Income Tax Fundamentals 2004

by Whittenburg, Gerald E.; Altus-Buller, Martha

• ISBN13: 9780324188516
• ISBN10: 032418851X
• Format: Paperback
• Copyright: 2003-12-04
• Publisher: South-Western College/West

Summary

A concise, practical guide to personal federal income tax form preparation, Whittenburg and Altus-Buller's text/workbook format presents material in easy-to-digest sections with self-checks, on-line quizzes,multiple examples and review problems. Perfect for a hands-on approach to taxes!

Table of Contents

Preface	ix
As We Go to Press	xi
How to Use This Text	xii
The Individual Income Tax Return
History and Objectives of the Tax System	1	(1)
Reporting and Taxable Entities	2	(3)
The Tax Formula for Individuals	5	(3)
Who Must File and Where to File	8	(3)
Filing Status and Tax Computation	11	(5)
Personal and Dependency Exemptions	16	(5)
The Standard Deduction	21	(1)
Limitation on Total Itemized Deductions	22	(2)
Gains and Losses	24	(2)
Tax and the Internet	26	(1)
Electronic Filing (e-Filing)	27	(1)
Questions and Problems	28
Gross Income and Exclusions
The Nature of Gross Income	1	(3)
Interest and Dividend Income	4	(2)
Alimony	6	(4)
Prizes and Awards	10	(1)
Annuities	11	(3)
Life Insurance	14	(2)
Gifts and Inheritances	16	(1)
Scholarships	16	(1)
Accident and Health Insurance	17	(1)
Meals and Lodging	18	(1)
Municipal Bond Interest	18	(1)
Social Security Benefits	19	(2)
Unemployment Compensation	21	(1)
Employee Fringe Benefits	21	(3)
Questions and Problems	24
Business Expenses and Retirement Plans
Rental Income and Expenses	1	(3)
Passive Loss Limitations	4	(3)
Bad Debts	7	(4)
Inventories	11	(1)
Net Operating Losses	12	(2)
Individual Retirement Accounts	14	(4)
Keogh (H.R. 10) Plans	18	(1)
Qualified Retirement Plans Including Section 401(k) Plans	18	(4)
Rollovers	22	(1)
Simple Plans	23	(3)
Questions and Problems	26
Self-Employed and Employee Expenses
Classification of Deductions	1	(1)
Travel Expenses	2	(3)
Transportation	5	(3)
Office in the Home	8	(4)
Entertainment	12	(1)
Educational Expenses	13	(2)
Dues, Subscriptions, and Publications	15	(1)
Special Clothing and Uniforms	16	(1)
Business Gifts	17	(1)
Schedule C	18	(2)
Questions and Problems	20
Itemized Deductions and Other Incentives
Medical Expenses	1	(4)
Taxes	5	(3)
Interest	8	(3)
Contributions	11	(4)
Casualty and Theft Losses	15	(2)
Miscellaneous Deductions	17	(4)
Moving Expenses	21	(1)
Hobby Losses	22	(3)
Educational Incentives	25	(4)
Questions and Problems	29
Credits and Special Taxes
Tax Credit for the Elderly and Disabled	1	(1)
Child Tax Credit	2	(3)
Earned Income Credit	5	(3)
Child and Dependent Care Credit	8	(1)
Education Tax Credits	9	(4)
Foreign Tax Credit	13	(1)
Work Credits	14	(1)
Disabled Access Credit	15	(2)
Adoption Expenses	17	(2)
The Individual Alternative Minimum Tax (AMT)	19	(5)
Unearned Income of Minor Children	24	(4)
Community Property	28	(4)
Questions and Problems	32
Accounting Periods and Methods and Depreciation
Accounting Periods	1	(3)
Accounting Methods	4	(2)
Depreciation	6	(1)
Modified Accelerated Cost Recovery System (MACRS)	7	(6)
Election to Expense	13	(4)
Listed Property	17	(1)
Limitation on Depreciation of Luxury Automobiles	18	(3)
Intangibles	21	(1)
Related Parties (§267)	22	(2)
Questions and Problems	24
Capital Gains and Losses
What Is a Capital Asset?	1	(1)
Holding Period	2	(1)
Calculation of Gain or Loss	3	(3)
Net Capital Gains	6	(4)
Net Capital Losses	10	(1)
Section 1231 Gains and Losses	11	(1)
Depreciation Recapture	12	(6)
Capital Gains and Casualty Gains and Losses	18	(3)
Installment Sales	21	(4)
Like-Kind Exchanges	25	(1)
Involuntary Conversions	26	(1)
Sale of a Personal Residence	27	(2)
Questions and Problems	29
Withholding, Estimated Payments, and Payroll Taxes
Withholding Methods	1	(7)
Estimated Payments	8	(1)
The FICA Tax	9	(2)
Federal Tax Deposit System	11	(1)
Employer Reporting Requirements	12	(5)
Self-Employment Tax	17	(1)
The FUTA Tax	18	(2)
The Nanny Tax	20	(9)
Questions and Problems	29
Partnership Taxation
Nature of Partnership Taxation	1	(1)
Partnership Formation	2	(2)
Partnership Income Reporting	4	(1)
Current Distributions and Guaranteed Payments	5	(1)
Tax Years	6	(7)
Transactions between Partners and the Partnership	13	(1)
The At-Risk Rule	14	(1)
Limited Liability Companies	15	(2)
Questions and Problems	17
The Corporate Income Tax
Corporate Tax Rates	1	(1)
Corporate Capital Gains and Losses	2	(1)
Special Deductions and Limitations	3	(2)
Schedule M-1	5	(1)
Filing Requirements and Estimated Tax	6	(2)
S Corporations	8	(4)
Corporate Formation	12	(8)
Corporate Accumulations	20	(1)
The Corporate Alternative Minimum Tax	20	(2)
Questions and Problems	22
Tax Administration and Tax Planning
The Internal Revenue Service	1	(3)
The Audit Process	4	(1)
Interest and Penalties	5	(6)
Statute of Limitations	11	(1)
Preparers, Proof, and Privilege	12	(2)
The Taxpayer Bill of Rights	14	(1)
Tax Planning	15	(6)
Questions and Problems	21
Appendices
Appendix A Tax Rate Schedules and Tax Tables	1	(1)
Appendix B Earned Income Credit Table	1	(1)
Appendix C Withholding Tables	1	(1)
Appendix D Additional Comprehensive Tax Return Problems	1	(1)
Glossary of Tax Terms	1	(1)
Solutions to Self-Study Problems	1	(1)
Index	1