Fundamentals of Taxation 2022 Edition

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Contents
Fundamentals of Taxation 2022
	Chapter 1 Introduction to Taxation, the Income Tax Formula, and Form 1040
		Tax Rate Structures
		Marginal Tax Rates and Average Tax Rates
		A Simple Income Tax Formula
		The Components of a Basic Form 1040
		Calculation of Income Tax (Form 1040, Line 16) and Health Care Tax
		Tax Payments (Form 1040, Lines 25d, 26, and 32)
		Appendix A: Tax Authority
		Appendix B: IRS Rules for Paid Tax Preparers
		Appendix C: Getting Started with TaxAct
	Chapter 2 Expanded Tax Formula, Form 1040, and Basic Concepts
		The Income Tax Formula and Form 1040
		Filing Status (Form 1040, First Page)
		Dependents (Form 1040, Page 1)
		Standard Deduction (Form 1040, Line 12a)
		Tax Due to IRS
		Interest and Tax Penalties
	Chapter 3 Gross Income: Inclusions and Exclusions
		When and How to Record Income
		Cash Method of Accounting
		Taxability of Components of Gross Income
		Items Excluded from Gross Income
		Appendix: Tax Accounting for Savings Bond Interest Used for Education Expenses, Below-Market Interest Loans, Gift Loans, and Original Issue Discount Debt
	Chapter 4 Adjustments for Adjusted Gross Income
		Student Loan Interest (Schedule 1 of Form 1040, Line 21)
		Health Savings Account Deduction (Schedule 1, Line 13)
		Moving Expenses for Members of the Armed Forces (Schedule 1, Line 14)
		Deduction for Half of Self-Employment Tax (Schedule 1, Line 15)
		Self-Employed Health Insurance Deduction (Schedule 1, Line 17)
		Penalty on Early Withdrawal of Savings (Schedule 1, Line 18)
		Alimony Paid (Schedule 1, Line 19a)
		Educator Expenses (Schedule 1, Line 11)
	Chapter 5 Itemized Deductions
		Deductible Medical Expenses (Schedule A, Line 4)
		Deductible State and Local Taxes (Schedule A, Line 7)
		Deductible Interest (Schedule A, Line 10)
		Deductible Gifts to Charity (Schedule A, Line 14)
		Deductible Casualty and Theft Losses (Schedule A, Line 15)
		Other Itemized Deductions (Schedule A, Line 16)
	Chapter 6 Self-Employed Business Income (Line 3 of Schedule 1 and Schedule C)
		Income for a Schedule C Trade or Business
		Ordinary and Necessary Trade or Business Expenses
		Depreciation
		Transportation and Travel
		Business Use of the Home and Business Bad Debts
		Hobby Loss Rules and Education Expenses
		Self-Employment Tax
		Appendix: General Depreciation System
	Chapter 7 Capital Gains and Other Sales of Property (Schedule D and Form 4797)
		Terms and Tax Forms
		Classification of Assets
		Sales of Ordinary Assets
		Sales of Capital Assets
		Sales of Business Property
		Tax Issues for Special Types of Sales
	Chapter 8 Rental Property, Royalties, and Income from Flow-Through Entities (Line 5, Schedule 1, and Schedule E)
		Rental Property
		Rental of Vacation Homes
		Royalty Income
		Flow-Through Entities
	Chapter 9 Tax Credits (Form 1040, Lines 19, 20, 27 through 29, and 31, Schedule 3, Lines 1 through 14)
		Credit for Child and Dependent Care Expenses (Schedule 3, Line 2 [Form 2441])
		Credit for the Elderly or the Disabled (Schedule 3, Line 6d [Schedule R])
		Education Credits (Form 1040, Line 29 and Schedule 3, Line 3 [Form 8863])
		Foreign Tax Credit (FTC) (Schedule 3, Line 1 [Form 1116])
		Child Tax Credit (Form 1040, Line 19 and 28)
		Retirement Savings Contributions Credit (Saver’s Credit) (Schedule 3, Line 4 [Form 8880])
		Adoption Credit (Schedule 3, Line 6c [Form 8839])
		Earned Income Credit (EIC) (Form 1040, Line 27a)
		Premium Tax Credit (Schedule 2, Line 2, or Schedule 3, Line 9)
		Appendix A: Earned Income Credit (EIC) Table
		Appendix B: Table 2 for Form 8962
	Chapter 10 Payroll Taxes
		Tax Issues Associated with Payroll and Form 1040
		Federal Income Tax Withholding, Social Security, and Medicare Taxes on Wages and Tips
		Reporting and Paying Payroll Taxes
		Self-Employment Taxes, Unemployment Taxes, Form 940, Taxes for Household Employees, and Schedule H
		Employer Payroll Reporting Requirements Including Forms W-2 and W-3
		Supplemental Wage Payments, Backup Withholding, Form W-9, Estimated Tax Payments, and Form 1040-ES
		Additional Information Regarding Legislation and Payroll
		Appendix: Partial Wage Bracket Method Withholding
	Chapter 11 Retirement and Other Tax-Deferred Plans and Annuities
		Tax-Deferred Plans and Annuities: The Basics
		Employer-Sponsored Retirement Plans
		Individual-Sponsored Retirement Plans
		Tax-Deferred Nonretirement Plans
		Distributions from Tax-Deferred Pension Plans
		Tax Treatment of Annuity Contracts
		Appendix: Life Expectancy Tables
	Chapter 12 Special Property Transactions
		Like-Kind Exchanges
		Involuntary Conversions
		Installment Sales
		Sale of a Personal Residence
		Related-Party Losses and Wash Sales
	Chapter 13 At-Risk/Passive Activity Loss Rules and the Individual Alternative Minimum Tax
		At-Risk Rules
		Passive Activity Losses
		At-Risk and PAL Rules in Conjunction
		Alternative Minimum Tax (AMT)
		Appendix: Depreciation Tables
	Chapter 14 Partnership Taxation
		Formation of a Partnership
		Partnership Ordinary Income or Loss
		Separately Stated Items
		Basis of the Partnership Interest
		Partnership Distributions
		Disposal or Liquidation of a Partnership Interest
	Chapter 15 Corporate Taxation
		Corporate Formation and Filing Requirements
		Basis
		Taxable Income and Tax Liability
		Transactions with Shareholders
		Schedules L, M-1, and M-3
		Other Corporate Issues
		Subchapter S Corporations
	Appendix A: Amended Tax Returns (Form 1040X)
	Appendix B: Comprehensive Problems
	Appendix C: Concept Check Answers
	Appendix D: IRS Tax Tables
	Appendix E: IRS Tax Forms
	Appendix F: 2021 Federal Income Tax Information
	Index