HS 321 Fundamentals of Income Taxation

This course examines the federal income tax system with particular emphasis on the taxation of individuals. The topics covered in this course include the fundamentals of income taxation, the taxation of income generated from personal, professional, and investment related activities, deductions, credits, basis rules, depreciation, the taxation of capital assets, nontaxable exchanges, passive activity loss rules, the alternative minimum tax, and the taxation of business entities.Learning ObjectivesUpon completion of this course, the student will be able to:- Demonstrate an understanding of the fundamental principles and concepts of federal income taxation- Compare and contrast the taxation of income generated from personal and investment activities- Explain the taxation of income and expenses generated from employment and profit-motivated activities- Understand and apply the fundamentals of deductions against adjusted gross income with emphasis on itemized deductions- Identify different types of tax credits and compare and contrast tax credits with tax deductions- Demonstrate an understanding of how basis is determined for purposes of determining taxable gains and losses, and also explain the purpose of cost recovery through various depreciation methods- Identify the tax advantages that certain types of business assets receive when compared to assets used for nonbusiness purposes- Explain how provisions in the tax code allow for tax avoidance and tax deferral through certain property exchanges- Explain the complexities of the passive activity loss rules along with the purpose of the alternative minimum tax system- Compare and contrast the tax consequences of distributions from business entities, such as partnerships, S corporations, and C corporations, to their respective owners