,SOLUTION MANUAL FOR South-Western Federal
Taxation 2025 Individual Income Taxes 48th
Edition by James C. Young
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
3- The file contains all Appendix and Excel sheet
if it exists.
4- We have all what you need, we make update
at every time. There are many new editions
waiting you.
5- If you think you purchased the wrong file You
can contact us at every time, we can replace it
with true one.
Our email:
, Solution and Answer Guide: Young, Nellen, Persellin, Lassar, Cuccia, Cripe, SWFT Individual Income Taxes
2025, 9780357988954; Chapter 1: An Introduction to Taxation and Understanding the Federal Tax Law
Solution and Answer Guide
YOUNG, NELLEN, PERSELLIN, LASSAR, CUCCIA, CRIPE, SWFT INDIVIDUAL INCOME TAXES 2025,
9780357988954; CHAPTER 1: AN INTRODUCTION TO TAXATION AND UNDERSTANDING THE
FEDERAL TAX LAW
TABLE OF CONTENTS
Discussion Questions...........................................................................................................1
Research Problems ........................................................................................................... 10
Solution To Ethics & Equity Feature .................................................................................12
Solutions To Becker CPA Review Questions ....................................................................12
DISCUSSION QUESTIONS
1. (LO 1) Various answers are possible, including using the Key Terms at the end of each
chapter, referring to the Glossary (Appendix C), looking up the footnote resources to
the Internal Revenue Code in Appendix D, using chapter features (e.g., Global Tax
Issues, Ethics & Equity, Tax Planning, and Framework 1040), examining the tax forms
used in the chapters, and completing additional end-of-chapter assignments. All of
these resources will help students engage more deeply with the materials and help
their understanding.
2. (LO 1, 4)
a. John must now document rental receipts and separate his home expenses
between personal and rental use, and he may be subject to the transient
occupancy tax.
b. Theresa has become self-employed. Now she will be subject to self-employment
tax and may have to make quarterly installment payments of estimated income
and self-employment tax. Theresa will be required to make payroll tax payments if
she hires individuals to work in her business.
c. Paul’s employer might have some moving expenses that it can deduct
(in general, Paul cannot deduct moving expenses). Paul’s personal taxes will
change because Florida does not impose an income tax but California does.
3. (LO 1, 4) The income tax consequences that result are Marvin’s principal concern. Any
rent he receives is taxed as income, but operating expenses and depreciation will
generate deductions that offset some or all of the income or even yield a loss. Marvin
must also consider the effect of other taxes. Because the property is being converted
from residential to commercial use, he can expect an increase in the ad valorem
property taxes levied by the local (and perhaps even the state) taxing authorities.
Besides the real estate taxes, personal property taxes could be imposed on the
furnishings.
© 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 1
website, in whole or in part.
, Solution and Answer Guide: Young, Nellen, Persellin, Lassar, Cuccia, Cripe, SWFT Individual Income Taxes
2025, 9780357988954; Chapter 1: An Introduction to Taxation and Understanding the Federal Tax Law
4. (LO 2) To finance our participation in World War II, the scope of the income tax was
expanded considerably—from a limited coverage of 6% to over 74% of the population.
Hence, the description of the income tax as being a “mass tax” became appropriate.
5. (LO 2) For wage earners, the tax law requires employers to withhold a specified dollar
amount from wages paid to the employee to cover income taxes and payroll taxes.
Persons with nonwage income generally are required to make quarterly payments to
the IRS for estimated taxes. Both procedures ensure that taxpayers will be financially
able to meet their annual tax liabilities. That is, the amounts withheld are meant to
prepay the employee’s income taxes and payroll taxes related to the wages earned.
6. (LO 3) The tax law of this state appears to violate the certainty and simplicity
principles.
7. (LO 3) A tax is regressive if it represents a larger percentage of the income of a low-
income taxpayer relative to the income of a high-income taxpayer. Examples of
regressive taxes include sales and excise taxes. A tax is progressive if it represents a
larger percentage of the income of a high-income taxpayer relative to the income of
a low-income taxpayer. The Federal income tax is an example of a progressive tax.
8. (LO 4)
a. The parsonage probably was not listed on the property tax rolls because it was
owned by a tax-exempt church. Apparently the taxing authorities are not aware
that ownership has changed.
b. Ethan should notify the authorities of his purchase. This will force him to pay
back taxes but may eliminate future interest and penalties.
9. (LO 4) Although the Baker Motors bid is the lowest from a long-term financial
standpoint, it is the best. The proposed use of the property by the state and the
church probably will make it exempt from the school district’s ad valorem tax. This
would hardly be the case with a car dealership. In fact, commercial properties (e.g., car
dealerships) often are subject to higher tax rates.
10. (LO 4)
a. In this case, the “tax holiday” probably concerns exemption from ad valorem taxes.
“Generous” could involve an extended period of time (e.g., 10 years) and include
both realty and personalty.
b. The school district could be affected in two ways. First, due to the erosion of the
tax base, less revenue would be forthcoming. Second, new workers would mean
new families and more children to educate.
11. (LO 4) A possible explanation is that Sophia made capital improvements (e.g., added a
swimming pool) to her residence and her parents became retirees (e.g., reached age 65).
12. (LO 4) Presuming that the dockage facilities are comparable in Massachusetts, the
Agarwals may be trying to avoid ad valorem taxes on their boat. They should review
the property tax laws of these two states to determine if the property tax on the boat
is owed based on where the boat is moored or where the owner resides (or possibly
both). In addition, some other factor, such as where the boat is registered or titled,
might be important.
