South-Western Federal Taxation 2024, Essentials of Taxation, Individuals and Business Entities

Part 1: The World of Taxation
	Chapter 1: Introduction to Taxation
		The Big Picture: A Typical Tax Year for A Modern Family
		Taxes in Our Lives
			The Relevance of Taxation to Accounting and Finance Professionals
			How to Study Taxation
			Individuals and Taxes
		The Structure of Tax Systems
			Tax Rates
			Tax Bases
			Incidence of Taxation
		Types of Taxes
			Transaction Taxes
			Valuation or Wealth Taxes
				Tax Fact: A Profile of Tax Collections
			Income Taxes
				Bridge Discipline: Bridge to Political Science and Sociology
				Concept Summary: Overview of Taxes in the United States
				Financial Disclosure Insights: What Do You Mean by “Income” Anyway?
		Income Taxation of Business Entities
			Proprietorships
			C Corporations
			Partnerships
			S Corporations
			Limited Liability Companies and Limited Liability Partnerships
			Dealings Between Individuals and Their Business Entities
				Financial Disclosure Insights: Book-Tax Differences
		Tax Planning Fundamentals
			Overview of Tax Planning and Ethics
			A General Framework for Income Tax Planning
			Tax Minimization Strategies Related to Income
			Tax Minimization Strategies Related to Deductions
			Tax Minimization Strategies Related to Tax Rates
				Tax Fact: The U.S. Federal Income Tax
			Tax Minimization Strategies Related to Tax Credits
				Global Tax Issues: Outsourcing of Tax Return Preparation
		Understanding the Federal Tax Law
			Revenue Needs
			Economic Considerations
			Social Considerations
			Equity Considerations
			Political Considerations
			Compliance Considerations
			Influence of the Internal Revenue Service
			Influence of the Courts
		Summary
			Refocus on The Big Picture: A Typical Tax Year for a Modern Family
	Chapter 2: Working with the Tax Law
		The Big Picture: Researching Tax Questions
		Tax Law Sources
			Statutory Sources of the Tax Law
				Tax Fact: Scope of the U.S. Tax System
			Administrative Sources of the Tax Law
			Judicial Sources of the Tax Law
				Concept Summary: Federal Judicial System: Trial Courts
				Bridge Discipline: Bridge to Public Policy
		Working with the Tax Law—Tax Research
			Identifying the Problem
			Refining the Problem
			Locating the Appropriate Tax Law Sources
				Bridge Discipline: Bridge to Business Law
			Assessing Tax Law Sources
			Arriving at the Solution or at Alternative Solutions
			Communicating Tax Research
			Updates
			Tax Research Best Practices
				Financial Disclosure Insights: Where Does GAAP Come From?
		Tax Research on the CPA Examination
			Bridge Discipline: Bridge to Regulation and Oversight
			Refocus on The Big Picture: Researching Tax Questions
	Chapter 3: Taxes in the Financial Statements
		The Big Picture: Taxes in the Financial Statements
		Accounting for Income Taxes—Basic Principles
			Book-Tax Differences
				Concept Summary: Common Book-Tax Differences
			Generally Accepted Accounting Principles and ASC 820
		Capturing, Measuring, and Recording Tax Expense—The Provision Process
			Current Tax Expense
				Global Tax Issues: Accounting for Income Taxes in International Standards
			Deferred Tax Expense
				Financial Disclosure Insights: The Book-Tax Income Gap
			The Valuation Allowance
				Finanical Disclosure Insights: Tax Losses and the Deferred Tax Asset
				Finanical Disclosure Insights: Releasing Valuation Allowances
		Tax Disclosures in the Financial Statements
			Presentation of Amounts Recognized in the Financial Statements
			The Financial Statement Footnotes
			The Effective Tax Rate Reconciliation
				Bridge Discipline: Bridge to Financial Analysis
		Special Issues
			The Financial Accounting for Tax Uncertainties
				Concept Summary: Recognizing the Tax Benefits of Uncertain Tax Positions Under ASC 820–90
			Effects of Statutory Tax Rate Changes
				Financial Disclosure Insights: The Impact of Tax Rate Changes
			The Corporate Tax Department
				Concept Summary: The Income Tax Provision Process
		Benchmarking
			Methods of Analysis
			Tax Rate Sustainability
			Uses of Benchmarking Analysis
				Concept Summary: Benchmarking Analysis
				Refocus on The Big Picture: Taxes in the Financial Statements
Part 2: Structure of the Federal Income Tax
	Chapter 4: Gross Income
		The Big Picture: Just What Is Included i?n Gross Income?
