Standard

ACC 156 – Business Tax Accounting

Course Description:

 

Provides instruction for preparation of both state and federal partnership, corporation and other business tax returns. Topics include:  organization form, overview of taxation of partnership, special partnership issues, corporate tax elections, adjustments to income and expenses, tax elections, forms and schedules, tax credits, reconciliation of book and tax income, tax depreciation methods, and tax calculations.

 

Competency Areas:

Hours:

 

 

 

Organization form

Class

3

Partnership income and deductions

D. Lab

2

Corporate income and deductions

P. Lab/O.B.I.

0

Income and expense adjustments

Credit

4

Tax elections

 

 

Forms and schedules

 

 

Tax depreciation methods

 

 

Reconciliation of book and tax income

 

 

Tax Credits

 

 

Tax Calculations

 

 

 

 

 

Prerequisite/Corequisite:  ACC 101; ACC 151     

 

Corequisite:

 

 

 
Course Guide

 

Competency

After completing this section, the student will:

Hours

Class

D. Lab

P. Lab/

O.B.I.

ORGANIZATION FORM

1

1

0

Definitions     

Distinguish type of business taxing entity.

 

 

 

 

Discuss Subchapter S Corporations.

 

 

 

 PARTNERSHIP INCOME AND DEDUCTIONS 

8

4

0

 Total income

Define and record components of total income.

 

 

 

 Deductions

Define and record adjustments to total income.

 

 

 

 Ordinary income

Compute ordinary income of a partnership and amount

distributable to each partner, Form 1065 and supporting schedules.

 

 

 

 CORPORATION INCOME AND DEDUCTIONS

8 

5

0

 Total income

Define and compute total income.

 

 

 

 Deduction

Define and compute allowable deductions.

 

 

 

Taxable income

Compute taxable income of corporation, Form 1120 and supporting schedules.

 

 

 

Special allocations

Compute taxable income of a Sub S Corp. and amount distributable to each shareholder, Form 1120-S and supporting schedules.

 

 

 

INCOME ADJUSTMENTS

1

1

0

Gross  income

Define and record adjustments to taxable income.

 

 

 

EXPENSE ADJUSTMENTS

1

1

0

Deductions

Define and record adjustments to deductions.

 

 

 

FORMS AND SCHEDULES

2

1

0

 

Review all forms and schedules applicable to partnerships and corporations, including Schedule C.

 

 

 

TAX ELECTIONS

1

1

0

Elections

Define and select proper tax elections for a partnership and a corporation.

 

 

 

TAX DEPRECIATION METHODS

1

1

0

Depreciation

Compute deprecation based on income tax methods.

 

 

 

RECONCILIATION OF BOOK AND TAX INCOME

1

1

0

TAX CREDITS

2

1

0

Tax credits

Identify and record the appropriate personal exemption for a given taxpayer in arriving at taxable income and record applicable tax credits.

 

 

 

TAX CALCULATIONS

2

1

0

Tax calculation

Calculate the amount of taxes owned or refund due based on payments already made to the governing institutions.

 

 

 

 OTHER TAXES 

 1

 1

0 

Sales and Use and personal property

tax returns

Define taxable sales, compute taxable and nontaxable sales, preparation of  sales tax returns.

 

 

 

 

Define personal property, prepare personal property tax returns.

 

 

 

WWW & SOFTWARE

1

1

0

Web sites and tax software

Identify various tax web sites for research and tax software packages.

 

 

 

 

Suggested Resources

 

Books:

 

Pope, Thomas, et al, (2002) Prentice Hall’s Federal Taxation 2002: Comprehensive 1/e, Prentice Hall.

Anderson, Kenneth, (2002) Prentice Hall’s Federal Taxation 2002:  Corporation, Partnerships, Estates, and Trusts, 1/e, Prentice Hall.

Income Tax Fundamentals, 2001 Edition; (2001) Gerald E. Whittenburg and Martha Altus-Buller; South-Western/Thomson Learning; Cincinnati, OH.

Publication 17, IRS Training Manual provided free by IRS. Stern, J. J., (2001), West's Federal Taxation, Tax Return Preparation with TurboTax for Windows, Cincinnati: South-Western Publishing, a division of Thompson Learning.

  

Computer Software:

 

Intuit, (Intuit Educational Program Software) ProSeries PowerTax Library 2002,