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

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




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,TABLE OF CONTENTS
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Chapter 1: An Introduction to Taxation and Understanding the Federal Tax Law
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Chapter 2: Working with the Tax Law
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Chapter 03: Tax Formula and Tax Determination
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Chapter 04: Gross Income: Concepts and Inclusions
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Chapter 05: 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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Chapter 08: Depreciation, Cost Recovery, Amortization, and Depletion
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Chapter 09: Deductions: Employee and Self-Employed-Related Expense
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Chapter 10: Deductions and Losses: Certain Itemized Deductions
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Chapter 11: Investor Losses
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Chapter 12: Alternative Minimum Tax
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Chapter 13: Tax Credits and Payment Procedures
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Chapter 14: Property Transactions: Determination of Gain or Loss and
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Chapter 15: Property Transactions: Nontaxable Exchanges
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Chapter 16: Property Transactions: Capital Gains and Losses
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Chapter 17: Property Transactions: 1231 and Recapture Provisions
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Chapter 18: Accounting Periods and Methods
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Chapter 19: Deferred Compensation
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Chapter 20: Corporations and Partnerships
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, Chaptert 01t 2025t Individuals

Answerstattthetendtofteachtchapter

Indicatet whethert thet statementt ist truet ort false.
t t 1.tSalestmadetovertthetinternettaretnottexempttfromtthetapplicationtoftatgeneraltsalest(ortuse)ttax.
a. True
b. False

t t 2.tUpontaudittbytthetIRS,tFaithtistassessedtatdeficiencytoft$40,000toftwhicht$25,000tistattributablettotnegligence.
Thet20%tnegligencetpenaltytwilltapplyttot$25,000.
a. True
b. False

t t 3.tUltimately,tmostttaxestaretpaidtbytindividuals.
a. True
b. False

t t 4.tEventiftpropertyttaxtratestaretnottchanged,tthetamounttoft adt valoremttaxestimposedtontrealtytmaytnottremaintthetsame.
a. True
b. False

t t 5.tThetprincipaltobjectivetoftthetFUTAttaxtisttotprovidetsometmeasuretoftretirementtsecurity.
a. True
b. False
t

t 6.tIftmoretIRStauditstaretproducingtathighertnumbertoftnotchangetresults,tthistindicatestincreasedtcompliancetontthetpartt

ofttaxpayers.
a. True
b. False
t

t 7.t At safet andt easyt wayt fort at taxpayert tot avoidtlocalt andt statet salest taxest ist tot maket thet purchasetint at statet thattleviestn

otsuchttaxes.
a. True
b. False
t

t 8.tAtcalendartyearttaxpayertfilesthist2023tFederaltincomettaxtreturntontMarcht4,t2024.tThetreturntreflectstantoverpayment

oft$6,000,tandtthettaxpayertrequeststatrefundtoftthistamount.tThetrefundtistpaidtontMayt16,t2024.tThetrefundtneedtnottincludetint
t

erest.
a. True
b. False

t t 9.t AttaxtcuttenactedtbytCongresstthattcontainstat sunsett provisiontwilltmaketthettaxtcutttemporary.
a. True
b. False



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, Name: Class: Date:t

Chaptert 01t 2025t Individuals

t t 10.tFortFederaltincomettaxtpurposes,ttheretneverthastbeentatgeneraltamnestytperiod.
a. True
b. False
t

t11.tTotlessentorteliminatettheteffecttoftmultiplettaxation,tattaxpayertwhotistsubjectttotbothtforeigntandtU.S.tincomettaxestontt
hetsametincometistallowedteithertatdeductiontortatcredittfortthetforeignttaxtpaid.
a. True
b. False
t

t 12.tBecausetittistconsistenttwithtthetwherewithalttotpaytconcept,tthettaxtlawtrequirestatsellerttotrecognizetatgaintintthetyeart
thetinstallmenttsaletoccurs.
a. True
b. False

t t 13.tThetamounttoftattaxpayer’stitemizedtdeductionstwilltincreasetthetchancetoftbeingtauditedtbytthetIRS.
a. True
b. False
t

t 14.tInt2024,tJosé,tatwidower,tsellstlandt(fairtmarkettvaluetoft$100,000)ttothistdaughter,tLinda,tfort$50,000.tJoséthastnottmad

etattaxabletgift.
a. True
b. False
t

t 15.tFortomissionstfromtgrosstincometintexcesstoft25%toftthattreported,ttheretistnotstatutetoftlimitationstontadditio

naltincomettaxtassessmentstbytthetIRS.
a. True
b. False

t t 16.tStealthttaxesthavettheteffecttoftgeneratingtadditionalttaxestfromtallttaxpayers.
a. True
b. False
t

t17.tJason’stbusinesstwarehousetistdestroyedtbytfire.tBecausetthetinsurancetproceedstexceedtthetbasistoftthetproperty,tat
gaintresults.tIftJasontshortlytreinveststthetproceedstintatnewtwarehouse,tnotgaintistrecognizedtduettotthetapplicationtoftthetwher
ewithalttotpaytconcept.
a. True
b. False

t t 18.tAntinheritancettaxtistattaxtontatdecedent’strightttotpasstpropertytattdeath.
a. True
b. False

t t 19.tWhentinteresttistchargedtontatdeficiency,tanytparttoftatmonthtcountstastatfulltmonth.
a. True

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