University of San Francisco School of LawPrincipals of Federal Income Tax (3 units)Law 515-01 Fall, 2017

Introduction and SyllabusI hope that you will learn a lot in this course and that you will enjoy the experience. If you have any questions, problems, concerns or any suggestions that would enhance your experience, please let me know asap.

Hours of Work per Class:The American Bar Association standards for accrediting law schools contain a formula for calculating the amount of work that constitutes one credit hour. According to ABA Standard 310(b)(1), “a ‘credit hour’ is an amount of work that reasonably approximates: (1) not less than one hour of classroom or direct faculty instruction and two hours of out-of-class student work per week for fifteen weeks, or the equivalent amount of work over a different amount of time.” This is a 3-credit class, meaning that you should spend the equivalent of 3 hours per week of classroom time and 6 hours per week outside of class for 15 weeks, for a total of about 135 hours. Since this class meets for only 7 weeks, you should spend not less than 20 hours per week on the class.

Course Schedule:

Zoom Sessions Thursdays, 9:00 am PST https://usfca.zoom.us/j/5165885448

Course Description:A problem-oriented introduction to the fundamentals of federal income taxation, particularly as they apply to individuals, including gross income, exclusions, deductions, assignment of income, capital gains and losses, non-recognition transactions, and income tax accounting. Emphasis is on the development of skills necessary for working with the Internal Revenue Code and issues of tax policy. This course is required for MLST students and available to LL.M. in Taxation students who have not taken Federal Income Taxation.

Course Materials:Required:

Federal Income Taxation, Freeland et al. 18th Edition. CanvasVideos available onlineA readily available version of the IRC and corresponding Treasury Regulations

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Professor Joshua Rosenberg Kendrick 210 (415) 422-6413Rosenbergj@usfca.eduOffice hours: Monday and Wednesday 11:00am-

12:00 am, and by appointment. Feel free to stop by any other time. I will likely be in my office.

Learning Outcomes 1. Understanding of the basics of Federal Income Taxation (substance and

procedure).2. Ability to read, understand and analyze the Internal Revenue Code and

Regulations3. Ability to identify tax issues that arise in business and personal situations4. Ability to apply the IRC and regulations to identified issues. 5. Ability to undertake legal research in taxation.6. Efficacy in problem-solving.7. Knowledge of (and commitment to) professional and ethical responsibility.8. Understanding of tax policy concerns.

We will achieve many of these outcomes by doing lots of problems, with individualized feedback, in class and outside of class every week.

Grading: This course uses combination gradingFactors considered are:Weekly Review problems: 24% (there will be 6 sets, and each set will count for 4% of

the grade).3 bi-weekly quizzes. Each quiz will be worth 10% of the final gradeFinal Exam: 46%

QuizzesThere are three quizzes, each worth 10% of your grade. The first quiz covers material covered through week 2. The second quiz covers material covered through week 4. The third quiz covers material covered through week 6. To do well on the quizzes, you will have to know the material. The questions will be at about the same level of difficulty as the problems in the text. Note: You do not have to answer in full paragraphs, sentences, or even full words—you can just write things like “Gain rec=0 (795); AB=9+12=21 (783).” Please include reference to the appropriate Code or Reg. section.

Attendance:Policy:The School of Law requires students to attend classes regularly, complete assignments in a timely manner, and be prepared for and participate in class. The law school attendance policy follows the ABA standard that students must attend at least 80% of the scheduled class sessions for any given course in order to receive credit. If a student has exceeded the allowable class absences, she/he may be administratively withdrawn and/or receive a failing grade for the course. For full policy details, please see: https://myusf.usfca.edu/sites/default/files/Academic_Policies_2017.pdf (Sec. XIII) Since this is an online class, attendance consists of viewing the videos and attending all ZOOM sessions.

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Tracking:Taking attendance is required at the School of Law. Your attendance at each ZOOM session will be automatically recorded. Compliance with attendance rules is regulated by the Honor Code and failure to attend may have consequences in grading and receipt of class credit.

