Taxation of Business Entities I: Corporations

Go to Course: https://www.coursera.org/learn/taxation-business-entities-part-1

Introduction

# Course Review: Taxation of Business Entities I: Corporations ## Overview If you're looking to gain a solid foothold in the world of corporate taxation—an essential aspect of business law and finance—Coursera's course, **Taxation of Business Entities I: Corporations**, is an excellent choice. This course offers a comprehensive introduction to the U.S. federal income taxation of corporations and their shareholders, focusing specifically on the intricacies of Subchapter C of the Internal Revenue Code. Whether you’re a student planning to enter the legal, financial, or business field, or a professional looking to deepen your understanding of corporate tax laws, this course provides you with an essential toolkit for understanding how corporations operate within the taxation framework. ## Course Structure The course is well-structured into eight detailed modules, each designed to build on the knowledge acquired in previous sections. Below is a brief outline of what each module covers: ### Course Orientation Before diving into the material, the course begins with an orientation that familiarizes you with the course structure, your instructor, classmates, and the technical skills needed to navigate the platform effectively. ### Module 1: Overview of Business Taxation This introductory module sets the stage by covering the basics of tax law essentials, including the origins, sources, and hierarchy of tax laws, as well as the various forms of business entities. ### Module 2: Corporate Income Taxation Here, you delve into the tax formulas for C corporations, special tax deductions, and compliance procedures, providing a clear comparison with individual tax liabilities. ### Module 3: Corporate Formation I Focusing on property transactions, you’ll begin applying concepts using a hypothetical firm, Sunchaser Shakery, which adds a practical dimension to the learning experience. ### Module 4: Corporate Formation II & Operations This module expands on property-for-stock transactions and dives into more complex matters such as capital contributions, investor losses, and the implications of debt vs. equity. ### Module 5: Corporate Non-Liquidating Distributions You will learn the intricacies of earnings and profits (E&P), along with the various treatments of cash and property distributions. ### Module 6: Corporate Redemptions and Partial Liquidations This module investigates the implications of shareholders selling stock back to the corporation and explores various types of qualified redemptions. ### Module 7: Corporate Liquidations Covering the tax treatment of both complete and parent-subsidiary liquidations, this module highlights the tax consequences for shareholders and corporations alike. ### Module 8: Corporate Reorganizations Finally, you will explore the types of tax-deferred reorganizations and their tax consequences, completing your understanding of corporate restructuring within a tax context. ## Review and Recommendation The course content is robust, offering a blend of theoretical knowledge and practical problem-solving exercises that cater to learning by self-discovery. The structure is meticulous, ensuring that students build a strong foundation before progressing to more complex concepts. Moreover, the inclusion of practical scenarios through the examination of a fictitious business—Sunchaser Shakery—enhances understanding, making the content relevant and applicable. This course also enables participants to hone valuable professional skills, such as analytical thinking and problem-solving, which are crucial in the field of taxation. ### Who Should Enroll? This course is ideal for law students, tax professionals, financial advisors, and business owners seeking to comprehend the tax implications of corporate operations. Even if you are new to income taxation or corporate law, the clear explanations and structured progression make it accessible. ### Conclusion I highly recommend **Taxation of Business Entities I: Corporations** for anyone interested in building a strong foundation in corporate taxation. It is well-rounded, practical, and is taught by experienced instructors passionate about the subject. Completing this course will not only enhance your understanding of corporate taxation but also position you as an informed participant in corporate finance decisions. Experience the complexities of taxation through real-world applications while developing the skills needed for a successful career in finance or law. Enroll today!

Syllabus

Course Orientation

In this module, you will become familiar with the course, your instructor, your classmates, and our learning environment. This orientation will also help you obtain the technical skills required to navigate and be successful in this course.

In this module, you will review the basics of tax law, which includes the origins of taxation, the three sources of tax law, the hierarchy of tax law, and judicial doctrines. Next, you will cover the fundamental features of the different organizational forms: sole proprietorship, partnership, corporation, and limited liability corporation. There will also be a discussion on strategic form choice. Finally, you will be introduced to entity classification for tax purposes.

In this module, you will compare the tax formula for C corporations with the tax formula for individuals. Next, you will examine special tax deductions available only to corporations, such as the dividends received deduction, and the organizational expenditures deduction. You will learn how to calculate corporate income tax liability and compute the corporate Alternative Minimum Tax (AMT). This module will also discuss book-tax differences, and finally, it will discuss compliance procedures.

In this module, you will review the taxation of property transactions. You will be introduced to the Sunchaser Shakery which is a firm that you will apply concepts to. Then, you will examine the nonrecognition provisions in property-for-stock transactions and consider possible exceptions and conditions.

In this module, you will continue to explore property-for-stock transactions. Assumption of liabilities and transfer of services along with property will be introduced. Next, you will examine the effects of capital contributions on corporations, shareholders, and non-shareholders. You will also analyze the rules for debt and equity regarding capital structure. Finally, investor losses due to worthlessness of debt/equity investments and bad debts will be discussed.

In this module, you will learn about corporate non-liquidating distributions. First, earnings and profits (E&P) will be discussed, and you will learn how to calculate E&P. Next, you will analyze the treatment of cash distributions followed by property distributions. You will then cover the treatment of stock distributions. Finally, treatment of constructive dividends and qualified dividends will be explored.

In this module, you will explore redemptions and partial liquidations, which is when shareholders sell stock back to the issuing corporation in exchange for cash. You will learn about the five types of qualified redemptions, which are applied after you have considered stock attribution rules. Finally, you will analyze how these redemptions are treated by both the shareholders and the corporation.

In this module, you will be introduced to corporate liquidations. Some basic information on liquidations will be given, followed by a discussion on corporate tax treatment of complete liquidations. Also, the tax effects on shareholders will be analyzed. Finally, you will examine the tax effects on both the parent and subsidiary in parent-subsidiary liquidations.

In this module, you will explore corporate reorganizations. First, some background on the history of corporate restructuring will be given. Next, you will be introduced to the different types of tax-deferred reorganizations. Finally, you will learn analyze the tax consequences of these reorganizations.