ACCT-6120-Taxation
of Corporations & Shareholders
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Textbook information has been moved to the end of the webpage. |
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C12-Chp-00-1A-ACCT-6120-001-Syllabus-UNC-Charlotte-Spr-2012-Godfrey |
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Exam-1-Corporate-Tax-2011. |
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Exam-1-Corporate-Tax-2010. |
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Exam-2-Corporate-Tax-2011. |
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Exam-2-Corporate-Tax-2010. |
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Exam-3-Corporate-Tax-2011. |
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Exam-3-Corporate-Tax-2010. |
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Exam-4-Corporate-Tax-2011. |
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Exam-4-Corporate-Tax-2010. |
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Introductory Lecture |
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The following slides were posted in 2010 because the University was closed for a week due to snow. |
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Slide presentations with sound - from the instructor. Please study these materials thoroughly. |
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These are large files. May take time to download. I will post additional files as completed. |
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You may only be able to access the sound if you go into the "View Slide Show" mode. |
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The files above are the entire set - no more of these files to be posted. |
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Review of Structure of Internal Revenue Code - |
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These are basic CPA Review materials. If you are going to take the CPA Exam, you gotta know this stuff. |
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And these problems help you understand how to find and use many very important code sections. |
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(Some of these are individual problems - convenient ones for learning to use the Code, or learning how to use it better.) |
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Note that some Excel files have more than one tab. |
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Some of the files below have more than one tab. Solutions are posted below. |
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The document above contains the committee reports explaining the effect of the bill that temporarily reduced the employee portion of the FICA (and reduced the SE tax under Sec. 1401 in a consistent manner). See page 1-17+ in the textbook for a description of the legislative process. Our Code book has Sec. 1401+ for the SE tax, but not Sec. 3101+ for the payroll tax (FICA) that employers withhold from earnings of employees. Normally, the self-employed person deducts one-half of the SE tax (an amount equivalent to the employer portion) on the front of Form 1040 under Sec. 164(f) when computing AGI. But now the employer half is actually 59.6% of OASDI and 50% of HI tax as stated in the committee report, because the SE tax is not a 50-50 tax, temporarily. Note the effective date near the end of the document. In December, both houses extended this for 2 months in 2012. |
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CPA-Exam-Content-Tax-2011 (2-page list) |
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How much coverage would a single CPA Exam give to our course? |
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Do you notice that for these "old" questions test on our current tax law - much of the tax law never changes? |
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Chapter 1. Understanding & Working with Federal Tax Law |
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You will need to
study, and probably print, the next two files. They will be covered in
class. |
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The next 2 files were updated for 2011 on December 28, 2010. |
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C12-Chp-01-1C-Women acct conference- selected slides-Penalties |
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Homework |
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The first of the next 2 files contains homework questions for Chapter 1. |
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Enter answers on the answer sheet in the second file below. |
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The remaining files for this chapter provide background information. |
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C12-Chp-01-7-Rev-Rul- 2003-52-Corp distributions-Estate Planning |
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The following file is optional, provided for your benefit. |
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Chapter 2. Corporations: Introduction & Operating Rules |
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You should study the next two files. They will be covered in class. You may study on line, or print the slides. |
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If you print, I suggest that you consider printing 6 slides per page. You may want to print some slides larger. |
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The next two files were updated for 2012 on January 14, 2012. |
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File below is a two page outline of the chapter, with code sections, PPt slides and homework questions identified. |
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Using information in file above, please prepare schedule M-1 and M-2 in the following file |
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The following files were updated on January 16, 2012, and will be covered in the class lecture. |
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Homework |
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If you want a jump start on working homework above, the file below has the format for questions 5 through 13. |
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If you don't remember the depreciation recapture rules, read the following files several times. |
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If you need a review of Accounting (including tax accounting) the following file is for you. |
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A short tax case about capital losses of a corporation. The second file has a printout from the Citator for this case. |
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Please explain why DR Horton (the largest homebuilder in the U.S.) was in a hurry to sell this land at a $100 million loss. |
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Following files contain lists of code sections. |
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The following file has a corporate tax return problem and a solution. |
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The following file has your tax return assignment. Due date will be announced in class. |
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The following file has sample questions about your solution. Similar questions may be in you exam. |
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C12-Chp-00-Solution for Tax Return Multiple-Choice Questions |
