9780131859265

Prentice Hall's Federal Taxation 2006: Comprehensive

by ; ; ; ; ; ; ;
  • ISBN13:

    9780131859265

  • ISBN10:

    0131859269

  • Edition: 19th
  • Format: Hardcover
  • Copyright: 2006-01-01
  • Publisher: Prentice Hall
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Summary

For mainstream introductory courses in individual federal income tax concepts and applications at the undergraduate or MBA level. This series goes beyond simply being a definitive guide by being the only book in tax that provides a built-in study guide (throughout the margins) to break down concepts and assist students in learning tax concepts.

Table of Contents

Preface xxv
PRINCIPLES
An Introduction to Taxation
1(1)
History of Taxation in the United States
2(2)
Early Periods
2(1)
Revenue Acts from 1913 to the Present
3(1)
Revenue Sources
3(1)
Types of Tax Rate Structures
4(3)
The Structure of Individual Income Tax Rates
4(1)
The Structure of Corporate Tax Rates
5(1)
Marginal, Average, and Effective Tax Rates for Taxpayers
5(1)
Determination of Taxable Income and Tax Due
6(1)
Other Types of Taxes
7(4)
State and Local Income and Franchise Taxes
7(1)
Wealth Transfer Taxes
7(3)
Other Types of Taxes
10(1)
Criteria for a Tax Structure
11(2)
Equity
11(1)
Certainty
12(1)
Convenience
13(1)
Economy
13(1)
Objectives of the Federal Income Tax Law
13(2)
Economic Objectives
14(1)
Encouragement of Certain Activities and Industries
14(1)
Social Objectives
14(1)
Entities in the Federal Income Tax System
15(7)
Taxpaying Entities
15(4)
Flow-Through Entities
19(3)
Other Entities
22(1)
Tax Law Sources
22(1)
Enactment of a Tax Law
23(2)
Steps in the Legislative Process
24(1)
Administration of the Tax Law and Tax Practice Issues
25(3)
Organization of the Internal Revenue Service
25(1)
Enforcement Procedures
25(1)
Selection of Returns for Audit
25(1)
Statute of Limitations
26(1)
Interest
27(1)
Penalties
27(1)
Administrative Appeal Procedures
27(1)
Components of a Tax Practice
28(1)
Tax Compliance and Procedure
28(1)
Tax Research
28(1)
Tax Planning and Consulting
28(1)
Financial Planning
29(1)
Computer Applications in Tax Practice
29(1)
Tax Return Preparation
29(1)
Tax Planning Applications
30(1)
Tax Research Applications
30(1)
Problem Materials
30
Discussion Questions
30(2)
Problems
32(2)
Tax Strategy Problem
34(1)
Case Study Problem
34(1)
Research Problem
34
Determination of Tax
1(1)
Formula for Individual Income Tax
2(5)
Basic Formula
2(1)
Definitions
3(3)
Tax Formula Illustrated
6(1)
Deductions from Adjusted Gross Income
7(13)
Itemized Deductions
7(3)
Standard Deduction
10(2)
Personal Exemptions
12(1)
Dependency Exemptions
13(7)
Child Credit
20(1)
Determining the Amount of Tax
20(6)
Filing Status
20(1)
Joint Return
21(1)
Surviving Spouse
22(1)
Head of Household
22(1)
Single Taxpayer
23(1)
Married Filing a Separate Return
23(1)
Abandoned Spouse
23(1)
Dependents with Unearned Income
24(2)
Business Income and Business Entities
26(3)
Treatment of Capital Gains and Losses
29(1)
Definition of Capital Assets
30(1)
Tax Treatment of Gains and Losses
30(1)
Tax Planning Considerations
30(3)
Shifting Income Between Family Members
30(1)
Splitting Income
31(1)
Maximizing Itemized Deductions
31(1)
Filing Joint or Separate Returns
31(2)
Compliance and Procedural Considerations
33(2)
Who Must File
33(1)
Due Dates and Extensions
33(1)
Use of Forms 1040, 1040EZ, and 1040A
34(1)
System for Reporting Income
34(1)
Problem Materials
35
Discussion Questions
35(1)
Issue Identification Questions
36(1)
Problems
36(5)
Tax Strategy Problems
41(1)
Tax Form/Return Preparation Problems
41(1)
Case Study Problems
42(1)
Tax Research Problems
42
Gross Income: Inclusions
1(1)
Economic and Accounting Concepts of Income
2(1)
Economic Concept
2(1)
Accounting Concept
2(1)
Tax Concept of Income
3(3)
Administrative Convenience
3(1)
Wherewithal to Pay
4(1)
Gross Income Defined
4(2)
To Whom Is Income Taxable?
6(2)
Assignment of Income
6(1)
Allocating Income Between Married People
6(2)
Income of Minor Children
8(1)
When Is Income Taxable?
8(5)
Cash Method
8(3)
Accrual Method
11(1)
Hybrid Method
12(1)
Items of Gross Income: Sec. 61(a)
13(10)
Compensation
13(1)
Business Income
13(1)
Gains from Dealings in Property
13(1)
Interest
13(2)
Rents and Royalties
15(1)
Dividends
16(2)
Alimony and Separate Maintenance Payments
18(2)
Pensions and Annuities
20(2)
Income from Life Insurance and Endowment Contracts
22(1)
Income from Discharge of Indebtedness
23(1)
Income Passed Through to Taxpayer
23(1)
Other Items of Gross Income
23(5)
Prizes, Awards, Gambling Winnings, and Treasure Finds
23(1)
Illegal Income
24(1)
Unemployment Compensation
24(1)
Social Security Benefits
24(1)
Insurance Proceeds and Court Awards
25(1)
Recovery of Previously Deducted Amounts
26(1)
Claim of Right
27(1)
Tax Planning Considerations
28(2)
Shifting Income
28(1)
Alimony
28(1)
Prepaid Income
28(1)
Taxable, Tax-Exempt, or Tax-Deferred Bonds
29(1)
Reporting Savings Bond Interest
29(1)
Deferred Compensation Arrangements
30(1)
Compliance and Procedural Considerations
30(1)
Problem Materials
31
Discussion Questions
31(3)
Issue Identification Questions
34(1)
Problems
35(3)
Comprehensive Problems
38(1)
Tax Strategy Problems
38(1)
Tax Form/Return Preparation Problems
39(1)
Case Study Problems
39(1)
Tax Research Problem
40
Gross Income: Exclusions
1(1)
Items That Are Not Income
2(2)
Unrealized Income
2(1)
Self-Help Income
3(1)
Rental Value of Personal-Use Property
3(1)
Selling Price of Property
3(1)
Major Statutory Exclusions
4(18)
Gifts and Inheritances
4(1)
Life Insurance Proceeds
5(1)
Adoption Expenses
6(1)
Awards for Meritorious Achievement
7(1)
Scholarships and Fellowships
7(1)
Distributions from Qualified Tuition Programs
8(1)
Payments for Injury and Sickness
8(2)
Employee Fringe Benefits
10(8)
Foreign-Earned Income Exclusion
18(1)
Income from the Discharge of a Debt
19(2)
Exclusion for Gain from Small Business Stock
21(1)
Other Exclusions
21(1)
Tax Planning Considerations
22(1)
Employee Fringe Benefits
22(1)
Self-Help Income and Use of Personally Owned Property
23(1)
Compliance and Procedural Considerations
23(1)
Problem Materials
24
Discussion Questions
24(1)
Issue Identification Questions
25(1)
Problems
26(3)
Comprehensive Problems
29(1)
Tax Strategy Problems
30(1)
Tax Form/Return Preparation Problems
30(1)
Case Study Problems
31(1)
Tax Research Problems
31
Property Transactions: Capital Gains and Losses
1(1)
Determination of Gain or Loss
2(3)
Realized Gain or Loss
2(2)
Recognized Gain or Loss
4(1)
