A Guide to Federal Taxation

by Helewitz, Jeffrey A.

• ISBN13: 9781401810399
• ISBN10: 140181039X
• Format: Paperback
• Copyright: 2004-08-27
• Publisher: Cengage Learning

Summary

A Guide to Federal Income Tax superbly integrates law and tax policy, providing readers with a basic theoretical understanding of federal taxation in the major areas that would be addressed in most small law firms. It also gives the reader an overview of the workings of the Internal Revenue Service, and guides them, line by through, through all of the federal tax forms a law office would encounter. Through numerous examples, practical tips, summaries of judicial decisions, chapter summaries, and exercise problems, the author does an exceptional job of helping current and future legal professionals absorb this wealth of information. Readers are taken from basic tax law and policy at the start of the book to chapters on individual taxation, the taxation of the various business formats, and the taxation of trusts and estates.

Table of Contents

Preface	xi
CHAPTER 1 Sources of Tax Law	1	(29)
Introduction	1	(1)
Genesis of Tax Law	2	(4)
Sources of the Law and Tax Research	6	(14)
Statutes	6	(2)
Administrative Action	8	(9)
Judicial Decisions	17	(3)
General Proceedings	20	(7)
Ethical Concerns	27	(3)
CHAPTER 2 Individual Income Taxation	30	(66)
Introduction	30	(8)
Sources of Income	38	(16)
Wages and Salaries	41	(4)
Interest and Dividends	45	(5)
Rental Income 49 Retirement Plans	50	(2)
Other Income	52	(1)
Income Not Subject to Federal Income Taxation	53	(1)
Allocation of Income	54	(2)
Gains and Losses	56	(10)
Adjustments to Income (Schedules A&B)	66	(9)
Medical and Dental Expenses	67	(1)
Taxes	67	(3)
Interest	70	(3)
Charitable Gifts	73	(1)
Casualty and Theft Losses	73	(1)
Job and Miscellaneous Expenses	74	(1)
Moving Expenses	75	(1)
Credits	75	(18)
Ethical Concerns	93	(3)
CHAPTER 3 Income Taxation of the Sole Proprietorship	96	(54)
Introduction	96	(3)
Income	99	(10)
Expenses	109	(39)
Advertising	112	(1)
Bad Debts	112	(2)
Car Expenses	114	(1)
Commissions and Fees	114	(1)
Depletion	114	(1)
Depreciation	115	(1)
Employee Benefit Programs	116	(1)
Insurance	117	(1)
Interest	117	(1)
Legal and Professional Services	117	(1)
Office Expenses	117	(1)
Pension and Profit Sharing Plans	117	(1)
Rent	117	(5)
Repairs and Maintenance	122	(4)
Supplies	126	(1)
Taxes and Licenses	126	(1)
Travel, Meals, and Entertainment	126	(1)
Utilities	127	(1)
Wages	127	(15)
Other Expenses	142	(6)
Ethical Concerns	148	(2)
CHAPTER 4 Income Taxation of Partnerships	150	(39)
Introduction	150	(14)
Form 1065	164	(5)
Tax Accounting for Partnerships	169	(5)
Exclusion from Partnership Accounting Rules	169	(1)
Accounting Principles	170	(4)
Partnership Income or Loss	174	(4)
Partnership Distributions	178	(8)
Allocation of Distributions	181	(5)
Termination of a Partnership	186	(1)
Ethical Concerns	186	(3)
CHAPTER 5 Income Taxation of Corporations	189	(64)
Introduction	189	(12)
The Balance Sheet and Income Statement	201	(7)
Dividends	208	(6)
Reorganizations	214	(5)
"A" Reorganizations	216	(1)
"B" Reorganizations	217	(1)
"C" Reorganizations	217	(1)
"D" Reorganizations	218	(1)
"E" Reorganizations	219	(1)
"F" Reorganizations	219	(1)
Form 1120	219	(17)
Income	223	(2)
Deductions	225	(3)
Taxes and Payments	228	(1)
Form 1120 Schedules	229	(7)
Subchapter S Corporations	236	(12)
Form 1120S	248	(2)
Ethical Concerns	250	(3)
CHAPTER 6 Estate and Gift Taxation	253	(69)
Introduction	253	(47)
Form 706: United States Estate and Generation-Skipping Transfer Tax Return	300	(2)
Assets	302	(8)
Schedule A-Real Estate	302	(1)
Schedule B-Stocks and Bonds	303	(1)
Schedule C-Mortgages, Notes, and Cash	304	(1)
Schedule D-Insurance on the Decedent's Life	305	(1)
Schedule E-Jointly Owned Property	306	(1)
Schedule F-Other Miscellaneous Property	307	(1)
Schedule G-Transfers During Decedent's Life	308	(1)
Schedule H-Powers of Appointment	309	(1)
Schedule I-Annuities	310	(1)
Deductions	310	(5)
Schedule J-Funeral and Administrative Expenses	311	(1)
Schedule K-Debts of the Decedent	312	(1)
Schedule L-Net Losses During Administration	312	(1)
Schedule M-Bequests to Surviving Spouse	313	(1)
Schedule N-Qualified ESOP Sales	313	(1)
Schedule 0-Charitable, Public, and Similar Gifts and Bequests	314	(1)
Schedule T-Qualified Family Owned Business Interest Deduction	314	(1)
Schedule U-Qualified Conservation Easement Exclusion	315	(1)
Credits	315	(4)
Schedule P-Credit for Foreign Death taxes	315	(1)
Schedule Q-Credit for Tax on Prior Transfers	316	(1)
Schedule R-Generation-Skipping Transfer Tax	317	(1)
Schedule S-Increased Estate Tax Due to Excess Retirement Accumulations	318	(1)
Ethical Concerns	319	(3)
CHAPTER 7 Fiduciary Income Taxes	322	(31)
Introduction	322	(9)
Form 1041: Part I, Estate's Share of Alternative Minimum Taxable Income	331	(18)
General	331	(1)
Income	331	(10)
Deductions	341	(3)
Taxes and Payments	344	(1)
Schedules	344	(5)
Form 1041: Part II, Income Distribution Deduction on a Minimum Tax Basis	349	(1)
Form 1041: Part III, Alternative Minimum Tax	349	(1)
Form 1041: Part IV	350	(1)
Ethical Concerns	351	(2)
APPENDIX A Tax-Related Web Sites	353	(2)
GLOSSARY	355