Solution manual for Mcgraw hill s taxation of individuals 2024 edition 15th edition by Brian C. Spilker Benjamin C. Ayers All Chapters 1-14 Covered

Solution Manual for McGraw-Hill's Taxation of
Individuals 2024 Edition, 15th Edition
By Brian Spilker, Benjamin Ayers, All Chapters 1 - 14

,TABLE OF CONTENTS
E E E



PartEI:EIntroductionEtoETaxation

ChapterE1:EAnEIntroductionEtoETax

ChapterE2:ETaxECompliance,EtheEIRS,EandETaxEAuthorities

ChapterE3:ETaxEPlanningEStrategiesEandERelatedELimitations



PartEII:EBasicEIndividualETaxation

ChapterE4:EIndividualEIncomeETaxEOverview,EDependents,EandEFilingEStatus

ChapterE5:EGrossEIncomeEandEExclusions

ChapterE6:EIndividualEDeductions

ChapterE7:EInvestments

ChapterE8:EIndividualEIncomeETaxEComputationEandETaxECredits



PartEIII:EBusiness-RelatedETransactions

ChapterE9:EBusinessEIncome,EDeductions,EandEAccountingEMethods

ChapterE10:EPropertyEAcquisitionEandECostERecovery

ChapterE11:EPropertyEDispositions



PartEIV:ESpecializedETopics

ChapterE12:ECompensation

ChapterE13:ERetirementESavingsEandEDeferredECompensation

ChapterE14:ETaxEConsequencesEofEHomeEOwnership

,ChapterE1
AnEIntroductionEtoETax


DiscussionEQuestions

(1) [LOE1]EJessica’sEfriendEZacharyEonceEstatedEthatEheEcouldn’tEunderstandEwhy
someoneEwouldEtakeEaEtaxEcourse.EWhyEisEthisEaEratherEnaïveEview?

TaxesEareEaEpartEofEeverydayElifeEandEhaveEaEfinancialEeffectEonEmanyEofEtheEmajorE personalEdecisionsEt
hatEindividualsEfaceE(e.g.,EinvestmentEdecisions,EevaluatingE alternativeEjobEoffers,EsavingEforEeducation
Eexpenses,EgiftEorEestateEplanning,Eetc.).




(2) [LOE1]EWhatEareEsomeEaspectsEofEbusinessEthatErequireEknowledgeEofEtaxation?E WhatEa
reEsomeEaspectsEofEpersonalEfinanceEthatErequireEknowledgeEofEtaxation?

TaxesEplayEanEimportantEroleEinEfundamentalEbusinessEdecisionsEsuchEasEtheE following:
 WhatEorganizationalEformEshouldEaEbusinessEuse?
 WhereEshouldEtheEbusinessElocate?
 HowEshouldEbusinessEacquisitionsEbeEstructured?
 HowEshouldEtheEbusinessEcompensateEemployees?
 WhatEisEtheEappropriateEmixEofEdebtEandEequityEforEtheEbusiness?
 ShouldEtheEbusinessErentEorEownEitsEequipmentEandEproperty?
 HowEshouldEtheEbusinessEdistributeEprofitsEtoEitsEowners?
OneEmustEconsiderEallEtransactionEcostsE(includingEtaxes)EtoEevaluateEtheEmeritsEofE aEtransaction.

CommonEpersonalEfinancialEdecisionsEthatEtaxesEinfluenceEinclude:EchoosingE investments,EretirementEpl
anning,EchoosingEtoErentEorEbuyEaEhome,EevaluatingE alternativeEjobEoffers,EsavingEforEeducationEexpens
es,EandEdoingEgiftEorEestateE planning.


(3) [LOE1]EDescribeEsomeEwaysEinEwhichEtaxesEaffectEtheEpoliticalEprocessEinEtheE United
EStates.



