F e d e r a l _I n c o m e _T a x a t i o n _of _I n d i v i d u a l s


L a w _4 2 1

Fall 2009 Syllabus

© Copyright 2009 by John J. Potts

___________________________



• syllabus last changed Friday, November 20, 2009 •

• attendance policy posted September 22, 2009 •

• syllabus adjusted from time to time for course progress •

• printing not recommended •

Home Professor John Potts

Welcome!

Attendance Policy

B a s i s   C e n t r a l

The following link is not to a reading assignment. It is to reference material in case you find it helpful.

http://faculty.valpo.edu/jpotts/basiscentral.html

Reading assignments

Week 1

Monday, August 24

• Introduction

• Preface, pp. v-vi

• Chapter One, Introduction, pp. 1-17

Tuesday, August 25

• Chapter One, Introduction, pp. 17-32

Wednesday, August 26

• IRC §§ 61(a); 1001(a)-(c); 1012; 1011(a)

• Chapter Two, The Concept of Income, pp. 33-50

• Schanz-Haig-Simons definition of income, pp. 45-46

Thursday, August 27

• 16th Amendment, p. 3; IRC §§ 61(a). Regs. §§ 1.61-1; 1.61-14. IRC §§ 7701(c); 1001(a)-(c). Regs. § 1.1001-1(a). IRC § 1012; 1011(a); 7805(a), (e).

• 16th Amendment, p. 3; IRC §§ 61(a)(1); 83(a)-(c), (e)(1), (e)(3), (e)(4), (h). Regs. §§ 1.83-1(a), (f), Ex. (1). Regs. §§ 1.83-3(a)(2), (b); -4(b)(1); -6(a)(1); -7(a.). IRC §§ 421(a),(b); 422(a),(b); 119.

• Chapter 2, pp. 50-73

Week 2

Monday, August 31

• Tax research

Tuesday, September 1

• Tax research (continued)

• IRC §§ 1001(a), (b), (c); 1012; 1011(a)

• IRC §§ 61(a)(4), (5), (7)

• IRC §§ 167(a); (c)(1)

Wednesday, September 2

• IRC §§ 167(a); (c)(1) (continued)

• IRC §§ 61(a)(9); 72(a)-(c)

• IRC §§ 162(a), (c)

• IRC §§ 61(a); 79(a).

• IRC §§ 105(a), (b), (e);106(a); 125(a), (d), (f).

• Chapter Two, The Concept of Income, pp. 73-100

• Chapter Two, The Concept of Income, pp. 73-80

• IRC § 119

Thursday, September 3

• Chapter Two, The Concept of Income, pp. 100-106

• Chapter Two, The Concept of Income, pp. 80-82

• IRC § 132(a)-(e), (f)(1)-(3), (h), (j)(4)

• Chapter Two, The Concept of Income, pp. 83-85

• IRC § 79(a); 105(a), (b), & (e); 106(a); 125(a), (d), & (f)

• Chapter Two, The Concept of Income, pp. 86-87

• Chapter Two, The Concept of Income, pp. 87-93

• IRC § 61(a)

• Regs. § 1.61-14(a)

• Chapter Two, The Concept of Income, pp. 93

• Review §§1001(a)-(c); 1012; 1011(a)

• Chapter Two, The Concept of Income, pp. 93-94

• Chapter Two, The Concept of Income, pp. 94-100

• §167(a), (c)(1). Note §162

• Regs. §1.167(a)-3(a)

• Chapter Two, The Concept of Income, pp. 100-102

• §61(a)(9); 72(a)-(c)

• Regs. §1.72-4(a), -5(a), -9 (Table V)

• Chapter Two, The Concept of Income, pp. 102-106

• §162(a), (c)

• §1.61-3(a); 1.471-3(d)

Week 3

Monday, September 8

• Final word on Dixie Dairies Corp. v. Com’r., pp. 103-105

• Chapter Two, The Concept of Income, pp. 106-112

• Chapter Eight, Income from Dealings in Property

B. Computation of Realized Gain or Loss

1. The Basis of Property Acquired by Purchase or Taxable Exchange

Philadelphia Park Amusement Co. v. United States, pp. 525-527

Tuesday, September 9

• Chapter Two, The Concept of Income, pp. 115-118

• Chapter Two, The Concept of Income, pp. 119-128

• §61(a)(12); 108(a), (b), (d)(1)-(3), (e)(1), (2), (5), (f)(1)-(3)

• Regs. §1.61-12(a)

• Chapter Two, The Concept of Income, pp. 134-136

Wednesday, September 10

Systemic discussion with examples

Thursday, September 11

Policy discussion. Statutory analysis.

