TEST BANK FOR South-Western Federal Taxation 2025: Individual Income Taxes 48th Edition by James Young, Annette Nellen,Mark Persellin ISBN:978-0357988954 COMPLETE GUIDE ALL CHAPTERS COVERED 100% VERIFIED A+ GRADE ASSURED!!!!NEW LATEST UPDATE!!!!!

TESTBANK
South-
WesternFederalTaxation2025: Individual Inco
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me Taxes, 48th Edition by
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JamesYoung




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,TABLEOFCONTENTS

Chapter 1: An Introduction to Taxation and Understanding the Federal Tax Law Chap
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t er 2: Working with the Tax Law
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Chapter 03: Tax Formula and Tax Determination Cha
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m pter 04: Gross Income: Concepts and Inclusions Chapt
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m er 05: Gross Income: Exclusions
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Chapter 06: Deductions and Losses: In General
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Chapter 07: Deductions and Losses: Certain Business Expenses Cha
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pt er 08: Depreciation, Cost Recovery, Amortization, and Depletion Chapte
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r 09: Deductions: Employee and Self-Employed-
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Related Expense Chapter 10: Deductions and Losses: Certain Itemized D
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eductions Chapter 11: Investor Losses y m ym ym ym




Chapter 12: Alternative Minimum Tax ym ym ym ym




Chapter 13: Tax Credits and Payment Procedures
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Chapter 14: Property Transactions: Determination of Gain or Loss and Ch
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apter 15: Property Transactions: Nontaxable Exchanges
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Chapter 16: Property Transactions: Capital Gains and Losses Chapt
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e r 17: Property Transactions: 1231 and Recapture Provisions Ch
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apter 18: Accounting Periods and Methods
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Chapter 19: Deferred Compensation Chapteym ym ym ym




y m r 20: Corporations and Partnerships
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, Chapter 01 2025
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Answers at the end of each chapter
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Indicate whether the statement is true or false.
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1. Sales made over the internet are not exempt from the application of a general sales (or use) tax.
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a. True
b. False

ym 2. Upon audit by the IRS, Faith is assessed a deficiency of $40,000 of which $25,000 is attributable to negligence.
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The 20% negligence penalty will apply to $25,000.
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a. True
b. False

ym 3. Ultimately, most taxes are paid by individuals.
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a. True
b. False

4. Even if property tax rates are not changed, the amount of ad valorem taxes imposed on realty may
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mnot rem a inthe same.
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a. True
b. False

ym 5. The principal objective of the FUTA tax is to provide some measure of retirement security.
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a. True
b. False


6. If more IRS audits are producing a higher number of no change results, this indicates increased co
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mpliance o nthe part of taxpayers. y m ym ym ym ym


a. True
b. False

7. A safe and easy way for a taxpayer to avoid local and state sales taxes is to make the purc
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hase in a stat e that levies no such taxes.
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a. True
b. False

8. A calendar year taxpayer files his 2023 Federal income tax return on March 4, 2024. The return refle
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cts an o v erpayment of $6,000, and the taxpayer requests a refund of this amount. The refund is paid on May
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16, 2024. The re fun d need not include interest.
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a. True
b. False

9. A tax cut enacted by Congress that contains a sunset provision will make the tax cut temporary.
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a. True
b. False

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, Name: Class: Date:y m




Chapter y m 01 y m 2025 y m Individuals

10. For Federal income tax purposes, there never has been a general amnesty period.
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a. True
b. False

11. To lessen or eliminate the effect of multiple taxation, a taxpayer who is subject to both foreign and U
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.S. income t axes on the same income is allowed either a deduction or a credit for the foreign tax paid.
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a. True
b. False

12. Because it is consistent with the wherewithal to pay concept, the tax law requires a seller to recogn
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ize a gai n inthe year the installment sale occurs.
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a. True
b. False

13. The amount of a taxpayer’s itemized deductions will increase the chance of being audited by the IRS.
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a. True
b. False


14. In 2024, José, a widower, sells land (fair market value of $100,000) to his daughter, Linda, for $50,00
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0. José ha s not made a taxable gift.
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a. True
b. False

15. For omissions from gross income in excess of 25% of that reported, there is no statute of l
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imitation s o n additional income tax assessments by the IRS.
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a. True
b. False

16. Stealth taxes have the effect of generating additional taxes from all taxpayers.
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a. True
b. False

17. Jason’s business warehouse is destroyed by fire. Because the insurance proceeds exceed the basis of
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mthe p roperty, a gain results. If Jason shortly reinvests the proceeds in a new warehouse, no gain is recogniz
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ed due to the a pp lication of the wherewithal to pay concept.
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a. True
b. False

18. An inheritance tax is a tax on a decedent’s right to pass property at death.
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a. True
b. False

19. When interest is charged on a deficiency, any part of a month counts as a full month.
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a. True
b. False
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