SolutionsvManual—TaxationvofvIndividuals,vbyvSpilkervetval.
©vMcGrawvHillv LLC.v Allvrightsv reserved.v Novreproductionv ortydistributionvwithoutvthevpriorv writtenvconsentvofvMcGrawvHillv LLC.
1
, SolutionsvManual—TaxationvofvIndividuals,vbyvSpilkervetval.
©vMcGrawvHillv LLC.v Allvrightsv reserved.v Novreproductionv ortydistributionvwithoutvthevpriorv writtenvconsentvofvMcGrawvHillv LLC.
2
, SolutionsvManual—TaxationvofvIndividuals,vbyvSpilkervetval.
SOLUTION MANUAL FOR v v
McGraw-
Hill's Taxation of Individuals 2024 Edition, 15th Editio n
v v v v v v v v v
Spilker
Chapter 1-14 v
Chapter 1 v
An Introduction to Tax
v v v
Discussion Questionsv
(1) [LOv1]vJessica’svfriendvZacharyvoncevstatedvthatvhevcouldn’tvunderstandvwhyvs
omeonevwouldvtakevavtaxvcourse.vWhyvisvthisvavrathervnaïvevview?
Taxesvarevavpartvofveverydayvlifevandvhavevavfinancialveffectvonvmanyvofvthevmajorvpe
rsonalvdecisionsvthatvindividualsvfacev(e.g.,vinvestmentvdecisions,vevaluatingvaltvern
ativevjobvoffers,vsavingvforveducationvexpenses,vgiftvorvestatevplanning,vetc.).
(2) [LOv1]vWhatvarevsomevaspectsvofvbusinessvthatvrequirevknowledgevofvtaxation?v
Whatvarevsomevaspectsvofvpersonalvfinancevthatvrequirevknowledgevofvtaxation?
Taxesvplayvanvimportantvrolevinvfundamentalvbusinessvdecisionsvsuchvasvthevfollowivn
g:
• Whatvorganizationalvformvshouldvavbusinessvuse?
• Wherevshouldvthevbusinessvlocate?
• Howvshouldvbusinessvacquisitionsvbevstructured?
• Howvshouldvthevbusinessvcompensatevemployees?
• Whatvisvthevappropriatevmixvofvdebtvandvequityvforvthevbusiness?
• Shouldvthevbusinessvrentvorvownvitsvequipmentvandvproperty?
• Howvshouldvthevbusinessvdistributevprofitsvtovitsvowners?
Onevmustvconsidervallvtransactionvcostsv(includingvtaxes)vtovevaluatevthevmeritsvofvavt
ransaction.
Commonvpersonalvfinancialvdecisionsvthatvtaxesvinfluencevinclude:vchoosingvinvesvt
ments,vretirementvplanning,vchoosingvtovrentvorvbuyvavhome,vevaluatingvalternativvevj
obvoffers,vsavingvforveducationvexpenses,vandvdoingvgiftvorvestatevplanning.
(3) [LOv1]vDescribevsomevwaysvinvwhichvtaxesvaffectvthevpoliticalvprocessvinvthe
©vMcGrawvHillv LLC.v Allvrightsv reserved.v Novreproductionv ortydistributionvwithoutvthevpriorv writtenvconsentvofvMcGrawvHillv LLC.
3
, SolutionsvManual—TaxationvofvIndividuals,vbyvSpilkervetval.
UnitedvStates.
U.S.vpresidentialvcandidatesvoftenvdistinguishvthemselvesvfromvtheirvopponents
©vMcGrawvHillv LLC.v Allvrightsv reserved.v Novreproductionv ortydistributionvwithoutvthevpriorv writtenvconsentvofvMcGrawvHillv LLC.
4
©vMcGrawvHillv LLC.v Allvrightsv reserved.v Novreproductionv ortydistributionvwithoutvthevpriorv writtenvconsentvofvMcGrawvHillv LLC.
1
, SolutionsvManual—TaxationvofvIndividuals,vbyvSpilkervetval.
©vMcGrawvHillv LLC.v Allvrightsv reserved.v Novreproductionv ortydistributionvwithoutvthevpriorv writtenvconsentvofvMcGrawvHillv LLC.
2
, SolutionsvManual—TaxationvofvIndividuals,vbyvSpilkervetval.
SOLUTION MANUAL FOR v v
McGraw-
Hill's Taxation of Individuals 2024 Edition, 15th Editio n
v v v v v v v v v
Spilker
Chapter 1-14 v
Chapter 1 v
An Introduction to Tax
v v v
Discussion Questionsv
(1) [LOv1]vJessica’svfriendvZacharyvoncevstatedvthatvhevcouldn’tvunderstandvwhyvs
omeonevwouldvtakevavtaxvcourse.vWhyvisvthisvavrathervnaïvevview?
Taxesvarevavpartvofveverydayvlifevandvhavevavfinancialveffectvonvmanyvofvthevmajorvpe
rsonalvdecisionsvthatvindividualsvfacev(e.g.,vinvestmentvdecisions,vevaluatingvaltvern
ativevjobvoffers,vsavingvforveducationvexpenses,vgiftvorvestatevplanning,vetc.).
(2) [LOv1]vWhatvarevsomevaspectsvofvbusinessvthatvrequirevknowledgevofvtaxation?v
Whatvarevsomevaspectsvofvpersonalvfinancevthatvrequirevknowledgevofvtaxation?
Taxesvplayvanvimportantvrolevinvfundamentalvbusinessvdecisionsvsuchvasvthevfollowivn
g:
• Whatvorganizationalvformvshouldvavbusinessvuse?
• Wherevshouldvthevbusinessvlocate?
• Howvshouldvbusinessvacquisitionsvbevstructured?
• Howvshouldvthevbusinessvcompensatevemployees?
• Whatvisvthevappropriatevmixvofvdebtvandvequityvforvthevbusiness?
• Shouldvthevbusinessvrentvorvownvitsvequipmentvandvproperty?
• Howvshouldvthevbusinessvdistributevprofitsvtovitsvowners?
Onevmustvconsidervallvtransactionvcostsv(includingvtaxes)vtovevaluatevthevmeritsvofvavt
ransaction.
Commonvpersonalvfinancialvdecisionsvthatvtaxesvinfluencevinclude:vchoosingvinvesvt
ments,vretirementvplanning,vchoosingvtovrentvorvbuyvavhome,vevaluatingvalternativvevj
obvoffers,vsavingvforveducationvexpenses,vandvdoingvgiftvorvestatevplanning.
(3) [LOv1]vDescribevsomevwaysvinvwhichvtaxesvaffectvthevpoliticalvprocessvinvthe
©vMcGrawvHillv LLC.v Allvrightsv reserved.v Novreproductionv ortydistributionvwithoutvthevpriorv writtenvconsentvofvMcGrawvHillv LLC.
3
, SolutionsvManual—TaxationvofvIndividuals,vbyvSpilkervetval.
UnitedvStates.
U.S.vpresidentialvcandidatesvoftenvdistinguishvthemselvesvfromvtheirvopponents
©vMcGrawvHillv LLC.v Allvrightsv reserved.v Novreproductionv ortydistributionvwithoutvthevpriorv writtenvconsentvofvMcGrawvHillv LLC.
4
