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University of Illinois at Urbana-Champaign

Federal Taxation II: Property Transactions of Business Owners and Shareholders

University of Illinois at Urbana-Champaign via Coursera

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Overview

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NOTE: Course Update Coming Soon! We’re currently updating this course to reflect major changes to U.S. tax law made by the 2025 legislation commonly known as the One Big Beautiful Bill Act. An updated version of the course will launch in early 2026, with revised lessons, examples, and explanations that align with the new law. In the meantime, please note that some content may reflect pre-2025 rules. This course examines the U.S. federal tax system as it relates to property transactions of business owners and shareholders. Topics include cost recovery, such as depreciation, amortization, and depletion; calculation of realized versus recognized gains and losses; evaluation of the potential tax effects of nontaxable exchanges; and the combining, or netting, gains and losses that are different in nature. Assignments facilitate self-discovery of knowledge and development of a variety of professional skills.

Syllabus

  • Course Orientation and Module 1: Introduction to Cost Recovery and Depreciation
    • This module introduces the course and covers cost recovery. Concepts include property classification, Modified Accelerated Cost Recovery System (MACRS) depreciation, applicable conventions, and the use of tax depreciation tables.
  • Module 2: Accelerated Depreciation, Amortization, and Depletion
    • This module explores advanced cost recovery concepts in the U.S. federal tax system, including Section 179 and bonus depreciation and the limits on listed property. It also covers amortization of intangible property and depletion of natural resources.
  • Module 3: Gains, Losses, and Adjusted Basis
    • This module examines property dispositions and their tax consequences under U.S. federal tax law. It covers the concept of amount realized, the distinction between realized and recognized gains or losses, and the three primary methods of determining basis: cost, gift, and inheritance.
  • Module 4: Disallowed Losses, Like-kind Exchanges, and Involuntary Conversions
    • This module examines property transactions in which gains or losses are deferred, including disallowed losses, like-kind exchanges, boot, and the resulting basis and holding period rules. It also covers involuntary conversions, including timing requirements, direct and indirect conversions, and the functional use and taxpayer use tests.
  • Module 5: Special Gain/Loss Provisions
    • This module covers nonrecognition rules for the sale of a primary residence and contributions of property to business entities. It also examines wash sale rules, worthless securities, and the tax treatment of certain small business stock gains and losses.
  • Module 6: Character and the Netting Process
    • This module examines the character and tax rates of gains and losses on property dispositions, including ordinary, Section 1231, and long-term capital gains. It also explains holding periods, the netting process, and the treatment of Section 1231 assets.
  • Module 7: Depreciation Recapture and Other Items in the Netting Process
    • This module explores Section 1245 and Section 1250 assets within in Section 1231, including depreciation recapture, unrecapture, and applicable tax rates. It also covers related-party sales of depreciable property and the netting process.
  • Module 8: Final Exam
    • In this module, you will apply the course's tax rules to hypothetical scenarios by identifying issues and determining the appropriate tax treatment.

Taught by

Petro Lisowsky, PhD, CPA

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4.0 rating, based on 1 Class Central review

4.9 rating at Coursera based on 197 ratings

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  • Nisha
    1
    I really want to do this course.because it is related to my stream.this course will be prove beneficial for me in the future so I really want plz tell me how to apply for this class.
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