Federal Income Tax I
Individual federal income taxation under the Internal Revenue Code for the 2026 tax year, including the One Big Beautiful Bill Act changes: tax policy, sources of law, IRS administration and Circular 230, citizenship, residency and filing status, gross income, AGI and taxable income, wages and fringe benefits, stock options, payroll taxes and employee deductions, Schedule C income, self-employment tax and the QBI deduction, MACRS, section 179 and bonus depreciation, investment and rental income, the passive activity rules, the NIIT and the kiddie tax, capital gains, the wash sale rule and netting, the home sale exclusion, gift and inherited basis and like-kind exchanges, retirement accounts, itemized deductions, credits and the AMT, and filing, estimated tax, examinations, appeals and penalties, following one invented family to a complete return.
ACCT-351 Year 3 3 credits 12 lessons · 5 h 9 min
Offered by HSM University · Accounting
This is the American version of this course. See the Canadian version.
What you'll learn
- Explain the purposes, criteria and sources of US federal income tax law, including the Internal Revenue Code, regulations, treaties, case law and IRS guidance, and the ethical duties of tax practitioners.
- Determine an individual's tax status under citizenship, the green card test and the substantial presence test, and choose the correct filing status and dependents.
- Compute gross income, adjusted gross income, taxable income and federal income tax, distinguishing exclusions, deductions and credits.
- Determine wages and the taxable portion of fringe benefits, applying the major statutory exclusions and valuation rules.
- Apply the rules for nonqualified and incentive stock options, restricted stock, payroll taxes, retirement plan deferrals and the limited deductions available to employees.
- Distinguish a trade or business from a hobby or investment, and compute Schedule C profit, self-employment tax and the qualified business income deduction.
- Compute depreciation under MACRS, section 179 and bonus depreciation, and determine section 1245, section 1250 and section 1231 results on disposal.
- Compute investment and rental income, apply qualified dividend rates, the passive activity rules, the investment interest limit, the net investment income tax and the kiddie tax.
- Compute capital gains and losses, applying basis, holding periods, lot identification, netting, preferential rates, the wash sale rule and loss limits.
- Apply the home sale exclusion, the basis rules for gifts and inheritances, like-kind exchanges and involuntary conversions.
- Apply rules for other income, tax-advantaged accounts, itemized deductions, the major credits, the 2025–2028 deductions and the alternative minimum tax to a family.
- Prepare a complete individual federal return and explain filing deadlines, estimated tax, examinations, appeals, litigation and penalties.
Course content
12 lessons · 5 h 9 min total · final exam
- 1 The US federal income tax system: law, policy and administration 29 min · quiz
- 2 Who is taxed: citizenship, residency and filing status 27 min · quiz
- 3 Computing gross income, AGI, taxable income and tax 24 min · quiz
- 4 Employment income: wages and fringe benefits 24 min · quiz
- 5 Equity compensation, payroll taxes and employee deductions 25 min · quiz
- 6 Business income: what counts and what is deductible 27 min · quiz
- 7 Business income II: depreciation, section 179 and bonus depreciation 25 min · quiz
- 8 Investment and rental income: interest, dividends, passive activities and the kiddie tax 26 min · quiz
- 9 Capital gains I: basis, holding periods, rates and losses 26 min · quiz
- 10 Capital gains II: home sales, gifts, inheritances and like-kind exchanges 25 min · quiz
- 11 Retirement accounts, deductions and credits 24 min · quiz
- 12 Filing, examinations, disputes and a complete return 26 min · quiz
- E Final exam 20 questions
Requirements
Recommended background. You can start any course at any time.
Description
Individual federal income taxation under the Internal Revenue Code for the 2026 tax year, including the One Big Beautiful Bill Act changes: tax policy, sources of law, IRS administration and Circular 230, citizenship, residency and filing status, gross income, AGI and taxable income, wages and fringe benefits, stock options, payroll taxes and employee deductions, Schedule C income, self-employment tax and the QBI deduction, MACRS, section 179 and bonus depreciation, investment and rental income, the passive activity rules, the NIIT and the kiddie tax, capital gains, the wash sale rule and netting, the home sale exclusion, gift and inherited basis and like-kind exchanges, retirement accounts, itemized deductions, credits and the AMT, and filing, estimated tax, examinations, appeals and penalties, following one invented family to a complete return.
Part of the Business stream, typically taken in year 3.