This course introduces students to the core principles of federal income taxation applicable to individuals and small businesses. It covers the statutory framework, interpretive challenges, and normative policy debates behind how the U.S. government taxes income, consumption, and wealth.
Topics include: the definition of gross income, inclusions and exclusions, deductions, timing rules, capital gains and losses, tax shelters, assignment of income, taxation of families, and non-recognition transactions. Students will also explore statutory interpretation, the role of IRS regulations, and important judicial doctrines in tax law development.
This course does not require prior accounting knowledge and serves as a gateway for advanced courses such as Corporate Tax, Partnership Tax, International Tax, Estate and Gift Tax, and Tax Policy.
Course Objectives
By the end of this course, students will be able to:
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Understand the structure and operation of the Internal Revenue Code and related regulatory guidance.
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Identify what constitutes taxable income, allowable deductions, and basis adjustments under federal law.
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Apply judicial doctrines and statutory rules to determine when income is recognized and how it is characterized.
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Evaluate horizontal and vertical equity, efficiency, and administrability in tax policy.
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Analyze the tax consequences of common transactions for individuals and small businesses.
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Read and apply IRS rulings, Treasury Regulations, and key case law in context.
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Develop proficiency in statutory interpretation in a technical and dynamic legal regime.
