Continues the study of the fundamentals of individual income tax accounting theory and practice, including a detailed study of the rules and regulations for preparation of the most common forms and schedules, preparation of these forms and schedules, tax laws in the United States, and the differences between GA AP and income tax accounting.
 
Prerequisite:
ACTG 222 and ACCT& 201, or Instructor approval. Concurrent with ACTG 293.

 
Learning Outcomes:

• Who must file income taxes and why, gross income inclusions and exclusions, standard deductions, and exemptions.
• The expanded concept of gross income inclusions and exclusions, to include the sources and kinds of interest and dividends.
• Deductions for and from adjusted gross income, passive activities, net operating losses, supplemental income, and retirement and pension plans.
• Gross income inclusions and exclusions, deductions, and adjustments for a sole proprietor also employee business expenses to include office in the home, educational expenses, and business gifts.
• Various itemized deductions, to include all entries on Schedule A, hobby losses and educational incentives.
• Various methods of depreciation and cost recovery, the differences and similarities of the two principal accounting methods, and accounting periods.
• The nature and character of a Capital Gain, the impact on income taxes of the capital gains special tax rates, a like-kind exchange, an installment sale and the sale of a personal residence.
• Tax payments, estimated payments, and the Federal Withholding System.A tax partnership, a "Sub S" Corporation, and explain and use a K-1 from a Form 1065, and a Form 1120S.
• Tax planning for minimizing taxes, sharing income among related taxpayers, the audit process and the taxpayers bill of rights.