Taxes

Purpose:

In this unit, we reverse roles and you become a teacher for a week. Think back over all of the material you have learned so far in the course. What have you found to be most interesting or surprising? Select a topic that aligns with any of our course or unit level objectives. You will present this topic to your class (in your own words!) and answer questions about it. Try to find relevant examples to make it more interesting. 

Directions:

You are required to make an initial post that answers the questions below by Tuesday. PLEASE PROOF your work before posting. Make sure it is professional and represents your best effort. You will not be able to see the posting of your peers until you make your post. After that, please read the posts of your classmates and reply in a meaningful way to at least 2 by Friday. Reply comments that only say “I agree” or “Awesome” will lose points. You are strongly encouraged to look at the rubric grading below to see how your entry and replies will be scored. On Saturday and Sunday, please check the discussion board again and reply to your instructor if your instructor commented on your post and your peers if they asked you any questions.

By Tuesday, select a topic that is most interesting to you or the most challenging and post a brief summary in your own words explaining your understanding, including  your ah-ha moments, supplemental resources that helped you figure it out, or additional information that could be of interest to the entire class. You cannot repeat a topic selected by one of your classmates. You will be able to see the posts of your friends before you make your own.

Then read the posts of your peers and ask at least 2 questions. You are also required to answer the questions of your classmates and your teacher, so remember to monitor your own forum as well. 

Grading: this assignment is worth 20 points towards your final grade. Click here to view the grading rubric (PDF document, opens in a new window).

Course Objectives

Chapter 10: Property Acquisition and Cost Recovery
Aligns with Course Objectives # 1, 3 and 7.

• Explain the concept of basis and adjusted basis and describe the cost recovery methods used under the tax law to recover the cost of personal property, real property, intangible assets, and natural resources. (CO # 1).
• Determine the applicable cost recovery (depreciation) life, method, and convention for tangible personal and real property and calculate the deduction allowable under basic MACRS.(CO # 3).
• Explain the additional special cost recovery rules (§179, bonus, listed property) and calculate the deduction allowable under these rules. (CO # 3).
• Explain the rationale behind amortization, describe the four categories of amortizable intangible assets, and calculate amortization expense. (CO # 1).
• Explain cost recovery of natural resources and the allowable depletion methods. (CO # 7).

Chapter 11: Property Dispositions
Aligns with Course Objectives # 1, 2 and 7.

• Calculate the amount of gain or loss recognized on the disposition of assets used in a trade or business. (CO # 2).
• Describe the general character types of gain or loss recognized on property dispositions. (CO # 1).
• Explain the rationale for and calculate depreciation recapture. (CO # 1).
• Describe the tax treatment of unrecaptured §1250 gains and determine the character of gains on property sold to related persons. (CO # 1).
• Describe the tax treatment of §1231 gains or losses, including the §1231 netting process. (CO # 1).
• Explain common exceptions to the general rule that realized gains and losses are recognized currently. (CO # 7).

Chapter 12: Compensation
Aligns with Course Objective # 2.

• Discuss and explain the tax  implications of compensation in the form of salary and wages from the employee’s and employer’s perspectives.
• Describe and distinguish the tax implications of various forms of equity-based compensation from the employer’s and employee’s perspectives.
• Compare and contrast taxable and nontaxable fringe benefits and explain the employee and employer tax consequences associated with fringe benefits.