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Accounting 2205

Federal Taxation I
 

ACCOUNTING
THE LANGUAGE OF BUSINESS

Choosing this Course

This course is an in depth study of federal income tax concepts relating to individuals and sole proprietorships.

This course is an appropriate choice for students currently working in or planning careers in taxation, accounting, finance or management. It is a required course for students pursuing the Advanced Accounting Certificate.

This course was primarily developed for students planning to sit for the Certified Public Accountant Examination (the CPA Exam). Such students typically have already earned baccalaureate degrees and are taking courses at College of DuPage to meet the requirements to sit for the CPA Exam.

Today's CPA

What is a CPA? As stated in an Illinois CPA Society brochure:

"CPAs of today are business advisors and information specialists. That's a stretch from the traditional stereotype of CPAs as back-room number crunchers. CPAs are people-oriented, team workers, and business leaders. They need a solid understanding of accounting and business to be successful. They also need to be able to analyze and resolve complex business problems, working with a diversity of people and new technologies. Strong writing and communication skills are essential."

Course Objectives:

Upon successful completion of the course the student should be able to do the following:

  1. Explain the primary objectives of the federal income tax law.

  2. Use components of the tax formula to calculate an individual’s federal income tax liability.

  3. Differentiate which sources of income are considered inclusions in gross income and those which are considered exclusions from gross income.

  4. Determine which sources of expenses incurred or paid are deductible for federal income tax purposes.

  5. Categorize allowable deductions between business and non-business deductions.

  6. Calculate depreciation and cost recovery deductions.

  7. Explain and apply the passive activity loss limitation rules.

  8. Identify and calculate the various tax credits allowed by law.

  9. Explain and calculate the alternative minimum tax.

  10. Determine the tax basis of property.

  11. Differentiate between realization and recognition of gain or loss in property transactions.

  12. Calculate the realized and recognized gain or loss in property transactions.

  13. Define capital assets.

  14. Explain and apply the tax rules for calculating and reporting an individual taxpayer’s capital gains and losses.

  15. Demonstrate the ability to conduct basic research using online data bases.

CAREER OPPORTUNITIES

Occupational Accounting Program:

The Occupational Accounting program at College of DuPage prepares students to become accounting clerks, bookkeepers, junior accountants, bank tellers, credit analysts, auditing clerks and tax preparers. Job opportunities exist in accounting firms, manufacturing companies, financial institutions, insurance companies, service organizations and not-for-profit and government entities.

You may be well-suited for a career in accounting if you:

bean bullet Desire a job with a good starting salary and potential for advancement

bean bullet Like working with people in an office setting

bean bullet Can effectively follow instructions and assume responsibility

bean bullet Enjoy working with numbers and are detail-oriented and organized

bean bullet Would like to combine your accounting skills with state-of-the-art computer technology

Employment prospects for entry-level jobs are expected to be steady for individuals who have accounting skills that are supplemented by excellent oral and written communication skills and strong computer skills.

To advance in the accounting field, students should plan to continue their education after completing their initial program of study at College of DuPage. Educational plans that include transferring to a baccalaureate-granting school will enhance the student's opportunities for advancement.

Transfer Accounting Program:

The Transfer Accounting program at College of DuPage starts students on the road to becoming professional accountants by providing the first two years of college course work. To advance in the accounting field, students should plan to continue their education after completing their initial program of study at College of DuPage. Students who receive their associate's degree from College of DuPage may transfer to a baccalaureate-granting school and earn a bachelor's degree in accounting.

Career opportunities include public accountant, auditor, tax specialist, management consultant, Internal Revenue Service agent, financial analyst, credit analyst, cost accountant and budget analyst. Job opportunities exist in public accounting firms, manufacturing companies, financial institutions, insurance companies, service organizations and not-for-profit and governmental entities.

Educational plans that include preparation for examinations required for certification will further enhance the student's opportunities for advancement. Students should consider earning certification as a Certified Public Accountant, Certified Management Accountant, Certified Fraud Examiner, Certified Internal Auditor and/or Enrolled Agent.

The employment prospects for entry-level positions are very competitive, so a student should be well prepared academically and must possess excellent oral and written communication skills and strong computer skills.