McGraw Hill's Taxation of Individuals and Business Entities
2026, Evergreen Release Hardcover – Solutions Manual
by Spilker (Author)
,TABLE OF CONTENTS
1 An Introduction to Tax
2 Tax Compliance, the IRS, and Tax Authorities
3 Tax Planning Strategies and Related Limitations
4 Individual Income Tax Overview, Dependents, and Filing Status
5 Gross Income and Exclusions
6 Individual Deductions
7 Investments
8 Individual Income Tax Computation and Tax Credits
9 Business Income, Deductions, and Accounting Methods
10 Property Acquisition and Cost Recovery
11 Property Dispositions
12 Compensation
13 Retirement Savings and Deferred Compensation
14 Tax Consequences of Home Ownership
15 Business Entities Overview
16 Corporate Operations
17 Accounting for Income Taxes
18 Corporate Taxation: Nonliquidating Distributions
19 Corporate Formation, Reorganization, and Liquidation
20 Forming and Operating Partnerships
21 Dispositions of Partnership Interests and Partnership Distributions
22 S Corporations
23 State and Local Taxes
24 The U.S. Taxation of Multinational Transactions
25 Transfer Taxes and Wealth Planning
,McGraw Hill's Taxation of Individuals and Business
Entities 2026, Evergreen Release
Chapter 1
An Introduction to Tax
Discussion Questions
(1) [LO 1] Jessica’s friend Zachary once stated that he couldn’t understand
why
someone would take a tax course. Why is this a rather naïve view?
Taxes are a part of everyday life and have a financial effect on many of the
major personal decisions that individuals face (e.g., investment decisions,
evaluating alternative job offers, saving for education expenses, gift or
estate planning, etc.).
(2) [LO 1] What are some aspects of business that require knowledge
of taxation? What are some aspects of personal finance that
require knowledge of taxation?
Taxes play an important role in fundamental business decisions such as the
following:
What organizational form should a business use?
Where should the business locate?
How should business acquisitions be structured?
How should the business compensate employees?
What is the appropriate mix of debt and equity for the business?
Should the business rent or own its equipment and property?
How should the business distribute profits to its owners?
One must consider all transaction costs (including taxes) to evaluate the
merits of a transaction.
Common personal financial decisions that taxes influence include: choosing
investments, retirement planning, choosing to rent or buy a home,
evaluating alternative job offers, saving for education expenses, and doing
gift or estate planning.
, (3) [LO 1] Describe some ways in which taxes affect the political
process in the United States.
U.S. presidential candidates often distinguish themselves from their opponents
2026, Evergreen Release Hardcover – Solutions Manual
by Spilker (Author)
,TABLE OF CONTENTS
1 An Introduction to Tax
2 Tax Compliance, the IRS, and Tax Authorities
3 Tax Planning Strategies and Related Limitations
4 Individual Income Tax Overview, Dependents, and Filing Status
5 Gross Income and Exclusions
6 Individual Deductions
7 Investments
8 Individual Income Tax Computation and Tax Credits
9 Business Income, Deductions, and Accounting Methods
10 Property Acquisition and Cost Recovery
11 Property Dispositions
12 Compensation
13 Retirement Savings and Deferred Compensation
14 Tax Consequences of Home Ownership
15 Business Entities Overview
16 Corporate Operations
17 Accounting for Income Taxes
18 Corporate Taxation: Nonliquidating Distributions
19 Corporate Formation, Reorganization, and Liquidation
20 Forming and Operating Partnerships
21 Dispositions of Partnership Interests and Partnership Distributions
22 S Corporations
23 State and Local Taxes
24 The U.S. Taxation of Multinational Transactions
25 Transfer Taxes and Wealth Planning
,McGraw Hill's Taxation of Individuals and Business
Entities 2026, Evergreen Release
Chapter 1
An Introduction to Tax
Discussion Questions
(1) [LO 1] Jessica’s friend Zachary once stated that he couldn’t understand
why
someone would take a tax course. Why is this a rather naïve view?
Taxes are a part of everyday life and have a financial effect on many of the
major personal decisions that individuals face (e.g., investment decisions,
evaluating alternative job offers, saving for education expenses, gift or
estate planning, etc.).
(2) [LO 1] What are some aspects of business that require knowledge
of taxation? What are some aspects of personal finance that
require knowledge of taxation?
Taxes play an important role in fundamental business decisions such as the
following:
What organizational form should a business use?
Where should the business locate?
How should business acquisitions be structured?
How should the business compensate employees?
What is the appropriate mix of debt and equity for the business?
Should the business rent or own its equipment and property?
How should the business distribute profits to its owners?
One must consider all transaction costs (including taxes) to evaluate the
merits of a transaction.
Common personal financial decisions that taxes influence include: choosing
investments, retirement planning, choosing to rent or buy a home,
evaluating alternative job offers, saving for education expenses, and doing
gift or estate planning.
, (3) [LO 1] Describe some ways in which taxes affect the political
process in the United States.
U.S. presidential candidates often distinguish themselves from their opponents
