- ホーム
- > 洋書
- > 英文書
- > Business / Economics
Full Description
Taxation 2020 introduces all relevant tax topic covered in the CPA exam to undergraduate or graduate students in one-semester introductory tax courses. Offering a decision-making approach to the material, this comprehensive yet accessible text maintains the appropriate balance between concepts and specifics. Twelve concise, student-friendly chapters supply sufficient details to build upon for future careers in taxation and consulting while avoiding the minutiae rarely seen in everyday practice.The new tenth edition covers basic taxation of individuals, corporations, S corporations, partnerships, and fiduciary entities. An emphasis on tax planning helps students understand the effect taxation has on decisions for both individuals and entities. Thoroughly updated for the coming tax year, this textbook covers fundamental areas of taxation and its environment including business and property concepts, property dispositions, business and wealth taxation, and income, expenses, and individual taxes. A wealth of instructor resources includes two solutions manuals-one of which provides solutions to the Research and Tax Return problems-an extensive test bank, and PowerPoint slides. Engaging, highly-readable text enables instructors to assign students out-of-class readings and spend classroom time on more complex topics.
Contents
Preface xxAbout the Authors xxvPart I Introduction to Taxation and Its Environment1 An Introduction to Taxation 2Setting the Stage-An Introductory Case 31.1. An Introduction to Taxes 31.1.1. What Is a Tax? 31.1.2. Evolution of the Federal Income Tax 41.1.3. State and Local Income Taxes 51.1.4. Employment Taxes 71.1.5. Wealth Taxes 81.1.6. Wealth Transfer Taxes 91.1.7. Consumption Taxes 101.1.8. Tariffs and Duties 121.2. Types of Tax Rate Systems 131.2.1. The Progressive Tax Rate System 131.2.2. Proportional "Flat" Tax Rate 151.2.3. Regressive Taxes 151.3. Characteristics of a Good Tax 161.3.1. Equity 161.3.2. Economy 171.3.3. Certainty 181.3.4. Convenience 181.4. The Taxing Units and the Basic Income Tax Model 191.4.1. The Basic Tax Model 201.4.2. Trusts and Estates 291.5. Choice of Business Entity 301.5.1. Sole Proprietorships 321.5.2. Partnerships 331.5.3. C Corporations 361.5.4. S Corporations 371.5.5. Comparing Business Entity Attributes 38Revisiting the Introductory Case 40Summary 40Key Terms 41Test Yourself 41Problem Assignments 42Answers to Test Yourself 462 The Tax Practice Environment 47Setting the Stage-An Introductory Case 482.1. Tax Compliance 482.1.1. Filing a Tax Return 482.1.2. Selecting Returns for Audit 512.1.3. Types of Audits 522.1.4. The Appeals Procedure 532.1.5. Taxpayer Noncompliance Penalties 542.1.6. Collection Procedures 552.2. Professional Responsibilities and Ethics 562.2.1. Avoidance versus Evasion 562.2.2. Tax Preparer Registration 562.2.3. Tax Preparer Penalties 562.2.4. Tax Professionals' Dual Responsibilities 572.2.5. Sources of Professional Guidance 582.3. Tax Planning 612.3.1. Cash Flows and Present Value 622.3.2. Significance of the Marginal Tax Rate 632.3.3. Timing Income and Deductions 632.3.4. Income Shifting 662.3.5. Changing the Character of Income 672.3.6. Other Factors Affecting Tax Planning 682.4. Tax Research 712.4.1. Gather the Facts and Identify the Issues 722.4.2. Locate Relevant Authority 722.4.3. Evaluate the Sources of Authority 792.4.4. Communicate the Recommendations 862.4.5. Keeping Up-to-Date 862.4.6. Sample Research Problem 87Revisiting the Introductory Case 91Summary 91Key Terms 92Test Yourself 92Problem Assignments 92Answers to Test Yourself 99Appendix: Authorities for Sample Research Problem 99Part II Income, Expenses, and Individual Taxes3 Determining Gross Income 110Setting the Stage-An Introductory Case 1113.1. What Is Income? 