Solution Manual for McGraw-Hill's Taxation of Individuals 2024 Edition, 15th Edition By Brian Spilker, Benjamin Ayers, All Chapters 1 - 14

Solution Manual for McGraw-Hill's Taxation of
Individuals 2024 Edition, 15th Edition
By Brian Spilker, Benjamin Ayers, All Chapters 1 - 14

,TABLE OF CONTENTS
V V V




PartVI:VIntroductionVtoVTaxation

ChapterV1:VAnVIntroductionVtoVTax

ChapterV2:VTaxVCompliance,VtheVIRS,VandVTaxVAuthorities

ChapterV3:VTaxVPlanningVStrategiesVandVRelatedVLimitations



PartVII:VBasicVIndividualVTaxation

ChapterV4:VIndividualVIncomeVTaxVOverview,VDependents,VandVFilingVStatus

ChapterV5:VGrossVIncomeVandVExclusions

ChapterV6:VIndividualVDeductions

ChapterV7:VInvestments

ChapterV8:VIndividualVIncomeVTaxVComputationVandVTaxVCredits



PartVIII:VBusiness-RelatedVTransactions

ChapterV9:VBusinessVIncome,VDeductions,VandVAccountingVMethods

ChapterV10:VPropertyVAcquisitionVandVCostVRecovery

ChapterV11:VPropertyVDispositions



PartVIV:VSpecializedVTopics

ChapterV12:VCompensation

ChapterV13:VRetirementVSavingsVandVDeferredVCompensation

ChapterV14:VTaxVConsequencesVofVHomeVOwnership

,Chapter 1
V


An Introduction to Tax
V V V




Discussion Questions
V




(1) [LOV1]VJessica’sVfriendVZacharyVonceVstatedVthatVheVcouldn’tVunderstandVwhy
someoneVwouldVtakeVaVtaxVcourse.VWhyVisVthisVaVratherVnaïveVview?

TaxesVareVaVpartVofVeverydayVlifeVandVhaveVaVfinancialVeffectVonVmanyVofVtheVmajorV personalVdecisionsVtha
tVindividualsVfaceV(e.g.,VinvestmentVdecisions,VevaluatingV alternativeVjobVoffers,VsavingVforVeducationVexp
enses,VgiftVorVestateVplanning,Vetc.).

(2) [LOV1]VWhatVareVsomeVaspectsVofVbusinessVthatVrequireVknowledgeVofVtaxation?V WhatVa
reVsomeVaspectsVofVpersonalVfinanceVthatVrequireVknowledgeVofVtaxation?

TaxesVplayVanVimportantVroleVinVfundamentalVbusinessVdecisionsVsuchVasVtheV following:
• WhatVorganizationalVformVshouldVaVbusinessVuse?
• WhereVshouldVtheVbusinessVlocate?
• HowVshouldVbusinessVacquisitionsVbeVstructured?
• HowVshouldVtheVbusinessVcompensateVemployees?
• WhatVisVtheVappropriateVmixVofVdebtVandVequityVforVtheVbusiness?
• ShouldVtheVbusinessVrentVorVownVitsVequipmentVandVproperty?
• HowVshouldVtheVbusinessVdistributeVprofitsVtoVitsVowners?
OneVmustVconsiderVallVtransactionVcostsV(includingVtaxes)VtoVevaluateVtheVmeritsVofV aVtransaction.

CommonVpersonalVfinancialVdecisionsVthatVtaxesVinfluenceVinclude:VchoosingV investments,VretirementVpla
nning,VchoosingVtoVrentVorVbuyVaVhome,VevaluatingV alternativeVjobVoffers,VsavingVforVeducationVexpenses,V
andVdoingVgiftVorVestateV planning.


(3) [LOV1]VDescribeVsomeVwaysVinVwhichVtaxesVaffectVtheVpoliticalVprocessVinVtheV UnitedV
States.