Americans with Disabilities Act Accommodations: USF affords all students with disabilities equal access under the law. If you are in need of accommodation under the Americans with Disabilities Act (ADA) or similar enactment, you must contact the University Student Disability Services Office at 415.422.2613 or sds@usfca.edu to obtain the appropriate accommodation.

Academic Dishonesty Defined as engaging in any dishonest conduct in connection with any examination, written work, or other academic activity. The University of San Francisco takes academic dishonesty very seriously. You are responsible for knowing and adhering to the explicit details of our policy as listed here in the Student Honor Code: https://myusf.usfca.edu/system/files/Student%20Honor%20Code.pdf (pages 4-5)

Academic and Bar Exam Success Program (ABES) ABES offers individual appointments and workshops that teach study techniques and exam-taking strategies to help first-year students transition into law school and excel on their final exams. ABES also provides MPRE and bar preparation services to second-year and third-year students through various programs and one-on-one meetings. To learn more about ABES, please contact Professor Christina Chong at cschong@usfca.edu.

Learning Outcomes:1. Know and understand, and apply the fundamentals of Partnership Taxation.2. Read, understand, and analyze complex provisions of the Internal Revenue Code and

Treasury Regulations in general, and with respect to Partnership Taxation in particular.

3. Identify tax issues that arise in business context4. Problem-solve, and to apply the IRC and regulations to different fact situations

involving partnerships. 5. Know and be commitment to professional and ethical responsibility.6. Understand tax policy concerns in Partnership Taxation.

Assignments:Assignments include weekly reading from the text and Internal Revenue Code, videos, problems from the text, and Review problems (24% of your grade). There are also 3 biweekly quizzes (30% of your grade) and a final exam (46% of your grade).

Videos:There are videos for every topic we will cover, and the videos include virtually everything I would say in an in-person class. They cover everything that I think is important for you to

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know (and everything that will be on the final). In addition, I answer all of the problems in the text in the relevant videos.

Transcripts of the videos and copies of the slides used in the videos are available on Canvas, so you need not take a lot of notes. It will help to have a copy of the Internal Revenue Code with you when you watch, so that you can follow along. I suggest jotting down the important concepts and any questions that you have about the videos. If there is anything that you are unclear about, go through those parts of the video a second time. If you are still unclear, jot down a note about it and ask me to explain. You can either wait for the weekly video-conference (see below) to ask me or just send me a message on Canvas.

Two alerts for the videos:

(1) studies have consistently shown that people can take in information from a video for a period of somewhere between 5 and 10 minutes. Some of the videos are longer than that. I urge you to take a break every 5-10 minutes if you are watching a video that goes beyond 10 minutes. Otherwise you will likely just get bored and not learn;

(2) some references to specific pages may be off due to changing editions.

Video-conferences:I will hold online meetings through Zoom every week. In these, I will briefly summarize the week’s material and then ask for questions or concerns. You may ask or comment about anything (about the material or about the way the course is being taught). I welcome all questions at all levels, as well as any suggestions you have that would help you succeed in the course. These video-conferences will last until all participants have had their questions answered or their concerns addressed. You can attend a session by simply clicking where it says “ZOOM session” in the week's module. In the past, some video-conferences have been brief, so please log into the session at the beginning.

Weekly Review ProblemsFor each of the first six weeks there are Review problems. Your scores on these count for 24% of your grade (each weekly set of Review problems counts for 4 points). There is a weekly video-conference before your answers to the review problems are due, so you may ask for clarification of anything. Once you submit your answers, you can view the correct answers.

For anything you missed in your original attempt, you can still receive credit for up to 50% of what you missed by submitting a written explanation sufficient to show me that now that you have seen the correct answers, you know why they are correct and that you understand the concepts and how they apply. Merely copying the correct answers provided to you is not sufficient to make up any points

Bi-weekly Quizzes

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After weeks 2, 4 and 6 there will be a quiz on the material covered during that two week period. These quizzes will count for 30% of your grade (each of the three quizzes is worth 10% of your grade). When taking the quizzes, please keep in mind the following:

A. Keep your answers short. You need not answer in complete paragraphs, or complete sentences or words. Feel free to use abbreviations, so long as I can know what you mean (like “AB=10;” or “gn realized=12,” or “no gn rec,” etc)

B. Cite authority for your answers. Typically a Code section or regulation section will be sufficient.

C. Unless otherwise specified, if a question asks about more than one transaction, provide the tax results for each separate transaction.

