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COURSE SYLLABUS

Course Syllabus
ACCT 4331-01 Section 10331 Individual Income Taxation Spring, 2012 Tues. & Thurs. 10:00 a.m.- 11:30 a.m. Rm. 248 MH PERSON RESPONSIBLE FOR DEVELOPING SYLLABUS
John L. Green, Ph.D., CPA, J.D.

STATEMENT AS TO THE FREQUENCY WITH WHICH REVIEW OF THIS COURSE OCCURS Course syllabus is reviewed each semester. INSTRUCTOR INFORMATION Name: Dr. John L. Green, Ph. D., CPA, J.D. E-mail: jlgreen488@AOL.COM Office Phone: 713-743-4845. If no answer, call 713/660-7400 and leave a message. Office Location: Melcher, Room 380J Office Hours: Tuesday 9 a.m.-10:00 a.m. Others by appointment two hours per week.

TEXTBOOK Course Text Supplementary Text Other Required Materials Individual Taxation, 2012 Edition [Thomson]] Study Guide Study Guide, same title as Course Text

COURSE DESCRIPTION Part I-Chapters 1 through 3 provides an introduction to taxation in the United States. Although primary orientation is income taxation, other types of taxes are discussed briefly! The purpose of the Federal tax law are examined and the legislative, administrative, and judicial sources of Federal tax law, including their application to the tax research process, are analyzed. Part 1 conducted with the introduction of the basic tax model for the individual taxpayer. Part II-Chapters 4 and 5 part 2 presents the income component of the basic tax model. Included in this section are the determination of what is income and the statutory exclusions that are permitted in calculating gross income. Part III-Chapter 6 through 11 presents the deduction component of the basic tax model. Deductions are classified as business versus non-business, for versus from, employee versus employer, active versus passive, and reimbursed versus un-reimbursed. The effect of each of these Page 1 of 9

COURSE SYLLABUS
classifications is analyzed. The presentation includes not only the deductions that are permitted, but also limitations and disallowances associated with deductions. Because deductions can exceed gross income, the treatment of losses is also included. Part IV-Chapters 12 and 13 presents several topics that relate to the theme of tax liability determination. The taxpayer must calculate the tax liability in accordance with the basic tax formula and also in accordance with the tax formula for the alternative minimum tax (AMT). The basic tax formula was presented in Part I, and the AMT formula is covered in part 4; tax credits reduce the amount of the calculated tax liability. Part V- Chapters 14 through 17 presents the tax treatment of sales, exchanges and other dispositions of property. Included are the determination of the realized gain or loss, recognized gain or loss, and the classification of the recognized gain or loss as capital or ordinary. The topic of basis is evaluated both in terms of its effect on the calculation of the gain or loss and in terms of the determination of the basis of any contemporaneous or related subsequent acquisitions of property.
Purpose of the Course: The general purpose of this course is to educate the students as to the basic income tax laws which impact individuals in the United States and U. S. Citizens worldwide.

COURSE SEQUENCE IN CURRICULUM This course is the first of two Federal Income Tax courses available. This class is used as a survey course of Federal Individual Income Taxation for undergraduate or graduate students. The materials presented in this course may also serve as a valuable tool for preparation for the CPA examination. Tax policy considerations and historical developments are introduced in this course only to the extent that they shed light on the reason for a particular rule. Along with the teaching of tax law, coverage is given to the tax minimization process along with careful planning techniques. Although it is not my purpose to approach the presentation and discussion of taxation from the standpoint of preparation of tax returns, some orientation to forms is given. PRE-REQUISITE INFORMATION
Pre-requisite Principles of Accounting

RELATION TO THE PURPOSE STATEMENT OF THE UNIVERSITY


This course is part of the Universitys educational program committed to offering students a variety of opportunities for learning and growth in an atmosphere to encourage academic excellence and moral values.

RELATION TO COLLEGE GOALS AND PURPOSES To provide students with an understanding of current individual tax laws and practices in accounting. RELATION TO GOALS FOR MAJOR/PROGRAM To help students gain an understanding of income tax consequences in the business decision making process.