Week 4

Monday, September 14

• Chapter Two, The Concept of Income, pp. 140-148

• §104(a)

• Chapter Two, The Concept of Income, pp. 151-153

• Regs. §1.61-2(d)(1)

• Chapter Two, The Concept of Income, pp. 153-157

• Note §§118, 362(d)

Tuesday, September 15

• Chapter Three, Some Exclusions, Deductions, and Credits, pp. 159-164

• §103

Wednesday, September 16

• Chapter Three, Some Exclusions, Deductions, and Credits, pp. 160-164

• §103

• Chapter Three, Some Exclusions, Deductions, and Credits, pp. 165-174

• For your casual viewing:

• Tax Expenditure Budget Estimates, Fiscal Years 2007-2011

• Chapter Three, Some Exclusions, Deductions, and Credits, pp. 174-190

• §102

• Note §274(b)(1)

• Note Regs. §1.102-1(e); Prop. Reg. 1.102-1(f)(2)

Thursday, September 17

• Chapter Three, Some Exclusions, Deductions, and Credits, pp. 174-190

• §102

• Note §274(b)(1)

• Note Regs. §1.102-1(e); Prop. Reg. 1.102-1(f)(2)

• Chapter Three, Some Exclusions, Deductions, and Credits, pp. 190-194

• §101(a)(1).

• Note §79.

• Regs. §1.262-1(b)(1)

• Chapter Three, Some Exclusions, Deductions, and Credits, p. 195 – just two paragraphs in middle

• §§117; 74

• Chapter Three, Some Exclusions, Deductions, and Credits, pp. 199 – just paragraph in middle

• §213(a)-(d)(4), (d)(9) & (10)

• Chapter Three, Some Exclusions, Deductions, and Credits, p. 205 – just two paragraphs in middle

• §170(a)(1), (b)(1), (c), (d)(1)

• §170(e)(1) & (2), (3) cursorily, (5) cursorily


• §170(f)(6), (8), (9), (11), (12), (i), (j)

• Chapter Three, Some Exclusions, Deductions, and Credits, pp. 209, Note 4

• §170(a)(1), (b)(1), (c), (d)(1)

• §170(e)(1) & (2), (3) cursorily, (5) cursorily


• §170(f)(6), (8), (9), (11), (12), (i), (j)

Week 5

Monday, September 21

• Chapter Three, Some Exclusions, Deductions, and Credits, p. 205 – just two paragraphs in middle

• §170(a)(1), (b)(1), (c), (d)(1)

• §170(e)(1) & (2), (3) cursorily, (5) cursorily


• §170(f)(6), (8), (9), (11), (12), (i), (j)

• Chapter Three, Some Exclusions, Deductions, and Credits, pp. 209, Note 4

• §170(a)(1), (b)(1), (c), (d)(1)

• §170(e)(1) & (2), (3) cursorily, (5) cursorily


• §170(f)(6), (8), (9), (11), (12), (i), (j)

• Chapter Three, Some Exclusions, Deductions, and Credits, pp. 214-225

• §170(a)(1), (b)(1), (c), (d)(1)

• §170(e)(1) & (2), (3) cursorily, (5) cursorily


• §170(f)(6), (8), (9), (11), (12), (i), (j)

• Regs. §1.170A-1(c)(1), (g)

Tuesday, September 22

• Chapter Three, Some Exclusions, Deductions, and Credits, pp. 225-226

• §§164(a), (b)(5), (f)

• §§275; 62(a)(1), (4)

•  Regs. §§1.62-1T(d)

• Chapter Three, Some Exclusions, Deductions, and Credits, pp. 229-233

• §§151; 152

• Regs. §§1.44A-1(d)(3); 1.151-1(b); 1.152-1(a)(2)(i) & (ii)