1113.1.1. Taxable versus Gross Income 1123.1.2. Tax versus Financial Accounting 1123.1.3. Return of Capital Principle 1133.2. When Is Income Recognized? 1143.2.1. The Tax Year 1153.2.2. Accounting Methods 1163.3. Who Recognizes the Income? 1203.3.1. Assignment of Income Doctrine 1203.3.2. Community Property Laws 1203.4. Sources of Income 1213.4.1. Interest Income 1213.4.2. Dividend Income 1263.4.3. Annuity Income 1283.4.4. Transfers from Others 1293.4.5. Discharge of Indebtedness 1343.4.6. Tax Benefit Rule 1353.4.7. System for Reporting Income 1353.5. Exclusions 1363.5.1. Gifts and Inheritances 1363.5.2. Insurance Proceeds 1373.5.3. Scholarships 1393.5.4. Other Exclusions 1403.6. Expanded Topics-Jurisdictional Issues 1413.6.1. International Issues 1413.6.2. Taxpayers Subject to U.S. Taxation 141Revisiting the Introductory Case 144Summary 144Key Terms 145Test Yourself 145Problem Assignments 146Answers to Test Yourself 1544 Employee Compensation 155Setting the Stage-An Introductory Case 1564.1. Employee Compensation 1564.1.1. Payroll Taxes 1564.1.2. Employee versus Independent Contractor 1584.1.3. Timing of Compensation Deduction 1614.1.4. Reasonable Compensation 1614.2. Employee Fringe Benefits 1634.2.1. Group Term Life Insurance Premiums 1654.2.2. Health and Accident Insurance Premiums 1664.2.3. Child and Dependent Care Programs 1674.2.4. Cafeteria Plans and Flexible Spending Arrangements 1674.2.5. No-Additional-Cost Services 1694.2.6. Employee Purchase Discounts 1694.2.7. Employee Achievement Awards 1704.2.8. De Minimis Fringe Benefits 1704.2.9. Working Condition Fringe Benefits 1714.2.10. Education Expenses 1734.2.11. Employee Relocation Expenses 1744.2.12. Substantiating Business Expenses 1754.3. Employee Stock and Stock Options 1764.3.1. Restricted Stock 1764.3.2. Stock Options 1794.3.3. Phantom Stock and Stock Appreciation Rights 1814.4. Deferred Compensation and Retirement Planning 1824.4.1. Qualified Retirement Plans 1824.4.2. Types of Retirement Plans 1834.4.3. Contribution Limits 1854.4.4. Nonqualified Deferred Compensation Plans 1864.4.5. Individual Retirement Accounts 1874.5. Self-Employed Individuals 1904.5.1. Employment Tax Consequences 1904.5.2. Fringe Benefits Limited 1924.5.3. Retirement Plans 1934.6. Expanded Topics-Foreign Assignments 1944.6.1. Foreign Earned Income Exclusion 1944.6.2. Excess Housing Cost Exclusion 1964.6.3. Credit for Foreign Taxes 1964.6.4. Tax Reimbursement Plans 1974.6.5. Tax Treaties 197Revisiting the Introductory Case 198Summary 198Key Terms 199Test Yourself 200Problem Assignments 201Answers to Test Yourself 2085 Deductions for Individuals and Tax Determination 209Setting the Stage-An Introductory Case 2105.1. The Individual Tax Model 2105.2. Adjustments to Income 2125.2.1. Student Loan Interest Deduction 2135.2.2. Educator Expenses 2145.2.3. Health Savings Accounts 2145.2.4. Penalty on Early Withdrawal of Savings 2155.2.5. Other Adjustments to Income 2155.3. Standard Deduction 2165.3.1. Standard Deduction Amounts 2165.3.2. Married Filing Jointly 2185.3.3. Surviving Spouse 2185.3.4. Married Filing Separately 2195.3.5. Head