Basis Considerations
5(8)
Cost of Acquired Property
5(1)
Property Received as a Gift: Gifts After 1921
6(2)
Property Received from a Decedent
8(1)
Property Converted from Personal Use to Business Use
9(1)
Allocation of Basis
10(3)
Definition of a Capital Asset
13(3)
Influence of the Courts
13(1)
Other IRC Provisions Relevant to Capital Gains and Losses
14(2)
Tax Treatment for Capital Gains and Losses of Noncorporate Taxpayers
16(4)
Capital Gains
16(1)
Adjusted Net Capital Gains (ANCG)
17(1)
Capital Losses
18(2)
Tax Treatment of Capital Gains and Losses: Corporate Taxpayers
20(1)
Sale or Exchange
21(7)
Worthless Securities
22(1)
Retirement of Debt Instruments
22(3)
Options
25(1)
Patents
26(1)
Franchises, Trademarks, and Trade Names
27(1)
Lease Cancellation Payments
27(1)
Holding Period
28(2)
Property Received as a Gift
28(1)
Property Received from a Decedent
29(1)
Nontaxable Exchanges
29(1)
Receipt of Nontaxable Stock Dividends and Stock Rights
29(1)
Justification for Preferential Treatment of Net Capital Gains
30(1)
Mobility of Capital
30(1)
Mitigation of the Effects of Inflation and the Progressive Tax System
30(1)
Lowers the Cost of Capital
31(1)
Tax Planning Considerations
31(2)
Selection of Property to Transfer by Gift
31(1)
Selection of Property to Transfer at Time of Death
32(1)
Compliance and Procedural Considerations
33(7)
Documentation of Basis
33(1)
Reporting of Capital Gains and Losses on Schedule D
33(7)
Problem Materials
40
Discussion Questions
40(1)
Issue Identification Questions
41(1)
Problems
42(4)
Comprehensive Problem
46(1)
Tax Strategy Problems
47(1)
Tax Form/Return Preparation Problems
47(1)
Case Study Problems
48(1)
Tax Research Problems
49
Deductions and Losses
1(1)
Classifying Deductions as For Versus From Adjusted Gross Income (AGI)
3(1)
Criteria for Deducting Business and Investment Expenses
4(6)
Business or Investment Requirement
5(2)
Ordinary Expense
7(1)
Necessary Expense
8(1)
Reasonable Expense
8(1)
Expenses and Losses Must Be Incurred Directly by the Taxpayer
9(1)
General Restrictions on the Deductibility of Expenses
10(7)
Capitalization Versus Expense Deduction
10(2)
Expenses Related to Exempt Income
12(1)
Expenditures That Are Contrary to Public Policy
12(2)
Other Expenditures Specifically Disallowed
14(3)
Proper Substantiation Requirement
17(1)
When an Expense Is Deductible
18(5)
Cash Method
18(3)
Accrual Method
21(2)
Special Disallowance Rules
23(11)
Wash Sales
23(3)
Transactions Between Related Parties
26(3)
Hobby Losses
29(2)
Vacation Home
31(3)
Expenses of an Office in the Home
34(1)
Tax Planning Considerations
34(2)
Hobby Losses
34(1)
Unreasonable Compensation
35(1)
Timing of Deductions
36(1)
Compliance and Procedural Considerations
36(1)
Proper Classification of Deductions
36(1)
Proper Substantiation
37(1)
Business Versus Hobby
37(1)
Problem Materials
37
Discussion Questions
37(2)
Issue Identification Questions
39(1)
Problems
39(6)
Comprehensive Problems
45(1)
Tax Strategy Problems
46(1)
Tax Form/Return Preparation Problems
47(2)
Case Study Problem
49(1)
Tax Research Problem
50(1)
Tax Research Case
50
Itemized Deductions
1(1)
Medical Expenses
2(7)
Qualified Individuals
2(1)
Qualified Medical Expenses
3(3)
Amount and Timing of Deduction
6(3)
Taxes
9(3)
Definition of a Tax
9(1)
Deductible Taxes
9(1)
Nondeductible Taxes
9(1)
State and Local Income Taxes
10(1)
State and Local Sales Taxes
10(1)
Personal Property Taxes
10(1)
Real Estate Taxes
11(1)
Self-Employment Tax
11(1)
Interest
12(9)
Definition of Interest
12(1)
Classification of Interest Expense
12(7)
Timing of the Interest Deduction
19(2)
Charitable Contributions
21(7)
Qualifying Organization
21(1)
Type of Property Contributed
22(2)
Deduction Limitations
24(1)
Application of Carryovers
25(1)
Special Rules for Charitable Contributions Made by Corporations
26(1)
Summary of Deduction Limitations
26(2)
Casualty and Theft Losses
28(1)
Miscellaneous Itemized Deductions
28(1)
Certain Employee Expenses
28(1)
Expenses to Produce Income
28(1)
Cost of Tax Advice
28(1)
Reduction of Certain Itemized Deductions
29(1)
Tax Planning Considerations
30(3)
Medical Expense Deduction
30(1)
Interest Expense Deduction
31(1)
Deduction for Charitable Contributions
32(1)
Compliance and Procedural Considerations
33(4)
Medical Expenses
33(1)
Charitable Contributions
33(2)
Taxes
35(2)
Problem Materials
37
Discussion Questions
37(1)
Issue Identification Questions
38(1)
Problems
39(4)
Comprehensive Problem
43(1)
Tax Strategy Problems
43(1)
Tax Form/Return Preparation Problems
44(1)
Case Study Problems
45(1)
Tax Research Problems
46
Losses and Bad Debts
1(1)
Transactions That May Result in Losses
2(2)
Sale or Exchange of Property
2(1)
Expropriated, Seized, or Confiscated Property
3(1)
Abandoned Property
3(1)
Worthless Securities
3(1)
Demolition of Property
4(1)
Classifying the Loss on the Taxpayer's Tax Return
4(3)
Ordinary Versus Capital Loss
5(1)
Disallowance Possibilities
6(1)
Passive Losses
7(10)
Computation of Passive Losses and Credits
7(1)
Carryovers
8(2)
Definition of a Passive Activity
10(2)
Taxpayers Subject to Passive Loss Rules
12(1)
Publicly Traded Partnerships
13(1)
Rental Real Estate Trade or Business
14(1)
Other Rental Real Estate Activities
15(2)
Casualty and Theft Losses
17(7)
Casualty Defined
17(2)
Theft Defined
19(1)
Deductible Amount of Casualty Loss
19(1)
Limitations on Personal-Use Property
20(1)
Netting Casualty Gains and Losses on Personal-Use Property
21(1)
Casualty Gains and Losses Attributable to Business and Investment Property
22(1)
When Losses Are Deductible
22(2)
Bad Debts
24(5)
Bona Fide Debtor--Creditor Relationship
24(1)
Taxpayer's Basis in the Debt
25(1)
Debt Must Be Worthless
26(1)
Nonbusiness Bad Debts
26(2)
Business Bad Debts
28(1)
Accounting for the Business Bad Debt
28(1)
Recovery of Bad Debts
28(1)
Deposits in Insolvent Financial Institutions
28(1)
Net Operating Losses
29(5)
Computing the Net Operating Loss for Individuals
30(2)
Carryback and Carryover Periods
32(1)
Recomputation of Taxable Income in the Carryover Year
33(1)
Tax Planning Considerations
34(1)
Bad Debts
34(1)
Casualties
34(1)
Net Operating Losses
34(1)
Compliance and Procedural Considerations
34(1)
Casualty Losses
34(1)
Net Operating Losses
35(1)
Worthless Securities
35(1)
Problem Materials
35
Discussion Questions
35(2)
Issue Identification Questions
37(1)
Problems
37(4)
Tax Strategy Problems
41(1)
Tax Form/Return Preparation Problems
42(2)
Case Study Problems
44(1)
Tax Research Problem
44
Employee Expenses and Deferred Compensation