D. If a question asks for tax consequences, please include all relevant consequences, including gain/loss realized and recognized, basis consequences, and timing.

E. If you need more facts, or the answer depends on facts not provided (for example, whether a taxpayer makes a certain election), explain what else you would need to know and how it could impact the result.

Final ExamThe final exam, administered by the registrar, counts for 46% of your grade.

Your questions and suggestions:If you have any questions about anything to do with this course—substance or process, basic or advanced, or if you are having trouble or getting frustrated with any part of the course, please let me know! If you want, you can wait for the weekly video-conference (see above) to ask me your questions or give me your comments or concerns (or complaints), but I encourage you to just send me a message on Canvas whenever anything comes up for you. I will reply to your Canvas message as soon as possible. I will reply by email unless you request either a phone call or an individual video-conference, and please don’t hesitate to ask for the type of reply you want (email, phone, or individual video-conference. I am happy to accommodate using the kind of communication that works best for you.

Please remember that I would really like to know how I can improve the course or help you in any way, so don’t hesitate to let me know what I can do. You will receive more formal course evaluation forms towards the end of the class, but please do not wait till then to make suggestions (or to complain) to me.

Assignments by Week: All the reading and problem assignments in this syllabus refer to readings in Fundamentals of Federal Income Taxation by Freeland, Lathrope, Lind, and Stephens, 18th edition (Assignments pegged to the 17th edition are available on request. The videos refer to pages in the 17th edition.)

The assignments include IRC sections and Treas. Reg. sections. These are listed before the reading, and are usually the same ones referred to in the text at the beginning of the

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reading. Some of these are very long and very complicated. I suggest that initially you briefly look at these to get an idea of what they are about. Then look more closely at them when they are discussed in the reading or if/when you do assigned problems and they may be helpful in answering the problems.

Week 1Unit 1. Introduction

Orientation (Ch. 1A-D)Read: pages 3-19 (just carryover paragraph). None of this is on the final, but it is helpful

background.The Tax Practitioner’s Tools (pp. 19-24 [skip the Mayo case], then 31 (last paragraph)-38)

Watch: Videos 1-3

Tax Rates and Introduction to Tax CalculationsRead: pp. 993-1001; 1003 Top)-1004 (carryover paragraph); 1006 (first full paragraph)-

1007 through first full paragraph) (Ch. 27A)Note, p. 600-601; 620 beginning at part E) 623 (carryover paragraph); 626

(beginning at part F)-629 (carryover par.) (Ch. 18A and F)Watch: Videos 2-4

10/19 Video-conference Review problem set 1 due

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Week 2Unit 2. Gross Income: Inclusions and Exclusions

The Scope of Section 61 (Ch. 2A)Read: pp. 45-40

IRC Section 61Equivocal Receipt of Financial Benefit (Ch. 2B)

Read: IRC Section 61Treas. Reg. 1.61-1, -2(a)(1), -14(a)Cesarini v. US, (p. 46-51)

Watch: Video 5aRead: Old Colony Trust Co. v. CIR (p. 51-53)

Excerpt from Glenshaw Glass, p. 55 (middle of page)-56 (carryover par.)Note (pp. 60-62)p. 54, problems 1, 2, 6(a), (b), (e)

Watch: Video 5bIncome Without Receipt of Cash or Property (Ch. 2C)

Read: IRC Section 61 Treas. Reg. Secs. 1.61-2(a)(1), -2(d)(1).Rev. Rul. 79-24, (p. 64)Problem 2, p. 66

Extra Problem: Owner and Renter each have $2,000,000 cash on January 1, 2005. Owner buys a house for $2,000,000 cash on January 1, 2005, and lives in the house for one year. The house is worth the same $2,000,000 at the end of the year. Renter puts her $2,000,000 in the bank. She earns Interest of $80,000. She uses this interest to pay rent ($6,750 per month) on a $2,000,000 house, in which she lives for the year. What are the tax consequences to Owner and Renter?

