ACCTG 205 - Fundamentals of Tax
ACCTG 205
3 units
Fundamentals of Tax
54 hours lecture
Grading: letter grade.
Description
Students will learn to prepare federal income tax returns for individuals. This course emphasizes the practical use of tax forms and supporting schedules and also reflects the most recent changes in the Internal Revenue Code.
Transferability
Identifiers & Codes
Department: Business Administration & Economics
School: Business, Education, and Health Sciences
Academic Level: Undergraduate
TOP Code: 050210 - Tax Studies
CTE Status: Yes
SAM Code: C - Clearly Occupational
CIP Code: 52.1601 - Taxation.
Credit or Noncredit: Credit
Class Size Max, Units, Hours
Class Size Maximum: 40
Lecture Hours: 3
Supplemental Hours: 0
Credit Units: 3
Out of Class Hours: 6
Weekly In-Class Hours: 3
Teaching Units: 3
Total Student Learning Hours: 162
Total Contact Hours: 54
Requisites & Limitations on Enrollment
Catalog Information
Grade Mode: Letter Grade
Are there Materials Fees for the course? No
Is the course repeatable? No
Student Learning Outcomes & Course Objectives
Student Learning Outcomes:
- 1. Analyze a given set of data into proper categories of income, deductions and credits as defined in the tax laws.
- 2. Assemble complete, ready to file, Federal and California income tax returns from a given set of data on individual's income and expenses.
- 3. Evaluate effects of changes in income, deductions, and filing status on an individual's tax liability.
Course Objectives:
1. Explain the filing requirements for tax returns
2. List the various types of gross income
3. Identify the adjustments to gross income
4. List the expenses that can be deducted from adjusted gross income
5. Explain the use of standard deductions
6. Demonstrate the use of different methods used to calculate the income tax liability
7. Explain the procedure for the payment of taxes
8. List and explain the various types of tax credits
9. Describe other types of taxes; such as self-employed FICA taxes
10. Identify common terminology used on tax returns
11. Prepare a basic federal income tax return.
Course Content
Course Content:
