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Taxation for Decision Makers, 2012 Edition

Book Description

The 2012 edition of this text has been completely updated for new legislation including the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, the Small Business Jobs Act, The Patient Protection and Affordable Care Act, and the Health Care and Education Reconciliation Act of 2010. This text has been updated for all IRS pronouncements available as of the end of April 2011, including the automobile ceiling limits. With a condensed text to print schedule, this text can incorporate changes made by Congress and new IRS pronouncements that cannot be included in most other texts that are printed in early Spring. In addition, references to relevant legislation pending as of the date the text goes to print are included within the text.

Table of Contents

  1. Cover Page
  2. Title Page
  3. Copyright
  4. Contents
  5. Contents
  6. Preface
    1. Focus
    2. Comprehensive Yet Brief and Concise
    3. Tax Planning
    4. Key Concepts
    5. Setting the Stage—An Introductory Case
    6. Examples
    7. Key Cases
    8. Expanded Topics
    9. Summary
    10. Key Terms
    11. Test Yourself
    12. Problem Assignments
    13. Think Outside the Text
    14. Identify the Issues
    15. Develop Research Skills
    16. Develop Planning Skills
    17. Chapter Appendices
    18. Tax Research Appendix
    19. Sample Tax Returns
    20. Tax Return Problems
    21. Up-To-Date
    22. Organization
    23. Your Course Your Way
    24. Supplements
    25. Comments and Suggestions
    26. Acknowledgments
  7. About the Authors
  8. Dedication
  9. part I: INTRODUCTION TO TAXATION AND ITS ENVIRONMENT
    1. chapter 1: An Introduction to Taxation
      1. CHAPTER OUTLINE
      2. KEY CONCEPTS
      3. SETTING THE STAGE—AN INTRODUCTORY CASE
      4. AN INTRODUCTION TO TAXATION
      5. THE TAXING UNITS AND THE BASIC INCOME TAX MODELS
      6. CHOICE OF BUSINESS ENTITY
      7. OTHER TYPES OF TAXES
      8. TYPES OF TAX RATE SYSTEMS
      9. CHARACTERISTICS OF A GOOD TAX
      10. REVISITING THE INTRODUCTORY CASE
      11. SUMMARY
      12. KEY TERMS
      13. TEST YOURSELF
      14. PROBLEM ASSIGNMENTS
      15. ANSWERS TO TEST YOURSELF
    2. chapter 2: The Tax Practice Environment
      1. CHAPTER OUTLINE
      2. KEY CONCEPTS
      3. SETTING THE STAGE—AN INTRODUCTORY CASE
      4. AN INTRODUCTION TO TAX PRACTICE
      5. TAXES AND CASH FLOW
      6. TAX PLANNING STRATEGIES
      7. SOURCES OF AUTHORITY
      8. TAX RESEARCH
      9. TAX COMPLIANCE
      10. REVISITING THE INTRODUCTORY CASE
      11. SUMMARY
      12. KEY TERMS
      13. TEST YOURSELF
      14. PROBLEM ASSIGNMENTS
      15. ANSWERS TO TEST YOURSELF
      16. APPENDIX 2A TAX RESEARCH
      17. PROBLEM ASSIGNMENTS
  10. part II: INCOME AND EXPENSE DETERMINATION
    1. chapter 3: Determining Gross Income
      1. CHAPTER OUTLINE
      2. KEY CONCEPTS
      3. SETTING THE STAGE—AN INTRODUCTORY CASE
      4. WHAT IS INCOME?
      5. WHEN IS INCOME RECOGNIZED?
      6. WHO RECOGNIZES THE INCOME?
      7. SOURCES OF INCOME
      8. EXCLUSIONS
      9. JURISDICTIONAL ISSUES