Watch: Videos 5a and 5b again if you wantThe Exclusion of Gifts and Inheritances

Rules of Inclusion and Exclusion (Ch. 3A)Read: pp. 67-68

IRC Section 102(a) and (b) first sentenceTreas. Reg. Sec. 1.102-1(a) and (b)

Gifts (Ch. 3B): The Income Tax Meaning of Gift (3B1)Read: CIR v. Duberstein (pp. 68-77) (carryover par. Only. Skip Frankfurter’s concurrence)

Note (pp. 77-78)Problem 2, p. 78

Employee Gifts Read: pp. 78-80

IRC Sections 102(c); 274(b); 74(c) Problems 1, 3, p. 80

Watch: Video 6 until BequestsBequests, Devises, and Inheritances (Ch. 3C)

Read: IRC Section 102(a), (b) first sentence, (c)Lyeth v. Hoey (pp. 80-85)

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Problems 1(a)-(f), p. 89Watch: Video 6

Employee BenefitsExclusions for Fringe Benefits (Ch. 4A)Read: pp. 91-99 (carryover par. only))

IRC Section 132(a)(1)-(4), (b), (c), (d), (e)(1), (h), (i), (j)(1)Treas. Reg. Sec. 1.61-21(a)(1) and (2), (b)(1) and (2)Problems 1(a)-(i), (k)-(m), pp. 101-2

Watch: Video 7Exclusions for Meals and Lodging (Ch. 4B)Read: IRC Section 119(a) and (b)

Hatt, (pp. 102-105)Note (pp. 105-6)Problems 1(a)-(c), 4, p. 106

Watch: Video 8Health Insurance—skim IRC Section 105(b), read pp. 199 (last par. only)-200 (through

first full par. on p. 200)Scholarships and Fellowships (Ch. 5B)

Read: pp. 114-117IRC Sections 117(a)-(d), 127(a), (b)(1), (c)(1)Problem 1(a), (c), 2(a), (b), p. 117

Life Insurance Proceeds (Ch. 7A)Read: pp. 161-164

IRC Sections 101(a), (c), (d), and (g)Treas. Reg. Sec. 1.101-1(a)(1), (b)(1)Problem 1, p. 164. Instead of problem 3(a) and (b) on p. 165, answer the

following: What result to Insured if Insured bought a $100,000 life insurance policy for $40,000, and when the policy was worth $60,000 Insured sold it to Insurancebuyer for $60,000? What result 10 years later when Insured dies and Insurancebuyer collects $100,000? Then do problem 3(c) on p. 165.

Watch: Video 9Damages and Other Recoveries for Personal Injuries (Ch. 9C)

Read: pp. 195- 199 (through carryover par. on p. 199)Rev Rul. 79-313 (pp. 201-203)IRC Section 104(a) and (c)Problems 1(a)-(f), 3(a), (c), p. 203-4

Watch: Video 1010/26 Video-conference Review problem set 2 Biweekly Quiz #1

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Week 3Unit 3. Introduction to Property transactions

Factors in the Determination of Gain (Ch. 6A) Read: pp. 119-120

IRC Sections 1001(a), (b) first sentence, (c); 1011(a); 1012Determination of Basis (Ch. 6B)

Cost as Basis (Ch. 6B1)Read: pp. 123-124

IRC Sections 1011(a); 1012; 1016(a)(1)Treas. Reg. Secs. 1.61-2(d)(2)(i); 1.1012-1(a)Problems 1(a), (d), (e), pp. 124-25

Property Acquired by Gift (Ch. 6B2)Read: IRC Section 1015(a)

Treas. Reg. Sec. 1.1015-1(a)Problem 1 (pp. 132)

Watch: Video 11Property Acquired Between Spouses (Ch. 6B2)

Read: pp. 133-134IRC Section 1041(a) and (b)Treas. Reg. Sec. 1.1041-1T(a) and (d)

Property Acquired from a Decedent (Ch. 6B4)Read: pp. 135-137

IRC Section 1014(a), (b)(1) and (6), (e)Problem: Joe is his mother's sole heir. When Mom is on her deathbed, Joe gives her stock (AB=$10,000, fmv=$280,000. The next day, Mom dies and Joe inherits everything including the stock. What is Joe's basis in the stock?