Wednesday, September 23

• Chapter Three, Some Exclusions, Deductions, and Credits, pp. 229-233

• §§151; 152

• Regs. §§1.44A-1(d)(3); 1.151-1(b); 1.152-1(a)(2)(i) & (ii)

• Chapter Three, Some Exclusions, Deductions, and Credits, pp. 248-249

• §24

• Chapter Three, Some Exclusions, Deductions, and Credits, pp. 249-251

• §21(a)-(e)

• Note §129

• Regs. §1.44A-1

Thursday, September 24

• Chapter Three, Some Exclusions, Deductions, and Credits, pp. 251-253

• §32

The negative income tax

A - Nonrefundable Personal Credits
(just the title, immediately preceding §21)

§26

Subpart C - Refundable Credits
(just the title, immediately preceding §31)

• Chapter Three, Some Exclusions, Deductions, and Credits, pp. 253-255

• §25A(a)-(d), (f)(1), (g)(3); 222

Week 6

Monday, September 28

• Chapter Four, Business and Investment Expenses, pp. 257-275

• §167(a), (c)(1)

• §168(a)-(e), (i)(1)

• §179

• §1011(a)

• §1016(a)(2)

Tuesday, September 29

• Chapter Four, Business and Investment Expenses, pp. 278-298

• §263

• Regs. §1.263

• §162(a)

• Regs. §1.162-4

• Regs. §162-6

• §161

• §261

Wednesday, September 30

• Chapter Four, Business and Investment Expenses, pp. 298-301

• §471(a)

• §472(a)-(c)

• Skim Regs. §1.61-3(a)

• Chapter Four, Business and Investment Expenses, pp. 301-303

• §§162; 212; 262; 67; 62(a); 7701(a)(25)

• Regs. §1.62-1T(a), (b), (d), (e)

• Regs. §1.67-1T

• Chapter Four, Business and Investment Expenses, pp. 309-315, 320-324

• §162(a)

• §212

• Regs. §1.212-1

• §262

• Regs. §1.262-1(b)(7)

Thursday, October 1

• Professional Development Day

• No class.

Week 7

Monday, October 5

• Chapter Four, Business and Investment Expenses, pp. 324-326

• §162(a)

• Note Regs. §1.162-6

• §§212; 262; 263(a)

• Chapter Four, Business and Investment Expenses, pp. 342-351

• §162(a)

• Regs. §§1.162-2(e)

• Note §274(d), (n)

• Review §262

• Regs. §1.262-1(b)(5)

• Regs. §1.274-5T(f)(2)(i)

• Regs. §§1.274-1, -2(a)(1), (c), (d)

Tuesday, October 6

• Chapter Four, Business and Investment Expenses, pp. 351-365

• §274(e)(2), (3), (m)(3), (n)

• Regs. §§1.162-2

• Chapter Four, Business and Investment Expenses, pp. 366-370

• §274(a), (d)

Wednesday, October 7

• Chapter Four, Business and Investment Expenses, pp. 371-375

• §280F(b), (d)

• Chapter Four, Business and Investment Expenses, pp. 375-382.

• §280A

• Prop. Reg. §1.280A-2(i)(5)

• (b) Home Offices

• §280A

Thursday, October 8

• Chapter Four, Business and Investment Expenses, pp. 382-386

• §162(a); 195; 217

• Regs. §1.212-1(f)

• Note §82; 62(a)(15); 132(a)(6), (g)

Week 8

Monday, October 12

• Chapter Four, Business and Investment Expenses, pp. 386-393

• §162(a)

• Regs. §1.162-5

• §1.212-1(f)

• §1.262-1(b)(9)

• §1.263(a)-4(d)(5)

• §1.167(a)-3

Tuesday, October 13

• Mid-point overview

• Chapter Four, Business and Investment Expenses, pp. 394-398

• §162(a), (c), (f)

• Note §§162(e), (g); 280E

• Regs. §1.61-3(a

• Regs. §1.212-1(p)

• Regs. §1471-3(d)

• Skim Regs. §§1.162-18, -21, -20

Wednesday, October 14

• Chapter Four, Business and Investment Expenses, pp. 399-407

Thursday, October 15

• Chapter Five, Interest Income and Deductions, pp. 409-410

• §163(a)

