Fundamentals of Taxation emphasizes a hands-on approach to tax education. It's a Taxation textbook designed to expose beginning tax students to tax law, but to also teach the practical intricacies involved in the preparation of tax forms and tax returns.
To train tomorrow's tax preparers to handle the complex U.S. tax law, the Fundamentals of Taxation author team has devised four primary teaching advantages:
1. Organized to closely follow the IRS tax forms. Actual tax forms are incorporated throughout the text, giving studentsthe opportunity to understand the principles behind tax law while they learn how to work with clients to obtain the
information they will need to complete tax forms.
2. Proper reporting of tax issues are illustrated. The authors present a tax issue, discuss the legal requirements, illustrate
the proper tax form placement, and show the completed form in the text, mixing practical and legal implications of
tax preparation.
3. Integration of an individual income tax software package (TaxACT).
4. The authors supplement the text with citations of relevant tax authorities, such as the Internal Revenue Code,
Treasury Regulations, Revenue Rulings, Revenue Procedures, and court cases.
Author(s): Ana M. Cruz; Michael P. Deschamps; Frederick Niswander; Debra Prendergast; Dan Schisler
Edition: 15
Publisher: McGraw Hill LLC
Year: 2022
Language: English
Pages: 1244
City: New York
Tags: Fundamentals, Taxation, US, IRS, IRC, Cruz, 2022, 15th Edition
Title
Copyright
Dedication
Updates to the 2022 Edition
Digital Features
Four Primary Teaching Advantages of Fundamentals of Taxation
How Does Fundamentals of Taxation Provide a Clear Path to Student Success?
How Does Fundamentals of Taxation Help Students Better Understand Tax?
How Does Fundamentals of Taxation Better Prepare My Students?
Assurance of Accuracy
Connect
A Monumental Development Effort
Contents
Fundamentals of Taxation 2022
Chapter 1 Introduction to Taxation, the Income Tax Formula, and Form 1040
Tax Rate Structures
Marginal Tax Rates and Average Tax Rates
A Simple Income Tax Formula
The Components of a Basic Form 1040
Calculation of Income Tax (Form 1040, Line 16) and Health Care Tax
Tax Payments (Form 1040, Lines 25d, 26, and 32)
Appendix A: Tax Authority
Appendix B: IRS Rules for Paid Tax Preparers
Appendix C: Getting Started with TaxAct
Chapter 2 Expanded Tax Formula, Form 1040, and Basic Concepts
The Income Tax Formula and Form 1040
Filing Status (Form 1040, First Page)
Dependents (Form 1040, Page 1)
Standard Deduction (Form 1040, Line 12a)
Tax Due to IRS
Interest and Tax Penalties
Chapter 3 Gross Income: Inclusions and Exclusions
When and How to Record Income
Cash Method of Accounting
Taxability of Components of Gross Income
Items Excluded from Gross Income
Appendix: Tax Accounting for Savings Bond Interest Used for Education Expenses, Below-Market Interest Loans, Gift Loans, and Original Issue Discount Debt
Chapter 4 Adjustments for Adjusted Gross Income
Student Loan Interest (Schedule 1 of Form 1040, Line 21)
Health Savings Account Deduction (Schedule 1, Line 13)
Moving Expenses for Members of the Armed Forces (Schedule 1, Line 14)
Deduction for Half of Self-Employment Tax (Schedule 1, Line 15)
Self-Employed Health Insurance Deduction (Schedule 1, Line 17)
Penalty on Early Withdrawal of Savings (Schedule 1, Line 18)
Alimony Paid (Schedule 1, Line 19a)
Educator Expenses (Schedule 1, Line 11)
Chapter 5 Itemized Deductions
Deductible Medical Expenses (Schedule A, Line 4)
Deductible State and Local Taxes (Schedule A, Line 7)
Deductible Interest (Schedule A, Line 10)
Deductible Gifts to Charity (Schedule A, Line 14)
