Individual Income Taxes, 48th Edition by
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f James Young Complete Chapters 1 - 20
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,TABLEOFCONTENTS
Chapter 1: An Introduction to Taxation and Understanding the Federal Tax LawChapter
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2:WorkingwiththeTaxLaw
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Chapter03:Tax FormulaandTaxDetermination
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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 Chapter
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08: Depreciation, Cost Recovery, Amortization, and Depletion Chapter 09:
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Deductions: Employee and Self-Employed-Related ExpenseChapter 10:
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Deductions and Losses: Certain Itemized Deductions Chapter11:
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InvestorLosses
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Chapter 12:Alternative Minimum Tax
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Chapter13:Tax CreditsandPayment Procedures
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Chapter 14: Property Transactions: Determination of Gain or Loss and
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Chapter15:PropertyTransactions:NontaxableExchanges
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Chapter 16: Property Transactions: Capital Gains and Losses Chapter
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17: Property Transactions: 1231 and Recapture ProvisionsChapter
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18:AccountingPeriodsandMethods
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Chapter 19: Deferred Compensation Chapter
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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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f 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
f 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%negligencepenaltywillapplyto$25,000. f f f f f f
a. True
b. False
f 3. Ultimately,most taxesarepaid byindividuals.
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a. True
b. False
f 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
f 5. TheprincipalobjectiveoftheFUTA2tax2istoprovidesomemeasureofretirementsecurity.
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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 part of
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taxpayers.
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a. True
b. False
7. A safe2 and easy way for a taxpayer to avoid local and state sales taxes is to make the purchase in a state2 thatlev ies no
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such taxes.
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a. True
b. False
f8. A2calendar year taxpayer files his 2023 Federal income tax return on March 4, 2024. The return reflects2an overpay ment2of
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$6,000,and the taxpayer requests a refund of this amount. The refund is paid on May 16, 2024.The refund need not2 include
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interest.
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a. True
b. False
f 9. A tax2 cut 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: f f
Chapter 01 2025 Individuals
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f 10. For Federal income tax2purposes, there never has been a general amnesty period.
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a. True
b. False
f11.Tolessenoreliminatetheeffectofmultipletaxation,ataxpayerwho2issubject2tobothforeignandU.S.income taxe s on
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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 year the
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installment sale occurs.
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a. True
b. False
f 13. The2amountof a taxpayer’s2itemized deductions will increase the chance2of being audited by the IRS.
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a. True
b. False
14.In2024,José,awidower,sellsland(fairmarketvalueof$100,000)tohisdaughter,Linda,for$50,000.Joséhas2not2 made a
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taxable gift.
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a. True
b. False
15. Foromissionsfrom grossincomeinexcess of25% ofthat2reported,thereisno2statuteoflimitations on ad ditional
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income tax assessments by the IRS.
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a. True
b. False
f 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
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wherewithal to2pay concept.
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a. True
b. False
f 18. An inheritance2tax is a tax2on a decedent’s right to2pass property at death.
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a. True
b. False
f 19. When interest2is chargedon a deficiency, any part2of a month counts as2a fullmonth.
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a. True
b. False
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