THE TEXTBOOK: James C. Young, David M. Maloney, Annette Nellen, Mark B. Persellin, Andrew D. Cuccia
South-Western Federal Taxation: Comprehensive Volume, 2022 Edition
45th Edition
Introduction and Basic Tax Model
Introduction
An Introduction to Taxation and Understanding the Federal Tax Law
CHAPTER ONE QUESTIONS.
Discussion Questions
1) This textbook includes many features beyond the text materials in each chapter. For example, a glossary is included in the appendices and the end of each chapter contains a list of key terms. Skim through the chapters, appendices, and any other supplemental materials required for your course, and identify two special features. For each, explain what it is and how it can help you understand taxation in this tax course.
2)In the following independent situations, is the tax position of the taxpayer likely to change? Explain why or why not.
a) John started renting out a spare room in his home.
b) Theresa quit her job as a staff accountant and established her own practice as a CPA
c) Paul’s employer transferred him from its California office to an office in Florida.
3)Marvin is the executor and sole heir of his aunt’s estate. The estate includes her furnished home, which Marvin is considering converting to a rental property to generate additional cash flow. What are some of the tax considerations Marvin may confront? Critical Thinking
4) Distinguish between taxes that are regressive and those that are progressive.
5) Many state income tax returns contain checkoff boxes that allow taxpayers to make donations to a multitude of local charitable causes. On what grounds has this procedure been criticized?
6) One of the tax advantages of hiring family members to work in your business is that FICA taxes are avoided. Do you agree with this statement? Explain.
7) Brianna, a calendar year taxpayer, files her income tax return for 2020 on February 3, 2021. Although she makes repeated inquiries, she does not receive her refund from the IRS until May 28, 2021. Is Brianna entitled to interest on the refund? Explain.