ACCT 303 - Tax Planning for Personal Finance

• 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.