of Household 2205.3.6. Single (Unmarried) Individual 2215.4. Itemized Deductions 2215.4.1. Medical Expenses 2225.4.2. Taxes 2235.4.3. Interest Expense 2245.4.4. Charitable Contributions 2275.4.5. Casualty Losses 2305.4.6. Miscellaneous Itemized Deductions 2315.5. Qualified Business Income Deduction 2335.6. Dependents 2355.6.1. Qualifying Child 2355.6.2. Qualifying Relatives 2365.7. Tax Credits 2385.7.1. Credits versus Deductions 2385.7.2. Child Tax Credit 2385.7.3. Education Credits 2395.7.4. Dependent Care Credit 2415.7.5. Earned Income Credit 2425.7.6. Excess Payroll Tax Withheld 2435.7.7. Other Credits 2435.8. Computing the Tax 2445.8.1. Medicare Surtaxes 2465.8.2. Alternative Minimum Tax 2485.8.3. Other Taxes 2525.9. Payment of Tax and Filing the Return 2525.9.1. Payment of Tax 2525.9.2. NOL 2535.9.3. Who Must File a Return? 253Revisiting the Introductory Case 258Summary 259Key Terms 259Test Yourself 260Problem Assignments 261Answers to Test Yourself 271Part III Business and Property Concepts6 Business Expenses 274Setting the Stage-An Introductory Case 2756.1. Criteria for Deductibility 2756.1.1. General Provisions for Trade or Business Expenses 2756.1.2. Ordinary and Necessary 2766.1.3. Contrary to Public Policy 2776.1.4. Related to Tax-Exempt Income 2786.1.5. Accrued to Related Party 2786.1.6. Obligation of Another Taxpayer 2786.1.7. Substantiation 2796.2. Timing of Deductions 2796.2.1. Accrual Method 2806.2.2. Cash Method 2806.2.3. Restrictions on Prepaid Expenses 2826.2.4. Disputed Liabilities 2836.3. Costs of Starting a Business 2836.3.1. Business Investigation and Start-Up Expenses 2836.3.2. Organization Costs 2846.4. Operating Expenses 2856.4.1. Business Meals and Entertainment 2856.4.2. Travel and Transportation Expenses 2866.4.3. Combining Business with Pleasure Travel 2896.4.4. Bad Debt Expenses 2916.4.5. Insurance Premiums 2926.4.6. Interest Expense 2926.4.7. Legal Expenses 2936.4.8. Taxes 2936.5. Limited Expense Deductions 2946.5.1. Residential Rental Property 2946.5.2. Home Office Expenses 2976.5.3. Hobby Expenses 3006.6. Expanded Topics-Book/Tax Differences 3006.6.1. Accounting for Income Tax Expense 3006.6.2. UNICAP Rules and Inventory 307Revisiting the Introductory Case 309Summary 311Key Terms 312Test Yourself 312Problem Assignments 313Answers to Test Yourself 3237 Property Acquisitions and Cost Recovery Deductions 324Setting the Stage-An Introductory Case 3257.1. Capital Expenditures 3257.1.1. Capitalize or Expense 3267.1.2. Basis of Property 3277.2. MACRS 3307.2.1. Averaging Conventions 3317.2.2. Year of Disposition 3357.2.3. Alternative Depreciation System (ADS) 3367.3. Special Expensing Provisions 3377.3.1. Section 179 Expensing Election 3377.3.2. Bonus Depreciation 3397.4. Provisions Limiting Depreciation 3417.4.1. Mixed-Use Assets 3417.4.2. Limits for Passenger Vehicles 3427.5. Depletion 3447.6. Amortization 3457.6.1. Research and Experimentation Expenditures 3467.6.2. Software 347Revisiting the Introductory Case 347Summary 348Key Terms 348Test Yourself 348Problem Assignments 349Answers to Test Yourself 357Part IV Property Dispositions8 Property Dispositions 360Setting the Stage-An Introductory Case 3618.1. Determining Gain or Loss on Dispositions 3628.1.1. Property Dispositions and Cash Flow 3628.1.2. Types of Dispositions 3638.1.3. Amount Realized 3648.1.4. Realized versus Recognized Gain or Loss 3658.1.5. Holding Period 3658.1.6. Character of Gains and Losses 3678.1.7. Mixed-Use