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Tax of Ind. and Bus. Ent. 2013
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Student Edition
Instructor Edition
Taxation of Individuals and Business Entities 2013, 4/e

Brian C. Spilker, Brigham Young University
Benjamin C. Ayers, The University of Georgia
John R. Robinson, The University of Texas - Austin
Edmund Outslay, Michigan State University
Ron G. Worsham, Brigham Young University
John A. Barrick, Brigham Young University
Connle D. Weaver, Texas A&M University

ISBN: 007802546x
Copyright year: 2013

Feature Summary



New Features:

  • New Tax Forms requirements were added to the end-of-chapter material. These requirements, which are designated with a unique icon, require students to complete a tax form, providing students with valuable experience and practice with filling out these forms. These requirements – and their relevant forms – are also included in Connect® Accounting.
  • New Kaplan CPA exam simulations were added to several chapters. These simulations help prepare students for the CPA exam by familiarizing them with the content and structure of the exam.
  • Several new Tax Return Problems were added to Appendix C. New problems emphasize a variety of topics, including itemized deductions, exclusions, and depreciation.
  • All tax forms have been updated for the latest available tax form as of January 2012. In addition, chapter content throughout the text has been updated to reflect tax law changes through January 2012.

Other Notable Changes:

Chapter 1

• Added a new Taxes in the Real World box about Democrats versus Republicans and the national debt.

Chapter 2

• Added two new Taxes in the Real World boxes.
• Added two new end-of-chapter problems that focus on primary authority citations, and one new end-of chapter tax research problem.
• Substantially revised Exhibit 2-1 to explain the calculation of gross income filing thresholds.
• Substantially revised Exhibit 2-5 to provide detailed explanation of proper citations to primary authorities.

Chapter 3

• Added a new Taxes in the Real World box on the importance of the tax status of the Walt Disney and Marvel acquisition.
• Added a new Taxes in the Real World box on Caterpillar and income shifting.
• Added two new planning problems: one dealing with the conversion tax planning strategy and one dealing with the timing tax planning strategy.

Chapter 4

• Added a new end-of-chapter problem dealing with multiple support agreements and head of household filing status and another new problem on filing status.
• Added information for computing the standard deduction for old and/or blind taxpayers and for taxpayers who are claimed as dependents on another's tax return.

Chapter 5

• Added two new Taxes in the Real World boxes.
• Expanded coverage of the exclusion for scholarships.
• Added two computational problems.

Chapter 6

• Added two end-of-chapter work-through problems.
• Added two new Taxes in the Real World boxes.

Chapter 7

• Added two end-of-chapter work-through problems.
• Added a new Taxes in the Real World box.

Chapter 8

• Added several new problems to include Schedule C.

Chapter 9

• Added a new Taxes in the Real World box on the removal of cell phones from listed property requirements.
• Added a new problem including §179 and bonus depreciation for 2012.
• Added a new problem applying the income limitations of §179.

Chapter 10

• Added a new Taxes in the Real World box on the application of the involuntary conversion rules for cattle because of the weather.
• Added a new problem to apply the netting process for sale of business assets for an individual and one new problem to apply the netting process for sale of business assets for a corporation.

Chapter 11

• Added a new Taxes in the Real World box discussing the allowance for authors and composers to treat the sale of their work as the sale of capital assets.
• Added a new Taxes in the Real World box on loss harvesting.
• Added a new comprehensive problem dealing with the sale of business and capital assets.
• Added a new problem on passive activity losses.
• Added information on new Form 8949 for reporting capital gains.

Chapter 12

• Added a new Taxes in the Real World box regarding using stock options as compensation.
• Updated compensation-related Proxy Statement references for Callaway, State Street, Adobe, Apple, IBM, Walmart, and Disney.
• Added a new exhibit highlighting IBM's Employee Purchase Plan.
• Expanded several problems to require students to complete Schedule D for the taxpayers described in the problems.
• Added a problem exploring the limits of the deductibility of bonus accruals.
• Added a new problem requiring the comparison of alternative compensation packages.

Chapter 13

• Added a new Taxes in the Real World box on a tax court case dealing with a rollover from a traditional IRA account to a Roth IRA.
• Added a new planning and research problem dealing with converting a traditional IRA to a Roth IRA.
• Added a new comprehensive problem dealing with required minimum distributions from various retirement accounts.

Chapter 14

• Added a new problem about the home sale exclusion, including variations of the nonqualified use provision.
• Added a new problem about the deductibility of home equity indebtedness interest.
• Added a new Taxes in the Real World box dealing with a home office deduction for bathroom space.

Chapter 15

• Added a new problem dealing with tax consequences of a distribution to a corporate and to an individual shareholder. This problem requires students to complete part of a tax form and asks some form-related questions.
• Added a new planning problem on determining whether to carryback a net operating loss. The problem also requires students to complete the tax form to report the carryback claim to the IRS.