Watch: Video 12The Amount Realized (Ch. 6C)

Read: IRC Section 1001(b)Treas. Reg. Sec. 1.1001-1(a)International Freighting Corporation, Inc. v. CIR (pp. 138-140)CIR v. Tufts (pp. 150-155, majority opinion only); Note (p. 157)Problem 1(a)-(e),(h), (i), p. 158

Watch: Video 13Gain from Damages to property and Related Receipts (Ch. 9A and B)

Read: pp. 191-192Raytheon Production Corporation v. CIR (pp. 192-193)Note (pp. 193-194)

Problem 1(a)-(c) (p. 194)Problem: T owns a car (fmv=$17,000, ab=$21,000). The car incurs

$7,000 of damage in an accident. T recovers $7,000 from X, and she puts the money in the bank and drives a dented car. (a) What tax consequences for T? (gain? loss? ab in car?).

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(b) Is the result different if T recovers from her own insurance company? Does it matter whether the recovery comes after trial, before trial, or before any case is filed?

(c) What result if T uses the $7,000 to repair the car?(d) What result in (a)-(c) above if T had a basis of $2,000 in the car

and received $11,000 for damage to the car.Watch: Video 14

Exclusions from Gross Income of income from property, p. 237Gain From the Sale of a Principal Residence (Ch. 11A)

Read: IRC Section 121 (omit (d)-(g))Treas. Reg. Sec. 1.121-1(a), (b)(1), (2) and (4) Example 1, (c)(1), -2(a)(1)-(4) Example 2, -3(b), (c)(1)-(4) Example 1, (d)(1)-(3) Example 1, (e)(1) and (2), (f), (g)(1)-(2) Example 1"Senate Report..." pp. 236-240; Note, pp. 240-242p. 243 Problems 1(a)-(c),(e), 2, 3

Watch: Video 15Tax Exempt Bonds (Ch. 11D)

Read: pp. 253-258Watch: Video 16

Unit 4. TimingIntroduction (Ch. 19A)

Read: pp. 641-646 (carryover par.)IRC Sections 441(a)-(e); 442; 446(a)-(c); 451(a); 461(a)

The Cash Receipts and Disbursements Method (Ch. 19B)Receipts

Read: IRC Sections 446(a)-(c); 451(a)Cowden v. CIR (pp. 650-655)Rev. Rul. 60-31 (pp. 724--732) (Ch. 20C2)Note, pp. 732-733

Section 83 (Ch. 24D)Read: pp. 931-938

Annuity Payments (Ch. 7B)Read: pp. 165-169)

Problem 1(a)-(c) (p. 170)Watch: Video 17

Pensions and IRA’s (Ch. 20C3)Read: pp. 733-738Watch: Video 18

Disbursements Read: IRC Section 461(a) and (g)

Treas. Reg. Sec. 1.461-1(a)(1)Rev. Rul. 54-465 (p. 660)Note, pp. 660-662Vander Poel, Francis & Co., Inc. v. CIR (pp. 662-664 )Note (pp. 666-667)

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Rev Rul 87-22 (pp. 669)Problem 1(a), (c) (p. 672)

11/2 Video-conferenceReview problems for week 3

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Week 4The Accrual Method

Income Items (Ch. 19C1)Read: IRC Sections 451(a); 455

Treas. Reg. Sec. 1.451-1(a)New Capital Hotel, Inc. v. CIR (pp. 680-682)Artnell Co. v. CIR (pp. 682-686)Note (pp. 687-693)

Deduction Items (Ch. 19C2)Read: IRC Section 461(a), (f), and (h)

Treas. Reg. Secs. 1.461-1(a)(2), -4(a), -5(a) and (b)(1)Note (pp. 699-704)Problems 1 and 3 (pp. 704-705)