Assets 3698.2. Disposition of Capital Assets 3698.2.1. The Capital Gain and Loss Netting Process 3698.2.2. Tax Treatment of Net Capital Gains and Losses 3718.3. Disposition of Section 1231 Property 3778.3.1. Depreciation Recapture 3788.3.2. Unrecaptured Section 1250 Gains for Individuals 3818.3.3. Section 1231 Look-Back Rules 3828.4. Mixed-Use Property 3848.5. Special Rules for Small Business Stock 3858.5.1. Losses on Section 1244 Stock 3858.5.2. Section 1202 Gains on Qualified Small Business Stock 3868.5.3. Comparison of Sections 1244 and 1202 3878.6. Sale of Principal Residence-Section 121 3888.6.1. Debt Reductions, Short Sales, and Foreclosures 3918.7. Navigating Individual Capital Gains Tax Rates 3918.7.1. Determining the Long-Term Capital Gains Tax Rate 3928.7.2. Planning with Multiple Tax Rates 393Revisiting the Introductory Case 394Summary 395Key Terms 396Test Yourself 396Problem Assignments 397Answers to Test Yourself 4069 Tax-Deferred Exchanges 407Setting the Stage-An Introductory Case 4089.1. Basics of Tax-Deferred Exchanges 4089.1.1. Basis Adjustments 4099.1.2. Holding Period 4109.2. Like-Kind Exchanges-Section 1031 4109.2.1. Qualifying Properties 4119.2.2. Determining Realized Gain or Loss and the Effect of Boot 4119.2.3. Basis and Holding Period of Like-Kind Property 4139.2.4. Indirect Exchanges 4149.3. Involuntary Conversions 4159.3.1. Casualty and Theft Losses 4159.3.2. Gains on Involuntary Conversions-Section 1033 4219.3.3. Involuntary Conversion of a Principal Residence 4249.4. Other Tax-Deferred Exchanges or Dispositions 4249.4.1. Wash Sales 4249.4.2. Installment Sales 4259.4.3. Related-Party Sales 4269.4.4. Other Deferrals 4289.5. Asset Transfers to Businesses 4289.5.1. Transfers to Sole Proprietorships 4289.5.2. Transfers to Controlled Corporations-Section 351 4299.5.3. Transfers of Property to a Partnership 4349.5.4. Formation of a Limited Liability Company 4379.6. An Introduction to Corporate Reorganizations 437Revisiting the Introductory Case 438Summary 438Key Terms 439Test Yourself 439Problem Assignments 440Answers to Test Yourself 449Appendix: Corporate Reorganizations 450Part V Business Taxation10 Taxation of Corporations 458Setting the Stage-An Introductory Case 45910.1. Introduction to Corporations 45910.1.1. Corporate Advantages 46010.1.2. Disadvantages of the Corporate Form 46110.1.3. Capital Structure 46110.2. Taxation of C Corporations 46310.2.1. Dividend Received Deduction 46310.2.2. Charitable Contribution Deduction 46410.2.3. Capital Gains and Losses 46510.2.4. Net Operating Losses 46610.2.5. Computing the Corporate Income Tax 46610.2.6. Reconciling Book and Taxable Income 46710.2.7. Tax Credits 47110.2.8. Filing and Payment Requirements 47210.3. Corporate Dividend Distributions 47210.3.1. Tax Effects of Dividend Distributions 47310.3.2. Calculating Earnings and Profits 47310.3.3. Applying E&P to Distributions 47410.3.4. Property Distributions 47710.3.5. Stock Dividends 47810.4. Corporate Redemptions and Liquidations 47910.4.1. Redemption Sale Requirements 47910.4.2. Partial Liquidation 48110.4.3. Liquidating Distributions 48210.4.4. Dividend and Redemption Planning Issues 48210.5. Issues for Closely Held Corporations 48410.5.1. Constructive Dividends 48410.5.2. Penalty Taxes to Encourage Dividend Payments 48510.5.3. Controlled Corporate Groups 48610.6. Consolidated Returns 48810.6.1. Consolidated Net Income 489Revisiting the Introductory Case 490Summary 491Key Terms 491Test