I. The Individual Income Tax Return
A. History and Objectives of the Tax System
B. Reporting and Taxable Entities
C. The Tax Formula for Individuals
D. Who Must File
E. Filing Status and Tax Computation
F. Qualifying Dependents
G. The Standard Deduction
H. A Brief Overview of Capital Gains and Losses
I. Tax and the Internet
J. Electronic Filing (E-Filing)
A. History and Objectives of the Tax System
B. Reporting and Taxable Entities
C. The Tax Formula for Individuals
D. Who Must File
E. Filing Status and Tax Computation
F. Qualifying Dependents
G. The Standard Deduction
H. A Brief Overview of Capital Gains and Losses
I. Tax and the Internet
J. Electronic Filing (E-Filing)
6 Hour(s)
II. Gross Income and Exclusions
A. The Nature of Gross Income
B. Salaries and Wages
C. Accident and Health Insurance
D. Meals and Lodging
E. Employee Fringe Benefits
F. Prizes and Awards
G. Annuities
H. Life Insurance
I. Interest and Dividend Income
J. Municipal Bond Interest
K. Gifts and Inheritances
L. Scholarships
M. Alimony
N. Educational Incentives
O. Unemployment Compensation
P. Social Security Benefits
Q. Community Property
A. The Nature of Gross Income
B. Salaries and Wages
C. Accident and Health Insurance
D. Meals and Lodging
E. Employee Fringe Benefits
F. Prizes and Awards
G. Annuities
H. Life Insurance
I. Interest and Dividend Income
J. Municipal Bond Interest
K. Gifts and Inheritances
L. Scholarships
M. Alimony
N. Educational Incentives
O. Unemployment Compensation
P. Social Security Benefits
Q. Community Property
6 Hour(s)
III. Business Income and Expenses
A. Schedule C
B. Inventories
C. Transportation
D. Travel Expenses
E. Meals and Entertainment
F. Educational Expenses
G. Dues, Subscriptions, and Publications
H. Special Clothing and Uniforms
I. Business Gifts
J. Bad Debts
K. Office in the Home
L. Hobby Losses
A. Schedule C
B. Inventories
C. Transportation
D. Travel Expenses
E. Meals and Entertainment
F. Educational Expenses
G. Dues, Subscriptions, and Publications
H. Special Clothing and Uniforms
I. Business Gifts
J. Bad Debts
K. Office in the Home
L. Hobby Losses
6 Hour(s)
IV. Additional Income and the Qualified Business Income Deduction
A. What Is a Capital Asset?
B. Holding Period
C. Calculation of Gain or Loss
D. Net Capital Gains
E. Net Capital Losses
F. Sale of a Personal Residence
G. Rental Income and Expenses
H. Passive Loss Limitations
I. Net Operating Losses
J. Qualified Business Income (QBI) Deduction
A. What Is a Capital Asset?
B. Holding Period
C. Calculation of Gain or Loss
D. Net Capital Gains
E. Net Capital Losses
F. Sale of a Personal Residence
G. Rental Income and Expenses
H. Passive Loss Limitations
I. Net Operating Losses
J. Qualified Business Income (QBI) Deduction
6 Hour(s)
V. Deductions For and From AGI
A. Health Savings Accounts
B. Self-Employed Health Insurance Deduction
C. Individual Retirement Accounts
D. Small Business and Self-Employed Retirement Plans
E. Other for AGI Deductions
F. Medical Expenses
G. Taxes
H. Interest
I. Charitable Contributions
J. Other Itemized Deductions
A. Health Savings Accounts
B. Self-Employed Health Insurance Deduction
C. Individual Retirement Accounts
D. Small Business and Self-Employed Retirement Plans
E. Other for AGI Deductions
F. Medical Expenses
G. Taxes
H. Interest
I. Charitable Contributions
J. Other Itemized Deductions
6 Hour(s)
VI. Accounting Periods and Other Taxes
A. Accounting Periods
B. Accounting Methods
C. Related Parties (Section 267)
D. Unearned Income of Minor Children and certain Students
E. The Individual Alternative Minimum Tax (AMT)
F. Self-Employment Tax
G. The Nanny Tax
H. Special Taxes for High-Income Taxpayers
A. Accounting Periods
B. Accounting Methods
C. Related Parties (Section 267)
D. Unearned Income of Minor Children and certain Students
E. The Individual Alternative Minimum Tax (AMT)
F. Self-Employment Tax
G. The Nanny Tax
H. Special Taxes for High-Income Taxpayers
6 Hour(s)
VII. Tax Credits
A. Child Tax Credit
B. Earned Income Credit
C. Child and Dependent Care Credit
D. The Affordable Care Act
E. Education Tax Credits
F. Foreign Exclusion and Tax Credit
G. Adoption Expenses
H. Energy Credits
A. Child Tax Credit
B. Earned Income Credit
C. Child and Dependent Care Credit
D. The Affordable Care Act
E. Education Tax Credits
F. Foreign Exclusion and Tax Credit
G. Adoption Expenses
H. Energy Credits
6 Hour(s)
VIII. Depreciation and Sale of Business Property
A. Depreciation
B. Modified Accelerated Cost Recovery System (MACRS)
C. Election to Expense (Section 179)
D. Listed Property
E. Limitation on Depreciation of Luxury Automobiles
F. Intangibles
G. Section 1231 Gains and Losses
H. Depreciation Recapture
I. Business Casualty Gains and Losses
J. Installment Sales
K. Like-Kind Exchanges
L. Involuntary Conversions
A. Depreciation
B. Modified Accelerated Cost Recovery System (MACRS)
C. Election to Expense (Section 179)
D. Listed Property
E. Limitation on Depreciation of Luxury Automobiles
F. Intangibles
G. Section 1231 Gains and Losses
H. Depreciation Recapture
I. Business Casualty Gains and Losses
J. Installment Sales
K. Like-Kind Exchanges
L. Involuntary Conversions
6 Hour(s)
IX. Payroll, Estimated Payments, and Retirement Plans
A. Withholding Methods
B. Estimated Payments
C. The FICA Tax
D. Federal Tax Deposit System
E. Employer Reporting Requirements
F. The FUTA Tax
G. Qualified Retirement Plans
H. Rollovers
A. Withholding Methods
B. Estimated Payments
C. The FICA Tax
D. Federal Tax Deposit System
E. Employer Reporting Requirements
F. The FUTA Tax
G. Qualified Retirement Plans
H. Rollovers
6 Hour(s)
Methods of Instruction & Active Learning
Instructional Method(s):
- Lecture
- Demonstration
- Discussion
- Tutorial
- Technology
- Collaborative Learning
Examples: The instructor introduces key chapter learning objectives through lecture and explains the tax laws and procedures required in the preparation of federal income tax returns. Students are assigned additional exercises and problems as homework. Practical industry tax return preparation procedures are illustrated and discussed throughout the course.