1(1)
Classification and Limitations of Employee Expenses
2(2)
Nature of the Employment Relationship
2(1)
Limitations on Unreimbursed Employee Expenses
3(1)
Travel Expenses
4(5)
Deductibility of Travel Expenses
4(1)
Definition of Travel Expenses
5(1)
General Qualification Requirements
6(1)
Business Versus Pleasure
7(1)
Foreign Travel
8(1)
Additional Limitations on Travel Expenses
8(1)
Transportation Expenses
9(3)
Definition and Classification
9(2)
Treatment of Automobile Expenses
11(1)
Reimbursement of Automobile Expenses
12(1)
Entertainment Expenses
12(4)
50% Disallowance for Meal and Entertainment Expenses
13(1)
Classification of Expenses
13(1)
Business Meals
14(1)
Entertainment Facilities and Club Dues
15(1)
Business Gifts
15(1)
Limitations on Entertainment Tickets
16(1)
Reimbursed Employee Business Expenses
16(2)
Moving Expenses
18(2)
Expense Classification
19(1)
Definition of Moving Expenses
19(1)
Treatment of Employer Reimbursements
20(1)
Education Expenses
20(4)
Classification of Education Expenses
21(1)
General Requirements for a Deduction
21(3)
Office in Home Expenses
24(2)
General Requirements for a Deduction
24(1)
Deduction and Limitations
25(1)
Deferred Compensation
26(17)
Qualified Pension and Profit-Sharing Plans
26(3)
Qualification Requirements for a Qualified Plan
29(1)
Tax Treatment to Employees and Employers
29(2)
Nonqualified Plans
31(2)
Employee Stock Options
33(3)
Plans for Self-Employed Individuals
36(1)
Individual Retirement Accounts (IRAs)
37(1)
Traditional IRA
37(2)
Roth IRA
39(2)
Coverdell Education Savings Account
41(1)
Health Savings Accounts
42(1)
Simplified Employee Pensions
42(1)
Simple Retirement Plans
43(1)
Tax Planning Considerations
43(2)
Moving Expenses
43(1)
Providing Nontaxable Compensation to Employees
44(1)
Rollover of Traditional IRA to Roth IRA
44(1)
Compliance and Procedural Considerations
45(4)
Substantiating Travel and Entertainment Expenses
45(1)
Reporting Employee Business Expenses
45(3)
Reporting Moving Expenses
48(1)
Reporting Office in Home Expenses
48(1)
Qualification of Pension and Profit-Sharing Plans
49(1)
Problem Materials
49
Discussion Questions
49(3)
Issue Identification Questions
52(1)
Problems
52(7)
Comprehensive Problem
59(1)
Tax Strategy Problem
60(1)
Tax Form/Return Preparation Problems
61(1)
Case Study Problems
62(1)
Tax Research Problem
63
Depreciation, Cost Recovery, Amortization, and Depletion
1(1)
Depreciation and Cost Recovery
2(15)
General Considerations
2(2)
Depreciation Methods
4(1)
Calculation of Depreciation
5(7)
MACRS Restrictions
12(5)
Amortization
17(5)
Sec. 197 Intangibles
17(3)
Research and Experimental Expenditures
20(1)
Computer Software
21(1)
Depletion, Intangible Drilling, and Development Costs
22(3)
Depletion Methods
23(1)
Treatment of Intangible Drilling and Development Costs
24(1)
Tax Planning Considerations
25(2)
Alternative Depreciation System Under MACRS
25(1)
IDCs: Capitalization Versus Expensing Election
25(1)
Use of Units of Production Depreciation
26(1)
Structuring a Business Combination
26(1)
Compliance and Procedural Considerations
27(3)
IDC Election Procedures
27(1)
Reporting Cost Recovery, Depreciation, Depletion, and Amortization Deductions
27(3)
Research and Experimental Expenditures
30(1)
Problem Materials
30
Discussion Questions
30(2)
Issue Identification Questions
32(1)
Problems
32(5)
Comprehensive Problem
37(1)
Tax Strategy Problem
38(1)
Tax Form/Return Preparation Problems
38(1)
Case Study Problems
38(1)
Tax Research Problem
39
Accounting Periods and Methods
1(1)
Accounting Periods
2(5)
Required Payments and Fiscal Years
3(1)
Changes in the Accounting Period
4(1)
Returns for Periods of Less Than 12 Months
5(2)
Overall Accounting Methods
7(4)
Cash Receipts and Disbursements Method
7(2)
Accrual Method
9(1)
Hybrid Method
10(1)
Inventories
11(4)
Determination of Inventory Cost
11(4)
Special Accounting Methods
15(7)
Long-Term Contracts
15(2)
Installment Sales Method
17(4)
Deferred Payment Sales
21(1)
Imputed Interest
22(3)
Imputed Interest Computation
23(1)
Accrual of Interest
23(1)
Gift, Shareholder, and Other Loans
24(1)
Change in Accounting Methods
25(3)
Amount of Change
26(1)
Reporting the Amount of the Change
27(1)
Obtaining IRS Consent
27(1)
Tax Planning Considerations
28(1)
Accounting Periods
28(1)
Accounting Methods
28(1)
Installment Sales
28(1)
Compliance and Procedural Considerations
28(2)
Reporting Installment Sales on Form 6252
28(2)
Procedures for Changing to LIFO
30(1)
Problem Materials
30
Discussion Questions
30(1)
Issue Identification Questions
31(1)
Problems
31(3)
Comprehensive Problem
34(1)
Tax Strategy Problems
35(1)
Tax Form/Return Preparation Problem
35(1)
Case Study Problems
35(1)
Tax Research Problems
36
Property Transactions: Nontaxable Exchanges
1(1)
Like-Kind Exchanges
2(8)
Like-Kind Property Defined
2(3)
A Direct Exchange Must Occur
5(1)
Three-Party Exchanges
5(1)
Receipt of Boot
6(1)
Basis of Property Received
7(1)
Exchanges Between Related Parties
8(1)
Transfer of Non--Like-Kind Property
9(1)
Holding Period for Property Received
9(1)
Involuntary Conversions
10(6)
Involuntary Conversion Defined
11(1)
Tax Treatment of Gain Due to Involuntary Conversion into Boot
12(1)
Replacement Property
13(1)
Obtaining Replacement Property
14(1)
Time Requirements for Replacement
15(1)
Sale of Principal Residence
16(5)
Principal Residence Defined
17(1)
Sale of More Than One Principal Residence Within a Two-Year Period
18(2)
Involuntary Conversion of a Principal Residence
20(1)
Tax Planning Considerations
21(1)
Avoiding the Like-Kind Exchange Provisions
21(1)
Sale of a Principal Residence
21(1)
Compliance and Procedural Considerations
22(2)
Reporting of Involuntary Conversions
22(1)
Reporting of Sale or Exchange of a Principal Residence
23(1)
Problem Materials
24
Discussion Questions
24(1)
Issue Identification Questions
25(1)
Problems
25(4)
Comprehensive Problem
29(1)
Tax Strategy Problem
30(1)
Tax Form/Return Preparation Problems
30(1)
Case Study Problems
31(1)
Tax Research Problems
31
Property Transactions: Section 1231 and Recapture
1(1)
History of Sec. 1231
2(1)
Overview of Basic Tax Treatment for Sec. 1231
3(2)
Net Gains
3(1)
Net Losses
3(1)
Tax Rate for Net Sec. 1231 Gain
4(1)
Section 1231 Property
5(1)
Section 1231 Property Defined
5(1)
Real or Depreciable Property Used in Trade or Business
5(1)
Involuntary Conversions
6(1)
Condemnations
6(1)
Other Involuntary Conversions
7(1)
Procedure for Sec. 1231 Treatment
7(1)
Recapture Provisions of Sec. 1245
8(2)
Purpose of Sec. 1245