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Review problems that is supplementary and optional. |
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| C12-Chp-02-3-Corp-GAAP-Tax-Acct-Questions-Problem-Nov-12-2011 | ||||||
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On the job, you are asked to obtain financial data and analyze it. |
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Financial data comes in many formats. Please analyze the following document. Is it correct? |
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Passwords are provided to members of the class |
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Chapter 3. Corporations: Special Situations |
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The next 2 files were updated for 2012 on January 16, 2012. |
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Homework |
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C12-Chp-03-7-Knight Furniture-TCM-2001-19- Accumulated earnings tax |
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Chapter 4. Corp: Organization & Capital Structure |
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The next three files were updated for 2011 on December 30, 2010. |
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The following file is optional review of accounting for debt. |
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Homework |
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C12-Chp-04-2-Homework-Sol-Corp-Organ-EXCEL-2012-Handout-Blanks.xls |
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If you plan to shop at Charlottetown Mall (Mid-Town Mall), you will find this case interesting. |
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The Zilkha case is about the financing of the Mall with preferred stock. |
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Chapter 5. Corp: Earnings & Profits and Dividends |
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The next file was updated for 2012 on Janaury 31, 2012. |
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| Class plan is to review the Code Outline below (C12-Chp-05-3...) and cover the next three files. | ||||||
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Problem above is similar to 5-1B above |
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Focus on page 3 of form above |
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C12-Chp-05-7-Medlin-TCM-1998-378-Divorce-Const Dividends.doc |
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Chapter 6. Corp: Redemptions & Liquidations |
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Part 1. Redemptions and Liquidations |
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Part 1. Redemptions |
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This is a great case about redemptions. 9 pages, but that is not long for a tax case. |
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It is rags to riches. Small business owners dream of retirement and stock redemptions. |
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The IRS may see additional taxable income in just about any well planned transaction. |
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Experience is the best way to learn tax. Reading cases like this one is second best. |
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If you understand the stock redemption material, this case should not be confusing. |
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Part 2. Liquidations |
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Chapter 7. Corporations: Reorganizations |
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The following file illustrates a Type B (stock for stock) reorganization. |
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Have you been to Disney World? |
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What explanation can you provide to your (nontax) fellow worker about the tax rules involved in the merger described below? |
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XM, Sirius Statement on Merger
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Chapter 8. Consolidated Tax Returns |
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C12-Chp-08-1B-Class-Plan-Consolidated-Tax-Returns-Etc-Sol.xlsx |
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C12-Chp-08-2-Homework-Sol-Cont-Groups-Acctg-2011-Answer Sheet |
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C12-Chp-08-6-Intercompany Gains-Reg-1-1502-13 -Inventory Sales |
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The regulations for consolidated returns run from page 56,669 through 57,057. (389 pages by my count) |
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Consolidated return regulations are "Legislative Regulations," because Congress gave |
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almost no guidance in the Code, and gave Treasury the authority to write |
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the law in the regulations. Thus: Legislative Regulations. |
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Enron's consolidated Federal income tax filings |
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Chapter 9. Taxation of International Transactions |
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C12-Chp-09-1D-FTC-U-S-Taxpayer-with-Foreign-Branch-Subsidiary-Etc |
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Please study the PowerPoint file above and the next two items. |
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The following file has been updated for Spring 2010 on April 20, 2010. |
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The following articles and memo are NOT assigned. |
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The article above is about tax law that is covered in detail in Section 911. |
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The first step in writing the article was to paraphrase every sentence in Section 911. Those rules were placed in logical order for the article. Then, regulations were consulted for additional guidance, examples, etc. Of course, we relied on the committee report for the recent changes in the law that prompted this article. The article does not rely on court cases (or Revenue Rulings, Letter Rulings, etc.) to a significant degree. In many areas, you don't have much in the way of code and regs, and must rely on other sources such as court cases. |
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Major corporations usually assume full responsibility for all tax compliance responsibilities of their employees sent abroad. |
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What is the federal income tax impact on corporations receiving state tax breaks? |
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Chapter 10. Partnerships: Formation, Operation, and Basis |
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The next 2 files were updated for 2011 on January 4, 2011. |
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Reg. 1.702-1(a)(8)(ii) "Each partner must also take into account separately the partner's distributive share of any partnership item which, if separately taken into account by any partner, would result in an income tax liability for that partner, or for any other person, different from that which would result if that partner did not take the item into account separately." |
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Chapter 11. Partnerships: Distributions, Transfer of Interests, and Terminations |
