Federal Income Tax for Partnerships
ACNT 1347 SECTION 42001
GENE WALLER, CPA
THURSDAY 6:00 pm to 9:00 pm
Introduction to the tax laws as currently implemented by Congre ss and the Internal
Revenue Service to provide a working knowledge of preparing taxes for
partnerships, Subchapter S Corporations, and C Corporations. Empha si s i s
placed on the determination of Taxable Income for Partnerships, S Corporations,
and C Corporations, a s well tax research and tax planning.
CREDIT: 3 Credit Hours
PREREQUISITE: ACNT 1331
LSCMCCD i s dedicated to providing the least re stri ctive learning environment for all
students. The college district promote s equity in academi c access through the
implementation of reasonable accommodations a s required by The Vocational
Rehabilitation Act of 1973, Title V, Section 540 and the Americans with Di sabilities Act of
1990 (ADA) which will enable students with disabilities to participate in and benefit from all
post-secondary educational programs and activitie s.
This course i s designed to provide students with ba sic knowledge of the Internal Revenue
Code as it applies to C corporations, S corporations and of understanding and a pplying
tax laws and the effect of the se laws on busine ss deci sions and partnerships.
COURSE LEARNING OUTCOMES
In completing this course, the student will be able to: Identify the determinants of
taxable income and compute the minimal amount of allocation or income tax due.
Identify the tax issues invol ved in determining the type of entity that is be st suited to specific
Research and report on assi gned Tax questions and problem s.
Analyze the Internal Revenue Code and how it relate s to C & S Corporations and
Identify the source s of Tax Law and their application to Tax Research.
Identify and discuss the different type s of corporate re-organizations.
Di scuss bankruptcie s and the implications of insolvency.
Di scuss and identify the 5 attribute s of Corporations.
Prepare Tax Returns for a C Corporation, a Partnership, and an S Corporation.
Di stingui sh between primary and secondary source s of Tax Law. Identify the
appropriate Tax Law Citations for tax law from the Internal Revenue Code (IRC),
the Income Tax Regulations, Revenue Rulings, and Court ca se s.
Compare and contrast the Tax Treatment of Individuals and Corporations.
Compute the Corporate Dividends Received Deduction.
Compute the Corporate Organizational Expense deduction.
Describe tax consequence s of incorporating a new or existing busine ss.
Describe the capital structure of a corporation with the tax consequences.
Explain and apply the concept of corporate Earnings and Profits and its effect on
dividend income, the corporation and its shareholders.
Di scuss the tax implications of property, cash, and stock dividends to the
corporation and its shareholders.
Explain and compute the tax consequences of the five type s of stock redemptions,
and what does not qualify as a stock redemption.
Explain the tax consequence s of complete corporate liquidations to the
corporation and its shareholders.
Explain the compute the Alternative Minimum Tax for Corporations.
Describe and discuss the situations which could subject Corporations to the
Accumulated Earnings and Personal Holding Company penalty taxes.
Di scuss partnership formation, including property contributions.
Compute partnership ordinary income and identify separately stated items.
Determine a partner’s Tax Basis in their partnership interest.
Di scuss and apply the eligibility requirements of a Sub-Chapter S Corporation.
Compute S-Corporation ordinary income and identify separately stated items.
Determine the S Corporations’ shareholder’s ba si s in their stock.
Determine the tax consequences of current di stributions to S -Corporation
shareholders from : AE&P, OAA, PTI, and AAA.
Compute the Production Activitie s Deduction.
The objectives of thi s course will be met by incorporating a variety of instructional
methods. These include lecture (power point), discussi on, problems, written assignments,
computerized problems, quizzes, and 2 research problems.
Text: Corporations, Partnerships, Estate s and Trusts, 2009 Edition, BY
HOFFMAN/RAABE/SMITH/ MALONEY, WEST FED ERAL TAX ATION, THOMS ON
SOUTHWESTERN P UBLIS HING.
Having the INTERNAL REVENUE CODE OF 1986 IS OPTIONAL.
YOU WILL NEED THE 2009 EDITION OF THE TEXTB OOK.
Gene Waller, CPA, (281)-866-9936
By appointment, Adjunct Office Building F (LSMCCD) 3 rd Floor, or the
LSNHCC Learning Center for Tutoring, 2:00-5:00 pm Tuesdays.
Students are expected to attend all classes. If absent, it is the
student’s responsibility to keep up with the materials. Critical
thinking is required to succeed in this class; therefore, class
participation and daily assignments will be required. You are
responsible for attending class and excessive unexplained
absences will make it difficult for you to meet the objectives of the
Corporate Tax Class and cause the Professor to drop you from the
class. The student is expected to maintain high ethical standards
on homework and during testing. With regard to tests that are
missed, you are required to make individual arrangements with the
professor in order to reschedule exams. Exams will be
administered in the Extended Learning Center in order to provide
as much flexibility as possible for students to take exams on a
THE CLASS SCHEDULE, (ASSIGNMENT SHEET), AND
INFORMATION ON THE INSTRUCTOR’S TESTS TO BE GIVEN, AND
GRADING POLICY, IS ATTACHED.