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COURSE SYLLABUS
COURSE OBJECTIVES 1) Understanding the administration of the tax law including the audit process utilized by the IRS. 2) Recognize the economic, social equity and political considerations that justify various aspects of the tax law. 3) Describe the role played by the IRS and the courts in the evaluation of the federal tax system. 4) Understand and apply the components of the federal income tax formula for individuals including gross income inclusions and exclusions, deductions above and below the line, personal and dependency exemptions, determination of tax liability and credits. 5) Recognize the filing requirements and the proper filing status. 6) Posses an overview of property transactions including the computation of realized gain or loss on property disposition and a description of the beneficial tax treatment for capital losses for noncorporate taxpayers. 7) Identify tax-planning opportunities associated with the individual tax formula.
Learning Objectives Broad Skills and Abilities Improve your critical thinking skills. Improve your listening skills. Improve your active listening skills in any setting and improve your listening skills with your peers. Improve your oral communication skills. Improve your ability to communicate in class under pressure, improve your ability to communicate with peers in a classroom setting, and improve your ability to speak in front of others while under pressure. Improve your ability to think and to communicate quickly. Improve your problem solving skills. Learn how to solve difficult problems in a classroom setting.

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Improve your organization skills. Improve your ability to make connections with how the subject matter fits together.

Federal Income Tax Learning Objectives: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Understand some of the history and trends of the Federal income tax. Know some of the criteria for selecting a tax structure; understand the components of a tax structure. Identify the different taxes imposed in the United States at the Federal, State, and Local levels. Under the administration of the tax law, including the audit process utilized by the IRS. Appreciate some of the ethical guidelines involved in the tax process. Recognize the economic, social, equity, and political considerations that justify various suspects of the tax law. Describe the role played by the IRS and the courts in the evolution of the Federal tax system. Distinguish between the statutory, administrative, and judicial sources of the tax law and understand the purpose of each source. Locate and work with the appropriate tax law source. Understand the tax research process. Have an awareness of electronic tax research. Understand and apply the components of the Federal tax formula. Apply the rules for arriving at personal and dependency exemptions. Use the proper method for determining the tax ability. Identify and work the kiddie tax situations. Page 3 of 9

COURSE SYLLABUS
16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. Recognize the filing requirements and the proper filing status. Possess an overview of property transactions. Identify tax-planning opportunities associated with the income tax formula. Explain the concepts of gross income and realization and distinguish between the economic, accounting, and tax concepts of gross income. Describe the cash and accrual methods of accounting and the related effects of the choice of taxable year. Identify who should pay the tax on a particular item of income in various situations. Apply the Internal Revenue Code provisions on alimony, loans made at below-market interest rates, annuities, prizes and awards, group term life insurance, unemployment compensation, and Social Security benefits. Identify tax-planning strategies for minimizing gross income. Understand that statutory authority required to exclude an item from gross income. Identify the circumstances under which various items are excludible from gross income. Determine the extent to which receipts can be excluded under the tax benefit rule. Describe the circumstances under which income must be reported from the discharge of indebtedness. Identify tax-planning strategies for obtaining the maximum benefit from allowable exclusions. Differentiate between deductions for and from adjusted gross income and understand that relevance of the differentiation. Describe the cash and accrual methods of accounting. Apply the Internal revenue Code deduction disallowance provisions associated with the following: public policy limitations, political activities, and excessive executive compensation investigation of business opportunities, hobby losses, vacation home rentals, payment of others expenses, personal expenditures, related-party transactions, and expenses related to tax-exempt income. Identify tax-planning opportunities for maximizing deductions and minimizing the disallowance of deductions. Determine the amount, classification, and timing of the bad debt deduction. Understand the tax treatment of worthless securities including ss 1244 stock. Distinguish between deductible and nondeductible losses of individuals. Identify a casualty and determine the amount, classification, and timing casualty and theft losses. Recognize and apply the alternative tax treatments for research and experimental expenditures. Determine the amount of the net operating loss and recognize the impact of the carryback and carryover provisions. Identify tax-planning opportunities in deducting certain business expenses, business losses, and personal losses. Understand the rationale for the cost consumption concept and identify the relevant time periods for depreciation, ACRS, and MACRS. Determine the amount of cost recovery under ACRS and MACRS. Recognize when and how to make the Sec. 179 expensing election, calculate the amount of the deduction, and apply the effect of the election in making the MACRS calculation. Identify listed property and apply the deduction limitations on listed property and on luxury automobiles. Determine when and how to use the alternative depreciation system (ADS). Page 4 of 9

32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44.

