Test Bank for South-Western Federal Taxation 2025: Individual Income Taxes, 48th Edition by James C. Young | Complete Chapters

TEST BANK
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South-Western Federal Taxation 2025:
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Individual Income Taxes, 48th Edition
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by JamesYoung Complete Chapters 1-20
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,TABLEOFCONTENTS

Chapter1:AnIntroductiontoTaxationandUnderstandingtheFederalTax Law Chapter
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2:WorkingwiththeTaxLaw
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Chapter03:TaxFormulaandTax Determination
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v Chapter04:GrossIncome:ConceptsandInclusions
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v Chapter05:GrossIncome:Exclusions
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Chapter06:DeductionsandLosses:InGeneral
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Chapter07:DeductionsandLosses:CertainBusiness Expenses
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v Chapter08:Depreciation,CostRecovery,Amortization,andDepletion
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v Chapter09:Deductions:EmployeeandSelf-Employed-RelatedExpense
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v Chapter10:DeductionsandLosses:CertainItemizedDeductions Chapter
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11:InvestorLosses
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Chapter12:AlternativeMinimumTax
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Chapter13:TaxCreditsandPaymentProcedures
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Chapter14:PropertyTransactions:DeterminationofGainorLossand
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v Chapter15:PropertyTransactions:NontaxableExchanges
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Chapter16:PropertyTransactions:CapitalGainsandLosses Chapter
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17:PropertyTransactions:1231andRecaptureProvisions Chapter18:
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AccountingPeriodsandMethods
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Chapter19:DeferredCompensation Chapter
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20:CorporationsandPartnerships
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, Chapter 01 2025 Individuals
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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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v 1. Salesmadeovertheinternet are not exemptfrom theapplication ofa general sales(oruse)tax.
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a. True
b. False

2. Uponaudit bytheIRS,Faith is assessed adeficiencyof$40,000 ofwhich$25,000isattributabletonegligence.
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The 20% negligence penaltywillapplyto $25,000.
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a. True
b. False

3. Ultimately, most taxesarepaidbyindividuals.
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a. True
b. False

4. Evenifpropertytax ratesarenot changed,the amountof ad valoremtaxes imposedonrealtymaynot remain thesame.
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a. True
b. False

v 5. The principalobjective oftheFUTA tax is toprovidesomemeasure ofretirementsecurity.
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a. True
b. False

6.If moreIRS audits areproducing ahigher number ofnochange results,this indicates increased compliance onthe part of
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taxpayers.
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a. True
b. False

7. A safe and easy way for a taxpayer to avoid local and state sales taxes is to make the purchase in a state that levies
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nosuch taxes. v




a. True
b. False

8. A calendar year taxpayer files his 2023 Federal income tax return on March 4, 2024. The return reflects an overpaymen t of
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$6,000,andthe taxpayer requests arefund ofthis amount. The refund is paid on May 16, 2024.Therefund need not include int erest.
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a. True
b. False

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




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, Name: Class: Date: v




Chapter 01 2025 Individuals
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v 10.For Federal incometax purposes,there never has beena generalamnesty period.
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a. True v




b. False v




11. To lessenoreliminatethe effect ofmultipletaxation,a taxpayerwhoissubject to both foreignand U.S.income taxeson th
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esameincomeisallowedeitheradeductionoracredit fortheforeign taxpaid.
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a. True
b. False

12.Because it is consistent withthe wherewithalto payconcept,the taxlaw requires aseller to recognizea gain intheyear t
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heinstallment saleoccurs.
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a. True
b. False

13.Theamount ofataxpayer’sitemizeddeductions will increasethechanceofbeingauditedbythe IRS.
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a. True
b. False

14. In2024,José,a widower, sellsland (fairmarket value of$100,000) to his daughter,Linda,for$50,000.Joséhas not made
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ataxablegift.
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a. True
b. False

15.Foromissions fromgrossincome inexcessof 25% ofthat reported,there isno statuteoflimitations on addition
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alincometaxassessmentsbytheIRS.
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a. True
b. False

16.Stealth taxes havetheeffect ofgeneratingadditional taxesfromalltaxpayers.
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a. True
b. False

v17. Jason’s business warehouse is destroyed by fire. Because the insurance proceeds exceed the basis of the property, again
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results.If Jason shortlyreinvests the proceeds in anewwarehouse,nogainis recognized dueto the application of the wher ewithal
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to payconcept.
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a. True
b. False

18.Aninheritance taxis a taxona decedent’s right to passpropertyat death.
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a. True
b. False

v 19.Wheninterestischargedonadeficiency, anypart ofa monthcounts asafull month.
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a. True
b. False

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