable forms of corporate reorganization.
Course Learning Outcomes
Upon successfully completing this course the student will be able to:
- Determine the tax effect of transferring property to a corporation.
- Compute the corporation’s and shareholders’ respective tax bases in contributed property and corporate stock.
- Determine the tax effect of a corporation’s assumption of a shareholder’s liabilities.
- Distinguish a debt from shareholder equity.
- Compute a corporation’s earnings and profits.
- Determine the extent to which a distribution is a dividend, a tax-free return of capital, and a capital gain.
- Identify constructive and disguised distributions from corporations.
- Compute the dividends received deduction.
- Determine when a distribution is liquidating or non-liquidating.
- Determine the proper tax treatment of stock dividends.
- Compare the relative tax effects of corporate asset acquisitions vs. stock acquisitions.
- Compare the relative tax effects of tax-favored acquisitive as well as non-acquisitive and non-divisive corporate reorganizations.
- Compute the amount of and determine the character of tax attributes carrying over from predecessor corporations.