The objective of this course is to help students understand how important features of the Internal Revenue Code influence decisions regarding how to organize and structure business operations and select the most appropriate form of doing business. The course begins with a comparison of the issues surrounding the choice of taxable business entity, comparing the regular corporation (C Corporation), the small business corporation (S Corporation), the partnership, and the sole proprietorship. After this, the course focuses primarily on the C Corporation and the S Corporation and the underlying principles that determine their respective tax bases and resulting tax obligations. Tax planning is an integral part of the course. Income shifting, tax deductions, tax credits, and income exclusions are discussed in detail. The course uses case studies (including some reflecting an international tax perspective) and tax return preparation to help students to apply the theory and detail of the tax code. Course materials are updated as tax laws change.
Prerequisites: BACC 2559 Individual Tax Accounting and Planning
Special considerations: Course is primarily reserved for MS in Accounting students and therefore has limited MBA seating.