Carroll Community College

ACCT-211, Principles of Taxation 2

Credits: 3

Course Description

Principles of Taxation 2 is a comprehensive study of federal taxation of corporations and partnerships, as well as exempt entities, multi-state taxation issues, taxation of international transactions, federal gift and estate taxes, and taxation of trusts and estates. Students will be required to use the tax code and regulations as well as legal research to determine the proper tax treatment of given events and transactions. Prerequisite: ACCT-210 or permission of the instructor. Three hours lecture each week. Three credits. Three billable hours. Offered Spring Term only.

Course Objectives and Grading Information

Course Objectives: Upon completion of this course, the student will be able to:

1. Understand the basic structure of the Internal Revenue Code and be able to read and understand specific provisions.

2. Evaluate various tax authorities.

3. Evaluate the tax treatment and similarities and differences of various business forms, including sole proprietorships, partnerships, regular corporations, S Corporations, and limited liability companies.

4. Recognize proper accounting periods and methods.

5. Compute the regular income tax liability of corporations.

6. Become familiar with the organization and capital structure of corporations.

7. Understand corporate distributions not in complete liquidation and corporation distributions in complete liquidation, as well as corporate reorganizations.

8. Understand partnership taxation, formation, transactions between partners and partnerships, ramifications of distributions from partnerships, and sales of partnership interests.

9. Understand S Corporation taxation, including qualification for S Corporation status, operational rules, and tax planning considerations.

10. Evaluate types of tax-exempt organizations, requirements for tax-exempt status, tax consequences of exempt status, reporting requirements, private foundations, and unrelated business income tax.

11. Become familiar with multi-state corporate tax issues.

12. Recognize issues with regard to the taxation of international transactions, including the taxation of U.S. persons with foreign income and U.S. taxation of nonresident aliens.

13. Become familiar with federal gift and estate tax rules.

14. Understand income taxation of trusts and estates, including the taxation of beneficiaries.