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

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,TABLEOFCONTENTS

Chapter 1: An Introduction to Taxation and Understanding the Federal Tax Law Cha p t
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er 2: Working with the Tax Law
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Chapter 03: Tax Formula and Tax Determination Chap
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ter 04: Gross Income: Concepts and Inclusions Chapter 05
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: 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
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Chapt t




er 08: Depreciation, Cost Recovery, Amortization, and Depletion Chapter 0 9:
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7 Deductions: Employee and Self-Employed- t7 t7 t7




Related Expense Chapter 10: Deductions and Losses: Certain Itemized De du
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ctions Chapter 11: Investor Losses t 7 t7 t7 t7




Chapter 12: Alternative Minimum Tax t7 t7 t7 t7




Chapter 13: Tax Credits and Payment Procedures
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Chapter 14: Property Transactions: Determination of Gain or Loss and Cha p t
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er 15: Property Transactions: Nontaxable Exchanges
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Chapter 16: Property Transactions: Capital Gains and Losses Chapter 1 7
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: Property Transactions: 1231 and Recapture Provisions Chapter 1 8: Ac
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counting Periods and Methods t7 t7 t7




Chapter 19: Deferred Compensation Chapter t7 t7 t7 t7 t7




20: Corporations and Partnerships
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Paget 7 2

, 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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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

t7 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

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 m
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ay not re m ainthe same.
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a. True
b. False

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 comp
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lianc e onthe part of 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
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a sta te 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 reflects an
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o verpayment of $6,000, and the taxpayer requests a refund of this amount. The refund is paid on May 16, 2024.
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The refu nd 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
Paget 7 3

, Name: Class: Date:

Chapter 01 2025 Individuals
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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.S.
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i ncome taxes 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 recogniz
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e 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 $50,000.
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J osé 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 limitat
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i ons 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 o
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t 7f the property, a gain results. If Jason shortly reinvests the proceeds in a new warehouse, no gain is recognize
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d d ue to the a pplication 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
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