Business Administration: Individual Taxation

Highlights federal income tax concepts and rules applicable to individuals. Examines how the federal tax system accounts for items of income and expense in computing taxable income, considering both personal and business transactions. Prerequisites: BUS 1610 and BUS 2620; Business Administration majors; Accounting and Business Administration minors; minimum Junior standing.

BSAD major, 2BUS Co-Major, ACCT and BSAD minors; Minimum Junior standing Prereqs enforced by the system: BUS 1610 and BUS 2620

This course will highlight federal income tax concepts and rules applicable to individuals. In particular, the course discussions and materials will examine how the federal tax system accounts for items of income and expense in computing taxable income. This examination will consider transactions arising in personal as well as business contexts. Tax accounting often relies on many detailed and changing rules. Nevertheless, by the end of this course, you should understand basic reporting (compliance) requirements and fundamental tax concepts well enough to identify and discuss issues about: - Whether a taxpayer has income and must report it; - Whether the taxpayer can deduct a cost as an expense; - What amount of income or expense is taken into account; - How the character of an item affects its treatment; and - When the income or expense item is reported.

This course primarily focuses on the process for determining and reporting taxable income. Accordingly, topics covered in this course will include taxable and nontaxable forms of income (such as wages/salaries and benefits), personal and business deductions (such as home mortgage interest and depreciation), computations of tax liability (such as filing statuses), and property dispositions (such as stock sales and real estate exchanges). The course discussions will also consider how the tax system balances the revenue needs of the government and the financial concerns of individuals. The course is delivered through a lecture format with in-class exercises.

Grades are determined from at-home assignments and projects.