UNIVERSITY OF HOUSTON FALL 2006
ACCT 5332: FEDERAL INCOME TAXATION – CORPORATIONS
Course Section: 00426 Classroom: 102 Cullen Bldg. ?Instructor: Ramon Fernandez, MBA, CPA, CFP, CMA, CIA Thursday 5:30 – 9:30 p.m. E-mail Address: ramonf@ix.netcom.com Phone & Fax: 713-524-9359
COURSE OBJECTIVES:
1. To study thoroughly the federal income tax laws of the United States as they relate to corporations, including their formation and capital structure, corporate distributions, liquidations, accumulations, and S corporations. In addition, we will study partnership taxation, the federal estate and gift tax, and the income taxation of estates and trusts.
2. To make the student “tax sensitive” to the tax consequences of events and transactions which
affect entities such as corporations, partnerships (general, limited, LLPs, and LLCs), estates and trusts.
3. To prepare the student for the CPA Examination in these areas of federal taxation, which comprise about 40% of the Regulation (REG) section of the Exam. The area of taxation as a whole (individual, corporate, partnerships, estates/trusts…) comprises about 60% of the REG Exam, with business law comprising the remaining 40%.
TEXTBOOK: Corporate, Partnership, Estate and Gift Taxation, 2007 Edition, Pratt &
Kulsrud, Thomson Corporation, ISBN 0759363005, www.pktax.thomson.com
The text and lecture notes are an integral part of this course. The lecture notes should be downloaded and printed from WebCT Vista at http://www.uh.edu/webct. Please bring the text and
lecture notes with you to class each day. In addition to the lecture notes, the course web site also houses the solutions manual by chapter, the course syllabus, and the tax return problem.
COURSE GRADE:
Mid-Term Exam 135 points 42%
Final Exam 135 42%
Quizzes (5 x 6 pts) 30 10%
Tax Return Problem 20 6%
Total Points 320 points 100%
Grading Scale: 90% and above = A 60% to 76% = C
87 to 89% = B+ 40% to 59% = D
80 to 86% = B Under 40% = F
77 to 79% = C+
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MID-TERM EXAM: Objective questions (multiple choice, true/false), short problems, and short essays, covering chapters 1-6 of the text. Thursday, Oct. 5, 5:30 - 9:30 p.m. There will be no make-up examinations available.
FINAL EXAM: Objective questions (multiple choice, true/false), short problems, and short essays, covering chapters 9-11, 14, and 15 of the text. Thursday, Nov. 9, 5:30 p.m. – 9:30 p.m.
There will be no make-up examinations available.
QUIZZES: At the end of classes 1, 2, 3, 6, 7, 8, and 9 (see below), you will be given a short, objective take-home quiz pertaining to the material covered in that class. The quiz will be due at the start of the next class (5:30 p.m. sharp). A total of seven quizzes will be given. Only your
top five quizzes will count toward the course grade, that is, you will be allowed to drop your two
lowest quiz scores. Quizzes are handed out at the end of the class only --- no exceptions. They must be completed and turned in by 5:30 p.m. at the start of the next class to receive any credit--- no exceptions.
TAX RETURN PROBLEM: A corporate tax return problem (Form 1120 and all accompanying
forms and schedules) will be given out on the second class day. It is to be completed on the Turbo Tax software that is included in the text. The problem is due Thursday, Oct. 19, at the start of class.
ASSIGNMENTS: The assigned problems listed below are not to be turned in. You are
encouraged to work them as they help to confirm your understanding of the material in each chapter.
ACADEMIC HONESTY: The University of Houston Academic Honesty Policy is strictly
enforced by the C. T. Bauer College of Business. No violations of this policy will be tolerated in this course. A discussion of the policy is included in the University of Houston Student Handbook, http://www.uh.edu/dos/hdbk/acad/achonpol.html. Students are expected to be
familiar with this policy.
ACCOMMODATIONS FOR STUDENTS WITH DISABILITIES: The C. T. Bauer College
of Business would like to help students who have disabilities achieve their highest potential. To this end, in order to receive academic accommodations, students must register with the Center for Students with Disabilities (CSD), telephone 713-743-5400, and present approved accommodation documents to their instructors in a timely manner.
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COURSE OUTLINE
DATE/TIME CHAPTER/TITLE ASSIGNMENT
1. Thurs., Sept. 7 1- Income Taxation of Corporations 1, 3, 11, 12, 13, 14, 15,
5:30 p.m.-9:30 p.m. pp. 1-51 16, 17, 18, 19, 20, 21, 23,
24, 25, 26, 29, 30, 31
2. Thurs., Sept. 14 2- Corporate Formation & Capital 26, 27, 28, 30, 31, 32
5:30 p.m.-9:30 p.m. Structure
QUIZ 1 DUE pp. 1-38
3- Corporate Distributions: Cash 13, 14, 15, 16, 17, 18, 32, 33
Dividends
pp. 1-14
3. Thurs., Sept. 21 3-Cont’d: Property & Stock 19, 20, 21, 26, 27, 28, 29
5:30 p.m.-9:30 p.m. Dividends
QUIZ 2 DUE pp. 14-33
4- Corporate Distributions: Stock 1, 2, 3, 4, 11, 12, 13, 14, 15,
Redemptions & Partial 16, 17, 18, 19, 21, 22, 25
Liquidations
pp. 1-20 only
4. Thurs., Sept. 28 5- Complete Liquidations 10, 11, 12, 13, 15, 16, 24, 25
5:30 p.m.-9:30 p.m. pp. 1-24
QUIZ 3 DUE
6- Penalty Taxes on Corporate 21, 22, 23, 24, 25, 26, 29, 30,
Accumulations 31, 32, 34, 35, 39
pp. 1-37
5. Thurs., Oct. 5 MID-TERM EXAM (CHAPTERS 1-6)
5:30 p.m.-9:30 p.m.
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6. Thurs., Oct. 12 9- Taxation of Partnerships 19, 20, 21, 27, 29, 31, 32, 40,
5:30 p.m.-9:30 p.m. and Partners 47, 49, 50
pp. 1-45
7. Thurs., Oct. 19 10- Partnership Distributions, 21, 22, 23, 32, 33, 42, 46, 51
5:30 p.m.-9:30 p.m. Dispositions and Terminations
QUIZ 4 DUE pp. 1-39
TAX RETURN PROBLEM DUE
11- S Corporations 1, 2, 5
pp. 1-16
8. Thurs., Oct. 26 Cont’d: 11- S Corporations 24, 25, 33, 36, 37, 40, 43, 44,
5:30 p.m.-9:30 p.m. pp. 16-64 48, 49
QUIZ 5 DUE
14- Estate and Gift Taxation 19, 20, 21, 23, 24
pp. 1-15
9. Thurs., Nov. 2 14- Estate and Gift Taxation 29, 30, 38, 43
5:30 p.m.-9:30 p.m. pp. 15-36
QUIZ 6 DUE
15- Income Taxation of Estates 21, 22, 23, 24, 25, 26, 30
and Trusts
pp. 1-31
10. Thurs., Nov. 9 FINAL EXAM (CHAPTERS 9, 10, 11, 14, 15)
5:30 p.m.-9:30 p.m.
QUIZ 7 DUE
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