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Taxation for Decision Makers, 2016 Edition

Taxation for Decision Makers, 2016 Edition

Shirley Dennis-Escoffier , Karen A. Fortin

ISBN: 978-1-119-08908-7

Aug 2015

704 pages

Select type: E-Book

$96.00

Description

Taxation for Decision Makers, 2016 Edition is designed for a one-semester, introductory tax course focused on decision-making at either the undergraduate or graduate level. This text introduces all relevant tax topics covered on the CPA exam, and strikes the perfect balance between concepts and details. Tax concepts and applications are presented in a clear, concise, student-friendly writing style with sufficient technical detail to provide a foundation for future practice in taxation and consulting while not overwhelming the student with seldom-encountered minutia.

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Part I Introduction to Taxation and Its Environment 1

1 An Introduction to Taxation 2

Setting the Stage—An Introductory Case 3

1.1 An Introduction to Taxes 3

1.2 Types of Tax Rate Systems 8

1.3 Characteristics of a Good Tax 11

1.4 Income Taxation 13

1.5 The Taxing Units and the Basic Income Tax Models 16

1.6 Choice of Business Entity 28

2 The Tax Practice Environment 41

Setting the Stage—An Introductory Case 42

2.1 Tax Compliance 43

2.2 Professional Responsibilities and Ethics 54

2.3 Tax Planning 64

2.4 Tax Research 72

Part II Income and Expense Determination 86

3 Determining Gross Income 87

Setting the Stage—An Introductory Case  88

3.1 What Is Income? 88

3.2 When Is Income Recognized? 90

3.3 Who Recognizes the Income? 96

3.4 Sources of Income  97

3.5 Exclusions 110

3.6 Expanded Topics—Jurisdictional Issues 115

4 Employee Compensation 131

Setting the Stage—An Introductory Case 132

4.1 Employee Compensation 132

4.2 Employee Fringe Benefits 137

4.3 Employee Stock and Stock Options 150

4.4 Deferred Compensation and Retirement Planning 154

4.5 Self-Employed Individuals 161

4.6 Expanded Topics—Foreign Assignments  165

5 Business Expenses 182

Setting the Stage—An Introductory Case 183

5.1 Criteria for Deductibility 183

5.2 Timing of Deductions  187

5.3 Costs of Starting a Business 190

5.4 Operating Expenses 192

5.5 Limited Expense Deductions 199

5.6 Expanded Topics—Book/Tax Differences  204

Part III Property Concepts and Transactions 227

6 Property Acquisitions and Cost Recovery Deductions 228

Setting the Stage—An Introductory Case 229

6.1 Capital Expenditures  229

6.2 MACRS 235

6.3 Special Expensing Provisions

6.4 Provisions Limiting Depreciation 243

6.5 Depletion 248

6.6 Amortization 249

7 Property Dispositions 263

Setting the Stage—An Introductory Case 264

7.1 Determining Gain or Loss on Dispositions 264

7.2 Disposition of Section 1231 Property  270

7.3 Disposition of Capital Assets 279

7.4 Disposition of Ordinary Income Property 284

7.5 Mixed-Use Property 285

7.6 Special Rules for Small Business Stock 286

7.7 Sale of Principal Residence—Section 121 289

7.8 Related Party Sales 291

7.9 Individual Capital Gains Tax Rates 291

8 Tax-Deferred Exchanges 308

Setting the Stage—An Introductory Case 309

8.1 Basics of Tax-Deferred Exchanges 309

8.2 Like-Kind Exchanges—Section 1031  311

8.3 Involuntary Conversions 317

8.4 Other Tax-Deferred Exchanges or Dispositions  325

8.5 Asset Transfers to Businesses 325

8.6 An Introduction to Corporate Reorganizations 331

Part IV Business Taxation 349

9 Taxation of Corporations 350

Setting the Stage—An Introductory Case  351

9.1 Introduction to Corporations  351

9.2 Taxation of C Corporations 354

9.3 Consolidated Returns 365

9.4 Corporate Dividend Distributions  367

9.5 Corporate Redemptions and Liquidations 368

9.6 Issues for Closely Held Corporations 373

10 Sole Proprietorships and Flow-Through Entities 394

Setting the Stage—An Introductory Case 395

10.1 Introduction to Flow-Through Business Entities 395

10.2 The Sole Proprietorship  396

10.3 Partnerships 400

10.4 S Corporation Characteristics 410

10.5 Expanded Topics—The Passive Deduction Limitations 420

Part V Taxation of Individuals 435

11 Income Taxation of Individuals 436

Setting the Stage—An Introductory Case 437

11.1 The Individual Tax Model 437

11.2 Personal and Dependency Exemptions 443

11.3 Filing Status 448

11.4 Standard Deduction 451

11.5 Itemized Deductions 453

11.6 Net Operating Loss 464

11.7 Computing the Tax 465

11.8 Tax Credits 467

11.9 Payment of Tax and Filing Return 472

11.10 Expanded Topics—Alternative Minimum Tax 473

12 Wealth Transfer Taxes 488

Setting the Stage—An Introductory Case 489

12.1 Overview of Wealth Transfer Taxation 489

12.2 The Federal Gift Tax 491

12.3 Tax Consequences for Donees 498

12.4 The Taxable Estate 500

12.5 Transfer Tax Planning 504

12.6 Fiduciary Income Tax Issues 507

12.7 Expanded Topics—The Tax Calculations 509

APPENDIX A: Tables 523

Corporate and Individual Tax Rates 523

Present Value and Future Values Tables 524

APPENDIX B: Sample Filled-in Tax Returns 525

SR1: Corporate Tax Return 525

SR2: Partnership Tax Return 530

SR3: S Corporation Tax Return 536

SR4: Individual Tax Return with Sole Proprietorship 540

APPENDIX C: Tax Return Problems 550

TRP1: Corporate Tax Return Problem 550

TRP2: Partnership Tax Return Problem 551

TRP3: S Corporation Tax Return Problem 552

TRP4: Simple Individual Tax Return Problem 553

TRP5: Individual Tax Return Problem 554

TRP6: Individual Tax Return Problem 555

Index 577

  • All chapters have been updated for all recent legislation and IRS pronouncements available as of March 2015.
  • References to pending legislation that could affect text material have been made where appropriate.
  • Additional questions and problems have been added to each chapter including new comprehensive problems that integrate material from several chapters.
  • Balanced Presentation This text strikes a balance between concepts and details by including sufficient technical detail to provide a foundation for future practice in taxation and consulting while not overwhelming the student with seldom-encountered technicalities. The importance of tax planning is woven into each chapter with margin icons highlighting planning opportunities.
  • Promotion of Critical Analysis and Decision-Making Skills The chapter-opening case introduces key concepts which emphasize the most important topics that students need to master.  These cases are then revisited at the end of each chapter for greater reinforcement.
  • Comprehensive and Flexible The only text o that introduces all tax topics on the CPA exam in 12 chapters. Chapter arrangement and topic presentation make it easy to change the sequence of chapters, while the Expanded Topics section included at the end of several chapters contain more advanced topics allowing instructors to achieve the level of rigor appropriate for each particular class.