9(1)
Recapture Provisions of Sec. 1250
10(5)
Purpose of Sec. 1250
11(1)
Section 1250 Property Defined
11(1)
Unrecaptured Section 1250 Gain
12(1)
Recapture Rules for Residential Rental Property
12(1)
Residential Rental Property That Is Recovery Property
13(1)
Recapture Rules for Nonresidential Real Estate
13(2)
Low-Income Housing
15(1)
Additional Recapture for Corporations
15(1)
Summary of Secs. 1231, 1245, and 1250 Gains
16(1)
Recapture Provisions---Other Applications
16(6)
Gifts of Property Subject to Recapture
17(1)
Transfer of Property Subject to Recapture at Death
17(1)
Charitable Contributions
18(1)
Like-Kind Exchanges
18(1)
Involuntary Conversions
18(1)
Installment Sales
19(1)
Section 179 Expensing Election
19(1)
Conservation and Land Clearing Expenditures
20(1)
Intangible Drilling Costs and Depletion
20(1)
Gain on Sale of Depreciable Property Between Related Parties
21(1)
Tax Planning Considerations
22(2)
Avoiding the Recapture Provisions
22(2)
Compliance and Procedural Considerations
24(4)
Reporting Sec. 1231 Gains and Losses on Form 4797
24(1)
Reporting Gains Recaptured as Ordinary Income on Form 4797
24(1)
Reporting Casualty or Theft Gain or Loss on Form 4684
24(4)
Problem Materials
28
Discussion Questions
28(1)
Issue Identification Questions
29(1)
Problems
30(4)
Comprehensive Problem
34(1)
Tax Strategy Problems
34(1)
Tax Form/Return Preparation Problems
35(1)
Case Study Problems
36(1)
Tax Research Problem
36
Special Tax Computation Methods, Tax Credits, and Payment of Tax
1(1)
Alternative Minimum Tax
2(6)
Computational Aspects
3(1)
Tax Preference Items
4(1)
AMT Adjustments
4(3)
Summary Illustration of the AMT Computation
7(1)
Self-Employment Tax
8(2)
Computing the Tax
8(1)
What Constitutes Self-Employment Income
9(1)
Overview Of Tax Credits
10(1)
Use and Importance of Tax Credits
10(1)
Value of a Credit Versus a Deduction
10(1)
Classification of Credits
10(1)
Personal Tax Credits
10(8)
Child Tax Credit
11(1)
Child and Dependent Care Credit
12(2)
Tax Credit for the Elderly and Disabled
14(1)
Adoption Credit
14(1)
Hope Scholarship Credit
15(1)
Lifetime Learning Credit
16(1)
Qualified Retirement Savings Contributions Credit
17(1)
Limitation on Personal Credits
18(1)
Miscellaneous Credits
18(1)
Foreign Tax Credit
18(1)
General Business Credits
19(6)
Tax Credit for Rehabilitation Expenditures
19(1)
Business Energy Credits
20(1)
Work Opportunity Credit
20(1)
Welfare-to-Work Credit
21(1)
Credit for Employer-Provided Child Care
21(1)
Empowerment Zone Employment Credit
22(1)
Disabled Access Credit
23(1)
Credit for Increasing Research Activities
23(1)
Limitation Based upon Tax Liability
24(1)
Refundable Credits
25(1)
Earned Income Credit
25(1)
Payment of Taxes
26(5)
Withholding of Taxes
28(2)
Estimated Tax Payments
30(1)
Tax Planning Considerations
31(3)
Avoiding the Alternative Minimum Tax
31(1)
Avoiding the Underpayment Penalty for Estimated Tax
32(1)
Cash-Flow Considerations
33(1)
Use of General Business Tax Credits
33(1)
Foreign Tax Credits and the Foreign Earned Income Exclusion
33(1)
Child and Dependent Care Credit
34(1)
Compliance and Procedural Considerations
34(2)
Alternative Minimum Tax Filing Procedures
34(1)
Withholding and Estimated Tax
35(1)
General Business Tax Credits
35(1)
Personal Tax Credits
35(1)
Problem Materials
36
Discussion Questions
36(2)
Issue Identification Questions
38(1)
Problems
38(5)
Comprehensive Problem
43(1)
Tax Strategy Problem
44(1)
Tax Form/Return Preparation Problems
44(1)
Case Study Problems
45(1)
Tax Research Problem
45
CORPORATIONS
Tax Research
1(1)
Overview of Tax Research
2(1)
Steps in the Tax Research Process
3(2)
Importance of the Facts to the Tax Consequences
5(2)
Ability to Create a Factual Situation Favoring the Taxpayer
6(1)
The Sources of Tax Law
7(18)
The Legislative Process
7(1)
The Internal Revenue Code
8(1)
Treasury Regulations
8(3)
Administrative Pronouncements
11(3)
Judicial Decisions
14(10)
Tax Treaties
24(1)
Tax Periodicals
24(1)
Tax Services
25(3)
United States Tax Reporter
25(1)
Standard Federal Tax Reporter
26(1)
Federal Tax Coordinator 2d
26(1)
Tax Management Portfolios
27(1)
Law of Federal Income Taxation (Mertens)
27(1)
CCH Federal Tax Service
28(1)
Citators
28(6)
CCH Citator
28(3)
Research Institute of America Citator 2nd Series
31(3)
Computers as a Research Tool
34(1)
Statements on Standards for Tax Services
35(3)
Sample Work Papers and Client Letter
38(1)
Problem Materials
38
Discussion Questions
38(2)
Problems
40(3)
Comprehensive Problem
43(1)
Tax Strategy Problem
43(1)
Case Study Problem
43(1)
Tax Research Problems
44
Corporate Formations and Capital Structure
1(1)
Organization Forms Available
2(6)
Sole Proprietorships
2(1)
Partnerships
3(1)
Corporations
4(3)
Limited Liability Companies
7(1)
Limited Liability Partnerships
7(1)
Check-the-Box Regulations
8(1)
Legal Requirements for Forming a Corporation
9(1)
Tax Considerations in Forming a Corporation
9(3)
Section 351: Deferring Gain or Loss upon Incorporation
12(15)
The Property Requirement
12(1)
The Control Requirement
13(3)
The Stock Requirement
16(1)
Effect of Sec. 351 on the Transferors
16(4)
Tax Consequences to Transferee Corporation
20(2)
Assumption of the Transferor's Liabilities
22(3)
Other Considerations in a Sec. 351 Exchange
25(2)
Choice of Capital Structure
27(5)
Characterization of Obligations as Debt or Equity Capital
27(1)
Debt Capital
28(1)
Equity Capital
29(1)
Capital Contributions by Shareholders
29(2)
Capital Contributions by Nonshareholders
31(1)
Worthlessness of Stock or Debt Obligations
32(2)
Securities
32(1)
Unsecured Debt Obligations
33(1)
Tax Planning Considerations
34(2)
Avoiding Sec. 351
34(2)
Compliance and Procedural Considerations
36(1)
Reporting Requirements Under Sec. 351
36(1)
Problem Materials
37
Discussion Questions
37(1)
Issue Identification Questions
38(1)
Problems
38(5)
Comprehensive Problems
43(1)
Tax Strategy Problems
43(1)
Case Study Problems
44(1)
Tax Research Problems
45
The Corporate Income Tax
1(1)
Corporate Elections
2(3)
Choosing a Calendar or Fiscal Year
2(2)
Accounting Methods
4(1)
General Formula for Determining the Corporate Tax Liability
5(1)
Computing a Corporation's Taxable Income
5(17)
Sales and Exchanges of Property
6(2)
Business Expenses
8(5)
Special Deductions
13(7)
Exceptions for Closely-Held Corporations
20(2)
Computing a Corporation's Income Tax Liability
22(2)
General Rules
23(1)
Personal Service Corporations
24(1)
Controlled Groups of Corporations
24(7)
Why Special Rules Are Needed
24(1)
What Is a Controlled Group?
