Concepts in Federal Taxation 2002

by Murphy, Kevin E.; Higgins, Mark

• ISBN13: 9780324069914
• ISBN10: 032406991X
• Format: Hardcover
• Copyright: 2001-04-11
• Publisher: South-Western College/West

Summary

Concepts in Federal Taxation is designed for a more conceptual, less detailed approach to federal taxation of individuals and corporations in an introductory taxation course. This conceptual approach presents taxation as a small number of unifying concepts, stressing the overriding principles that apply to all specific tax rules and regulations. Concepts in Federal Taxation offers a balance between tax concepts and tax codes and regulations, so that users will be prepared for the tax section of the CPA exam.

Table of Contents

Preface	p. xvii
Introduction	p. xxiii
Why Study Federal Income Taxation	p. xxiii
Conceptual Foundations of the Tax Law	p. 1
Federal Income Taxation--An Overview	p. 2
Introduction	p. 3
Definition and Evaluation of a Tax	p. 3
Major Types of U.S. Taxes	p. 10
Sources of Federal Income Tax Law	p. 16
Federal Income Tax Terminology	p. 17
The Audit and Appeal Process within the IRS	p. 23
Individual Income Tax Calculation	p. 24
Tax Planning	p. 28
Ethical Considerations in Tax Practice	p. 33
Summary	p. 35
Key Terms	p. 36
Primary Tax Law Sources	p. 36
Discussion Questions	p. 37
Problems	p. 39
Issue Identification Problems	p. 43
Technology Applications	p. 43
Discussion Cases	p. 44
Tax Planning Cases	p. 45
Ethics Discussion Case	p. 45
Income Tax Concepts	p. 46
Introduction	p. 47
General Concepts	p. 48
Accounting Concepts	p. 52
Income Concepts	p. 58
Deduction Concepts	p. 63
Summary	p. 68
Key Terms	p. 68
Primary Tax Law Sources	p. 69
Discussion Questions	p. 70
Problems	p. 71
Issue Identification Problems	p. 79
Technology Applications	p. 80
Discussion Cases	p. 80
Tax Planning Case	p. 81
Ethics Discussion Case	p. 81
Gross Income	p. 83
Income Sources	p. 84
Introduction	p. 85
What Constitutes Income	p. 85
Common Income Sources	p. 89
Capital Gains and Losses--An Introduction	p. 106
Effect of Accounting Method	p. 112
Summary	p. 116
Key Terms	p. 117
Primary Tax Law Sources	p. 118
Discussion Questions	p. 119
Problems	p. 120
Issue Identification Problems	p. 129
Technology Applications	p. 130
Discussion Cases	p. 130
Tax Planning Cases	p. 131
Ethics Discussion Cases	p. 132
Income Exclusions	p. 133
Introduction	p. 134
Donative Items	p. 135
Employment-Related Exclusions	p. 139
Returns of Human Capital	p. 147
Investment-Related Exclusions	p. 150
Summary	p. 154
Key Terms	p. 155
Primary Tax Law Sources	p. 156
Discussion Questions	p. 157
Problems	p. 157
Issue Identification Problems	p. 164
Technology Applications	p. 165
Integrative Problems	p. 166
Discussion Cases	p. 168
Tax Planning Cases	p. 168
Ethics Discussion Case	p. 169
Deductions	p. 171
Introduction to Business Expenses	p. 172
Introduction	p. 173
Reporting Deductions	p. 175
Classification of Deductions	p. 178
Tests for Deductibility	p. 185
Limited Mixed-Use Expenses	p. 192
Timing of Deductions--Effect of Accounting Method	p. 198
Summary	p. 206
Key Terms	p. 207
Primary Tax Law Sources	p. 207
Discussion Questions	p. 209
Problems	p. 210
Issue Identification Problems	p. 218
Technology Applications	p. 219
Comprehensive Problem	p. 220
Discussion Cases	p. 221
Tax Planning Cases	p. 222
Ethics Discussion Case	p. 223
Business Expenses	p. 224
Introduction	p. 225
Business Expenses	p. 226
Individual Deductions for Adjusted Gross Income	p. 242
Summary	p. 254
Key Terms	p. 255
Primary Tax Law Sources	p. 255
Discussion Questions	p. 256
Problems	p. 257
Issue Identification Problems	p. 267
Technology Applications	p. 267
Integrative Problem	p. 268
Discussion Cases	p. 270
Tax Planning Cases	p. 270
Ethics Discussion Case	p. 271
Losses--Deductions and Limitations	p. 272
Introduction	p. 273
Annual Losses	p. 274
Net Operating Losses	p. 275
Tax-Shelter Losses: An Overview	p. 277
Transaction Losses	p. 290
Summary	p. 300
Key Terms	p. 301
Primary Tax Law Sources	p. 301
Discussion Questions	p. 302
Problems	p. 303
Issue Identification Problems	p. 312
Technology Applications	p. 312
Comprehensive Problem	p. 313
Discussion Cases	p. 313
Tax Planning Cases	p. 314
Ethics Discussion Case	p. 315
Taxation of Individuals	p. 316
Introduction	p. 317
Personal and Dependency Exemptions	p. 318
Filing Status	p. 320
Deductions from Adjusted Gross Income	p. 323
Itemized Deductions and Exemptions--Reductions by High Income Taxpayers	p. 333
Exemption and Standard Deduction Restrictions on Dependents	p. 335
Calculating Tax Liability	p. 335
Filing Requirements	p. 343
Summary	p. 344
Key Terms	p. 345