Statement of Workplace and Foundation Competencies (SCANS Skills)
The LSMCCD is committed to prepare you with the knowledge and skills
you need to succeed in today’s dynamic work environment. Towards this
end, the following workplace competencies and foundation skills have
been designed into the curriculum for this course:
Common Workplace Competencies:
Manage Resources: Allocates time (C1), Allocates money
(C2), Allocates material resources
(C3), and Allocates human resources
Exhibits Interpersonal Participates as a team member (C5),
Skills: Serves Clients/Customers (C7),
Exercises leadership (C8), and
Negotiates to get decisions (C9)
Manage Information: Acquires and evaluates information
(C11), Organizes and maintains
information (C12), Interprets and
communicates information (C13), and
Uses computer to process
Uses Systems and Understands systems (C15),
Technology: Monitors and corrects performance
(C16), and Improves and designs
Demonstrates Basic Reading (F1), Writing (F2), Arithmetic
Skills: (F3), Mathematics (F4), and Listening
Demonstrates Thinking Creativity (F7), Decision making (F8),
Skills: Problem solving (F9), Seeing things
in the mind’s eye (F10), Knowing how
to learn (F11), Reasoning (F12), and
Exhibits Personal Integrity/Honesty (F17)
Means of Assessment
Evaluation Policies and Procedures
See Attachme nt
Attendance and Participation Policies
Class attendance is important. Generally, the course material is covered in the
textbooks; however, lectures and s mall group exercises augment and clarify the
textbook material. You are encouraged to get to know your fellow students in order
to have a source for lecture notes and handouts if you cannot attend a class session.
Students are expected to assume the responsibility for learning. Your instructor will assi st
you, but the actual responsibility re sts with you. Students are also expected to devote
their energy to attaining the skill s and knowledge required for their particular career
The Lone Star College Policy & Procedure Manual [Student Conduct,
Section 562.0ld] states, “Disruptive activity that hinders other students’
learning or deters an instructor from effective teaching will not be tolerated
under any circumstances.”
To provide equal-opportunity learning situation for all students enrolled in
this class, children are not allowed in the labs or classrooms.
The college’s academic integrity policy states, LSCMCCD is committed to a
high standard of academic integrity in the academic community. In
becoming a part of the academic community, students are responsible for
honesty and independent effort. Failure to uphold these standards
includes, but is not limited to, the following:
1. Plagiarizing written work projects.
2. Cheating on exams or assignments.
3. Collusion on an exam or project.
4. Misrepresentation of credentials or prerequisites when registering
for a course.
Refer to the LSCMCCD catalog for additional information.
The college will not be held liable for any corruption of data caused by
virus contamination. The college computers are regularly screened and are
protected against computer viruses to the best of our ability. However, we
do not guarantee that viruses do not exist on our systems. Procedures are
in place in all labs for you to scan your diskettes. It is your responsibility to
protect your data from corruption due to viruses.
Student Services (discuss Honors Program)
Learning Resources Centers
The Learning Resources Centers (LRCs) at each college provide print and
non-print resources and services for students. The materials have been
selected to serve the curricular, vocational, and recreational needs of the
college community. Each college LRC provides computer access to a
variety of information in electronic form including bibliographic indexes to
journals, Internet resources, and multimedia publications.
Learning Support Centers
Learning Support Center at each college provides print and audio-visual
materials as well as tutorial assistance and computer labs for students who
need academic support services. Materials from other disciplines are available in
each center including reading, writing, math and college study skills.
Internet & E-mail
The District provides computing and network resources to students. Students are
encouraged to use the computers, software packages, and electronic mail (e-
mail), for educational or District-related activities and to facilitate the efficient
exchange of useful information. However, the equipment, software and network
capacities provided through the District remain the property of the District.
Access may be denied to any student who fails to comply with the District‘s
policies and procedures regarding its use.
Access to the District‘s e-mail and similar electronic communication systems are
a privilege and certain responsibilities accompany that privilege. District users
are expected to demonstrate the same level of ethical and professional manner,
as is required in face-to-face or written communications. Anonymous or forged
messages will be treated as a violation of this policy.
For additional information, refer to the LSCMCCD catalog.
Equal Opportunity Statement
It is the policy of Lone Star Montgomery Community College District to
provide equal employment, admission and educational opportunities
without regard to race, color, religion, national origin, sex, age or
LSCMCCD Colleges strive to provide an excellent learning environment free from
harassment or intimidation directed at any person‘s race, color, religion, national
origin, sex, age, or disability. Any form of harassment will not be tolerated.
