FEDERAL INCOME TAX Fall 2010 Professor: Brad Borden Office: Room 703 Casebook: Codebook: J.

Martin Burke and Michael K. Friel, TAXATION OF INDIVIDUAL INCOME , 8th ed. Daniel J. Lathrope, SELECTED FEDERAL TAXATION STATUTES AND REGULATIONS, 2010 ed.

Course Focus. This class focuses on legal analysis, i.e., the application of law to real-world problems. Carefully read and learn the law in the assigned materials and use it to analyze the assigned problems. Focus on learning and applying primary sources of the law (i.e., statutes, cases, regulations, and rulings). Always pay attention to the source of a rule and understand its significance. Participation. Preparation, attendance, and participation are required. Beginning with the first day of class, I will randomly call on students to share their analyses, but I encourage others to voluntarily join the discussion. Notify me in writing before class if you need a pass. Please use passes sparingly. If passes become habitual or excessive, I will notify specific students (or the class if several members overuse passes) that passes are no longer available. Class participation may affect your final grade. Final Exam. The final exam will be a take-home exam. It will be subject to page and time limits. Assignments. We may not complete all of the listed chapters. I will notify you in advance which, if any, chapters we will skip. We will begin each class period where we left off during the prior class period. You should come to class each day prepared to discuss the equivalent of one chapter. Chapter 1 Chapter 2 Introduction to Federal Income Taxation (be prepared to talk about the source of tax laws and the relative importance of each source) Gross Income: Concepts and Limitations Additional Material Consider the following questions: How can a taxpayer avoid the substantial understatement penalty imposed in Roco v. Commissioner? How might that knowledge affect Marcellas decision to not report an item as gross income if the law is not clear with respect to the item? Read I.R.C. 6662(a), (b)(2), (d); Treas. Reg. 1.6662-4(d) Gains Derived from Dealings in Property Gifts, Bequests and Inheritance Sale of a Principal Residence Discharge of Indebtedness Business and Profit Seeking Expenses 1

Chapter 4 Chapter 5 Chapter 6 Chapter 9 Chapter 12

Chapter 13 Chapter 14 Chapter 15 Chapter 22 Chapter 28 Chapter 29 Chapter 31 Chapter 32 Chapter 33 Chapter 34 Chapter 39 Chapter 40 Chapter 41

Capital Expenditures (exclude Problem 1.(g)) Depreciation (exclude Problem 1) Losses and Bad Debts The Interest Deduction Cash Method Accounting Accrual Method Accounting Capital Gains and Losses Quasi-Capital Assets: Section 1231 Recapture of Depreciation Assignment of Income Like-Kind Exchanges Involuntary Conversions Installment Sales