Primary Tax Law Sources	p. 345
Discussion Questions	p. 346
Problems	p. 347
Issue Identification Problems	p. 355
Technology Applications	p. 356
Integrative Problems	p. 356
Discussion Cases	p. 360
Tax Planning Cases	p. 361
Ethics Discussion Case	p. 362
Appendix to Chapter 8	p. 363
Property Transactions	p. 371
Acquisitions of Property	p. 372
Introduction	p. 373
Classes of Property	p. 374
The Property Investment Cycle	p. 376
Initial Basis	p. 382
Purchase of Assets	p. 382
Specially Valued Property Acquisitions	p. 387
Basis of Property Acquired by Gift	p. 388
Basis of Property Acquired by Inheritance	p. 390
Personal Use Property Converted to Business Use	p. 392
Basis in Securities	p. 394
Summary	p. 397
Key Terms	p. 399
Primary Tax Law Sources	p. 399
Discussion Questions	p. 400
Problems	p. 401
Issue Identification Problems	p. 407
Technology Applications	p. 408
Integrative Problem	p. 409
Discussion Cases	p. 409
Tax Planning Cases	p. 410
Ethics Discussion Case	p. 411
Cost Recovery on Property: Depreciation, Depletion, and Amortization	p. 412
Introduction	p. 413
Capital Recovery from Depreciation or Cost Recovery	p. 415
Section 179 Election to Expense Assets	p. 417
Modified Accelerated Cost Recovery System (MACRS)	p. 420
Depletion	p. 435
Intangible Assets	p. 437
Summary	p. 439
Key Terms	p. 440
Primary Tax Law Sources	p. 441
Discussion Questions	p. 441
Problems	p. 442
Issue Identification Problems	p. 447
Technology Applications	p. 448
Integrative Problems	p. 448
Discussion Cases	p. 449
Tax Planning Cases	p. 449
Ethics Discussion Case	p. 450
Appendix to Chapter 10 Macrs Class Lives and Macrs Depreciation Schedules	p. 451
Rev. Proc. 87-56	p. 451
Property Dispositions	p. 466
Introduction	p. 467
Realized Gain or Loss	p. 469
Character of Gain or Loss	p. 472
Capital Gains and Losses	p. 472
Section 1231 Gains and Losses	p. 483
Depreciation Recapture	p. 486
Summary	p. 492
Key Terms	p. 493
Primary Tax Law Sources	p. 494
Discussion Questions	p. 494
Problems	p. 495
Issue Identification Problems	p. 503
Technology Applications	p. 504
Intregrative Problem	p. 504
Comprehensive Problems	p. 505
Discussion Cases	p. 506
Tax Planning Cases	p. 507
Ethics Discussion Case	p. 508
Nonrecognition Transactions	p. 509
Introduction	p. 510
Rationale for Nonrecognition	p. 510
Commonalities of Nonrecognition Transactions	p. 511
Like-Kind Exchanges	p. 515
Involuntary Conversions	p. 525
Sale of a Principal Residence	p. 528
Summary	p. 531
Key Terms	p. 532
Primary Tax Law Sources	p. 532
Discussion Questions	p. 534
Problems	p. 534
Issue Identification Problems	p. 540
Technology Applications	p. 541
Comprehensive Problem	p. 541
Discussion Cases	p. 542
Tax Planning Cases	p. 542
Ethics Discussion Case	p. 543
Appendix to Chapter 12	p. 544
Income Tax Entities	p. 549
Choice of Business Entity--General Tax and Nontax Factors/Formation	p. 550
Introduction	p. 551
Nontax Factors	p. 552
General Income Tax Factors	p. 558
Formation	p. 571
Summary	p. 584
Key Terms	p. 585
Primary Tax Law Sources	p. 585
Discussion Questions	p. 586
Problems	p. 588
Issue Identification Problems	p. 592
Technology Applications	p. 593
Discussion Cases	p. 593
Tax Planning Cases	p. 594
Ethics Discussion Case	p. 594
Choice of Business Entity--Operations and Distributions	p. 595
Introduction	p. 596
Operations	p. 596
Entity Distributions	p. 616
Tax Planning	p. 625
Summary	p. 629
Key Terms	p. 630
Primary Tax Law Sources	p. 630
Discussion Questions	p. 631
Problems	p. 632
Issue Identification Problems	p. 637
Technology Applications	p. 638
Discussion Cases	p. 638
Tax Planning Cases	p. 639
Ethics Discussion Case	p. 639
Choice of Business Entity--Other Considerations	p. 640
Introduction	p. 641
Compensation Plans	p. 641
Other Tax Liability Considerations	p. 665
International Tax Aspects	p. 679
Summary	p. 685
Key Terms	p. 687
Primary Tax Law Sources	p. 687
Discussion Questions	p. 689
Problems	p. 690
Issue Identification Problems	p. 696
Technology Applications	p. 697
Discussion Cases	p. 697
Tax Planning Cases	p. 698
Ethics Discussion Case	p. 698
Tax Research	p. 699
Tax Research	p. 700
Introduction	p. 701
Primary Sources of Federal Income Tax Law	p. 701
Secondary Sources of Federal Income Tax Law	p. 713
Tax Research	p. 716
Comprehensive Research Example	p. 719
Research Memorandum	p. 722
Summary	p. 723
Key Terms	p. 723
Primary Tax Law Sources	p. 724
Discussion Questions	p. 724
Problems	p. 725
Research Cases	p. 726
Tax Rate Schedules and Tax Tables	p. 1
Tax Return Problem	p. 1
Tax Forms	p. 1
Statements on Standards for Tax Services	p. 1
Glossary	p. 1
Index	p. 1
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