Yourself 492Problem Assignments 492Answers to Test Yourself 502Appendix: Exempt Organizations 50211 Sole Proprietorships and Flow-Through Entities 507Setting the Stage-An Introductory Case 50811.1. Introduction to Flow-Through Business Entities 50811.2. The Sole Proprietorship 50911.2.1. Forming the Sole Proprietorship 50911.2.2. Operating the Sole Proprietorship 51111.2.3. Limitation on Excess Losses 51311.2.4. Qualified Business Income Deduction 51411.2.5. Self-Employment Taxes 51511.3. Partnerships 51611.3.1. Types of Partnerships 51611.3.2. Advantages and Disadvantages of Partnerships and LLCs 51711.3.3. Entity versus Aggregate Concepts 51711.3.4. Partnership Operations 51811.3.5. Partner's Basis Account 52311.3.6. Loss Limitation Rules 52511.3.7. Guaranteed and Nonguaranteed Payments 52711.3.8. Partnership Distributions 52811.3.9. Selling a Partnership Interest 53211.3.10. Qualified Business Income Deduction 53311.4. S Corporation Characteristics 53411.4.1. Eligibility Requirements for S Status 53511.4.2. Making the S Election 53611.4.3. Terminating the S Election 53611.4.4. S Corporation Operations 53711.4.5. Loss Limitations 54111.4.6. Tracking Basis 54111.4.7. Property Distributions 54211.4.8. The S Corporation Schedules M-1, M-2, and M-3 54211.4.9. The Accumulated Adjustments Account 54311.4.10. S Corporation Taxes 54411.4.11. Redemptions and Liquidations by S Corporations 54511.5. Expanded Topics-The Passive Deduction Limitations 54611.5.1. Material Participation 54711.5.2. Real Property Business Exception 548Revisiting the Introductory Case 549Summary 550Key Terms 551Test Yourself 551Problem Assignments 552Answers to Test Yourself 564Part VI Wealth Taxation12 Estates Gifts and Trusts 566Setting the Stage-An Introductory Case 56712.1. Overview of Wealth Transfer Taxation 56712.1.1. The Unified Transfer Tax 56712.1.2. Features of the Unified Transfer Tax 56912.1.3. Major Exclusions 56912.2. The Federal Gift Tax 57212.2.1. Transfers Subject to Gift Taxes 57212.2.2. Transfers Excluded from Gift Taxes 57512.2.3. Valuation of Gift Property 57612.2.4. Special Rules Affecting the Annual Gift Tax Exclusion 57612.2.5. Gift Tax Deductions 57912.3. Tax Consequences for Donees 58012.3.1. Kiddie Tax 58112.3.2. Special Education Savings Plans 58212.4. The Taxable Estate 58312.4.1. Identifying the Gross Estate 58412.4.2. Valuation Issues 58612.4.3. Estate Deductions 58712.4.4. Generation-Skipping Transfer Taxes 58712.5. Transfer Tax Planning 58812.5.1. Selecting the Right Property to Give 58812.5.2. Advantages of Making Lifetime Gifts 58912.5.3. Disadvantages of Lifetime Gifts 59112.6. Fiduciary Income Tax Issues 59112.6.1. The Decedent's Final Tax Return 59112.6.2. Income Tax Consequences of Inherited Property 59212.6.3. Income Taxation of Trusts and Estates 59312.7. Expanded Topics-The Tax Calculations 59412.7.1. Computing the Gift Tax 59412.7.2. Computing the Estate Tax 59512.7.3. Computing the Fiduciary Income Tax 596Revisiting the Introductory Case 598Summary 598Key Terms 599Test Yourself 599Problem Assignments 600Answers to Test Yourself 607Appendix Selected Tax Tables for 2019 and 2018 609Corporate Tax Rates for 2019 and 2018 609Individual Income Tax Rate Schedules for 2019 and 2018 609Social Security and Medicare Taxes for 2019 and 2018 611Standard Deductions for 2019 and 2018 612Tax Rates for Estates, Gifts, and Trusts for 2019 and 2018 612Depreciation Tables 613Present Value and Future Value Tables 615Index 619
