Federal Taxation: Basic Principles 2017 edition

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Ephraim P. Smith, Philip J. Harmelink, and James R. Hasselback
Publisher: Wolters Kluwer Tax & Accounting

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  • Chapter 1: Introduction to Federal Taxation and Understanding the Federal Tax Law
    • 1.1: Fundamental Aspects of Federal Taxation
    • 1.2: Underlying Rationale of the Federal Income Tax
    • 1.3: Basic Tax Concepts
    • 1: True-False Questions (27)
    • 1: Multiple Choice Questions (16)

  • Chapter 2: Tax Research, Practice, and Procedure
    • 2.1: Tax Reference Materials
    • 2.2: Primary Source Materials
    • 2.3: Secondary Source Materials
    • 2.4: Research Methodology
    • 2.5: Tax Administration
    • 2.6: Tax Practice and Procedure
    • 2: True-False Questions (64)
    • 2: Multiple Choice Questions (54)

  • Chapter 3: Individual Taxation–An Overview
    • 3.1: Individual Taxation–An Overview
    • 3.2: Personal Exemptions
    • 3.3: Filing Status and Requirements
    • 3: True-False Questions (31)
    • 3: Multiple Choice Questions (19)

  • Chapter 4: Gross Income
    • 4.1: The Concept of Income
    • 4.2: Economic Benefit, Constructive Receipt, and Assignment of Income Doctrines
    • 4.3: Items Included in Gross Income
    • 4.4: Stock Option Plans
    • 4: True-False Questions (39)
    • 4: Multiple Choice Questions (40)

  • Chapter 5: Gross Income–Exclusions
    • 5.1: Common Exclusions from Gross Income
    • 5.2: Employee Benefits
    • 5: True-False Questions (21)
    • 5: Multiple Choice Questions (40)

  • Chapter 6: Deductions: General Concepts and Trade or Business Deductions
    • 6.1: Categories of Allowable Deductions
    • 6.2: Trade or Business Deductions
    • 6.3: Expenses Incurred for the Production of Income
    • 6.4: Deductions for Losses
    • 6.5: Other Allowable Deductions "For" AGI
    • 6.6: Employee Business Expenses
    • 6.7: Limitations on the Deductibility of Expenses
    • 6.8: Business Deductions Related to Capital Expenditures
    • 6: True-False Questions (50)
    • 6: Multiple Choice Questions (60)

  • Chapter 7: Deductions: Business/Investment Losses and Passive Activity Losses
    • 7.1: Tax Shelters and At-Risk Rules
    • 7.2: Passive Activity Loss Rules
    • 7.3: Business and Investment Losses
    • 7: True-False Questions (30)
    • 7: Multiple Choice Questions (30)

  • Chapter 8: Deductions: Itemized Deductions
    • 8.1: Medical Expenses
    • 8.2: Taxes
    • 8.3: Interest
    • 8.4: Charitable Contributions
    • 8.5: Personal Casualty and Theft Losses
    • 8.6: Miscellaneous Itemized Deductions
    • 8.7: Investment Expenses
    • 8: True-False Questions (41)
    • 8: Multiple Choice Questions (31)

  • Chapter 9: Tax Credits, Prepayments, and Alternate Minimum Tax
    • 9.1: Nonrefundable Tax Credits
    • 9.2: Refundable Tax Credits
    • 9.3: Alternate Minimum Tax
    • 9: True-False Questions (47)
    • 9: Multiple Choice Questions (35)

  • Chapter 10: Property Transactions: Determination of Basis and Gains and Losses
    • 10.1: Factors in Determining Gain or Loss
    • 10.2: Determination of Basis
    • 10: True-False Questions (35)
    • 10: Multiple Choice Questions (44)

  • Chapter 11: Property Transactions: Nonrecognition of Gains and Losses
    • 11.1: Sale of a Personal Residence
    • 11.2: Like-Kind Exchanges
    • 11.3: Involuntary Conversions
    • 11.4: Other Transactions Involving Nonrecognition
    • 11: True-False Questions (40)
    • 11: Multiple Choice Questions (50)

  • Chapter 12: Property Transactions: Treatment of Capital and Section 1231 Assets
    • 12.1: Special Rules and Limitations on Transactions
    • 12.2: Special Situations in Capital v. Ordinary Treatment
    • 12.3: Holding Period
    • 12.4: Individual Taxpayers
    • 12.5: Special Provisions for Certain Investments
    • 12.6: Section 1231 Assets and Procedure
    • 12.7: Depreciation Recapture–Section 1245
    • 12.8: Depreciation Recapture–Section 1250
    • 12.9: Recapture Rules in Other Events
    • 12: True-False Questions (56)
    • 12: Multiple Choice Questions (52)

  • Chapter 13: Tax Accounting
    • 13.1: Taxable Income and Tax Liability for Various Entities
    • 13.2: Accounting Periods
    • 13.3: Change of Accounting Periods
    • 13.4: Accounting Methods
    • 13.5: Change of Accounting Methods
    • 13.6: Inventories
    • 13.7: Long-term Contracts
    • 13.8: Installment Sales
    • 13: True-False Questions (18)
    • 13: Multiple Choice Questions (61)