Deductible Casualty and Theft Losses (Schedule A, Line 15)
Other Itemized Deductions (Schedule A, Line 16)
Chapter 6 Self-Employed Business Income (Line 3 of Schedule 1 and Schedule C)
Income for a Schedule C Trade or Business
Ordinary and Necessary Trade or Business Expenses
Depreciation
Transportation and Travel
Business Use of the Home and Business Bad Debts
Hobby Loss Rules and Education Expenses
Self-Employment Tax
Appendix: General Depreciation System
Chapter 7 Capital Gains and Other Sales of Property (Schedule D and Form 4797)
Terms and Tax Forms
Classification of Assets
Sales of Ordinary Assets
Sales of Capital Assets
Sales of Business Property
Tax Issues for Special Types of Sales
Chapter 8 Rental Property, Royalties, and Income from Flow-Through Entities (Line 5, Schedule 1, and Schedule E)
Rental Property
Rental of Vacation Homes
Royalty Income
Flow-Through Entities
Chapter 9 Tax Credits (Form 1040, Lines 19, 20, 27 through 29, and 31, Schedule 3, Lines 1 through 14)
Credit for Child and Dependent Care Expenses (Schedule 3, Line 2 [Form 2441])
Credit for the Elderly or the Disabled (Schedule 3, Line 6d [Schedule R])
Education Credits (Form 1040, Line 29 and Schedule 3, Line 3 [Form 8863])
Foreign Tax Credit (FTC) (Schedule 3, Line 1 [Form 1116])
Child Tax Credit (Form 1040, Line 19 and 28)
Retirement Savings Contributions Credit (Saver’s Credit) (Schedule 3, Line 4 [Form 8880])
Adoption Credit (Schedule 3, Line 6c [Form 8839])
Earned Income Credit (EIC) (Form 1040, Line 27a)
Premium Tax Credit (Schedule 2, Line 2, or Schedule 3, Line 9)
Appendix A: Earned Income Credit (EIC) Table
Appendix B: Table 2 for Form 8962
Chapter 10 Payroll Taxes
Tax Issues Associated with Payroll and Form 1040
Federal Income Tax Withholding, Social Security, and Medicare Taxes on Wages and Tips
Reporting and Paying Payroll Taxes
Self-Employment Taxes, Unemployment Taxes, Form 940, Taxes for Household Employees, and Schedule H
Employer Payroll Reporting Requirements Including Forms W-2 and W-3
Supplemental Wage Payments, Backup Withholding, Form W-9, Estimated Tax Payments, and Form 1040-ES
Additional Information Regarding Legislation and Payroll
Appendix: Partial Wage Bracket Method Withholding
Chapter 11 Retirement and Other Tax-Deferred Plans and Annuities
Tax-Deferred Plans and Annuities: The Basics
Employer-Sponsored Retirement Plans
Individual-Sponsored Retirement Plans
Tax-Deferred Nonretirement Plans
Distributions from Tax-Deferred Pension Plans
Tax Treatment of Annuity Contracts
Appendix: Life Expectancy Tables
Chapter 12 Special Property Transactions
Like-Kind Exchanges
Involuntary Conversions
Installment Sales
Sale of a Personal Residence
Related-Party Losses and Wash Sales
Chapter 13 At-Risk/Passive Activity Loss Rules and the Individual Alternative Minimum Tax
At-Risk Rules
Passive Activity Losses
At-Risk and PAL Rules in Conjunction
Alternative Minimum Tax (AMT)
Appendix: Depreciation Tables
Chapter 14 Partnership Taxation
Formation of a Partnership
Partnership Ordinary Income or Loss
Separately Stated Items
Basis of the Partnership Interest
Partnership Distributions
Disposal or Liquidation of a Partnership Interest
Chapter 15 Corporate Taxation
Corporate Formation and Filing Requirements
Basis
Taxable Income and Tax Liability
Transactions with Shareholders
Schedules L, M-1, and M-3
Other Corporate Issues
Subchapter S Corporations
Appendix A: Amended Tax Returns (Form 1040X)
Appendix B: Comprehensive Problems
Appendix C: Concept Check Answers
Appendix D: IRS Tax Tables
Appendix E: IRS Tax Forms
Appendix F: 2021 Federal Income Tax Information
Index