      10. EXPANDED TOPICS—SPECIAL METHODS
      11. REVISITING THE INTRODUCTORY CASE
      12. SUMMARY
      13. KEY TERMS
      14. TEST YOURSELF
      15. PROBLEM ASSIGNMENTS
      16. ANSWERS TO TEST YOURSELF
    2. chapter 4: Employee Compensation
      1. CHAPTER OUTLINE
      2. KEY CONCEPTS
      3. SETTING THE STAGE—AN INTRODUCTORY CASE
      4. EMPLOYEE COMPENSATION
      5. EMPLOYEE FRINGE BENEFITS
      6. EMPLOYEE STOCK AND STOCK OPTIONS
      7. DEFERRED COMPENSATION AND RETIREMENT PLANNING
      8. SELF-EMPLOYED INDIVIDUALS
      9. EXPANDED TOPICS—FOREIGN ASSIGNMENTS
      10. REVISITING THE INTRODUCTORY CASE
      11. SUMMARY
      12. KEY TERMS
      13. TEST YOURSELF
      14. PROBLEM ASSIGNMENTS
      15. ANSWERS TO TEST YOURSELF
    3. chapter 5: Business Expenses
      1. CHAPTER OUTLINE
      2. KEY CONCEPTS
      3. SETTING THE STAGE—AN INTRODUCTORY CASE
      4. CRITERIA FOR DEDUCTIBILITY
      5. TIMING OF DEDUCTIONS
      6. COSTS OF STARTING A BUSINESS
      7. OPERATING EXPENSES
      8. LIMITED EXPENSE DEDUCTIONS
      9. EXPANDED TOPICS—BOOK/TAX DIFFERENCES
      10. REVISITING THE INTRODUCTORY CASE
      11. SUMMARY
      12. KEY TERMS
      13. TEST YOURSELF
      14. PROBLEM ASSIGNMENTS
      15. ANSWERS TO TEST YOURSELF
  11. part III: PROPERTY CONCEPTS AND TRANSACTIONS
    1. chapter 6: Property Acquisitions And Cost Recovery Deductions
      1. CHAPTER OUTLINE
      2. KEY CONCEPTS
      3. SETTING THE STAGE—AN INTRODUCTORY CASE
      4. CAPITAL EXPENDITURES
      5. BASIS OF PROPERTY
      6. CASH FLOW AND AFTER-TAX COST
      7. MACRS
      8. PROVISIONS LIMITING DEPRECIATION
      9. DEPLETION
      10. AMORTIZATION
      11. REVISITING THE INTRODUCTORY CASE
      12. SUMMARY
      13. KEY TERMS
      14. TEST YOURSELF
      15. PROBLEM ASSIGNMENTS
      16. ANSWERS TO TEST YOURSELF
    2. chapter 7: Property Dispositions
      1. CHAPTER OUTLINE
      2. KEY CONCEPTS
      3. SETTING THE STAGE—AN INTRODUCTORY CASE
      4. DETERMINING GAIN OR LOSS ON DISPOSITIONS
      5. DISPOSITION OF SECTION 1231 PROPERTY
      6. DISPOSITION OF CAPITAL ASSETS
      7. DISPOSITION OF ORDINARY INCOME PROPERTY
      8. MIXED-USE PROPERTY
      9. SPECIAL RULES FOR SMALL BUSINESS STOCK
      10. SALE OF PRINCIPAL RESIDENCE—SECTION 121
      11. LOSSES ON RELATED PARTY SALES
      12. EXPANDED TOPICS—INDIVIDUAL CAPITAL GAINS TAX RATES
      13. REVISITING THE INTRODUCTORY CASE
      14. SUMMARY
      15. KEY TERMS
      16. TEST YOURSELF
      17. PROBLEM ASSIGNMENTS
      18. ANSWERS TO TEST YOURSELF
    3. chapter 8: Tax-Deferred Exchanges
      1. CHAPTER OUTLINE
      2. KEY CONCEPTS
      3. SETTING THE STAGE—AN INTRODUCTORY CASE
      4. BASICS OF TAX-DEFERRED EXCHANGES
      5. LIKE-KIND EXCHANGES—SECTION 1031
      6. OTHER TAX-DEFERRED EXCHANGES
      7. INVOLUNTARY CONVERSIONS
      8. ASSET TRANSFERS TO BUSINESSES
      9. CORPORATE REORGANIZATIONS
      10. REVISITING THE INTRODUCTORY CASE
      11. SUMMARY
      12. KEY TERMS
      13. TEST YOURSELF
      14. PROBLEM ASSIGNMENTS
      15. ANSWERS TO TEST YOURSELF
      16. Appendix 8A REORGANIZATIONS
      17. PROBLEM ASSIGNMENTS
  12. part IV: BUSINESS TAXATION