• Note §461(g)

• Chapter Five, Interest Income and Deductions, pp. 410-413

• Note §§1272(a)(1)-(5); 1273(a), (b); 1276(a)(1), (2), (b)(1), (2); 1278(a)(1), (2); 163(e)(1), (2), (4)

• Chapter Five, Interest Income and Deductions, pp. 413-417

• 1. Section 265(a)(2)

• §163(a)

• §265(a)(2)

• Review §103(a)

• Chapter Five, Interest Income and Deductions, pp. 418-422

• 1. Section 265(a)(2)

• §163(a)

• §265(a)(2)

• Review §103(a)

Week 9

Monday, October 19

• Chapter Five, Interest Income and Deductions, pp. 423-430

• §163(d)

• Review §167

• Chapter Five, Interest Income and Deductions, pp. 430-433

• Chapter Five, Interest Income and Deductions, pp. 433-436

• §7872(a)-(f)

• Chapter Five, Interest Income and Deductions, pp. 436-443

Tuesday, October 20

• Chapter Six, The Alternative Minimum Tax, pp. 445-451

• §§55(a), (b)(1), (2), (c), (d); 56(a), (b), (e); 57(a)(5)

• Chapter Six, The Alternative Minimum Tax, pp. 451-452

• Chapter Seven, Who Is the Taxpayer? No reading.

• Lecture on Choice of Taxpayer

• Chapter Seven, Who Is the Taxpayer?, pp. 469-473

• §1(a)-(d)

• Appendix B, pp. 845-848

Wednesday, October 21

• Chapter Eight, Income from Dealings in Property – General Considerations, pp. 494

• §§1(g); 63(c)(5); 151()d(2)

• Chapter Eight, Income from Dealings in Property – General Considerations, pp. 497-498

• §482

• Chapter Eight, Income from Dealings in Property - General Considerations , pp. 509-510

• §§61(a)(3); 1001(a)-(c); 1011(a); 165(a), (c)

Thursday, October 22

• Chapter Eight, Income from Dealings in Property – General Considerations, pp. 520-522

• §1001(a)

• Review §83

• Chapter Eight, Income from Dealings in Property – General Considerations, pp. 528-530

• §1001(a), (b)

• Regs. §1.1001-2

• §§1011(a); 1012; 1016(a)((2)

• Regs. §§1.61-6(a); 1.1001-1(a)

Week 10

Monday, October 26

• Chapter Eight, Income from Dealings in Property – General Considerations, pp. 530-541

• §§1001(b), 1011(a), 1012

• Note §§167(c),)1(, 7701(g)

• Review §108

Tuesday, October 27

• Chapter Eight, Income from Dealings in Property – General Considerations, pp. 541-547

• §§1001(b), 1011(a), 1012

• Note §§167(c),)1(, 7701(g)

• Review §108

• Chapter Eight, Income from Dealings in Property – General Considerations, pp. 547-555

Wednesday, October 28

• Chapter Eight, Income from Dealings in Property – General Considerations, pp. 555-558

• Chapter Eight, Income from Dealings in Property - General Considerations, pp. 558-559

• §§465(a)(1)&(2). (b)(1)&(2)&(6), (c)(1)&(3)(A), (d); 49(a)(1)(D)(iv)

• Chapter Eight, Income from Dealings in Property – General Considerations, pp. 559-562

• §§469(a)-(d), (e)(1), (g)(1), (h)

• Note Regs. §1.469-5T(a)

Thursday, October 29

• Chapter Eight, Income from Dealings in Property – General Considerations, pp. 563-564

• §§1015(a); 102(a)

• Note §§167(c)(1); 1223(2); 1015(c); 7701(a)(43)

• Regs. §1.1015-1(a)

• Chapter Eight, Income from Dealings in Property – General Considerations, pp. 586-588

• §§1014(a), (b); 1223(9)

• Note §2032

• Regs. §§1.1014-1(a), -2(a), (b), -3(a), -4(a)(3)

• Chapter Eight, Income from Dealings in Property – General Considerations, pp. 596-598

• §§1014(c); 691(a)(1), (3), (b)