U.S.EpresidentialEcandidatesEoftenEdistinguishEthemselvesEfromEtheirEopponents

, basedEuponEtheirEtaxErhetoric.ELikewise,EtheEmajorEpoliticalEpartiesEgenerallyEhaveE veryEdiverseEviewsEof
EtheEappropriateEwayEtoEtaxEtheEpublic.EDeterminingEwhoEisE taxed,EwhatEisEtaxed,EandEhowEmuchEisEtax

edEareEdifficultEquestions.EVotersEmustE haveEaEbasicEunderstandingEofEtaxesEtoEevaluateEtheEmeritsEofEalt
ernativeEtaxE proposalsEofferedEbyEopposingEpoliticalEcandidatesEandEtheirEpoliticalEparties.

(4) [LOE2]ECourtneyErecentlyEreceivedEaEspeedingEticketEonEherEwayEtoEtheEuniversity.E HerEfi
neEwasE$200.EIsEthisEconsideredEaEtax?EWhyEorEwhyEnot?

TheE$200EspeedingEticketEisEnotEconsideredEaEtax.EInstead,EitEisEconsideredEaEfineE orEpenalty.ETaxesE
differEfromEfinesEandEpenaltiesEbecauseEtaxesEareEnotEintendedE toEpunishEorEpreventEillegalEbehavior.

(5) [LOE2]EMarlonEandELatoyaErecentlyEstartedEbuildingEaEhouse.ETheyEhadEtoEpay
$300EtoEtheEcountyEgovernmentEforEaEbuildingEpermit.EIsEtheE$300EpaymentEaEtax?E WhyEor
EwhyEnot?



TheEbuildingEpermitEisEnotEconsideredEaEtaxEbecauseE$300EpaymentEisEdirectlyE linkedEtoEaEbenefitEthatEt
heyEreceivedE(i.e.,EtheEabilityEtoEbuildEaEhouse).

(6) [LOE2]EToEhelpEpayEforEtheEcity’sEnewEstadium,EtheEcityEofEBirminghamErecentlyE enacte
dEaE1EpercentEsurchargeEonEhotelErooms.EIsEthisEaEtax?EWhyEorEwhyEnot?

TheE1EpercentEsurchargeEisEaEtax.ETheE1EpercentEsurchargeEisEanEearmarkedEtaxE–
E i.e.,EcollectedEforEaEspecificEpurpose.ETheEsurchargeEisEconsideredEaEtaxEbecauseE theEtaxEpaymentsEmade

EbyEtaxpayersEdoEnotEdirectlyErelateEtoEtheEspecificEbenefitE receivedEbyEtheEtaxpayers.



(7) [LOE2]EAsEnotedEinEExampleE1-
2,Etolls,EparkingEmeterEfees,EandEannualElicensingE feesEareEnotEconsideredEtaxes.ECanEyo
uEidentifyEotherEfeesEthatEareEsimilar?

ThereEareEseveralEpossibleEanswersEtoEthisEquestion.ESomeEcommonEexamplesE includeEentranceEfeesEtoEn
ationalEparks,EtagEfeesEpaidEtoElocal/stateEgovernmentE forEautomobiles,Eboats,Eetc.

(8) [LOE2]EIfEtheEgeneralEobjectiveEofEourEtaxEsystemEisEtoEraiseErevenue,EwhyEdoesEtheE incom
eEtaxEallowEdeductionsEforEcharitableEcontributionsEandEretirementEplanE contributions?

InEadditionEtoEtheEgeneralEobjectiveEofEraisingErevenue,ECongressEusesEtheEfederalE taxEsystemEtoEencoura
geEcertainEbehaviorEandEdiscourageEotherEbehavior.ETheE charitableEcontributionEdeductionEisEintendedEt
oEencourageEtaxpayersEtoEsupportE theEinitiativesEofEcharitableEorganizations,EwhereasEdeductionsEforEre
tirementE contributionsEareEintendedEtoEencourageEretirementEsavings.EAnotherEobjectiveEofE theEtaxEsyst
emEisEtoEredistributeEwealth.