This course focuses on the taxation of corporations and their shareholders. The course will build upon several principles learned in the basic federal income tax course: basis, calculation of gain and loss, character of gains and losses, and treatment of nonrecognition transactions. A theme of the course is the relationship between the form of a transaction and its underlying "substance." Specific topics include the tax consequences of the formation of a corporation, corporate capital structures, distributions to shareholders, redemptions of stock, liquidations of corporations, and corporate reorganizations. This course is very important for anyone intending to practice tax or corporate law. The course uses a combination of the problem method and a discussion of cases and IRS rulings. The grade for the course will be based on a final, open book examination. Three Units.
Prerequisite: Federal Income Tax.