TEST BANK FOR South-Western Federal Taxation 2025: Individual Income Taxes 48th Edition by James Young, Annette Nellen,Mark Persellin ISBN:978-0357988954 COMPLETE GUIDE ALL CHAPTERS COVERED 100% VERIFIED A+ GRADE ASSURED!!!!NEW LATEST UPDATE!!!!!

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,TABLEOF CONTENTS dt




Chapter 1: An Introduction to Taxation and Understanding the Federal Tax Law
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Chapter2:WorkingwiththeTaxLaw
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Chapter 03: Tax Formula and Tax Determination
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Chapter 04: Gross Income: Concepts and Inclusions
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Chapter05:GrossIncome:Exclusions
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Chapter 06: Deductions and Losses: In General
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Chapter 07: Deductions and Losses: Certain Business Expenses
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t Chapter 08: Depreciation, Cost Recovery, Amortization, and Depletion
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dt Chapter 09: Deductions: Employee and Self-Employed-
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Related Expense Chapter 10: Deductions and Losses: Certain Itemized De
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ductions Chapter 11: Investor Losses
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Chapter 12: Alternative Minimum Tax
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Chapter 13: Tax Credits and Payment Procedures
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Chapter 14: Property Transactions: Determination of Gain or Loss and
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Chapter 15: Property Transactions: Nontaxable Exchanges
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Chapter 16: Property Transactions: Capital Gains and Losses
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Chapter 17: Property Transactions: 1231 and Recapture Provisions
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dt Chapter18:AccountingPeriodsandMethods
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Chapter19:DeferredCompensation
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Chapter 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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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

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. dt dt dt dt dt dt



a. True
b. False

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

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

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 onthe2 p
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art 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 state2thatlev ies
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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 overpay me
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nt2of $6,000, and the taxpayer requests a refund of this amount. The refund is paid on May 16, 2024.The refund need not2 incl
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ude interest. dt



a. True
b. False

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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Chapter 01 2025 Individuals
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10. For Federal income tax2purposes, 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 who2is subject2to both foreign and U.S. income taxe s o
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n 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 inthe y
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ear 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 has2not2 m
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ade a taxable gift. dt dt dt



a. True
b. False

15. For omissions from gross income in excess of 25% of that2reported, there is no2statute of limitations on ad di
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tional 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 propert y,
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a gain results. If Jason shortly reinvests the proceeds in a new warehouse, no2gain is recognized due2to the application of t he w
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herewithal to2pay concept. dt dt



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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