Academic Catalog

ACTG 68C: ADVANCED TAX ACCOUNTING III

Foothill College Course Outline of Record

Foothill College Course Outline of Record
Heading Value
Effective Term: Summer 2025
Units: 4
Hours: 4 lecture per week (48 total per quarter)
Prerequisite: ACTG 67.
Advisory: Elementary Algebra or equivalent; demonstrated proficiency in English by placement via multiple measures OR through an equivalent placement process OR completion of ESLL 125 & ESLL 249.
Degree & Credit Status: Degree-Applicable Credit Course
Foothill GE: Non-GE
Transferable: CSU
Grade Type: Letter Grade (Request for Pass/No Pass)
Repeatability: Not Repeatable

Student Learning Outcomes

  • Demonstrate applied knowledge and readiness for Part 3 of the IRS Examination.
  • Identify responsibilities, and ethical duties of practice and procedure as an Enrolled Agent.

Description

Current Federal income tax law as it relates to partnerships, limited liability entities, and S corporations.

Course Objectives

The student will be able to:

  1. Demonstrate an understanding of fundamentals of Federal income tax law as it relates to partnerships, limited liability entities, and S corporations.
  2. Demonstrate practical knowledge of income tax form preparation and income tax compliance process as these relate to partnerships and S corporations.
  3. Demonstrate an understanding of tax research tools and tax technical memo writing technique.

Course Content

  1. Partnerships and limited liability entities
    1. Governing principles and theories of partnership taxation
    2. Tax rules regarding the formation of a partnership with cash and property contributions
    3. Tax treatment of expenditures of a newly formed partnership and identify elections available to the partnership
    4. Partnership taxable income and partnership items affecting a partner's income tax liability; Forms 1065 and K-1
    5. Partner's basis in the partnership interest
    6. Tax law's limitations on deducting partnership losses
    7. Application of the tax laws regarding transactions between a partner and the partnership
    8. Taxation of LLPs and LLCs, the tax advantages and disadvantages of using an LLC
  2. S corporations
    1. Tax effects associated with S corporation status
    2. Qualification for the S election
    3. Procedures to make and terminate an S election
    4. Non-separately stated income and allocation of income, deductions, and credits to shareholders
    5. Taxation of distributions to S corporation shareholders
    6. A shareholder's basis in S corporation stock
    7. Tax effects of losses on S shareholders
    8. Form 1120-S, Form K-1, the entity-level taxes on S corporations
  3. Comparative forms of doing business
    1. Overview of the principal legal and tax forms in which a business may be conducted
    2. Contrast the conduit and entity approaches to legal organizational forms
    3. Nontax factors in making the choice among alternative organizational forms
    4. The influence of the conduit and entity perspectives on the tax treatment of an entity's operations for the entity and its owners
    5. Techniques for avoiding double taxation
    6. Effects of the disposition of a business on the owners and the entity for each organizational form
  4. Working with the tax law
    1. Statutory, administrative, and judicial sources of the tax law and the purpose of each source
    2. Working with the tax law and the tax research process, tax research tools
    3. Project: communicate the results of the tax research process in a client letter and a tax file memorandum
    4. Strategy for applying tax research skills in taking the CPA exam

Lab Content

Not applicable.

Special Facilities and/or Equipment

1. When taught on the internet, students need reliable internet access, as well as access to spreadsheet, word processing, and presentation software, internet browser (Java-enabled).

Method(s) of Evaluation

Methods of Evaluation may include but are not limited to the following:

Examinations
Quizzes
Projects
Tax return preparation

Method(s) of Instruction

Methods of Instruction may include but are not limited to the following:

Lecture
In-class or electronic discussions
Group work
Case studies

Representative Text(s) and Other Materials

Nellen, Cuccia, Persellin, and Young. South-Western Federal Taxation 2023: Essentials of Taxation: Individuals and Business Entities via "CengageNOW" digital learning platform with ProConnect Tax and Thomson Reuters Checkpoint Access. 2023.

Types and/or Examples of Required Reading, Writing, and Outside of Class Assignments

  1. Reading IRS tax publications and form instructions at www.irs.gov
  2. Reading California publications and form instructions at www.ftb.ca.gov
  3. Reading the latest Federal tax updates at the IRS website
  4. Reading the latest California tax updates at the CA FTB website
  5. Reading Internal Revenue Tax Code and Regulations
  6. Reading of Wall Street Journal, Business Week, and Fortune

Discipline(s)

Accounting