Prerequisite: Federal Income Tax (LAW 254J, 354J, 454J, or 554J).
The course covers the taxation of partnerships, and S corporations. These entities are "pass through" entities for tax purposes, which means they pay no separate corporate tax, but pass through their taxable income and losses to be reported on the partners' or shareholders' own tax returns. The taxable income passed through by these entities is defined primarily by the principles examined in Federal Income Taxation. The course covers formation, operations, distributions and sales or liquidation of partnerships.
Large corporations traded on a public stock market can not generally qualify as pass-throughs and must usually pay separate corporate tax. They are affected primarily by the issues in the separate course on Corporate Tax. Smaller businesses should be organized as tax pass-throughs (although they often are not), covered by this course. If can take only either Corporate or Partnership taxation, you might make your decision according to where you are likely to practice. If you will practice in Texas, understanding partnership tax is more likely to be of help to your business clients than is the Corporate Tax course, at least under current tax rates, because the larger corporations tend to go to our financial capitals for their tax advice. Both corporate and partnership tax, however, help even a nontax lawyer understand the business world, because all business transactions are shaped by tax issues.
The course is based on a combination of the problem method, in which students try to come up with trial answers before class and on in-class discussion of the answers, cases and IRS rulings. The grade is based primarily on a final in-class examination, but 20 percent depends upon preparation of problems throughout the course.
Monday, Tuesday, Wednesday
10:30 - 11:20 am
Pass/Fail Not Allowed
Taxation of Business Enterprise
- Peroni & Bank
Bank and Stark's Selected Sections Corporate and Partnership Income Tax Code and Regulations
- Bank & Stark
Sales Store Materials
Logic of Subchapter K
- Cunningham and Cunningham