TEST BANK FOR South-Western Federal Taxation 2025: Corporations, Partnerships, Estates and Trusts 48th Edition by Annette Nellen, James Young, Brad Cripe, Sharon Lassar.ISBN:978-0357989074 COMPLETE GUIDE ALL CHAPTERS COVERED COVERED 100% VERIFIED A+ GRADE

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,TABLEOF CONTENTS 7%




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 Chapt
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er 04: Gross Income: Concepts and Inclusions Chapter
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05: Gross Income: Exclusions
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Chapter 06: Deductions and Losses: In General7% 7% 7% 7% 7% 7%




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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7% 09: Deductions: Employee and Self-Employed-
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Related Expense Chapter 10: Deductions and Losses: Certain Itemized
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Deductions Chapter 11: Investor Losses 7% 7% 7% 7%




Chapter 12: Alternative Minimum Tax 7% 7% 7% 7%




Chapter 13: Tax Credits and Payment Procedures
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Chapter 14: Property Transactions: Determination of Gain or Loss and C
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hapter 15: Property Transactions: Nontaxable Exchanges
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Chapter 16: Property Transactions: Capital Gains and Losses Chap
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ter 17: Property Transactions: 1231 and Recapture Provisions Chap
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ter 18: Accounting Periods and Methods
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Chapter 19: Deferred Compensation Chapte 7% 7% 7% 7%




r 20: Corporations and Partnerships
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, Chapter 01 20252 Individuals
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Answers2at2the2end2of2each2chapter

Indicate whether the statement is2 true or false.
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7
%1. Sales made over the internet are not2exempt2from the application of a general sales (or use) tax.
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a. True
b. False

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%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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The220% negligence penalty will apply to $25,000.
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a. True
b. False

%
73. Ultimately, most taxes are paid by individuals.
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a. True
b. False

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%4. Even if property tax rates are not2changed, the amount of ad valorem2taxes imposed on realty may not remainthe same.
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a. True
b. False

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%5. The principal objective of the FUTA2tax2is 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 on
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the2 part of taxpayers.
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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 state2tha
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tlev ies no such taxes.
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a. True
b. False

8. A2calendar year taxpayer files his 2023 Federal income tax return on March 4, 2024. The return reflects2an over
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pay ment2of $6,000, and the taxpayer requests a refund of this amount. The refund is paid on May 16, 2024.The refund
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need not2 include interest.
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a. True
b. False

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%9. A tax2cut enacted by Congress that contains a sunset provision will make2the tax cut temporary.
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a. True
b. False



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, Name: Class: Date: 7%




Chapter 01 2025 Individual
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s
10. For Federal income tax2purposes, there never has been a general amnesty peri
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od. a. True
b. False

11. To lessen or eliminate the effect of multiple taxation, a taxpayer who2is subject2to both foreign and U.S. income
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taxe s on the2same income is allowed either a deduction or a credit2for the foreign tax paid.
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a. True
b. False

12. Because it2is consistent with the wherewithal to pay concept, the tax law requires a seller to recognize a gain
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inthe year the installment sale occurs.
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a. True
b. False

13. The2amount of a taxpayer’s2itemized deductions will increase the chance2of 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 has
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not2 made a taxable gift.
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a. True
b. False

15. For omissions from gross income in excess of 25% of that2reported, there is no2statute of limitations o
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n ad ditional income tax assessments by the IRS.
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a. True
b. False

16. Stealth taxes have2the effect2of 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 pro
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pert y, a gain results. If Jason shortly reinvests the proceeds in a new warehouse, no2gain is recognized due2to the appli
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cation of t he wherewithal to2pay concept.
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a. True
b. False

18. An inheritance2tax is a tax2on a decedent’s right to2pass property at death.
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a. True
b. False

19. When interest2is charged on a deficiency, any part2of a month counts as2a full month.
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a. True
b. False
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