Watch: Video 19Nonrecognition Provisions

Introduction (Ch. 26A)Read: pp. 953-955

Like Kind Exchange Requirements (Ch. 26B1)Read: IRC Sections 1001(c); 1031; 1223(1)

Note (p. 958-959)Note (pp. 966-967)

Three-Cornered Exchanges (Ch. 26B2)Read: IRC Sections 1031(k)-1(a), (b), (c)(1) and (4)(i), (f)

Pp. 969-974Problem 2(a), (b) (skip (b)(4)), 4(c), (d)), p. 974-976

Watch: Videos 20, 21Involuntary Conversions (Ch. 26C)Read: pp. 976-977

IRC Sections 1001(c); 1033; 1223(1)Rev Rul 76-319 (pp. 982-983)

Watch: Video 22Unit 5. Assignment of Income—Who is taxed

Basics of AssignmentIntroduction (Ch. 12A)

Read: pp. 261-263IRC Section 1(a)-(e), (h)

Income from Services (Ch. 12B)Read: Lucas v. Earl (pp. 263-264)

Rev. Rul. 74-581 (pp. 272-274)Watch: Video 23

Income from Property (Ch. 12C)Read: Helvering v. Horst (pp. 274-278)

Estate of Stranahan v. CIR (pp. 281-285)Salvatore v. CIR (285-288)Note (pp. 290-294)

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Problem 1, (skip. (d)); 2(a) and (b), pp. 294-295 Watch: Video 24

Indirect Assignment of Income: Imputed Interest (Ch. 16B)Read: pp. 515 (start with last paragraph)-522

IRC Sections 163(a); Code section 7872(a); (b)(1); (c); (d); (e); (f)(3)Problem: Law Student borrows $100,000 (over 3 years of school) from

Grandma to finance her law school education. Grandma does not charge Law Student interest. What result to Grandma? What result if Grandma lent Student only $80,000? $8,000 (assume Law student begins work at a firm right after school, but has no investment income)

Watch: Video 25Separation and Divorce

Alimony and Separate Maintenance Payments (Ch. 10A)Read: pp. 205-213 IRC Sections 71(a), (b), (c)(1); 215(a) and (b); 7701(a)(17)

Problem 1(a)-(d), (f), (g), p. 213-214Note (pp. 216-217)

Property Settlements (Ch. 10B)Read: pp. 218-222

IRC Sections 1041; 1015(e)Treas. Reg. Sec. 1.1041-1T(b)

Other Tax Aspects of Divorce (Ch. 10C)Read: pp. 228-229

Problem 1(a), p. 229Watch: Video 26

Income Producing Entities (No reading)11/9 Video-conference Review problem set for week 4 Biweekly Quiz #2

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Week 5Unit 6. Business (and investment) Deductions

Introduction (Ch. 14A)Read: pp. 335-337

The Anatomy of the Business Deduction Workhorse: Section 162 (Ch. 14B)Ordinary and Necessary (Ch. 14B1)

Read: IRC Section 162(a)Treas. Reg. Sec. 1.162-1(a)

Expenses (Ch. 14B2)Read: pp. 340-343

IRC Sections 162(a); 263(a)Treas. Reg. Sec. 1.162-4Midland Empire Packing Co. v. CIR (pp. 344-347)Note (pp. 347-351)Problem 1, p. 360, but use the following numbers: (a) $1,700; (b)

$14,000; (d) $41,000Starr’s Estate v. CIR (pp. 403-406)

Watch: Video 28Carrying on Business (Ch. 14B3)

Read: IRC Sections 162(a); 195; 262Morton Frank v. CIR (pp. 361-363)Note (pp. 363-368)Problem 1(a), (b); 2(a)-(d) (p. 368)

Specific Business Deduction(s)Salaries (Ch. 14C1)

Read: IRC Sections 162(a)(1), (m); 280GTreas. Reg. Sec. 1.162-7, -8, -9Note (pp. 381-383)

Watch: Video 29Travel Away From Home

Read: IRC Sections 162(a)(2), 162(a) second to last sentence; 274(n)Treas. Reg. Sec. 1.162-2 (omit -2(c))Rev. Rul. 99-7 (pp. 398-401)Problems 1, 2(a), (c), 3, 4(a), (c), 5(a), (b), (c), pp. 402-403Watch: Video 30