25(3)
Application of the Controlled Group Test
28(1)
Special Rules Applying to Controlled Groups
29(1)
Consolidated Tax Returns
29(2)
Tax Planning Considerations
31(3)
Compensation Planning for Shareholder-Employees
31(1)
Special Election to Allocate Reduced Tax Rate Benefits
32(2)
Using NOL Carryovers and Carrybacks
34(1)
Compliance and Procedural Considerations
34(8)
Estimated Taxes
34(3)
Requirements for Filing and Paying Taxes
37(1)
When the Return Must Be Filed
37(1)
Tax Return Schedules
38(4)
Problem Materials
42
Discussion Questions
42(1)
Issue Identification Questions
43(1)
Problems
43(6)
Comprehensive Problem
49(1)
Tax Strategy Problem
50(1)
Tax Form/Return Preparation Problem
51(1)
Case Study Problems
52(1)
Tax Research Problems
52
Corporate Nonliquidating Distributions
1(1)
Nonliquidating Distributions in General
2(1)
Earnings and Profits (E&P)
3(5)
Current Earnings and Profits
3(3)
Distinction Between Current and Accumulated E&P
6(2)
Nonliquidating Property Distributions
8(5)
Consequences of Nonliquidating Property Distributions to the Shareholders
8(1)
Consequences of Property Distributions to the Distributing Corporation
9(2)
Constructive Dividends
11(2)
Stock Dividends and Stock Rights
13(3)
Tax-Free Stock Dividends
14(1)
Tax-Free Stock Rights
15(1)
Effect of Nontaxable Stock Dividends on the Distributing Corporation
16(1)
Taxable Stock Dividends and Stock Rights
16(1)
Stock Redemptions
16(12)
Effect of the Redemption on the Shareholder
17(1)
Attribution Rules
18(2)
Substantially Disproportionate Redemptions
20(1)
Complete Termination of the Shareholder's Interest
21(2)
Redemptions Not Essentially Equivalent to a Dividend
23(1)
Partial Liquidations
24(1)
Redemptions to Pay Death Taxes
25(2)
Effect of Redemptions on the Distributing Corporation
27(1)
Preferred Stock Bailouts
28(2)
Sec. 306 Stock Defined
28(1)
Dispositions of Sec. 306 Stock
29(1)
Redemptions of Sec. 306 Stock
30(1)
Exceptions to Sec. 306 Treatment
30(1)
Stock Redemptions by Related Corporations
30(3)
Brother-Sister Corporations
31(1)
Parent-Subsidiary Corporations
32(1)
Tax Planning Considerations
33(3)
Avoiding Unreasonable Compensation
33(1)
Bootstrap Acquisitions
34(1)
Timing of Distributions
35(1)
Compliance and Procedural Considerations
36(1)
Corporate Reporting of Nondividend Distributions
36(1)
Agreement to Terminate Interest Under Sec. 302(B)(3)
36(1)
Problem Materials
37
Discussion Questions
37(1)
Issue Identification Questions
38(1)
Problems
39(6)
Comprehensive Problem
45(1)
Tax Strategy Problem
45(1)
Case Study Problems
46(1)
Tax Research Problems
46
Other Corporate Tax Levies
1(1)
The Corporate Alternative Minimum Tax
2(14)
The General Formula
2(2)
Definitions
4(2)
Tax Preference Items
6(1)
Adjustments to Taxable Income
6(4)
Adjusted Current Earnings (ACE) Adjustment
10(4)
Minimum Tax Credit
14(1)
Tax Credits and the AMT
15(1)
Personal Holding Company Tax
16(9)
Personal Holding Company Defined
17(1)
Stock Ownership Requirement
17(1)
Passive Income Requirement
17(4)
Calculating the PHC Tax
21(2)
Avoiding the PHC Designation and Tax Liability by Making Dividend Distributions
23(1)
PHC Tax Calculation
24(1)
Accumulated Earnings Tax
25(10)
Corporations Subject to the Penalty Tax
25(1)
Proving a Tax-Avoidance Purpose
26(1)
Evidence Concerning the Reasonableness of an Earnings Accumulation
27(4)
Calculating the Accumulated Earnings Tax
31(3)
Comprehensive Example
34(1)
Tax Planning Considerations
35(2)
Special AMT Elections
35(1)
Eliminating the ACE Adjustment
36(1)
Avoiding the Personal Holding Company Tax
36(1)
Alternative Minimum Tax
37(1)
Compliance and Procedural Considerations
37(1)
Personal Holding Company Tax
37(1)
Avoiding the Accumulated Earnings Tax
37(1)
Accumulated Earnings Tax
38(1)
Problem Materials
38
Discussion Questions
38(3)
Issue Identification Questions
41(1)
Problems
41(7)
Comprehensive Problem
48(1)
Tax Strategy Problems
48(1)
Tax Form/Return Preparation Problem
49(1)
Case Study Problems
49(1)
Tax Research Problems
50
Corporate Liquidating Distributions
1(1)
Overview of Corporate Liquidations
2(3)
The Shareholder
2(1)
The Corporation
3(1)
Definition of a Complete Liquidation
3(2)
General Liquidation Rules
5(5)
Effects of Liquidating on the Shareholders
5(1)
Effects of Liquidating on the Liquidating Corporation
6(4)
Liquidation of a Controlled Subsidiary Corporation
10(4)
Requirements
10(1)
Effects of Liquidating on the Shareholders
11(2)
Effects of Liquidating on the Subsidiary Corporation
13(1)
Special Shareholder Reporting Issues
14(2)
Partially Liquidating Distributions
14(1)
Subsequent Assessments Against the Shareholders
15(1)
Open Versus Closed Transactions
15(1)
Installment Obligations Received by a Shareholder
15(1)
Special Corporate Reporting Issues
16(1)
Expenses of the Liquidation
16(1)
Treatment of Net Operating Losses
16(1)
Recognition of Gain or Loss When Property Is Distributed in Retirement of Debt
17(1)
General Rule
17(1)
Satisfaction of the Subsidiary's Debt Obligations
17(1)
Tax Planning Considerations
18(2)
Timing the Liquidation Transaction
18(1)
Recognition of Ordinary Losses When a Liquidation Occurs
18(1)
Obtaining 80% Ownership to Achieve Sec. 332 Benefits
19(1)
Avoiding Sec. 332 to Recognize Losses
19(1)
Compliance and Procedural Considerations
20(1)
General Liquidation Procedures
20(1)
Section 332 Liquidations
20(1)
Plan of Liquidation
21(1)
Problem Materials
21
Discussion Questions
21(2)
Issue Identification Questions
23(1)
Problems
23(6)
Comprehensive Problem
29(2)
Tax Strategy Problems
31(1)
Case Study Problems
32(1)
Tax Research Problems
33
Corporate Acquisitions and Reorganizations
1(1)
Taxable Acquisition Transactions
2(9)
Asset Acquisitions
2(2)
Stock Acquisitions
4(7)
Comparison of Taxable and Tax-Free Acquisitions
11(4)
Taxable and Tax-Free Asset Acquisitions
11(1)
Comparison of Taxable and Tax-Free Stock Acquisitions
12(3)
Types of Reorganizations
15(1)
Tax Consequences of Reorganizations
16(5)
Target or Transferor Corporation
16(1)
Acquiring or Transferee Corporation
17(1)
Shareholders and Security Holders
18(3)
