Catalog Description
- Transfer Status
- NT
- Unit(s)
- 4.00
- Lecture: 68.00 Contact hours/136.00 Out of class hours/204.00 Total hours/4.00 Unit(s)
- Total: 68.00 Contact hours/136.00 Out of class hours/204.00 Total hours/4.00 Unit(s)
Course Description: This course is a study of the Federal and California income tax laws that apply to taxpayers, the application of the laws by computation of various practical problems and the completion of forms required by the Internal Revenue Service and the California State Franchise Tax Board. The requirements for becoming a licensed tax preparer and the rules and regulations governing licensed tax preparers are reviewed. This course is primarily designed for the vocational student. It will orient the student toward working with tax problems in an accounting office, a financial institution, an enrolled agent's office, the Internal Revenue Service, the California State Franchise Tax Board, a state licensed tax preparers' office or in their own office.
Objectives
Upon successful completion of this course, the student should be able to:
- Prepare a moderately complex Internal Revenue Service Form 1040 and California Franchise Tax Board Form 540 and their associated and supporting forms.
- Calculate, compare, analyze and select the appropriate tax provision that would most benefit the taxpayer's circumstances.
- Plan and anticipate potential income tax consequences of financial events.
- Identify issues and potential tax liabilities or benefits.
- Locate and interpret various sources of technical income tax research data.
Course Content
Topic Titles / Suggested Time Topic
Lecture
| Topics | Lec Hrs |
|---|---|
Overview of the tax structure | 2.00 |
Tax calculation, payments and reporting procedures | 4.00 |
Gross income inclusions | 4.00 |
Gross income exclusions and adjustments to income | 4.00 |
Personal and other itemized deductions | 5.00 |
Self-employed tax issues | 6.00 |
Depreciation and Amortization | 5.00 |
Rental activities | 6.00 |
Property: basis and nontaxable exchanges | 5.00 |
Property: capital gains, losses, and depreciation recaptures | 6.00 |
Net Operating Loss (NOL), Alternative Minimum Tax (AMT), and business tax credits | 4.00 |
Withholding, payroll, and estimated taxes | 5.00 |
California nonresidents | 5.00 |
California tax practitioner requirements | 3.00 |
Taxation of other business entities such as Subchapter S-Corporation, Corporation, Partnership, and Limited Liability Company (LLC) | 2.00 |
Estates and Trusts | 2.00 |
| Total Hours: | 68.00 |
Methods of Instruction
- Class Activities
- Demonstrations
- Discussion
- Homework: Students are required to complete two hours of outside-of-class homework for each hour of lecture
- Lecture
- Problem-Solving Sessions
- Reading Assignments
Methods of Evaluation
- Exams/Tests
- Quizzes
- Research Projects
- Projects
- Homework
- In-class assignments, Classroom participation
Examples of Assignments
Reading Assignments
- Read the chapter on Gross Income Exclusions and Deductions for Adjusted Gross Income (AGI). Be prepared to discuss the items that affect AGI in class.
- Read the chapter on Personal Itemized Deductions. Prepare the homework related to home mortgage interest.
Writing Assignments
- After reading the chapter on Self-employed tax issues, complete a two-page paper describing what items are included and what items are limited in calculating these taxes. Be prepared to discuss in class.
- Prepare a form 1040 based on information provided by the instructor, and be prepared to discuss deductions in class.
Out-of-Class Assignments
- Using the IRS website, research the rules related to rental income and rental expenses and their placement on a form 1040. Be prepared to discuss rental activities in class.
- Prepare an individual tax return for a hypothetical client with information provided by the instructor. Be prepared to discuss your reasoning in class.
Recommended Materials of Instruction
Various. (2025). Cengage Unlimited, 1 term (4 months), 1st Edition. Cengage, Current. 9780357700006.
Minimum Qualifications
Accounting (Masters Required)