Expenses for Education (14C4)Read: IRC Sections 162(a); 262; 274(m)(2)

Treas. Reg. Sec. 1.162-5(a), (b)(1), (2)(i), (3)(i), (c), (e)(i)Problems 1-4, pp. 416-417Problem 5, p. 463

Watch: Video 31Miscellaneous Business Deductions (14D)

Introduction (14D1)Read: pp. 417-424

IRC Sections 162(a); 274(a), (d), (e), (k), (l) and (n)

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Treas. Regs. Secs. 1.162-20(a)(2); 1.274-2(a)(1), (c)-(d)Problems 1(a)-(b), pp. 424)

Watch: Video 32Business Losses (Ch. 14D2)

Read: pp. 425-427IRC Sections 165(c); 280BProblem 1, p. 427

Watch: Video 33Depreciation (Ch. 14E)

Introduction (14E1)Read: pp. 428- 437 (through “conventions”)

Depletion (p. 438)IRC Sections 167(a), (c); 168(a)-(c), (e)(1) and (2), (f)(1) and (5), (g)(1), (2),

and (7), (i)(1); 1016(a)(2)Treas. Regs. Secs. 1.162-4; 1.167(a)-1(a), -10; 1.167(b)-1(a), -2(a)Simon v. CIR (pp. 444-452)

Depreciation Rules for Personal Property (Ch. 14E2)Read: pp. 453-462

IRC Sections 167(a), (c)(1); 168(a)-(c), (d)(1), (3) and (4)(A) and (C), (e)(1) and (3), (f)(1) and (5), (g)(1)(E), (2), (3)(D), and (7), (i)(1), (k)(1), (2)(A) and (F), (6); 179 (omit (b)(6), (d)(4)-(9)); 280F(a), (b), (d) (omit (b)(6), (d)(6)(C) and (D) and (9) and (10))

Problems 1(b), (d), 2(a), (3)(a), p. 462-463Watch: Videos 34 and 35 (watch the last part of 35 (regarding peal property)

after the assignment below)Special Rules on Realty (Ch. 14E3)

Read: pp. 463-466IRC Sections 168(a), (b)(3)(A) and (B) and (4), (c)(1), (d)(2) and (4)(B), (e)

(2), (f)(5)(B)(i), (g)(1)(E), (2), and (7)Problem 1(a), (b) (p. 467)

Watch: the rest of tape 35 if you have not already seen it11/16 Video-conference Review problem set for week 5

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Week 6

Deductions for Profit-Making, Nonbusiness Activities (Ch. 15)Section 212 Expenses (Ch. 15A)

Read: IRC Sections 212; 274(h)(7)`Treas. Regs. Secs. 1.212-1(g), (k), (l), (m); 1.262-1(b)(7)Bowers v. Lumpkin (pp. 473-476)Rev. Rul. 64-236 (p. 482)Fleischman v. CIR (pp. 482-490)Problems 1(a)-(e); 2(a)-(b), p. 490

Watch: Video 36Charges Arising Out of Transactions Entered Into for Profit (Ch. 15B)

Read: IRC Sections 165(a), (b), (c)(2); 212Treas. Regs. Secs. 1.165-9(b); 1.212-1(h)Horrmann v. CIR (pp. 491-494)Lowry v. US (pp. 494-500)Note (pp. 500)Problem 2, p. 501

Watch: Video 37

Restrictions on Deductions (Ch. 17)Introduction (Ch. 17A)

Read: pp. 553-557Activities Not Engaged in for Profit (Ch. 17C)

Read: pp. 561-562IRC Section 183(a)-(d).

Restrictions on Deductions of Homes (Ch. 17D)Read: 570-575

p. 576 Problem 2 (also answer: What would be the result if T had gross income of $3,000 rather than $2,000? What result if T had gross income of only $1,000?)