© 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 2
website, in whole or in part.
Taxation 2025 Individual Income Taxes 48th
Edition by James C. Young
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
3- The file contains all Appendix and Excel sheet
if it exists.
4- We have all what you need, we make update
at every time. There are many new editions
waiting you.
5- If you think you purchased the wrong file You
can contact us at every time, we can replace it
with true one.
Our email:
, Solution and Answer Guide: Young, Nellen, Persellin, Lassar, Cuccia, Cripe, SWFT Individual Income Taxes
2025, 9780357988954; Chapter 1: An Introduction to Taxation and Understanding the Federal Tax Law
Solution and Answer Guide
YOUNG, NELLEN, PERSELLIN, LASSAR, CUCCIA, CRIPE, SWFT INDIVIDUAL INCOME TAXES 2025,
9780357988954; CHAPTER 1: AN INTRODUCTION TO TAXATION AND UNDERSTANDING THE
FEDERAL TAX LAW
TABLE OF CONTENTS
Discussion Questions...........................................................................................................1
Research Problems ........................................................................................................... 10
Solution To Ethics & Equity Feature .................................................................................12
Solutions To Becker CPA Review Questions ....................................................................12
DISCUSSION QUESTIONS
1. (LO 1) Various answers are possible, including using the Key Terms at the end of each
chapter, referring to the Glossary (Appendix C), looking up the footnote resources to
the Internal Revenue Code in Appendix D, using chapter features (e.g., Global Tax
Issues, Ethics & Equity, Tax Planning, and Framework 1040), examining the tax forms
used in the chapters, and completing additional end-of-chapter assignments. All of
these resources will help students engage more deeply with the materials and help
their understanding.
2. (LO 1, 4)
a. John must now document rental receipts and separate his home expenses
between personal and rental use, and he may be subject to the transient
occupancy tax.
b. Theresa has become self-employed. Now she will be subject to self-employment
tax and may have to make quarterly installment payments of estimated income
and self-employment tax. Theresa will be required to make payroll tax payments if
she hires individuals to work in her business.
c. Paul’s employer might have some moving expenses that it can deduct
(in general, Paul cannot deduct moving expenses). Paul’s personal taxes will
change because Florida does not impose an income tax but California does.
3. (LO 1, 4) The income tax consequences that result are Marvin’s principal concern. Any
rent he receives is taxed as income, but operating expenses and depreciation will
generate deductions that offset some or all of the income or even yield a loss. Marvin
must also consider the effect of other taxes. Because the property is being converted
from residential to commercial use, he can expect an increase in the ad valorem
property taxes levied by the local (and perhaps even the state) taxing authorities.
Besides the real estate taxes, personal property taxes could be imposed on the
furnishings.
© 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 1
website, in whole or in part.
, Solution and Answer Guide: Young, Nellen, Persellin, Lassar, Cuccia, Cripe, SWFT Individual Income Taxes
2025, 9780357988954; Chapter 1: An Introduction to Taxation and Understanding the Federal Tax Law
4. (LO 2) To finance our participation in World War II, the scope of the income tax was
expanded considerably—from a limited coverage of 6% to over 74% of the population.
Hence, the description of the income tax as being a “mass tax” became appropriate.
5. (LO 2) For wage earners, the tax law requires employers to withhold a specified dollar
amount from wages paid to the employee to cover income taxes and payroll taxes.
Persons with nonwage income generally are required to make quarterly payments to
the IRS for estimated taxes. Both procedures ensure that taxpayers will be financially
able to meet their annual tax liabilities. That is, the amounts withheld are meant to
prepay the employee’s income taxes and payroll taxes related to the wages earned.
6. (LO 3) The tax law of this state appears to violate the certainty and simplicity
principles.
7. (LO 3) A tax is regressive if it represents a larger percentage of the income of a low-
income taxpayer relative to the income of a high-income taxpayer. Examples of
regressive taxes include sales and excise taxes. A tax is progressive if it represents a
larger percentage of the income of a high-income taxpayer relative to the income of
a low-income taxpayer. The Federal income tax is an example of a progressive tax.
8. (LO 4)
a. The parsonage probably was not listed on the property tax rolls because it was
owned by a tax-exempt church. Apparently the taxing authorities are not aware
that ownership has changed.
b. Ethan should notify the authorities of his purchase. This will force him to pay
back taxes but may eliminate future interest and penalties.
9. (LO 4) Although the Baker Motors bid is the lowest from a long-term financial
standpoint, it is the best. The proposed use of the property by the state and the
church probably will make it exempt from the school district’s ad valorem tax. This
would hardly be the case with a car dealership. In fact, commercial properties (e.g., car
dealerships) often are subject to higher tax rates.
10. (LO 4)
a. In this case, the “tax holiday” probably concerns exemption from ad valorem taxes.
“Generous” could involve an extended period of time (e.g., 10 years) and include
both realty and personalty.
b. The school district could be affected in two ways. First, due to the erosion of the
tax base, less revenue would be forthcoming. Second, new workers would mean
new families and more children to educate.
11. (LO 4) A possible explanation is that Sophia made capital improvements (e.g., added a
swimming pool) to her residence and her parents became retirees (e.g., reached age 65).
12. (LO 4) Presuming that the dockage facilities are comparable in Massachusetts, the
Agarwals may be trying to avoid ad valorem taxes on their boat. They should review
the property tax laws of these two states to determine if the property tax on the boat
is owed based on where the boat is moored or where the owner resides (or possibly
both). In addition, some other factor, such as where the boat is registered or titled,
might be important.
© 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 2
website, in whole or in part.