• Regs. §§1.691(a)-1, -2, -3

Week 11

Monday, November 2

• Chapter Nine, Non-Recognition Transactions and (Dis)Allowance of Losses, pp. 601-603 (We will discuss problems)

• §§1031(a)-(d); 1223(1)

• Regs. §§1.1031(a)-1; 1.1031(b)-1; 1.1031(d)-1; 1.1031-2

• Note §7701(a)(44)

• Chapter Nine, Non-Recognition Transactions and (Dis)Allowance of Losses, pp. 611-612

• §1031(a)

• Regs. §1.1031(a)-1

• Note §1031(e), (h)

• Chapter Nine, Non-Recognition Transactions and (Dis)Allowance of Losses, pp. 612-613

• Chapter Nine, Non-Recognition Transactions and (Dis)Allowance of Losses, pp. 613-615

• §§1033(a), (b), (g); 1223(1)

• Regs. §§1.1033(a)-2(c)(11); 1.1033(b)-1(b)

Tuesday, November 3

• Chapter Nine, Non-Recognition Transactions and (Dis)Allowance of Losses, pp. 615-616

• §121

• §§1.121-2; -3; -4(a), (b)

• Note §1033

• Note Regs. §1.263(a)-2(e)

Wednesday, November 4

• Chapter Nine, Non-Recognition Transactions and (Dis)Allowance of Losses, pp. 616-617

• Note §§1045,;1044

Thursday, November 5

• Chapter Nine, Non-Recognition Transactions and (Dis)Allowance of Losses, pp. 617-618

• §§1091(a)-(d); 1223(4)

• Regs. §1.1091-2(a)

• Chapter Nine, Non-Recognition Transactions and (Dis)Allowance of Losses, pp. 618-619

• §165(a), (c)

• Note §§165(f) ; 1211

Week 12

Monday, November 9

• Chapter Nine, Non-Recognition Transactions and (Dis)Allowance of Losses, pp. 620-626

• §165(a), (c)(3), (h)

• Regs. §§1.165-1(c)(1), (d); 1.165-7(a)(1)-(3); 1.165-7(b)(1)

• Chapter Nine, Non-Recognition Transactions and (Dis)Allowance of Losses, pp. 627-630

• §§162(a); 212(1), (2); 165(c)(1)-(2); 262

• Note §§ 161; 261

• Regs. §§1.167(g)-1; 1.168(i)-(4)(b)(2); 1.165-9; 1.262-1(b)(4); 1.212-1-(b), (h)

• Chapter Nine, Non-Recognition Transactions and (Dis)Allowance of Losses, pp. 630-635

• §267(a)(1), (b)-(d), (g)

• Review §1091(a)

• Regs. §§ 1.267(a)-1(c; 1.267(d)-1

• §§1(h); 1221; 1231

Tuesdsay, November 10

• Chapter Ten, Capital Gains and Losses, 637-648

• §§1222; 1221; 1211; 1212(a), (b); 61(a)(3); 62(a)(3); 1(h)

• §1231

• Note §§64; 65; 1202, 408(m); 1(h)(1)-(7), (11)

• Review §165(a), (c), (f)

• Chapter Ten, Capital Gains and Losses, 648-654

• §1222(1)-(4)

• Note §§ 166(d); 165(g); 1271(a); 1234A

• Chapter Ten, Capital Gains and Losses, 654-661

• §1221(a)(1)

• Note §1231(b)(1)(A) & (B)

Wednesday, November 11

• Chapter Ten, Capital Gains and Losses, 661-664

• §1221(a)(1)

• Note §1231(b)(1)(A) & (B)

• Chapter Ten, Capital Gains and Losses, 664-666

• §1221(a)(2)-(5), (7) & (8)

• Chapter Ten, Capital Gains and Losses, 666-670

• §§1221(a)(2); 1231

• Note §165(h)

• Chapter Ten, Capital Gains and Losses, p. 670-673

• Chapter Ten, Capital Gains and Losses, p. 674-677

            §§1245 ;1250

            Regs. §1.179-1(f)(1)

Regs. §§1.1245-1(b), (d); 1.1245-2(c)(1)(i), (iv); 1.1245-2 (c)(4)

Note § 1(h)(6), (h)(1)(D)

• Chapter Ten, Capital Gains and Losses, p. 677-678

            §§1239(a)-(c); 267(c)(2), (4) & (5)

            Regs. §1.1245-6(f)

• Chapter Ten, Capital Gains and Losses, p. 678-679

170(e)(1)

Review 1221; 1222(3)

• Chapter Ten, Capital Gains and Losses, p. 679-684

166; 165(a)-(c), (g)

Regs. 1.166-1(c), (e), (f); 1.166-2(a)-(c); 1.166-5; 1.166-9

Note 1244

Review 1211; 1212

Thursday, November 12

• Net capital gains. 1222; 1233; 1211(b); 1212(b); 1237.