Watch: Video 38Disallowance of Losses (Ch. 25A, B)

Read: IRC Section 267(a)(1), (b)(1), (2), (6)Wash Sales

Read: pp. 950-951Interest

Read: IRC Sections 163(d)(1)-(3); 265(a)(2)pp. 543 (last paragraph)-545Watch: Video 38

At Risk Limitations (Ch. 17B)Read: pp. 557-560

Passive Activity Limitations (Ch. 17E)Read: 576-589

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Illegality or Impropriety (Ch. 17F)Read: pp. 591-593

IRC Section 162(c), (f), (g)CIR v. Tellier (pp. 593-597)

Watch: Video 3811/21 Video-conference Review problem set for week 6 dueBiweekly Quiz #3

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Week 7Unit 7. Non- Profit-Seeking deductions

“Above the Line Deductions” Qualified Tuition and Other Educational Expenses (Ch. 18D)

Read: Note (pp. 618-620), 246-253Moving Expenses (Ch. 18B)

Read: pp. 602-606IRC Sections 62(a)(15); 82; 132(a)(6 and (g); 217(a)-(c)

Adjusted Gross Income and Itemized DeductionsThe Concept of Adjusted Gross Income (Ch. 18A)

Read: IRC Section 62(a) and (c)Treas. Reg. Sec. 1.62-1T(b) and (d)Note (pp. 600-601)

The Standard Deduction (Ch. 18F)Read: IRC Section 63

pp. 626-629Note on Tax Expenditures (pp. 435-437)

Watch: Video 41Home mortgage Interest (Ch. 16B)

Read: IRC Sections 163(a), (h); 280A(d)(1)pp. 524 (first full paragraph)-526Rev. Rul. 2010-25, p. 526-528Voss, pp. 529-539Problem 3(a)-(e), p. 546

Watch: Video 42Taxes

Read: IRC Sections 164(a), (b)(1) and (5), (c), (d)(1); 275; 1001(b)(2)Extraordinary Medical Expenses (Ch. 18C)

Read: IRC Sections 213(a), Note (612-617)

Personal and Dependency Exemptions (Ch. 18E)Read: pp. 620-623 (carryover paragraph)

IRC Sections 151Treas. Reg. Sec. 1.151-1(b) and (c)(2)

The Charitable Deduction (Ch. 23B)Read : IRC Section 170

Note (pp. 867-872 (through carryover paragraph on 872))Watch : Video 43

Unit 8. CharacterizationCapital Gains and Losses (Ch. 21)

Introduction (Ch. 21A)Read: pp. 743-748

Note (748--751 through second full paragraph on 751), 752 (first full paragraph)-755 (carryover paragraph)

pp. 756-759 (through carryover paragraph)

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The Meaning of a Capital Asset (Ch. 21D)The Statutory Definition

Read: IRC Section 1221(a)Note (pp. 767-769)

Judicial Gloss on the Statute; Income or Property (Ch. 21G)Read: Hort v. CIR (pp. 784-787)

Metropolitan Bldg. Co. v. CIR (pp. 787-790)Note (pp. 790-792)Problem 3, p. 796Watch: Video

Statutorily Created Capital Gains and Losses, Section 1231 (Ch. 21. H)Read: skim 811-815 (carryover paragraph)

IRC Section 1231Watch: Video 45

Recapture Under Section 1245 (Ch. 22)Read: pp. 831-835 (carryover paragraph)

IRC Sections 64; 1245(a)(1)-(3), (b)(1) and (2), (c), (d)Treas. Reg. Sec. 1.1245-1(a)(1), (b), (c)(1), (d), -2(a)(1)-(3)(i) and (7), -6(a)Problem 1(a), (e), p. 837pp. 840 (beginning at first full paragraph)

Watch: Video 46The Interrelationship of Timing and Characterization

Transactions Under Section 453 (Ch. 24A)Read: pp. 895-897, 900-902, 903-909 (only until last full paragraph)

IRC Section 453Treas. Reg. Sec. 15A.453-1

The Original Issue Discount Rules and Other Unstated, Hidden, and Imputed Interest (Ch. 24C)

Read: pp. 921-931IRC Sections 483; 1258; 1271-1286 (Skim these Code Sections; you need not

read them in detail)Watch: Video 47

11/29 Video-conference Final Exam

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