Develop an understanding of how tax laws and regulations factor into how corporations plan their financial strategies.
Duration: 8 weeks
In MST 605 Tax Influences on Decision Making, you will examine how federal income taxation impacts business decisions. As you consider the history of taxation in this country, you will see how taxes affect cash flow and tax planning strategies. You will understand how gross and taxable income is determined, what should be included and excluded from income and the effect of timing on the taxability of income. You will also consider expenses such as employee compensation, organizational costs and operating expenses, as well as start-up expenses for new ventures, and limitations on deductibility.
Decisions about acquisitions such as capital equipment, cars and computer equipment can be made with the help of Return On Investment, Net Present Value and Internal Rate of Return. You will learn how to use these tools to determine if the purchase aligns with the organization’s strategy, whether it will increase productivity and what the tax implications are for the acquisition. You will explore the impact on the financial statement by the concepts of property basis, cost recovery and provisions limiting depreciation.
What You Will Learn in MST 605
Tax knowledge can help organizations design financial strategies to their advantage. For example, selling equipment and other assets can be timed to maximize tax benefits. In this class, you will grasp how to time asset disposition by examining the gain and loss classifications, their treatment and the applicable tax rate involved. You will analyze the concepts of like-kind exchange, transfers to businesses by their owners and involuntary conversion — useful tools in cases of environmental and natural disasters.
You will compare and contrast progressive, proportional and regressive taxes to determine which you believe is the fairest option. You will then write a detailed post defending your choice.
From deciding which form of business entity to choose, to raising capital, compensating owners, selling stock and handing tax implications, you will evaluate the tax ramifications of decisions made on behalf of corporations. You will also explore the deductions and credits allowed for individual taxpayers as well as the filing requirements you will face as a taxpayer.
Throughout this course, weekly topics may include but are not limited to:
- Introduction to Taxation
- Determining Gross Income
- Expense Determination
- Property Acquisitions and Cost Recovery Deductions
- Property Dispositions
- Tax Deferred Exchanges
- Taxation of Corporations
- Income Taxation of Individuals
Course Learning Outcomes
Upon successful completion of MST 605, you will be able to:
- Use appropriate terminology to communicate tax accounting concepts.
- Explain the theory and objectives of tax law, and distinguish between different tax strategies, elections and related decisions.
- Calculate taxable income as it relates to corporate, partnership and individual tax returns.
- Explain tax law as it relates to various taxable entities (individuals, corporations, partnerships, etc.).
- Identify tax research resources to solve tax problems.
- Gain a better understanding of the Internal Revenue Code and the IRS administrative process as related to tax law.
Request More Information Today
To learn more about the online Master of Business Administration curriculum from Benedictine University, including Tax Influences on Decision Making, call (866) 295-3104 to speak with a program manager or request more information.
Course content and outcomes may vary and are subject to change without notice.