Solutions Manual for Income Tax Fundamentals 43rd Edition By Gerald Whittenburg, Steven Gill Chapters 1–12 – Complete Practice Questions with Answers

,TABLE OF CONTENTS hj hj hj




1. The Individual Income Tax Return.
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2. Gross Income and Exclusions.
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3. Business Income and Expenses, Part I.
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4. Business Income and Expenses, Part II.
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5. Itemized Deductions and Other Incentives.
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6. Credits and Special Taxes.
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7. Accounting Periods and Methods and Depreciation.
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8. Capital Gains and Losses.
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9. Withholding, Estimated Payments, and Payroll Taxes.
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10. Partnership Taxation.
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11. The Corporate Income Tax.
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12. Tax Administration and Tax Planning.
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,Chapter 1: The Individual Income Tax Return hj hj hj hj hj hj




1. A corporation is a reporting entity but not a tax-paying entity.
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2. Partnership capital gains and losses are allocated separately to each of the partners.
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3. Married taxpayers may double their standard deduction amount by filing separatereturns.
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FALSE



4. An item is not included in gross income unless the tax law specifies that the item issubject to ta
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xation.
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5. For taxpayers who do not itemize deductions, the standard deduction amount issubtracted f
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rom the taxpayer's adjusted gross income.
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6. A taxpayer with self-employment income of $600 must file a tax return.
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7. A dependent child with earned income in excess of the available standard deductionamount mus
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t file a tax return.
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8. A single taxpayer, who is not blind and who is under age 65, with income of $8,750must file a
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tax return.
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, 9. If a taxpayer is due a refund, it will be mailed to the taxpayer regardless of whether heor she files a ta
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x return.
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10. Taxpayers with self-employment income of $400 or more must file a tax return.
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11. If your spouse dies during the tax year and you do not remarry, you must file assingle for t
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he year of death.
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12. Taxpayers who do not qualify for married, head of household, or qualifying widow orwidower fil
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ing status must file as single.
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13. If an unmarried taxpayer paid more than half the cost of keeping a home which is theprincipal pla
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ce of residence of a nephew, who is not her dependent, she may use the head of household filing status.
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14. The maximum official individual income tax rate for 2012 is 35 percent.
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15. All taxpayers may use the tax rate schedule to determine their tax liability.
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16. The head of household tax rates are higher than the rates for a single taxpayer.
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17. Most states are community property states.
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FALSE