• 1245; 1250

• Chapter Ten, Capital Gains and Losses, p. 685-690

166; 165(a)-(c), (g)

Regs. 1.166-1(c), (e), (f); 1.166-2(a)-(c); 1.166-5; 1.166-9

Note 1244

Review 1211; 1212

• Chapter Ten, Capital Gains and Losses, p. 691-697

§§1060; 197(a)-(d), (f)(1), (3) & (7)

Regs. §§1.1060-1(c)(4); 1.263(a)-4(c)(4)(Ex. 5)

Regs. §1.1060-4(d)(6)(i)(C)

Review §§1221; 1231; 1245

Week 13

Monday, November 16

• Chapter Ten, Capital Gains and Losses, p. 698-701

§§1001(e); 273

Note §167(e)

• Chapter Ten, Capital Gains and Losses, p. 701-713

§§1001(e); 273

Note §167(e)

• Chapter Eleven, Deferred-Payment Sales, p. 719-725

§453(a)-(d), (f), (i)

               Temp. Regs. §15a.453-1(a), (b), (c)(1) & (2)

Tuesdsay, November 17

• Chapter Eleven, Deferred-Payment Sales, p. 728-736

§453B(a)-(c), (f), (g)

• Chapter Twelve, Timing of Income and Deductions, pp. 737-743

172(a), (b)(1)(A), (2) & (3), (c), (d)(1)-(4)

• Chapter Twelve, Timing of Income and Deductions, pp. 743-757

Note 111

Wednesday, November 18

• Chapter Twelve, Timing of Income and Deductions, pp. 758-762

1341

Regs 1.1341-1(a) & (c)

• Chapter Twelve, Timing of Income and Deductions, pp. 762-766

446

Regs. 1.446-1(a), (c)(1)(i) & (c)(2)(ii)(C); 1.471-1; 1.162-3

• Chapter Twelve, Timing of Income and Deductions, pp. 766-771

446; 451(a); 461(a)

Regs. 1.446-1(c)(1)(i); 1.451-1(a); 1.451-2

Thursday, November 19

• Chapter Twelve, Timing of Income and Deductions, pp. 771-782

409A

• Chapter Twelve, Timing of Income and Deductions, pp. 782-786

451(a), 461(a)

Regs. 1.461(a)

• Chapter Twelve, Timing of Income and Deductions, pp. 786

446; 451(a); 461(a), 404(a)(5)

Regs. 1.451-1(a); 1.446-1(c)(1)(ii); 1.461-1(a)(2)

Week 14

Sunday, November 22 – Sunday, November 29

• Thanksgiving Break

Week 15

Monday

• Chapter Twelve, Timing of Income and Deductions, pp. 787-809

451(a); 446(b)

Note Reg. 1.451-5

451(a)

Regs. 1.451-1(a); 1.461-1(c)(1)(ii)

Tuesdsay

• Chapter Twelve, Timing of Income and Deductions, pp. 809-813

461(h)

Note 461(f)

Regs. 1.461-4, -5

• Chapter Twelve, Timing of Income and Deductions, pp. 813-820

461(a); 446(b); 461(g)

Regs. 1.263(a)-4(d)(3), (f)(1), (6) & (8) (Exs. 1 & 2), (j)

Note 1.263(a)-4(b)(4)(i); 1.461-4(e); 1.461-5(g)(5)

• Chapter Twelve, Timing of Income and Deductions, pp. 820-822

404(a)(5); 267(a)(2), (b), (c)

Note 467(a)

• Chapter Twelve, Timing of Income and Deductions, pp. 822-829

Wednesday

Cushion

Thursday

Cushion, Review

More pending