  • Chapter 14: Deferred Compensation and Education Savings Plan
    • 14.1: Employer-Sponsored Deferred Compensation Plans: "Qualified" and "Nonqualified"
    • 14.2: Basic Types of Employer-Sponsored Qualified Retirement Plans
    • 14.3: Qualified Plan Requirements
    • 14.4: Tax Consequences to Employer and Employee
    • 14.5: Common Retirement Plans for Large Businesses
    • 14.6: Common Retirement Plans for Small Businesses
    • 14.7: Personal Retirement Plans for Working Individuals
    • 14.8: Nonqualified Deferred Compensation Plans
    • 14.9: Education Savings Vehicles
    • 14: True-False Questions (13)
    • 14: Multiple Choice Questions (49)

  • Chapter 15: Tax Planning for Individuals
    • 15.1: General Principles of Tax Planning
    • 15.2: Self-Employed v. Employee Tax Planning
    • 15.3: Family Tax Planning
    • 15.4: Fixed and Other Assets Tax Planning
    • 15.5: Deduction Tax Planning
    • 15.6: Retirement Planning
    • 15: True-False Questions (20)
    • 15: Multiple Choice Questions (22)

  • Chapter 16: Partnerships, Corporations, and S Corporations
    • 16.1: Choice of Business Organization
    • 16.2: Characteristics of a Partnership
    • 16.3: Characteristics of a Corporation
    • 16.4: S Corporations
    • 16: True-False Questions (62)
    • 16: Multiple Choice Questions (70)

  • Chapter 17: Federal Estate Tax, Federal Gift Tax, and Generation-Skipping Transfer Tax
    • 17.1: Impact of Economic Growth and Tax Relief Reconciliation Act of 2001, Tax Relief Act of 2010, and American Taxpayer Relief Act of 2012
    • 17.2: Assessment of the 2010 Tax Relief Act
    • 17.3: Legal Terms Common to Estates and Trusts
    • 17.4: Computation and Payment of Estate Tax
    • 17.5: Gross Estate
    • 17.6: Conservation Easement
    • 17.7: Valuation of Gross Estate
    • 17.8: Deductions from the Gross Estate
    • 17.9: Federal Gift Tax
    • 17.10: Exclusions
    • 17.11: Generation-Skipping Transfer (GST) Tax
    • 17: True-False Questions (25)
    • 17: Multiple Choice Questions (35)

  • Chapter 18: Income Taxation of Trusts and Estates
    • 18.1: Taxation of Estates
    • 18.2: Taxation of Trusts
    • 18.3: Federal Income Taxation Scheme–Estates and Trusts
    • 18.4: Taxation of Trusts–Special Rules
    • 18: True-False Questions (25)
    • 18: Multiple Choice Questions (25)


Federal Taxation: Basic Principles, 2017 edition, by Smith et al. is a popular first-level tax course textbook that provides a clear concise explanation of the fundamental tax concepts covering both tax planning and compliance. Basic Principles strikes a perfect balance between the AICPA model curriculum (focusing on business tax) and the demands favored by most teachers (covering the fundamentals and building toward the complex). The WebAssign component for this text gives students instant feedback and contains question links to the eBook.