If you require reasonable accommodations because of physical, mental, or
learning disability, please notify the instructor of this course as soon as possible
and preferably before the end of the first two weeks of class to arrange for
Guaranteed Graduate Policy
Lone Star Montgomery Community College District guarantees that
graduates of its Associate of Arts, Associate of Science, or Associate of
Applied Science and all Certificate programs, will be provided under certain
circumstances, additional education and training tuition free to students
lacking appropriate master of specified competencies.
For additional information, refer to the LSCMCCD college catalog.
CORPORATIONS, PARTNERS HIPS, ESTATES AND TRUSTS
ACCOUNTING 1347 - INFORMATION SHEET
During this semester we will cover 9 Chapters in the Text by Hoffman/Raabe/Smith/ and
Maloney, Corporations, Partnerships, Estates and Trusts, 2009 Edition.
We have 16 class periods to accomplish the objectives in the syllabus, cover each
Chapter‘s homework, prepare 3 tax returns, and take 4 tests. Also you will gain
experience in doing tax research on assigned problems. If a class period is canceled due
to weather you are still responsible for that weeks work and assignments.
There will be 4 tests given which includes the Final. Homework assignments are due to
me 1 week after they have been assigned. I will grade the homework and give you
feedback on the work. Homework grades are important so please keep your work
Grading scale is as follows: 90-100% is an A: 80-89% is a B: 70-79% is a C: 60-
69% is a D: and below 60 is an F.
Final Grade Det ermination: The average of the 4 Tests = 70% of the Final Grade: The
A verage of your Tax returns/Homework = 30% of the Final Grade.
Only two (2) chapters of late homework will be accepted during the last class week.
Extra credit work on Chapter 7 is available if chosen.
We meet one time per week so class attendance is highly important. I discuss the
current chapter, any related current events in the world of accounting/taxation, and cover
as much of the homework as time permits. If there is a campus closing due to weather,
or other unavoidable event you are still responsible for completing the chapt er assigned
that week. If you have a personal emergency, are ill, or have work commitments and
cannot attend class please call me at 281-866-9936. You may E-Mail me however; I
prefer a phone call, and explanation.
The last day to drop the course and receive a W is April 06, 2009. If you have
excessive absences, cannot meet the course objectives, and do not drop the course, I
have no choice but to give you an ‗F‘.
The Final Examination is scheduled for May 07, 2009, at the regular class time.
Also, prior to the last week of class (May 07, 2009), pleas e log onto My Records, and do
the Computerized Instructor and Course E valuation. I will allow 3 extra credit points for
turning in this class and instructor evaluation when you provide me the substant iation that
it was completed. One last item which is very important for the class as a whole; if you
have questions, observations, or experience about the course content, tax law,
homework, or current tax law issues or events, mention it in class!!!
-HOMEWORK ASSIGNMENTS CORPORATE & PARTNERSHIP TAX -
DATES CHAPTER # QUESTIONS HOMEWORK PROBLEMS
01-15 1 2,3,5,8,9 46,47,48,53, 55,57,58
01-22 2 1,2,3,4 27,32,33,38, 48,50,52,54,55
Also do Research P roblem #1, on page 2 -52 of Textbook.
You may begin the Corporate 1120 for BSI Inc., page 2-49.
01-29 3 5,20,21 29,30,32,33, 36,41,42,43,47,48
02-05 COMPLE TE CHAP TER 3 A ND REVIEW FOR TES T I.
02-12 TES T I IN CLASS
02-19 District Conference Day and there are no classes.
02-26 4 2,3,6,7, 26,28,30,32,36,38
Research Problem #3, Page 4-34 Assigned. **Hand in 1120 on BSI**
03-05 5 2,3,4,5,6 24,25,27,28,34,39
03-09 –03-15 Spring Break (No Classes)
03-19 TEST II IN CLASS.
03-26 6 3,5,6,7 35,36,37,40,41,45,53, 57,63
Begin Preparation of Form 1065 Tile Doctor‘s Group on Page 10 -52.
04-02 7 Discussion (Extra Credit Work) 26,27,35, (2 PAGE PAPER)
04-02 10 1,2,3,4,6 15,16,17,18, 25,27,30
04-06 Last Day to Drop and receive a ―W‖.
04-09 11 (Read Pages 11-1—11-14 only.) 16,17,19 (Also Tile Doctor‘s
04-09 Partnership Ret urn Due. Take Home Test (Chapters 6,10,11) assigned.
04-16 Complet e Partnerships and Hand In the Take Home Test.
The 1120-S return on CD Inc. is assigned Page 12 -45.
04-23 12 5,8,12,16 24,25,26,27,28, 35,36.
04-30 Complete Chapter 12. Extra Credit work from Chapter 7 Due today.
CD Inc. 1120-S return Due today. Review for Final Examination.
05-07 FINAL E XAMINA TION OVER CHAP TE RS 2,4,5,6,10,12