Test Bank For South-Western Federal Taxation 2025: Individual Income
Taxes 48e By (Young) (All Chapters 1 To 20 Covered)
Pagex1
,Tableof Contents
Chapter 1: An Introduction To Taxation And Understanding The Federal Tax Law
Chapter 2: Working With The Tax law
x
Chapter 03: Tax Formula And Tax Determination
Chapter 04: Gross Income: Concepts And Inclusions
Chapter 05: Gross Income: Exclusions
Chapter 06: Deductions And Losses: In General
Chapter 07: Deductions And Losses: Certain Business Expenses
Chapter 08: Depreciation, Cost recovery, Amortization, And Depletion
x
Chapter 09: Deductions: Employee And Self-Employed-Related Expense
Chapter 10: Deductions And Losses: Certain Itemized Deductions
Chapter 11: Investor Losses
Chapter 12: Alternative Minimum Tax
Chapter 13: Tax Credits And Payment procedures
x
Chapter 14: Property Transactions: Determination Of Gain Or Loss And
Chapter 15: Property Transactions: Nontaxable Exchanges
Chapter 16: Property Transactions: Capital Gains And Losses
Chapter 17: Property Transactions: 1231 And Recapture Provisions
Chapter 18: Accounting Periods And Methods
Chapter 19: Deferred Compensation
Chapter 20: Corporations And Partnerships
Pagex2
, Chapter 01 2025 Individuals
Answersxatxthexendxofxeachxchapter
Indicate Whether Thex Statement Isx Truex Or False.
1. Salesxmade Over Thexinternetxare Notxexempt From The Application Of a General Sales (Or Use) Tax.
a. True
b. False
2. Upon Auditxby The Irs, Faith Is Assessed a Deficiency Of $40,000 Of Which $25,000 Is Attributable Toxnegligence.
Thex20% Negligence Penalty Will Apply To $25,000.
a. True
b. False
3. Ultimately, Mostxtaxes Are Paid By Individuals.
a. True
b. False
4. Even If Property Taxxrates Are Notxchanged, The Amount Of Adxvalorem Taxes Imposed On Realty May Notxremainthexsame.
a. True
b. False
5. The Principal Objective Of The Futa Taxxis To Provide Some Measure Of Retirementxsecurity.
a. True
b. False
6. If More Irs Audits Are Producing a Higher Number Of Noxchange Results, This Indicates Increased Compliance
Onthe p Artxof Taxpayers.
a. True
b. False
7. Axsafe And Easy Way For a Taxpayer To Avoid Local And State Sales Taxes Is To Makexthe Purchase In a State
Thatlxevie Sxnoxsuch Taxes.
a. True
b. False
8. A Calendar Year Taxpayer Files His 2023 Federal Income Tax Return On March 4, 2024. The Return Reflects An
Overpaym Ent Of $6,000, And The Taxpayer Requests a Refund Of Thisxamount. The Refund Is Paid On May 16, 2024.The
Refund Need Not Incl Ude Interest.
a. True
b. False
9. Axtaxxcut Enacted By Congress Thatxcontains a Sunset Provisionxwill Make The Tax Cut Temporary.
a. True
b. False
Pagex3
, Name: Class: Date:
Chapter 01 2025 Individuals
10. For Federal Income Tax Purposes, Therexnever Has Been a General Amnesty Period.
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 Taxes On The Samexincomexis Allowed Either a Deduction Or a Creditxfor The Foreign Taxxpaid.
a. True
b. False
12. Because Itxis Consistentxwith The Wherewithal To Pay Concept, The Tax Lawxrequires a Seller To Recognize a
Gain Inthe y Ear The Installment Sale Occurs.
a. True
b. False
13. The Amount Of a Taxpayer’s Itemized Deductions Will Increase The Chance Of Being Audited By The Irs.
a. True
b. False
14. In 2024, José, a Widower, Sells Land (Fair Marketxvalue Of $100,000) To His Daughter, Linda, For $50,000. Joséxhas
Notx Made a Taxablexgift.
a. True
b. False
15. For Omissions From Gross Incomexin Excess Of 25% Of That Reported, There Is No Statutexof
Limitationsxon Addi Tional Incomextaxxassessments By The Irs.
a. True
b. False
16. Stealth Taxes Havexthe Effect Of Generating Additional Taxes From All Taxpayers.
a. True
b. False
17. Jason’s Businessxwarehouse Is Destroyed By Fire. Because The Insurance Proceeds Exceed The Basis Of The Property
, a Gain Results. If Jason Shortly Reinvests The Proceeds In a New Warehouse, No Gain Is Recognized Due To The Application Of
The Wherewithal To Pay Concept.
