BUS-A531 Taxation of Partnerships and S Corporations

• 7 weeks
• 1.5 credits
• Prerequisite(s): None

This course provides graduate business students an in-depth understanding of the income taxation of flow-through business entities: partnerships, S corporations, and limited liability companies (LLCs). Topics covered in this course include the tax ramifications of formation, operation, and liquidation of flow-through entities, including:

• Tax treatment of business operations (taxation of owner’s share of income, deduction, and loss items)
• Tax treatment of contributions by owners (cash and non-cash contributions; contributions at formation and subsequent contributions to the business)
• Tax treatment of distributions (cash and non-cash distributions; operating and liquidating distributions)
• Limitations on deduction of losses by individual owners
• Comparison of different flow-through business entity forms (qualifications; advantages and disadvantages)

Assignments for the course include preparation of a comprehensive tax return problem for a partnership and/or an S corporation. To help students more fully understand how the income, deductions, and other tax items flow through from the business entity to the individual owners, the tax return problem also includes completion of the owners’ individual income tax return.

The required materials for the course include an e-book and related online homework system. The chapters on flow-through entities covered in A531 are from the same textbook as that used for A537 Corporate Taxation.

Students are evaluated based on class participation and assignments, worth 50% of the overall course grade, and a final exam worth 50% of the overall course grade. This course is strongly recommended for students that are interested in pursuing a career involving income taxation, and is helpful for all students in preparing for the Regulation Section of the CPA exam.