Acquisitive Reorganizations
21(14)
Type A Reorganization
21(7)
Type C Reorganization
28(2)
Type D Reorganization
30(1)
Type B Reorganization
31(4)
Type G Reorganization
35(1)
Divisive Reorganizations
35(6)
Divisive Type D Reorganization
37(4)
Type G Divisive Reorganization
41(1)
Other Reorganization Transactions
41(2)
Type E Reorganization
41(2)
Type F Reorganization
43(1)
Judicial Restrictions on the Use of Corporate Reorganizations
43(3)
Continuity of Proprietary Interest
43(1)
Continuity of Business Enterprise
44(1)
Business Purpose Requirement
45(1)
Step Transaction Doctrine
45(1)
Tax Attributes
46(3)
Assumption of Tax Attributes
46(1)
Limitation on Use of Tax Attributes
47(2)
Tax Planning Considerations
49(2)
Why Use a Reorganization Instead of a Taxable Transaction?
49(1)
Avoiding the Reorganization Provisions
50(1)
Compliance and Procedural Considerations
51(1)
Section 338 Election
51(1)
Plan of Reorganization
51(1)
Party to a Reorganization
51(1)
Ruling Requests
51(1)
Problem Materials
52
Discussion Questions
52(1)
Issue Identification Questions
53(1)
Problems
54(8)
Comprehensive Problem
62(1)
Tax Strategy Problems
63(1)
Case Study Problems
63(1)
Tax Research Problems
64
Consolidated Tax Returns
1(1)
Definition of an Affiliated Group
2(1)
Source of the Consolidated Tax Return Rules
2(2)
Requirements
2(2)
Comparison with Controlled Group Definitions
4(1)
Should a Consolidated Return Be Filed?
4(1)
Advantages of Filing a Consolidated Tax Return
4(1)
Disadvantages of Filing a Consolidated Tax Return
5(1)
Consolidated Taxable Income
5(5)
Income Included in the Consolidated Tax Return
7(1)
Affiliated Group Elections
8(1)
Termination of the Affiliated Group
8(2)
Computation of the Affiliated Group's Tax Liability
10(2)
Regular Tax Liability
10(1)
Corporate Alternative Minimum Tax Liability
10(1)
Consolidated Tax Credits
11(1)
Intercompany Transactions
12(9)
Property Transactions
12(6)
Other Intercompany Transactions
18(3)
Dividends Received by Group Members
21(1)
Exclusion Procedure
21(1)
Consolidated Dividends-Received Deduction
21(1)
Consolidated Charitable Contributions Deduction
22(2)
Consolidated U.S. Production Activities Deduction
23(1)
Net Operating Losses (NOLs)
24(8)
Current Year NOLs
24(1)
Carrybacks and Carryforwards of Consolidated NOLs
24(1)
Carryback of Consolidated NOL to Separate Return Year
25(2)
Carryforward of Consolidated NOL to Separate Return Year
27(1)
Special Loss Limitations
27(5)
Consolidated Capital Gains and Losses
32(2)
Section 1231 Gains and Losses
32(1)
Capital Gains and Losses
33(1)
Stock Basis Adjustments
34(1)
Tax Planning Considerations
35(2)
100% Dividends-Received Deduction Election
35(1)
Estimated Tax Payments
36(1)
Compliance and Procedural Considerations
37(2)
The Basic Election and Return
37(1)
Parent Corporation as Agent for the Affiliated Group
38(1)
Liability for Taxes Due
38(1)
Problem Materials
39
Discussion Questions
39(2)
Issue Identification Questions
41(1)
Problems
41(6)
Comprehensive Problem
47(1)
Tax Strategy Problem
47(1)
Tax Form/Return Preparation Problem
47(2)
Case Study Problems
49(1)
Tax Research Problems
49
Partnership Formation and Operation
1(1)
Definition of a Partnership
2(2)
General and Limited Partnerships
2(2)
Overview of Taxation of Partnership Income
4(1)
Partnership Profits and Losses
4(1)
The Partner's Basis
4(1)
Partnership Distributions
5(1)
Tax Implications of Formation of a Partnership
5(7)
Contribution of Property
5(5)
Contribution of Services
10(2)
Organizational and Syndication Expenditures
12(1)
Partnership Elections
12(4)
Partnership Tax Year
12(3)
Other Partnership Elections
15(1)
Partnership Reporting of Income
16(1)
Partnership Taxable Income
16(1)
Separately Stated Items
16(1)
Partnership Ordinary Income
17(1)
U.S. Production Activities Deduction
17(1)
Partner Reporting of Income
17(4)
Partner's Distributive Share
17(1)
Special Allocations
18(3)
Basis for Partnership Interest
21(5)
Beginning Basis
21(1)
Effects of Liabilities
21(3)
Effects of Operations
24(2)
Special Loss Limitations
26(1)
At-Risk Loss Limitation
26(1)
Passive Activity Limitations
26(1)
Transactions Between a Partner and the Partnership
27(3)
Sales of Property
27(1)
Guaranteed Payments
28(2)
Family Partnerships
30(1)
Capital Ownership
30(1)
Donor-Donee Allocations of Income
30(1)
Tax Planning Considerations
31(1)
Timing of Loss Recognition
31(1)
Compliance and Procedural Considerations
32(2)
Reporting to the IRS and the Partners
32(1)
IRS Audit Procedures
33(1)
Problem Materials
34
Discussion Questions
34(1)
Issue Identification Questions
35(1)
Problems
36(7)
Comprehensive Problems
43(1)
Tax Strategy Problem
44(1)
Tax Form/Return Preparation Problem
45(1)
Case Study Problems
45(3)
Tax Research Problems
48
Special Partnership Issues
1(1)
Nonliquidating Distributions
2(5)
Recognition of Gain
2(2)
Basis Effects of Distributions
4(3)
Holding Period and Character of Distributed Property
7(1)
Nonliquidating Distributions with Sec. 751
7(4)
Section 751 Assets Defined
7(2)
Exchange of Sec. 751 Assets and Other Property
9(2)
Terminating an Interest in a Partnership
11(15)
Liquidating Distributions
12(4)
Sale of a Partnership Interest
16(3)
Retirement or Death of a Partner
19(1)
Exchange of a Partnership Interest
20(2)
Income Recognition and Transfers of a Partnership Interest
22(1)
Termination of a Partnership
22(3)
Mergers and Consolidations
25(1)
Division of a Partnership
25(1)
Optional and Mandatory Basis Adjustments
26(3)
Adjustments on Transfers
26(2)
Adjustments on Distributions
28(1)
Special Forms of Partnerships
29(5)
Tax Shelters and Limited Partnerships
29(1)
Publicly Traded Partnerships
29(1)
Limited Liability Companies
30(1)
Limited Liability Partnerships
30(1)
Electing Large Partnerships
31(3)
Tax Planning Considerations
34(1)
Liquidating Distribution or Sale to Partners
34(1)
Problem Materials
35
Discussion Questions
35(1)
Issue Identification Questions
36(1)
Problems
37(9)
Comprehensive Problems
46(1)
Tax Strategy Problem
47(1)
Case Study Problems
47(2)
Tax Research Problems
49
S Corporations
1(1)
Should an S Election Be Made?