U.S.VpresidentialVcandidatesVoftenVdistinguishVthemselvesVfromVtheirVopponents

, basedVuponVtheirVtaxVrhetoric.VLikewise,VtheVmajorVpoliticalVpartiesVgenerallyVhaveV veryVdiverseVviewsVofVt
heVappropriateVwayVtoVtaxVtheVpublic.VDeterminingVwhoVisV taxed,VwhatVisVtaxed,VandVhowVmuchVisVtaxedV
areVdifficultVquestions.VVotersVmustV haveVaVbasicVunderstandingVofVtaxesVtoVevaluateVtheVmeritsVofValterna
tiveVtaxV proposalsVofferedVbyVopposingVpoliticalVcandidatesVandVtheirVpoliticalVparties.

(4) [LOV2]VCourtneyVrecentlyVreceivedVaVspeedingVticketVonVherVwayVtoVtheVuniversity.V HerVfi
neVwasV$200.VIsVthisVconsideredVaVtax?VWhyVorVwhyVnot?

TheV$200VspeedingVticketVisVnotVconsideredVaVtax.VInstead,VitVisVconsideredVaVfineV orVpenalty.VTaxesVdi
fferVfromVfinesVandVpenaltiesVbecauseVtaxesVareVnotVintendedV toVpunishVorVpreventVillegalVbehavior.

(5) [LOV2]VMarlonVandVLatoyaVrecentlyVstartedVbuildingVaVhouse.VTheyVhadVtoVpay
$300VtoVtheVcountyVgovernmentVforVaVbuildingVpermit.VIsVtheV$300VpaymentVaVtax?V WhyVor
VwhyVnot?




TheVbuildingVpermitVisVnotVconsideredVaVtaxVbecauseV$300VpaymentVisVdirectlyV linkedVtoVaVbenefitVthatVth
eyVreceivedV(i.e.,VtheVabilityVtoVbuildVaVhouse).

(6) [LOV2]VToVhelpVpayVforVtheVcity’sVnewVstadium,VtheVcityVofVBirminghamVrecentlyV enacte
dVaV1VpercentVsurchargeVonVhotelVrooms.VIsVthisVaVtax?VWhyVorVwhyVnot?

TheV1VpercentVsurchargeVisVaVtax.VTheV1VpercentVsurchargeVisVanVearmarkedVtaxV–
V i.e.,VcollectedVforVaVspecificVpurpose.VTheVsurchargeVisVconsideredVaVtaxVbecauseV theVtaxVpaymentsVmadeV

byVtaxpayersVdoVnotVdirectlyVrelateVtoVtheVspecificVbenefitV receivedVbyVtheVtaxpayers.

(7) [LOV2]VAsVnotedVinVExampleV1-
2,Vtolls,VparkingVmeterVfees,VandVannualVlicensingV feesVareVnotVconsideredVtaxes.VCanVyo
uVidentifyVotherVfeesVthatVareVsimilar?

ThereVareVseveralVpossibleVanswersVtoVthisVquestion.VSomeVcommonVexamplesV includeVentranceVfeesVtoVnat
ionalVparks,VtagVfeesVpaidVtoVlocal/stateVgovernmentV forVautomobiles,Vboats,Vetc.

(8) [LOV2]VIfVtheVgeneralVobjectiveVofVourVtaxVsystemVisVtoVraiseVrevenue,VwhyVdoesVtheV income
VtaxVallowVdeductionsVforVcharitableVcontributionsVandVretirementVplanV contributions?




InVadditionVtoVtheVgeneralVobjectiveVofVraisingVrevenue,VCongressVusesVtheVfederalV taxVsystemVtoVencourage
VcertainVbehaviorVandVdiscourageVotherVbehavior.VTheV charitableVcontributionVdeductionVisVintendedVtoVe

ncourageVtaxpayersVtoVsupportV theVinitiativesVofVcharitableVorganizations,VwhereasVdeductionsVforVretire
mentV contributionsVareVintendedVtoVencourageVretirementVsavings.VAnotherVobjectiveVofV theVtaxVsystemVis
VtoVredistributeVwealth.