May 23, 2018
ACCT 303 - Tax Planning for Personal Finance
Examines the topic of income tax planning and forecasting for individual clients and small business owners. Uses a case study approach to integrate the material and apply it to personal financial planning situations. Emphasizes the evaluation of financial alternatives. Course will be offered every year. Course will not have an established scheduling pattern.
Prerequisite: ACCT 301.
Learner Outcomes Approval Date:
- Compare and contrast the fundamental components of the income tax system including filing forms, filing status, income, exemptions, exclusions, deductions, adjustments, credits, and tax rates.
- Explain how a progressive income tax system works and contrast it with other tax systems
- Differentiate between the organizational form and the tax treatment of income, expenses, payroll and wage taxes for sole proprietorships, partnerships, LLPs, LLCs, S- corps and C-corps.
- Explain the basic income tax compliance rules for trusts and estates including when a return is required and how it is filed.
- Contrast the trust and estate income tax rules with personal income tax rules.
- Explain how a client will report income and appropriate deductions from a trust or estate on his income tax return.
- Differentiate between tax avoidance and tax evasion.
- Identify income shifting techniques (transfer and timing) and explain how income shifting benefits a taxpayer.
- Compare the cash flow impact of receiving tax- exempt or tax-sheltered income to taxable income.
- Explain how deduction clustering results in a lower tax liability.
- Distinguish between different investment strategies that can be used to manage tax liability; e.g., tax loss harvesting, bond swaps, etc.
- Differentiate between the taxation of capital gains and ordinary income, including the difference in applicable tax rates.
- Explain the special rules regarding capital gains and losses on a principal residence.
- Explain the tax implications of supporting an elderly parent or adult child.
- Select the appropriate credit/deduction to use for post-secondary education costs.
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