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

Chapter1:AnIntroductiontoTaxationandUnderstandingtheFederalTaxLawChapter2: WorkingwiththeTa 5u u5




xLawjc




Chapter03:Tax FormulaandTaxDeterminationChapter 04:GrossInco
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me:ConceptsandInclusionsChapter05:G rossIncome:Exclusions 5u u5 u5




Chapter06:DeductionsandLosses:InGeneral
Chapter 07: Deductions and Losses: Certain Business Expenses Chapter 0
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8: Depreciation, Cost Recovery, Amortization, and Depletion Chapter 09: De
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ductions: Employee and Self-Employed-
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Related Expense Chapter 10: Deductions and Losses: Certain Itemized De d
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uctionsChapter11:InvestorLosses Chapter12:AlternativeMinimumTa
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x Chapter13:Tax CreditsandPayment Procedures
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Chapter14:PropertyTransactions:DeterminationofGainorLoss and jc u 5 u 5 Chap u




5 ter 15: Property Transactions: Nontaxable Exchanges
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Chapter 16: Property Transactions: Capital Gains and Losses Chapter 17
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:Property Transactions: 1231and Recapture Provisions Chapter18
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:AccountingPeriodsandMethods Chapter19:DeferredC jc u5




ompensationChapter 20:CorporationsandPartnerships
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, Chapter 01 2025 Individuals
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Answers2at2the2end2of2each2chapter

Indicate whether the statement is2 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

2. Upon auditby the IRS,Faith is assessed adeficiency of $40,000 of which $25,000 is attributableto negligence.
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The 20% negligence penalty will applyto$25,000.
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a. True
b. False

3.Ultimately,mosttaxes are paid byindividuals. jc jc jc




a. True
b. False

4. Even if property tax rates are not changed, the amount of ad valorem taxes imposed on realty may not remainthe same.
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a. True
b. False

5. The principal objective of the FUTA2tax 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 compliance onthe
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rt 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 a state thatlev ies no s
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uch taxes. u5



a. True
b. False

u 8. A2calendar year taxpayer files his 2023 Federal income tax return on March 4, 2024. The return reflects an overpay me
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nt of $6,000, and the taxpayer requests a refund of this amount. The refund is paid on May 16, 2024.The refund need not in
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clud e interest.u5 jc



a. True
b. False

9. A tax2cut enacted by Congress that contains a sunset provision will make thetax cut temporary.
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a. True
b. False


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, Name: Class: Date: u5




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 oreliminate the effect of multiple taxation, a taxpayer who is subject to bothforeign andU.S. income taxe s on th
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e2same 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 recognize a gain inthe ye a
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r the installment sale occurs.
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a. True
b. False

13. The2amount 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,awidower,sells land(fairmarket value of $100,000)tohis daughter,Linda, for$50,000.José has not2
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e a taxable gift.
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a. True
b. False

15. For omissionsfrom grossincomein excess of 25% of that reported, there is no2statute oflimitations on ad diti o
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nal incometax assessments by the IRS.
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a. True
b. False

16. Stealth taxes have2the effect2of 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 of the propert y, a g a
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in results. If Jason shortly reinvests the proceeds in a new warehouse, no gain is recognized due2to the application of t he wher e
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withal to pay concept. u5 u5 u5



a. True
b. False

18. An inheritance tax is a tax2on a decedent’s right to pass property at death.
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a. True
b. False

19.When interest is charged on a deficiency, anypart of a month counts as a full month.
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