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See if you agree with the answers in the following file. |
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C12-Chp-11-7-Three-Ways-to-Incorporate-a-Ptshp-RR-84-111.doc |
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Chapter 12. S Corporations |
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The file above is a current article. However, you will note that many topics in the article are important. |
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Chapter 13. Comparative Forms of Doing Business |
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Note: file above was modified to clarify treatment of fringe benefits for partners and S corporation owners. May 8, 2011. |
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Note: Appreciated property is distributed to owners in 13-1E, but sold to a third party in 13-1F. |
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Chapter 14. Taxes on Financial Statements |
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Main Lecture Problem for Chapter |
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The file above will be the basic lecture. You need to know this material well. |
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The following file has the assigned homework for Chapter 14. |
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The following file has a dozen questions from the test manual for the textbook. |
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The following set of questions is from the Tax-1 course last fall. You should be able to work all of these questions. |
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Chapter 15. Exempt Entities (Very brief introduction) |
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The following file has the publisher PowerPoint slides. |
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Note: the key points of this chapter are summarized in the outline above |
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C10-Chp-15-16-2 covers both Chapter 15 and Chapter 16 |
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If you have time you can take a look at the files below. |
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Form 990 (12 pages) is linked below. You may view it rather than print it, if you like. |
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Instructions for Form 990 are linked below. You may view the file rather than print. |
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Form 1023 is linked below. You may view it rather than print it, if you like. |
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Form-1023-Application for Recognition of Exempt Status-38 pages |
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Chapter 16. Multistate Corporate Tax (Brief Intro.) |
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The following file has the publisher PowerPoint slides. |
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C10-Chp-15-16-2 has homework for both Chapter 15 and Chapter 16 |
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Chapter 17. Tax Practice and Ethics (Brief Intro) |
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The following file has the publisher PowerPoint slides. |
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For Spring-2011, students are responsible for know tax practice matters covered in the following one-page of homework. |
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When deciding whether we are justified in claiming a deduction, etc. we get into terminology. |
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(1) Frivolous,
(2) Not frivolous, (3) Realistic possibility of being sustained, |
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Virginia Andrews was a highly successful novelist. She enjoyed a very loyal readership among teenage girls and young women, every new novel became an instant hit. After Andrews's death, her publisher (Pocket Books, a division of Simon & Schuster, Inc.) contacted the estate and heirs about the possibility of sequels to existing novels. Under the proposal, several novels would be written by a ghostwriter and published under Andrews's name. An agreement was reached, and the novels were written and published. As the sequels were successful, substantial royalties were paid to the estate. When the estate tax return was filed, it included no value for the post-death sequels. The executor contended that the post-death ventures were too speculative to possess any value to the estate. Sales would depend on the expertise of the ghostwriter and whether prospective buyers would accept the novels as the work of Virginia Andrews. In fact, if the sequels were failures, sales of earlier books would suffer. The IRS disagreed and assigned a value of approximately $1,200,000 to the potential use of the Andrews name. In Estate of Virginia Andrews v. U.S., [94-2 USTC ¶60,170, 730F:Supp. 1279 (D. Ct. Va., 1994)] What would you say? |
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From: Advanced Business Entity Taxation by Raabe/Willis/Maloney/Smith |
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Charlotte Business Journal, December 24, 2008. Crescent Resources LLC sold Bay Oaks apartment for $11.35 million, or less than half of what it paid for the South Tampa Bayshore Boulevard complex nearly three years ago. On Monday, Carter-Haston Real Estate Services Inc., the company that sold the 176-unit complex to Crescent Resources in March 2006 for $27 million, bought it back, county records show. Carter-Haston paid $64,500 a unit, compared to the $153,409 per unit that Crescent Resources previously paid for the nearly 35-year-old complex. Crescent Resources made a strategic decision to sell the complex that it once had planned to redevelop as a high-rise condominium. “They decided they didn’t need that many sites in this one market,” Moger said. Crescent Resources, which recently completed Corporate Center Four in Tampa’s Westshore Business District also developed high-rise One Bayshore, is a land management and real estate development company based in Charlotte, N.C. It’s owned by Duke Energy Corp. (NYSE: DUK) and Morgan Stanley Real Estate. Can you explain the
tax rules (Internal Revenue Code sections) that apply to this sale of real
estate? On our first day of class, you will be asked to provide a tour of the Internal Revenue Code sections covering a transaction like this. Be sure and bring your textbook and your Code book. |
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Textbooks for
Corporate Tax-2012. Both books should have date of 2012. 
The current books show a date of 2012 on the cover. If you have a 2011 edition of the Code book, you may be able to get by with it - without major problems. You may be hearing a lot about proposals to vastly revamp the code - could happen, but I am not holding my breath. I have heard about those ideas over the years.
Hoffman/Raabe/Smith/Maloney,
ISBN-1-111-22172-3
Smith, ISBN- 10-1-111-82214-X We do not use the extra products bundled with books very much, but I understand the price is the same, with or without those products. Howard Godfrey
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What is different about the professional edition of the textbook. The publisher told me: |
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The professional edition doesn’t have RIA Checkpoint or CPAexcel. and the price is $1 different. |
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