Chapter 16

• Added a new tax form problem.

Chapter 17

• Updated the chapter for current year financial disclosures from Form 10-K.
• Expanded the research case related to Ford Motor Company in the problems.
• Added a new discussion of Schedule UTP.
• Added a new research case involving Google, Inc.

Chapter 18

• Added a new Taxes in the Real World box about Netflix.
• Added several new research and tax form problems.

Chapter 19

• Added several new research and tax form problems.

Chapter 20

• Added a new research problem dealing with self-employment taxes.
• Added a new planning problem dealing with passive activity losses.

Chapter 21

• Added a new planning problem dealing with converting capital losses to ordinary losses using the partnership distribution rules.
• Added a new planning problem dealing with accelerating gains from partnership distributions to utilize expiring capital loss carryovers.

Chapter 22

• Added a new Taxes in the Real World box.
• Added two end-of-chapter work-through problems.

Chapter 23

• Added a new Taxes in the Real World box about sales and use taxes applicable to Groupon.
• Added a new Taxes in the Real World box regarding sourcing of sales for income tax apportionment.
• Added a problem requiring students calculate the Georgia state tax base and to complete a portion of the corresponding state tax form.
• Added new problem addressing the taxation of cloud computing.

Chapter 24

• Updated scenarios to reflect changes in the Canadian tax laws.
• Added a new Taxes in the Real World box involving an international golfer playing in the United States.
• Updated text for potential tax reform proposals.

Chapter 25

• Added a new Taxes in the Real World box regarding estate taxes.
• Added several new research and tax form problems.

Key Features:

  • Storyline Approach: Each chapter begins with a storyline that introduces a set of characters or a business entity facing specific tax-related situations. Each chapter's examples are related to the storyline, providing students with opportunities to learn a set of client information and apply that data to a series of situations.
  • Conversational Writing Style: The authors took special care to write a textbook that fosters a friendly dialogue between the text and each individual student. The tone of the presentation is intentionally conversational – creating the impression of speaking with the student, as opposed to lecturing to the student.
  • Superior Organization of Related Topics: Taxation of Individuals and Business Entities takes a fresh approach to taxation by grouping related topics together in theme chapters, including separate chapters on home ownership, compensation, investments, and retirement savings & deferred compensation.
  • Real World Focus: Students learn best when they see how concepts are applied in the real world. For that reason, real-world examples and articles are included in “Taxes in the Real World” boxes throughout the book. These vignettes demonstrate current issues in taxation and show the relevance of tax issues in all areas of business.
  • Integrated Examples: The examples used throughout the chapter relate directly to the storyline presented at the beginning of each chapter, so students become familiar with one fact set and learn how to apply those facts to different scenarios. In addition to providing in-context examples, we provide “What-If” scenarios within many examples to illustrate how variations in the facts might or might not change the answers.
  • Wide Variety Of Assignment Material: Tax Forms Problems are a new set of requirements added to the end-of-chapter material in the 2013 edition. These problems require students to complete a tax form (or part of a tax form), providing students with valuable experience and practice with filling out these forms. These problems—and their relevant forms—are also included in Connect Accounting. Each Tax Forms problem includes an icon to differentiate it from regular problems. Research Problems are special problems throughout the end of the chapter's assignment material. These require students to do both basic and more complex research on topics outside of the scope of the book. Each Research Problem includes an icon to differentiate it from regular problems. Planning Problems are another unique set of problems, also located at the end of the chapter's assignment material. These require students to test their tax planning skills after covering the chapter's topics. Each Planning Problem includes an icon to differentiate it from regular problems. Comprehensive and Tax Return Problems address multiple concepts in a single problem. Comprehensive problems are ideal for cumulative topics; for this reason, they are located at the end of all chapters. In the end of book Appendix C, we include Tax Return Problems that cover multiple chapters.
  • TaxACT for Business Entities: McGraw-Hill's Taxation can be packaged with tax software from TaxACT, one of the leading tax preparation software companies in the market today. The 2012 edition includes availability of both Individuals and Business Entities software, including the 1040 forms and TaxACT Preparer's Business 3-Pack (with Forms 1065, 1120, and 1120S).
  • Ethics Boxes: Ethics boxes are included in each chapter. These vignettes present a taxpayer facing an ethical question related to the material covered in the chapter. Students are encouraged to consider the many ethical questions raised by taxation law; these boxes are designed to start a conversation in the classroom about ethics in tax.
  • Author-Written Supplements to Ensure Quality and Consistency: The authors write all of the supplements for Taxation, including the Testbank, Solutions Manual, PowerPoints® and Instructor's Manual. Each supplement has been reviewed by the author team to ensure consistency with the text material and accuracy. With the author's personal involvement in each supplement, you can be assured that Taxation's supplements are the same high quality as the book.

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