Federal Income Tax

by Bankman, Joseph; Griffith, T. D.; Pratt, Katherine

• ISBN13: 9780735549517
• ISBN10: 0735549516
• Edition: 4th
• Format: Paperback
• Copyright: 2005-06-30
• Publisher: Wolters Kluwer

Summary

For an effective combination of examples and explanations And The proper tone to illuminate tax law and policy, turn to this proven study guide. FEDERAL INCOME TAX: Examples & Explanations, Fourth Edition, gives students a clear understanding of the Code and Regulations without oversimplifying the topic. The authors build a secure platform for understanding: unique Examples & Explanations series style combines textual material with well-written examples, explanations, and questions to test student comprehension of the materials and to provide practice in applying information to fact patterns comprehensive coverage combines cases, statutory, and regulatory analysis compatibility with a wide variety of casebooks clear and straightforward writing style helps to demystify a difficult and intimidating subject Exam Appendix includes eight actual law school exams, complete with suggested answers numerous policy questions appear throughout the text logical organization helps students progress through the material helpful introductions explain the concepts to be studied the book has been thoroughly updated for its Fourth Edition: reflects changes in the tax law since 2001, including those resulting from the Jobs and Growth Tax Relief Reconciliation Act of 2003, The Working Families Tax Relief Act of 2004, And The American Jobs Creation Act of 2004. includes new and updated examples and explanations Thousands of students have already benefited from the clarity and quality of FEDERAL INCOME TAX: Examples & Explanations. Be sure to recommend the Fourth Edition to your students.

Table of Contents

An Introductory Note to Students	xiii
Acknowledgments	xv
Introduction	1	(38)
Introduction to Terminology and Structure	2	(10)
Time Value of Money and the Value of Deferring Tax	12	(6)
Alternative Tax Bases: Consumption Tax and Value Added Tax	18	(6)
Tax Administration and Litigation	24	(6)
Tax Legislation	30	(2)
Tax Research	32	(7)
Some Characteristics of Gross Income	39	(90)
The Haig-Simons Definition of Income	40	(1)
Noncash Compensation: Fringe Benefits	41	(25)
Employer-Provided Meals and Lodging	41	(8)
Employer-Provided Insurance and Health, Accident, and Death Benefits	49	(3)
The Section 132 Exclusion for Miscellaneous Fringe Benefits	52	(14)
Imputed Income	66	(4)
Windfalls, Gifts, Scholarships, Prizes, and Transfer Payments	70	(13)
Windfalls	70	(1)
Gifts and Bequests	71	(9)
Scholarships, Prizes, and Awards	80	(2)
Transfer Payments	82	(1)
Selected Recovery of Capital Issues: Partial Sales, Annuities, Insurance Policies, Life Estates, and Remainder Interests	83	(17)
Partial Sales	83	(2)
Annuities	85	(9)
Life Insurance	94	(3)
Gambling Winnings and Losses	97	(1)
Life Estates and Remainder Interests	97	(3)
Annual Accounting	100	(6)
Personal Injury Recoveries	106	(11)
Transactions Involving Loans and Income from Discharge of Indebtedness	117	(9)
Tax-Exempt Bonds	126	(1)
Gain from the Sale of a Personal Residence	127	(2)
Problems of Timing	129	(64)
Gains and Losses from Investment in Property	130	(15)
Realization of Gains and Losses	130	(1)
Recognition of Gains and Losses	131	(1)
Like-Kind Exchanges	132	(10)
Other Nonrecognition Rules	142	(3)
Transfers Incident to Marriage and Divorce	145	(10)
Installment Sale and Open Transaction Reporting	155	(6)
Original Issue Discount	161	(8)
The Cash Method of Accounting	169	(7)
Section 83 Transfers	176	(10)
The Accrual Method of Accounting	186	(7)
Personal Deductions, Exemptions, and Credits	193	(58)
Introduction	193	(9)
Casualty Losses	202	(9)
Extraordinary Medical Expenses	211	(12)
Charitable Contributions	223	(15)
Personal Interest	238	(7)
Taxes	245	(6)
Deductions for the Costs of Earning Income	251	(120)
The Statutory Framework	252	(2)
Current Expenses versus Capital Expenditures	254	(8)
Repair and Maintenance Expenses	262	(3)
Inventory Accounting	265	(12)
Rent Payments versus Installment Purchase	277	(4)
Goodwill and Other Intangible Assets	281	(3)
``Ordinary and Necessary'' Expenses	284	(7)
The Scope of ``Ordinary and Necessary''	284	(2)
Reasonable Compensation	286	(3)
Costs Associated with Illegal or Unethical Activities	289	(2)
Depreciation and the Accelerated Cost Recovery System	291	(19)
Depletion Deductions	310	(2)
Tax Shelters	312	(55)
The Characteristics of Tax Shelters	312	(2)
The Judicial Response to Tax Shelters	314	(9)
The Congressional Response to Tax Shelters	323	(1)
The Investment Interest Limitation of §163(d)	323	(5)
The Passive Loss Rules of §469	328	(13)
The At-Risk Rules of §465	341	(6)
The Limitations of §§264 and 265	347	(3)
The Accuracy-Related Penalties of §6662	350	(1)
Sale and Leaseback Transactions	351	(7)
Additional Review Examples	358	(4)
Corporate Tax Shelters	362	(5)
Alternative Minimum Tax	367	(4)
Mixed Personal and Business Expenditures	371	(60)
Controlling the Abuse of Business Deductions	372	(22)
Hobby Losses	372	(7)
Rental of a Dwelling Used by the Taxpayer	379	(8)
Home Offices, Computers, and Automobiles	387	(7)
Travel and Entertainment Expenses	394	(9)
Child Care Expenses	403	(5)
Commuting Expenses	408	(3)
Clothing Expenses	411	(3)
Legal Expenses	414	(3)
Educational Expenses	417	(14)
Income Shifting	431	(30)
Income from Services and Property	431	(12)
Trusts	443	(4)
Grantor Trusts	447	(6)
Family Partnerships	453	(4)
Below-Market Loans	457	(4)
Capital Gains and Losses	461	(44)
The Tax Treatment of Capital Gains and Losses	461	(9)
Policy Rationale for the Treatment of Capital Gain and Loss	470	(3)
The Definition of ``Capital Asset''	473	(13)
Section 1231 and Depreciation Recapture	486	(7)
Substitutes for Ordinary Income	493	(7)
The Sale of a Business	500	(4)
Connected Current and Prior Transactions	504	(1)
Exam Appendix	505	(92)
Table of Cases	597	(2)
Table of Internal Revenue Code Sections	599	(10)
Table of Treasury Regulations	609	(2)
Table of Other Administrative Pronouncements	611	(2)
Topical Index	613