a. True
b. False
18. An Inheritance Tax Isxa Tax On a Decedent’Sxrightxto Pass Property At Death.
a. True
b. False
19. When Interestxis Charged On a Deficiency, Any Part Of a Month Counts As a Full Month.
a. True
b. False
Pagex4
Taxes 48e By (Young) (All Chapters 1 To 20 Covered)
Pagex1
,Tableof Contents
Chapter 1: An Introduction To Taxation And Understanding The Federal Tax Law
Chapter 2: Working With The Tax law
x
Chapter 03: Tax Formula And Tax Determination
Chapter 04: Gross Income: Concepts And Inclusions
Chapter 05: Gross Income: Exclusions
Chapter 06: Deductions And Losses: In General
Chapter 07: Deductions And Losses: Certain Business Expenses
Chapter 08: Depreciation, Cost recovery, Amortization, And Depletion
x
Chapter 09: Deductions: Employee And Self-Employed-Related Expense
Chapter 10: Deductions And Losses: Certain Itemized Deductions
Chapter 11: Investor Losses
Chapter 12: Alternative Minimum Tax
Chapter 13: Tax Credits And Payment procedures
x
Chapter 14: Property Transactions: Determination Of Gain Or Loss And
Chapter 15: Property Transactions: Nontaxable Exchanges
Chapter 16: Property Transactions: Capital Gains And Losses
Chapter 17: Property Transactions: 1231 And Recapture Provisions
Chapter 18: Accounting Periods And Methods
Chapter 19: Deferred Compensation
Chapter 20: Corporations And Partnerships
Pagex2
, Chapter 01 2025 Individuals
Answersxatxthexendxofxeachxchapter
Indicate Whether Thex Statement Isx Truex Or False.
1. Salesxmade Over Thexinternetxare Notxexempt From The Application Of a General Sales (Or Use) Tax.
a. True
b. False
2. Upon Auditxby The Irs, Faith Is Assessed a Deficiency Of $40,000 Of Which $25,000 Is Attributable Toxnegligence.
Thex20% Negligence Penalty Will Apply To $25,000.
a. True
b. False
3. Ultimately, Mostxtaxes Are Paid By Individuals.
a. True
b. False
4. Even If Property Taxxrates Are Notxchanged, The Amount Of Adxvalorem Taxes Imposed On Realty May Notxremainthexsame.
a. True
b. False
5. The Principal Objective Of The Futa Taxxis To Provide Some Measure Of Retirementxsecurity.
a. True
b. False
6. If More Irs Audits Are Producing a Higher Number Of Noxchange Results, This Indicates Increased Compliance
Onthe p Artxof Taxpayers.
a. True
b. False
7. Axsafe And Easy Way For a Taxpayer To Avoid Local And State Sales Taxes Is To Makexthe Purchase In a State
Thatlxevie Sxnoxsuch Taxes.
a. True
b. False
8. A Calendar Year Taxpayer Files His 2023 Federal Income Tax Return On March 4, 2024. The Return Reflects An
Overpaym Ent Of $6,000, And The Taxpayer Requests a Refund Of Thisxamount. The Refund Is Paid On May 16, 2024.The
Refund Need Not Incl Ude Interest.
a. True
b. False
9. Axtaxxcut Enacted By Congress Thatxcontains a Sunset Provisionxwill Make The Tax Cut Temporary.
a. True
b. False
Pagex3
, Name: Class: Date:
Chapter 01 2025 Individuals
10. For Federal Income Tax Purposes, Therexnever Has Been a General Amnesty Period.
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 Taxes On The Samexincomexis Allowed Either a Deduction Or a Creditxfor The Foreign Taxxpaid.
a. True
b. False
12. Because Itxis Consistentxwith The Wherewithal To Pay Concept, The Tax Lawxrequires a Seller To Recognize a
Gain Inthe y Ear The Installment Sale Occurs.
a. True
b. False
13. The Amount Of a Taxpayer’s Itemized Deductions Will Increase The Chance Of Being Audited By The Irs.
a. True
b. False
14. In 2024, José, a Widower, Sells Land (Fair Marketxvalue Of $100,000) To His Daughter, Linda, For $50,000. Joséxhas
Notx Made a Taxablexgift.
a. True
b. False
15. For Omissions From Gross Incomexin Excess Of 25% Of That Reported, There Is No Statutexof
Limitationsxon Addi Tional Incomextaxxassessments By The Irs.
a. True
b. False
16. Stealth Taxes Havexthe Effect Of Generating Additional Taxes From All Taxpayers.
a. True
b. False
17. Jason’s Businessxwarehouse Is Destroyed By Fire. Because The Insurance Proceeds Exceed The Basis Of The Property
, a Gain Results. If Jason Shortly Reinvests The Proceeds In a New Warehouse, No Gain Is Recognized Due To The Application Of
The Wherewithal To Pay Concept.
a. True
b. False
18. An Inheritance Tax Isxa Tax On a Decedent’Sxrightxto Pass Property At Death.
a. True
b. False
19. When Interestxis Charged On a Deficiency, Any Part Of a Month Counts As a Full Month.
a. True
b. False
Pagex4