The instructor demonstrates the application of course concepts using examples from the textbook, the publisher's website, PowerPoint presentations, or through current industry applications providing a realistic crossover between theory and practice.
Students participate in discussions on specific chapter learning objectives presented in the lecture and in solving class and homework exercises and problems.
The Long Beach City College Multidisciplinary Success Center located in the LAC Library offers accounting tutorial services to the students. The textbook publisher's website also has a number of supplemental learning tools.
Technology is implemented throughout the course by using the internet during lecture to research accounting and tax principles and view sample tax returns. Students are also given research assignments where technology is required.
Students discuss their experiences, questions, and applications of the concepts with other members of the class in class discussions or as part of study groups. Study groups are encouraged for students as an effective learning technique.
Assignment for In and Out of Class
Assignment Types:
- Substantial college level writing assignment, such as: essay(s), written homework, term/research paper, and/or other (Required).
- Substantial college level reading assignment, such as: textbook, journal article(s), literature, and/or other (specify)
- Class Presentation
- Group Assignment
Examples: Homework assignments are primarily from the exercises and problems within each chapter of the textbook and cover the chapter learning objectives as outlined within the "content" section of this course curriculum. Instructors may also incorporate additional problems outside the textbook to emphasize a specific learning objective. The assigned homework will require students to apply the discussed topic by solving tax return problems requiring computations and/or written explanation, in support of the student’s overall understanding of the chapter learning objectives. Required outside reading and completion of the exercises and problems, as homework are the primary assignments in the course. The students participate in reviewing and solving the required homework exercises and problems. The student’s understanding of the learning objectives is evaluated through chapter quizzes and exams.
Students are required to complete weekly reading assignments from the textbook.
Students are required to participate in class discussions. Students may make presentations on selected exercises or problems to the class.
Students are encouraged to establish study groups to enhance the learning and understanding of accounting applications and problems in support of mastering the student learning objectives.
Methods of Evaluation
Computational or Non-Computational Problem Solving Demonstrations:
- Exam(s)
- Homework Problem(s)
Further Methods of Evaluation:
- Other
Examples: Students are assigned written exams testing their understanding of tax laws, calculations and procedures. Exams will be evaluated on the student's ability to synthesize key tax concepts and solve appropriate tax related problems.
Assigned written homework problems are completed in CengageNow, a learning website, and graded when the problem is submitted.. These assignments present a problematic tax related issue that students will have analyzed and resolved. The proper procedures are discussed in subsequent class meetings.
Students will complete a comprehensive tax return project that will be turned in and graded by the instructor. The tax return grade will be based on the correct application of tax laws as well as the accuracy of the tax calculations made on the tax return. Many of the assignments, including the comprehensive tax return project, are done in CengageNOW, a learning website supplied by Cengage.
Diversity, Equity, Inclusion, Accessibilty
The Business Administration Economics Department aligns with Long Beach City College’s commitment to diversity, equity, inclusion, and accessibility by providing learning materials and instructional approaches intended to support students from a wide range of backgrounds and lived experiences. The learning materials and instructional approaches used in the Business Administration Economics Department reflect diverse cultural, social, and economic perspectives to enhance relevance and inclusivity. Students are encouraged to draw on their own experiences when engaging with course concepts, principles, and theories.
Representative Textbooks and Materials
Representative Textbook:
Income Tax Fundamentals-2019. Gerald Whittenburg, Steven Gil. 37th Edition. Cengage Learning. 2019.