3(1)
Advantages of S Corporation Treatment
3(1)
Disadvantages of S Corporation Treatment
3(1)
S Corporation Requirements
4(3)
Shareholder-Related Requirements
4(1)
Corporation-Related Requirements
5(2)
Election of S Corporation Status
7(6)
Making the Election
8(1)
Termination of the Election
9(4)
S Corporation Operations
13(6)
Taxable Year
13(1)
Accounting Method Elections
14(1)
Ordinary Income or Loss and Separately Stated Items
14(2)
U.S. Production Activities Deduction
16(1)
Special S Corporation Taxes
16(3)
Taxation of the Shareholder
19(6)
Income Allocation Procedures
19(1)
Loss and Deduction Pass-Through to Shareholders
20(3)
Family S Corporations
23(2)
Basis Adjustments
25(2)
Basis Adjustments to S Corporation Stock
25(1)
Basis Adjustments to Shareholder Debt
26(1)
S Corporation Distributions
27(6)
Corporations Having No Earnings and Profits
27(1)
Corporations Having Accumulated Earnings and Profits
28(5)
Other Rules
33(1)
Tax Preference Items and Other AMT Adjustments
33(1)
Transactions Involving Shareholders and Other Related Parties
33(1)
Fringe Benefits Paid to a Shareholder-Employee
34(1)
Tax Planning Considerations
34(3)
Election to Allocate Income Based on the S Corporation's Accounting Methods
34(2)
Increasing the Benefits from S Corporation Losses
36(1)
Passive Income Requirements
36(1)
Compliance and Procedural Considerations
37(3)
Making the Election
37(1)
Filing the Corporate Tax Return
38(1)
Estimated Tax Payments
38(1)
Consistency Rules
39(1)
Sample S Corporation Tax Return
39(1)
Problem Materials
40
Discussion Questions
40(1)
Issue Identification Questions
41(1)
Problems
41(7)
Comprehensive Problems
48(1)
Tax Strategy Problems
49(1)
Tax Form/Return Preparation Problem
50(1)
Case Study Problem
50(1)
Tax Research Problems
50
The Gift Tax
1(1)
Concept of Transfer Taxes
2(1)
History and Purpose of Transfer Taxes
2(1)
The Unified Transfer Tax System
3(1)
Unified Rate Schedule
3(1)
Impact of Taxable Gifts on Death Tax Base
3(1)
Unified Credit
4(1)
Gift Tax Formula
4(3)
Determination of Gifts
4(1)
Exclusions and Deductions
4(1)
Gift-Splitting Election
5(1)
Cumulative Nature of Gift Tax
6(1)
Unified Credit
6(1)
Transfers Subject to the Gift Tax
7(9)
Transfers for Inadequate Consideration
7(1)
Statutory Exemptions from the Gift Tax
8(2)
Cessation of Donor's Dominion and Control
10(1)
Valuation of Gifts
11(2)
Gift Tax Consequences of Certain Transfers
13(3)
Exclusions
16(2)
Amount of the Exclusion
16(1)
Present Interest Requirement
17(1)
Gift Tax Deductions
18(4)
Marital Deduction
19(2)
Charitable Contribution Deduction
21(1)
The Gift-Splitting Election
22(1)
Computation of the Gift Tax Liability
23(2)
Effect of Previous Taxable Gifts
23(1)
Unified Credit Available
24(1)
Comprehensive Illustration
25(1)
Background Data
25(1)
Calculation of Tax Liability
25(1)
Basis Considerations for a Lifetime Giving Plan
26(2)
Property Received by Gift
26(1)
Property Received at Death
27(1)
Below-Market Loans: Gift and Income Tax Consequences
28(1)
General Rules
28(1)
De Minimis Rules
28(1)
Tax Planning Considerations
29(1)
Tax-Saving Features of Inter Vivos Gifts
29(1)
Negative Aspects of Gifts
30(1)
Compliance and Procedural Considerations
30(3)
Filing Requirements
30(1)
Due Date
31(1)
Gift-Splitting Election
31(1)
Liability for Tax
31(1)
Determination of Value
31(1)
Statute of Limitations
32(1)
Problem Materials
33
Discussion Questions
33(1)
Issue Identification Questions
34(1)
Problems
34(3)
Comprehensive Problem
37(1)
Tax Strategy Problem
38(1)
Tax Form/Return Preparation Problems
38(1)
Case Study Problems
39(1)
Tax Research Problems
39
The Estate Tax
1(1)
Estate Tax Formula
2(4)
Gross Estate
2(1)
Deductions
3(1)
Adjusted Taxable Gifts and Tax Base
4(1)
Tentative Tax on Estate Tax Base
4(1)
Reduction for Post-1976 Gift Taxes
4(1)
Unified Credit
5(1)
Other Credits
5(1)
The Gross Estate: Valuation
6(2)
Date-of-Death Valuation
6(1)
Alternate Valuation Date
7(1)
The Gross Estate: Inclusions
8(10)
Comparison of Gross Estate with Probate Estate
9(1)
Property in Which the Decedent Had an Interest
10(1)
Dower or Curtesy Rights
10(1)
Transferor Provisions
10(3)
Annuities and Other Retirement Benefits
13(1)
Jointly Owned Property
14(1)
General Powers of Appointment
15(1)
Life Insurance
16(1)
Consideration Offset
17(1)
Recipient Spouse's Interest in QTIP Trust
17(1)
Deductions
18(5)
Debts and Funeral and Administration Expenses
18(1)
Losses
19(1)
Charitable Contribution Deduction
19(1)
Marital Deduction
20(3)
Computation of Tax Liability
23(2)
Taxable Estate and Tax Base
23(1)
Tentative Tax and Reduction for Post-1976 Gift Taxes
23(1)
Unified Credit
23(1)
Other Credits
24(1)
Comprehensive Illustration
25(3)
Background Data
25(1)
Calculation of Tax Liability
26(2)
Liquidity Concerns
28(2)
Deferral of Payment of Estate Taxes
28(1)
Stock Redemptions to Pay Death Taxes
29(1)
Special Use Valuation of Farm Real Property
29(1)
Generation-Skipping Transfer Tax
30(2)
Tax Planning Considerations
32(3)
Use of Inter Vivos Gifts
32(1)
Use of Exemption Equivalent
32(1)
What Size Marital Deduction Is Best?
