TEST BANK FOR South-Western Federal Taxation 2025: Individual Income Taxes 48th Edition by James Young, Annette Nellen, Mark Persellin, Sharon Lassar, Andrew Cuccia ISBN:% COMPLETE GUIDE!! ALL CHAPTERS COVERED!! A+ GRADE ASSURED!!

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




Page 1
an

,TABLEOF CONTENTS an




Chapter 1: An Introduction to Taxation and Understanding the Federal Tax Law Chapter
an an an an an an an an an an an an an




2:Working withtheTaxLaw
na an na an an




Chapter 03: Tax Formula and Tax Determination Chapter
an an 2 an an an an




04: Gross Income: Concepts and Inclusions Chapter05:
an an an an an an an an an




GrossIncome:Exclusions an an




Chapter 06: Deductions and Losses: In General
an an an an an an




Chapter 07: Deductions and Losses: Certain Business Expenses Chapte
an an an an an an an a n




r 08: Depreciation, Cost Recovery, Amortization, and Depletion Chapter 0
an an an an an an an an an




9: Deductions: Employee and Self-Employed-
an an an an




Related Expense Chapter 10: Deductions and Losses: Certain Itemized D
an an an an an an an an an




eductions Chapter 11: Investor Losses an an an an




Chapter 12: Alternative Minimum Tax an an an an




Chapter 13: Tax Credits and Payment Procedures
an an 2 an an 2




Chapter 14: Property Transactions: Determination of Gain or Loss and Ch
an an an an an an an an an an




apter 15: Property Transactions: Nontaxable Exchanges
an an an an an




Chapter 16: Property Transactions: Capital Gains and Losses Chapt
an an an an an an an an




er 17: Property Transactions: 1231 and Recapture Provisions Chapte
an an an an an an an an




r18:Accounting Periods and Methods
an an an an an




Chapter19:Deferred Compensation Chapter an an an an an




20: Corporations and Partnerships
an an an




Page 2
an

, Chapter 01 20252 Individuals
an an an




Answers2at2the2end2of2each2chapter

Indicate whether the statement is2 true or false.
an an an an an an an




1. Sales made over the internet are not2exempt2from the application of a general sales (or use) tax.
a
n an an an an an an an an an an an an an an an an




a. True
b. False

2. Upon audit by the IRS, Faith is assessed a deficiency of $40,000 of which $25,000 is attributable to negligence.
a
n an an an an an an an an an an an an an an an an an an an



The220% negligence penalty will apply to $25,000.
an an an an an an



a. True
b. False

3. Ultimately, most taxes are paid by individuals.
n
a an an an an an an an




a. True
b. False

4. Even if property tax rates are not2changed, the amount of ad valorem2taxes imposed on realty may not remainthe same.
a
n an an an an an an an an an an an an an an an an an an an




a. True
b. False

5. The principal objective of the FUTA2tax2is to provide some measure of retirement security.
a
n an an an an an an an an an an an an an



a. True
b. False

6. If more IRS audits are producing a higher number of no change results, this indicates increased compliance onthe2
an an an an an an an an an an an an an an an an an an an



part of taxpayers.
a n an an



a. True
b. False

7. A safe2and easy way for a taxpayer to avoid local and state sales taxes is to make the purchase in a state2thatlev i
a
n an an an an an an an an an an an an an an an an an an an an an an an



es no such taxes.
an an an



a. True
b. False

8. A2calendar year taxpayer files his 2023 Federal income tax return on March 4, 2024. The return reflects2an overpay
an an an an an an an an an an an an an an an an an an an an



ment2of $6,000, and the taxpayer requests a refund of this amount. The refund is paid on May 16, 2024.The refund need no
an an an an an an an an an an an an an an an an an an an an an



t2 include interest.
a n an



a. True
b. False

9. A tax2cut enacted by Congress that contains a sunset provision will make2the tax cut temporary.
a
n an an an an an an an an an an an an an an an




a. True
b. False



Page 3 an

, Name: Class: Date:

Chapter 01 2025 Individuals
an an an




10. For Federal income tax2purposes, there never has been a general amnesty period.
an an an an an an an an an an an an an



a. True
b. False

11. To lessen or eliminate the effect of multiple taxation, a taxpayer who2is subject2to both foreign and U.S. income taxe
an an an an an an an an an an an an an an an an an an an an



s on the2same income is allowed either a deduction or a credit2for the foreign tax paid.
an an an an an an an an an an an an an an an an



a. True
b. False

12. Because it2is consistent with the wherewithal to pay concept, the tax law requires a seller to recognize a gain inth
an an an an an an an an an an an an an an an an an an an an an



e year the installment sale occurs.
an an an an an




a. True
b. False

13. The2amount of a taxpayer’s2itemized deductions will increase the chance2of being audited by the IRS.
an an an an an an an an an an an an an an an




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 has2not2
an an an an an an an an an an an an an an an an an an an an an



made a taxable gift.
a n an an an



a. True
b. False

15. For omissions from gross income in excess of 25% of that2reported, there is no2statute of limitations on a
an an an an an an an an an an an an an an an an an an an



d ditional income tax assessments by the IRS.
an an an an an an an



a. True
b. False

16. Stealth taxes have2the effect2of generating additional taxes from all taxpayers.
a
n an an an an an an an an an an



a. True
b. False


17. Jason’s business warehouse is destroyed by fire. Because the insurance proceeds exceed the basis of the propert
an an an an an an an an an an an an an an an an an an an



y, a gain results. If Jason shortly reinvests the proceeds in a new warehouse, no2gain is recognized due2to the application of
an an an an an an an an an an an an an an an an an an an an an



t he wherewithal to2pay concept.
an an an an



a. True
b. False

18. An inheritance2tax is a tax2on a decedent’s right to2pass property at death.
an an an an an an an an an an an an an




a. True
b. False

19. When interest2is charged on a deficiency, any part2of a month counts as2a full month.
an an an an an an an an an an an an an an an




a. True
Page 4 an