COURSE SYLLABUS
45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 64. 65. 66. 67. 68. 69. 70. 71. 72. 73. 74. 75. 76. 77. Identify intangible assets that are eligible for amortization and calculate the amount of the deduction. Determine the amount of depletion expense including being able to apply the alternative tax treatments for intangible drilling and development costs. Perform the reporting procedures for cost recovery. Identify tax-planning opportunities for cost recovery, amortization, and depletion. Distinguish between employee and self-employed status. Recognize deductible transportation expenses. Know how travel expenses are treated. Determine the moving expense deduction. Differentiate between deductible and nondeductible education expenses. Understand how entertainment expenses are treated. Identify other employee expenses. Appreciate the difference between accountable and non-accountable employee plans. Work with the limitations on miscellaneous itemized deductions. Develop tax-planning ideas related to employee business expenses. Distinguish between deductible and nondeductible personal expenses. Define medical expenses and compute the medical expense deduction. Contrast deductible taxes and nondeductible fees, licenses, etc. Understand the Federal tax treatment of state and local income taxes. Distinguish between deductible and nondeductible interest and apply the appropriate limitations to deductible interest. Understand charitable contributions and their related measurement problems and percentage limitations. List the business and personal expenditures that are deductible either as miscellaneous itemized deductions or as other itemized deductions. Recognize the limitation on certain itemized deductions applicable to high-income taxpayers.` Identify tax-planning procedures that can maximize the benefit of itemized deductions. Explain how tax credits are used as a tool of Federal tax policy. Distinguish between refundable and nonrefundable credits and understand the order in which they can be used by taxpayers. Describe various business-related tax credits. Describe various tax credits that are available primarily to individual taxpayers. Understand the computation of realized gain or loss on property disposition. Distinguish between realized and recognized gain or loss. Apply the recovery of capital doctrine. Explain how basis is determined for various methods of asset acquisition. Describe various loss disallowance provisions. Identify tax-planning opportunities related to selected property transactions.

TOPICAL OUTLINE Suggested Problem Assignment: Jan. 17-19 Chapter 1 Class Overview: An overview of Federal Taxation. Problems: 17, 18, 21, 26, 27, 28-31 Taxable Entities, Tax Formula; Introduction to Property Page 5 of 9

Jan 24- Jan. Chapter 3

COURSE SYLLABUS
26 Jan. 31 Feb. 2 Feb. 7-9 Feb. 14-16 Feb. 21 Feb. 23Feb. 28 Mar. 1-6 Mar. 8-20 Chapter 4 Problems: 31,32,33, 34, 35, 36, 37, 38,40,47, 48,49, 50,51 Personal and Dependency Exemption, Filing Status Determination of Tax for an Individual; Filing Requirements Problems: 34,35,38,40,41,42,45, 46,48. Questions: 4-32 Chapter 5 Gross Income Problems: 27,28, 30, 32, 36, 39, 40, 41, 45, 49 Chapter 6 Gross Income Inclusions and Exclusions Problems: 17,18, 19, 23,29,30,32,33,36,37,42,44,45,49 E X A M I Tuesday night, 6-8pm--Chapters. 1, 3, 4, 5, and 6 Chapter 7 Chapter 8 Chapter 9 Overview of Deductions and Losses In General Problems: 22, 24, 25, 26, 27, 34, 37, 49, 56 Employee Business Expenses Problems 24, 28, 29, 32, 33, 35, 36, 38 Capital Recovery: Depreciation, Cost Recovery, Amortization and Depletion Questions 10, 18, 23 Problems:27,28,29,32,33,35,37,38,41

Spring Break March 12-17, 2012 Mar. 22-27 Chapter 10 Deductions: Certain Business Deductions and Losses Problems: 11, 12, 15, 16, 18, 19, 20, 21, 22

Mar. 29 Apr. 3-5

E X A M II -Thursday night, 6-8p.m. -- Chapters 7, 8, 9, 10 Chapter 11 Itemized Deductions Problems: 27,28,29,30,31,35,36,37,39 LAST DAY TO DROP OR WITHDRAW April 3, 2012 (Check the UH Academic Calendar for all Semester Course Dates)

Apr. 10-12 Apr. 17-19 Apr.24

Chapter 13 AMT and Credits Problems: 38, 39, 40, 43, 44 Chapter 14 Property Transaction- Basic Determination and Recognition of Gain Or Loss Problems: 21,22,23,24,25,27,28, 29,30,31,32,34,37,38 Chapter 15 Non-Taxable Exchanges Problems:27, 28, 35, 36, 38, 43, 44

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COURSE SYLLABUS
Apr. 26 Chapter 16 Property Transaction Capital Gain and Losses Problems: 24, 27, 28, 36, 39, 41, 43

May. 1 TBA*

Catchup Sessions, If Necessary, Last Day of Class Review For Final

F I N A L E X A M Part-Comprehensive Chapters 11,13,14,15, 16** **Note: Final Exam Chapters will be determined (finalized) at End of Semester *University Scheduled Time ***Last Day to Drop a Class is April 3, 2012*** Assignment problems include questions and problems.