    1. chapter 9: Taxation of Corporations
      1. CHAPTER OUTLINE
      2. KEY CONCEPTS
      3. SETTING THE STAGE—AN INTRODUCTORY CASE
      4. INTRODUCTION TO CORPORATIONS
      5. TAXATION OF C CORPORATIONS
      6. CONSOLIDATED RETURNS
      7. CORPORATE DISTRIBUTIONS
      8. ISSUES FOR CLOSELY HELD CORPORATIONS
      9. EXPANDED TOPICS—EARNINGS AND PROFITS
      10. REVISITING THE INTRODUCTORY CASE
      11. SUMMARY
      12. KEY TERMS
      13. TEST YOURSELF
      14. PROBLEM ASSIGNMENTS
      15. ANSWERS TO TEST YOURSELF
      16. APPENDIX 9A EXEMPT ORGANIZATIONS
      17. PROBLEM ASSIGNMENTS
      18. APPENDIX 9B MULTISTATE ISSUES
      19. PROBLEM ASSIGNMENTS
    2. chapter 10: Sole Proprietorships and Flow-Through Entities
      1. CHAPTER OUTLINE
      2. KEY CONCEPTS
      3. SETTING THE STAGE—AN INTRODUCTORY CASE
      4. INTRODUCTION TO FLOW-THROUGH BUSINESS ENTITIES
      5. THE SOLE PROPRIETORSHIP
      6. PARTNERSHIPS
      7. S CORPORATION CHARACTERISTICS
      8. THE U.S. PRODUCTION ACTIVITIES DEDUCTION
      9. COMPARISON OF TOTAL TAX BURDEN BY ENTITY
      10. EXPANDED TOPICS—THE PASSIVE DEDUCTION LIMITATIONS
      11. REVISITING THE INTRODUCTORY CASE
      12. SUMMARY
      13. KEY TERMS
      14. TEST YOURSELF
      15. PROBLEM ASSIGNMENTS
      16. ANSWERS TO TEST YOURSELF
  13. part V: TAXATION OF INDIVIDUALS
    1. chapter 11: Income Taxation of Individuals
      1. CHAPTER OUTLINE
      2. KEY CONCEPTS
      3. SETTING THE STAGE—AN INTRODUCTORY CASE
      4. THE INDIVIDUAL TAX MODEL
      5. PERSONAL AND DEPENDENCY EXEMPTIONS
      6. FILING STATUS
      7. STANDARD DEDUCTION
      8. ITEMIZED DEDUCTIONS
      9. NET OPERATING LOSS
      10. COMPUTING THE TAX
      11. TAX CREDITS
      12. PAYMENT OF INCOME TAX
      13. EXPANDED TOPICS—ADDITIONAL TAXES
      14. REVISITING THE INTRODUCTORY CASE
      15. SUMMARY
      16. KEY TERMS
      17. TEST YOURSELF
      18. PROBLEM ASSIGNMENTS
      19. ANSWERS TO TEST YOURSELF
    2. chapter 12: Wealth Transfer Taxes
      1. CHAPTER OUTLINE
      2. KEY CONCEPTS
      3. SETTING THE STAGE—AN INTRODUCTORY CASE
      4. OVERVIEW OF WEALTH TRANSFER TAXATION
      5. THE FEDERAL GIFT TAX
      6. TAX CONSEQUENCES FOR DONEES
      7. THE TAXABLE ESTATE
      8. TRANSFER TAX PLANNING
      9. FIDUCIARY INCOME TAX ISSUES
      10. EXPANDED TOPICS—THE TAX CALCULATIONS
      11. REVISITING THE INTRODUCTORY CASE
      12. SUMMARY
      13. KEY TERMS
      14. TEST YOURSELF
      15. PROBLEM ASSIGNMENTS
      16. ANSWERS TO TEST YOURSELF
  14. APPENDIX A: TAX RESEARCH USING RIA CHECKPOINT ®
  15. APPENDIX B: PRESENT VALUE AND FUTURE VALUE TABLES
  16. APPENDIX C: SAMPLE FILLED-IN TAX RETURNS
    1. INFORMATION FOR CORPORATE TAX RETURN
    2. INFORMATION FOR PARTNERSHIP TAX RETURN
    3. INFORMATION FOR S CORPORATION TAX RETURN
    4. INFORMATION FOR INDIVIDUAL TAX RETURN WITH SOLE PROPRIETORSHIP
  17. APPENDIX D: TAX RETURN PROBLEMS
    1. CORPORATE TAX RETURN PROBLEM
    2. PARTNERSHIP TAX RETURN PROBLEM
    3. S CORPORATION TAX RETURN PROBLEM
    4. SIMPLE INDIVIDUAL TAX RETURN PROBLEM
    5. INDIVIDUAL TAX RETURN PROBLEM
    6. INDIVIDUAL TAX RETURN PROBLEM
  18. Index