33(1)
Use of Disclaimers
34(1)
Role of Life Insurance
34(1)
Qualifying the Estate for Installment Payments
34(1)
Where to Deduct Administration Expenses
35(1)
Compliance and Procedural Considerations
35(2)
Filing Requirements
35(1)
Due Date
36(1)
Valuation
36(1)
Election of Alternate Valuation Date
36(1)
Documents to Be Included with Return
36(1)
Problem Materials
37
Discussion Questions
37(1)
Issue Identification Questions
38(1)
Problems
38(4)
Comprehensive Problems
42(1)
Tax Strategy Problem
43(1)
Tax Form/Return Preparation Problems
43(1)
Case Study Problems
44(1)
Tax Research Problems
45
Income Taxation of Trusts and Estates
1(1)
Basic Concepts
2(2)
Inception of Trusts
2(1)
Inception of Estates
2(1)
Reasons for Creating Trusts
3(1)
Basic Principles of Fiduciary Taxation
3(1)
Principles of Fiduciary Accounting
4(3)
The Importance of Identifying Income and Principal
4(1)
Principal and Income: The Uniform Act
5(1)
Categorization of Depreciation
6(1)
Formula for Taxable Income and Tax Liability
7(3)
Gross Income
7(1)
Deductions for Expenses
7(2)
Distribution Deduction
9(1)
Personal Exemption
9(1)
Credits
10(1)
U.S. Production Activities Deduction
10(1)
Distributable Net Income
10(3)
Significance of DNI
11(1)
Definition of DNI
11(1)
Manner of Computing DNI
11(2)
Determining a Simple Trust's Taxable Income
13(4)
Allocation of Expenses to Tax-Exempt Income
14(1)
Determination of DNI and the Distribution Deduction
15(1)
Tax Treatment for Beneficiary
15(1)
Shortcut Approach to Proving Correctness of Taxable Income
16(1)
Effect of a Net Operating Loss
16(1)
Effect of a Net Capital Loss
16(1)
Comprehensive Illustration: Determining a Simple Trust's Taxable Income
17(2)
Background Data
17(1)
Trustee's Fee
18(1)
Distribution Deduction and DNI
18(1)
Trust's Taxable Income
18(1)
Categorizing a Beneficiary's Income
18(1)
Determining Taxable Income for Complex Trusts and Estates
19(5)
Determination of DNI and the Distribution Deduction
20(1)
Tax Treatment for Beneficiary
21(3)
Effect of a Net Operating Loss
24(1)
Effect of a Net Capital Loss
24(1)
Comprehensive Illustration: Determining a Complex Trust's Taxable Income
24(3)
Background Data
24(1)
Trustee's Fee
25(1)
Distribution Deduction and DNI
25(1)
Trust's Taxable Income
26(1)
Additional Observations
26(1)
Income in Respect of a Decedent
27(3)
Definition and Common Examples
27(1)
Significance of IRD
28(2)
Grantor Trust Provisions
30(4)
Purpose and Effect
30(1)
Revocable Trusts
31(1)
Clifford Trusts
31(1)
Post-1986 Reversionary Interest Trusts
31(1)
Retention of Administrative Powers
32(1)
Retention of Economic Benefits
32(1)
Control of Others' Enjoyment
32(2)
Tax Planning Considerations
34(1)
Ability to Shift Income
34(1)
Timing of Distributions
34(1)
Property Distributions
34(1)
Choice of Year-End for Estates
35(1)
Deduction of Administration Expenses
35(1)
Compliance and Procedural Considerations
35(1)
Filing Requirements
35(1)
Due Date for Return and Tax
36(1)
Documents to Be Furnished to IRS
36(1)
Sample Simple and Complex Trust Returns
36(1)
Problem Materials
36
Discussion Questions
36(1)
Issue Identification Questions
37(1)
Problems
38(2)
Comprehensive Problem
40(1)
Tax Strategy Problem
41(1)
Tax Form/Return Preparation Problems
41(1)
Case Study Problems
42(1)
Tax Research Problems
43
Administrative Procedures
1(1)
Role of the Internal Revenue Service
2(1)
Enforcement and Collection
2(1)
Interpretation of the Statute
2(1)
Organization of the IRS
3(1)
Audits of Tax Returns
3(8)
Percentage of Returns Examined
3(2)
Selection of Returns for Audit
5(2)
Alternatives for a Taxpayer Whose Return Is Audited
7(2)
90-Day Letter
9(1)
Litigation
9(2)
Requests For Rulings
11(2)
Information to Be Included in Taxpayer's Request
11(1)
Will the IRS Rule?
12(1)
When Rulings Are Desirable
12(1)
Due Dates
13(3)
Due Dates for Returns
13(1)
Extensions
13(1)
Due Dates for Payment of the Tax
13(1)
Interest on Tax Not Timely Paid
14(2)
Failure-to-File and Failure-to-Pay Penalties
16(3)
Failure to File
16(2)
Failure to Pay
18(1)
Estimated Taxes
19(3)
Payment Requirements
20(1)
Penalty for Underpaying Estimated Taxes
21(1)
Exceptions to the Penalty
22(1)
Other More Severe Penalties
22(4)
Negligence
22(1)
Substantial Understatement
23(2)
Criminal Fraud
25(1)
Statute of Limitations
26(4)
General Three-Year Rule
26(1)
Six-Year Rule for Substantial Omissions
27(1)
When No Return Is Filed
28(1)
Other Exceptions to Three-Year Rule
28(1)
Refund Claims
29(1)
Liability For Tax
30(1)
Joint Returns
30(1)
Transferee Liability
31(1)
Tax Practice Issues
31(5)
Statutory Provisions Concerning Tax Return Preparers
31(2)
Tax Shelter Disclosures
33(1)
Rules of Circular 230
34(1)
Tax Accounting and Tax Law
34(1)
Accountant--Client Privilege
35(1)
Problem Materials
36
Discussion Questions
36(1)
Issue Identification Questions
37(1)
Problems
37(3)
Comprehensive Problem
40(1)
Tax Strategy Problem
40(1)
Case Study Problem
41(1)
Tax Research Problems
41
TABLES
2003 Tax Tables and Rate Schedules
1(1)
APPENDICES
Appendix A Tax Research Working Paper File
1(1)
Appendix B Completed Tax Forms
1(1)
Appendix C MACRS and ACRS Tables
1(1)
Appendix D Glossary
1(1)
Appendix E Statements on Standards for Tax Services
1(1)
Appendix F Comparison of Tax Attributes for C Corporations, Partnerships, and S Corporations
1(1)
Appendix G Credit for State Death Taxes
1(1)
Appendix H Acturial Tables
1(1)
Appendix I Index of Code Sections
1(1)
Appendix J Index of Treasury Regulations
1(1)
Appendix K Index of Government Promulgations
1(1)
Appendix L Index of Court Cases
1(1)
Appendix M Subject Index
1

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