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Group Quantity Questions
Chapter 1: Introduction to Federal Taxation and Understanding the Federal Tax Law
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Chapter 2: Tax Research, Practice, and Procedure
2.P 118 001 002 003 004 005 006 007 008 009 010 011 012 013 014 015 016 017 018 019 020 021 022 023 024 025 026 027 028 029 030 031 032 033 034 035 036 037 038 039 040 041 042 043 044 045 046 047 048 049 050 051 052 053 054 055 056 057 058 059 060 061 062 063 064 065 066 067 068 069 070 071 072 073 074 075 076 077 078 079 080 081 082 083 084 085 086 087 088 089 090 091 092 093 094 095 096 097 098 099 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118
Chapter 3: Individual Taxation–An Overview
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Chapter 4: Gross Income
4.P 79 001 002 003 004 005 006 007 008 009 010 011 012 013 014 015 016 017 018 019 020 021 022 023 024 025 026 027 028 029 030 031 032 033 034 035 036 037 038 039 040 041 042 043 044 045 046 047 048 049 050 051 052 053 054 055 056 057 058 059 060 061 062 063 064 065 066 067 068 069 070 071 072 073 074 075 076 077 078 079
Chapter 5: Gross Income–Exclusions
5.P 61 001 002 003 004 005 006 007 008 009 010 011 012 013 014 015 016 017 018 019 020 021 022 023 024 025 026 027 028 029 030 031 032 033 034 035 036 037 038 039 040 041 042 043 044 045 046 047 048 049 050 051 052 053 054 055 056 057 058 059 060 061
Chapter 6: Deductions: General Concepts and Trade or Business Deductions
6.P 110 001 002 003 004 005 006 007 008 009 010 011 012 013 014 015 016 017 018 019 020 021 022 023 024 025 026 027 028 029 030 031 032 033 034 035 036 037 038 039 040 041 042 043 044 045 046 047 048 049 050 051 052 053 054 055 056 057 058 059 060 061 062 063 064 065 066 067 068 069 070 071 072 073 074 075 076 077 078 079 080 081 082 083 084 085 086 087 088 089 090 091 092 093 094 095 096 097 098 099 100 101 102 103 104 105 106 107 108 109 110
Chapter 7: Deductions: Business/Investment Losses and Passive Activity Losses
7.P 60 001 002 003 004 005 006 007 008 009 010 011 012 013 014 015 016 017 018 019 020 021 022 023 024 025 026 027 028 029 030 031 032 033 034 035 036 037 038 039 040 041 042 043 044 045 046 047 048 049 050 051 052 053 054 055 056 057 058 059 060
Chapter 8: Deductions: Itemized Deductions
8.P 72 001 002 003 004 005 006 007 008 009 010 011 012 013 014 015 016 017 018 019 020 021 022 023 024 025 026 027 028 029 030 031 032 033 034 035 036 037 038 039 040 041 042 043 044 045 046 047 048 049 050 051 052 053 054 055 056 057 058 059 060 061 062 063 064 065 066 067 068 069 070 071 072
Chapter 9: Tax Credits, Prepayments, and Alternate Minimum Tax
9.P 82 001 002 003 004 005 006 007 008 009 010 011 012 013 014 015 016 017 018 019 020 021 022 023 024 025 026 027 028 029 030 031 032 033 034 035 036 037 038 039 040 041 042 043 044 045 046 047 048 049 050 051 052 053 054 055 056 057 058 059 060 061 062 063 064 065 066 067 068 069 070 071 072 073 074 075 076 077 078 079 080 081 082
Chapter 10: Property Transactions: Determination of Basis and Gains and Losses
10.P 79 001 002 003 004 005 006 007 008 009 010 011 012 013 014 015 016 017 018 019 020 021 022 023 024 025 026 027 028 029 030 031 032 033 034 035 036 037 038 039 040 041 042 043 044 045 046 047 048 049 050 051 052 053 054 055 056 057 058 059 060 061 062 063 064 065 066 067 068 069 070 071 072 073 074 075 076 077 078 079
Chapter 11: Property Transactions: Nonrecognition of Gains and Losses
11.P 90 001 002 003 004 005 006 007 008 009 010 011 012 013 014 015 016 017 018 019 020 021 022 023 024 025 026 027 028 029 030 031 032 033 034 035 036 037 038 039 040 041 042 043 044 045 046 047 048 049 050 051 052 053 054 055 056 057 058 059 060 061 062 063 064 065 066 067 068 069 070 071 072 073 074 075 076 077 078 079 080 081 082 083 084 085 086 087 088 089 090
Chapter 12: Property Transactions: Treatment of Capital and Section 1231 Assets
12.P 108 001 002 003 004 005 006 007 008 009 010 011 012 013 014 015 016 017 018 019 020 021 022 023 024 025 026 027 028 029 030 031 032 033 034 035 036 037 038 039 040 041 042 043 044 045 046 047 048 049 050 051 052 053 054 055 056 057 058 059 060 061 062 063 064 065 066 067 068 069 070 071 072 073 074 075 076 077 078 079 080 081 082 083 084 085 086 087 088 089 090 091 092 093 094 095 096 097 098 099 100 101 102 103 104 105 106 107 108
Chapter 13: Tax Accounting
13.P 79 001 002 003 004 005 006 007 008 009 010 011 012 013 014 015 016 017 018 019 020 021 022 023 024 025 026 027 028 029 030 031 032 033 034 035 036 037 038 039 040 041 042 043 044 045 046 047 048 049 050 051 052 053 054 055 056 057 058 059 060 061 062 063 064 065 066 067 068 069 070 071 072 073 074 075 076 077 078 079
Chapter 14: Deferred Compensation and Education Savings Plan
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Chapter 15: Tax Planning for Individuals
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Chapter 16: Partnerships, Corporations, and S Corporations
16.P 132 001 002 003 004 005 006 007 008 009 010 011 012 013 014 015 016 017 018 019 020 021 022 023 024 025 026 027 028 029 030 031 032 033 034 035 036 037 038 039 040 041 042 043 044 045 046 047 048 049 050 051 052 053 054 055 056 057 058 059 060 061 062 063 064 065 066 067 068 069 070 071 072 073 074 075 076 077 078 079 080 081 082 083 084 085 086 087 088 089 090 091 092 093 094 095 096 097 098 099 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132
Chapter 17: Federal Estate Tax, Federal Gift Tax, and Generation-Skipping Transfer Tax
17.P 60 001 002 003 004 005 006 007 008 009 010 011 012 013 014 015 016 017 018 019 020 021 022 023 024 025 026 027 028 029 030 031 032 033 034 035 036 037 038 039 040 041 042 043 044 045 046 047 048 049 050 051 052 053 054 055 056 057 058 059 060
Chapter 18: Income Taxation of Trusts and Estates
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Total 1377