GOOD LUCK!
There are no short cuts! In order to maximize the benefits of this class, it is imperative that you work the assigned problems before class. (At least attempt to work the problems before class.) TEACHING STRATEGIES
CLASS ATTENDANCE IS ABSOLUTELY ESSENTIAL

*Class participation is designed to reinforce and maximize your learning of tax law and the application of those laws to real life fact scenarios. We must learn the tax law and how to communicate the knowledge of the law to others. Case Recitations: All students will be assigned cases from the textbook to present to the class discussion. Two- percent of points will be deducted from your final course grade for each case which you fail to present as assigned limited to 10% of total grade. Attendance: Each student is required to be present for at least two-thirds of the class sessions. A grade of F will be assigned to a student who does not meet this universitys minimum attendance requirement. Attendance will be considered as a factor in determining the 10% grade credit for class participation. This policy applies regardless of the ability of the student and the quality of the work he or she has done. Exam Dates: To be announced (see attached schedule) Make Up Examination: All students are required to take examinations and turn in all required work at the scheduled time. If a student has a job related or emergency conflict with a scheduled examination the student must notify the instructor prior to the scheduled examination to schedule a time and date for the examination. In the event of an emergency, the student is unable to take a scheduled examination, the student will be required to present some evidence of the emergency Page 7 of 9

COURSE SYLLABUS
immediately after the emergency and to reschedule an examination time and date. If in the opinion of this professor the omission does not rise to the level of an emergency a grade of zero will be assigned to the missed examination. ASSESSMENT OF LEARNING 1) Course requirements each student must study textbook material, actively participate in class discussions, orally present assigned case material to stimulate discussion and learning in class, and take three examinations. 2) Grading Standards Two exams, class participation in case assignments and a comprehensive final exam. See attached schedule. The examinations will consist of a combination of objective questions and short answer essay and written analysis of an actual real life tax scenario. Professor reserves the right to use + and - grades for in-between grades.

A = 90 100% B = 80 89% C = 70 79% D = 60 69% F = 59% and Below Grading: Your grade will be composed of the following elements: 2 exams 30% each Final Exams (Comprehensive) Class Participation Total 60 30 10 100

3) Method of student appraisal of facility Written appraisal requested at end of term; verbal appraisal requested after each examination. 4) Method of evaluating student response to course Review of student evaluation sheets plus verbal feedback from students. STUDENT APPRAISAL
Students will complete an Appraisal during the Fall and Spring quarters.

CLASS POLICIES Academic Honesty Academic honesty expectations will be consistent with University of Houston Policy as described in the University Bulletin This policy states that the faculty member will decide whether to assign a zero for the specific component of work involved or an F for the course in the case of a classroom violation. University of Houston views any act of academic dishonesty as a violation of the very heart of the nature of the University as expressed in the Universitys Bulletin. Academic dishonesty occurs Page 8 of 9

COURSE SYLLABUS
when a student submits the work or record of someone else as his own or when a student has special information for use in an evaluation activity that is not available to other students in the same activity. It is my responsibility to establish clearly whether academic dishonesty has occurred. I will decide whether to assign a zero for the specific component of work involved or an F for the course in the case of a classroom violation. I have a duty to report the incident to the Dean of the College. An existing Standards Committee within each College will serve as a hearing committee to assure that the student receives a fair hearing. The committee may take further action when academic dishonesty has occurred or may recommend further action to a standing University committee, i.e. Student Affairs or Admissions Committee. In every case, however, the grade assigned in the course is the province of the instructor. The Vice President for Academic Affairs should be notified of action taken by the Standards Committee. Grievance Procedures Grades in academic courses may be appealed by the student through the office of the Dean in which the course is taught. Students should follow this procedure: 1. The student should first discuss the disputed grade with the faculty member.
2. If no resolution can be achieved, an informal hearing will be scheduled by the Dean before a Standards Committee that exists in the college. The membership committee is composed of both student and faculty representatives. Formal due process is not observed. The Committee has no coercive authority to force the change of a grade; however, the hearing aspect of the Committee process serves to assure integrity in the assigning of grades to students by faculty.

If a student questions any grade as recorded in the Universitys Registrars Office, the student has a period of one year beginning the end of the term in which the grade was awarded, or six months after the degree is conferred (whichever comes sooner), to challenge the accuracy of the grade. At the end of five years, the permanent record card will become the absolute record and a record may NOT be challenged for any reason.

Children in the Classroom Children are not allowed in the classroom.

The content of this outline and the attached schedule are subject to change at the discretion of the instructor.

_____________________________________ Instructors Signature

________________ Date

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