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South-Western Federal Taxation 2025:
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Individual Income Taxes, 48th Edition by
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James Young Complete Chapters 1 - 20
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Page 1
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,TABLE OF CONTENTS Z# Z#
Chapter 1: An Introduction to Taxation and Understanding the Federal Tax Law Chapt
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er 2: Working with the Tax Law
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Chapter 03: Tax Formula and Tax Determination Cha
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pter 04: Gross Income: Concepts and Inclusions Chapt
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er 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 Chapt
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er 08: Depreciation, Cost Recovery, Amortization, and Depletion Chapter
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09: Deductions: Employee and Self-Employed-
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Related Expense Chapter 10: Deductions and Losses: Certain Itemized D
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eductions Chapter 11: Investor Losses Z # Z# Z# Z#
Chapter 12: Alternative Minimum Tax Z# Z# Z# Z#
Chapter 13: Tax Credits and Payment Procedures
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Chapter 14: Property Transactions: Determination of Gain or Loss and Ch
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apter 15: Property Transactions: Nontaxable Exchanges
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Chapter 16: Property Transactions: Capital Gains and Losses Chapte
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r 17: Property Transactions: 1231 and Recapture Provisions Chapter
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18: Accounting Periods and Methods
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Chapter 19: Deferred Compensation Chapte Z# Z# Z# Z#
r 20: Corporations and Partnerships
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Page 2
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, 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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Z# 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
Z # 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
Z# 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 may not rem
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a inthe same.
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a. True
b. False
Z # 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 compliance
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o nthe 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 a
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stat e 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 o
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v erpayment of $6,000, and the taxpayer requests a refund of this amount. The refund is paid on May 16, 2024. The re
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fun d need not include interest.
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a. True
b. False
Z# 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
Page 3 Z#
, Name: Class: Date: Z #
Chapter 01 2025 Individuals
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Z# 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. income
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t axes 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 recognize a gai
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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. José ha
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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 limitation
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s o n additional income tax assessments by the IRS.
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a. True
b. False
Z# 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 of the p
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roperty, a gain results. If Jason shortly reinvests the proceeds in a new warehouse, no gain is recognized due to the a
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pp lication of the wherewithal to pay concept.
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a. True
b. False
Z# 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
Z# 19. When interest is charged on a deficiency, any part of a month counts as a full month.
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a. True
b. False
Page 4 Z#
South-Western Federal Taxation 2025:
Z# Z# Z#
Individual Income Taxes, 48th Edition by
Z# Z# Z# Z# Z# Z#
James Young Complete Chapters 1 - 20
Z# Z # Z# Z# Z# Z#
Page 1
Z#
,TABLE OF CONTENTS Z# Z#
Chapter 1: An Introduction to Taxation and Understanding the Federal Tax Law Chapt
Z# Z# Z# Z# Z# Z# Z# Z# Z# Z# Z# Z#
er 2: Working with the Tax Law
Z# Z# Z# Z# Z# Z#
Chapter 03: Tax Formula and Tax Determination Cha
Z# Z# Z# Z# Z# Z# Z#
pter 04: Gross Income: Concepts and Inclusions Chapt
Z# Z# Z# Z# Z# Z# Z#
er 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 Chapt
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er 08: Depreciation, Cost Recovery, Amortization, and Depletion Chapter
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09: Deductions: Employee and Self-Employed-
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Related Expense Chapter 10: Deductions and Losses: Certain Itemized D
Z# Z# Z# Z# Z# Z# Z# Z# Z#
eductions Chapter 11: Investor Losses Z # Z# Z# Z#
Chapter 12: Alternative Minimum Tax Z# Z# Z# Z#
Chapter 13: Tax Credits and Payment Procedures
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Chapter 14: Property Transactions: Determination of Gain or Loss and Ch
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apter 15: Property Transactions: Nontaxable Exchanges
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Chapter 16: Property Transactions: Capital Gains and Losses Chapte
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r 17: Property Transactions: 1231 and Recapture Provisions Chapter
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18: Accounting Periods and Methods
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Chapter 19: Deferred Compensation Chapte Z# Z# Z# Z#
r 20: Corporations and Partnerships
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Page 2
Z#
, Chapter 01 2025 Individuals
Z # Z # Z #
Answers at the end of each chapter
nm nm nm nm nm nm
Indicate whether the statement is true or false.
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Z# 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
Z # 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
Z# 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 may not rem
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a inthe same.
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a. True
b. False
Z # 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 compliance
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o nthe 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 a
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stat e 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 o
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v erpayment of $6,000, and the taxpayer requests a refund of this amount. The refund is paid on May 16, 2024. The re
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fun d need not include interest.
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a. True
b. False
Z# 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
Page 3 Z#
, Name: Class: Date: Z #
Chapter 01 2025 Individuals
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Z# 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. income
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t axes 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 recognize a gai
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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. José ha
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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 limitation
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s o n additional income tax assessments by the IRS.
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a. True
b. False
Z# 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 of the p
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roperty, a gain results. If Jason shortly reinvests the proceeds in a new warehouse, no gain is recognized due to the a
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pp lication of the wherewithal to pay concept.
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a. True
b. False
Z# 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
Z# 19. When interest is charged on a deficiency, any part of a month counts as a full month.
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a. True
b. False
Page 4 Z#