		The Tax Formula
			Components of the Tax Formula
		Gross Income
			Concepts of Income
				Finanical Disclosure Insights: What Does “Income” Mean to You?
			Comparing Accounting and Tax Concepts of Income
			Form of Receipt
				Concept Summary: Gross Income Concepts
		Timing of Income Recognition
			Taxable Year
			Accounting Methods
				Tax Planning Strategies: Cash Method
				Bridge Discipline: Bridge to Economics and Finance
			Special Rules for Cash Basis Taxpayers
			Special Rules for Accrual Basis Taxpayers
				Tax Planning Strategies: Prepaid Income
				Concept Summary: Income Tax Accounting
		General Sources of Income
			Income from Performing Personal Services
			Income from Property
				Tax Fact: How Much and What Type of Income?
				Global Tax Issues: Which Foreign Dividends Get the Discounted Rate?
			Income Received by an Agent
			Report of Foreign Bank and Financial Accounts (FBAR)
				Tax Planning Strategies: Techniques for Reducing Investment Income
		Specific Items of Gross Income
			Gains and Losses from Property Transactions
			Interest on Certain State and Local Government Obligations
				Bridge Discipline: Bridge to Public Economics
			Life Insurance Proceeds
				Tax Planning Strategies: Life Insurance
			Income from Discharge of Indebtedness
			Tax Benefit Rule
			Imputed Interest on Below-Market Loans
			Improvements on Leased Property
				Concept Summary: Income Recognition Rules
				Refocus on The Big Picture: Just What Is Included in Gross Income?
	Chapter 5: Business Deductions
		The Big Picture: Calculating Deductible Expenses
		The Deductibility of Business Expenses—Overview
			Ordinary and Necessary Requirement
			Reasonableness Requirement
				Tax Planning Strategies: Unreasonable Compensation
		The Timing of Deduction Recognition
			The Cash Method
				Tax Planning Strategies: Time Value of Tax Deductions
			The Accrual Method
			Expenses Accrued to Related Parties
			Prepaid Expenses—The “174-Month Rule”
		Disallowance Possibilities
			Expenses Incurred in the Investigation of a Business
			Public Policy Limitations
				Global Tax Issues: Overseas Gun Sales Result in Large Fines
			Political Contributions and Lobbying Activities
			Expenses Related to Entertainment, Recreation, or Amusement
			Business Interest Expense
			Executive Compensation
			Interest and Other Expenses Related to Tax-Exempt Income
			Other Disallowance Possibilities
		Research and Experimental Expenditures
			Expense Method
			Deferral and Amortization Method
		Issues Related to Other Common Business Deductions
			Interest Expense
			Taxes
		Charitable Contributions
			Deductible Contributions
			Measuring Noncash Contributions
			Limitations Imposed on Charitable Contribution Deductions
		Cost Recovery Allowances
			Overview
			Cost Recovery—In General
				Bridge Discipline: Bridge to Finance
			The Modified Accelerated Cost Recovery System (MACRS)
			MACRS for Personal Property
			MACRS for Real Estate
				Concept Summary: MACRS: Class Lives, Methods, and Conventions
			Election to Immediately Expense Certain Depreciable Assets (§ 341)
				Financial Disclosure Insights: Tax and Book Depreciation
			Additional First-Year (Bonus) Depreciation
				Bridge Discipline: Bridge to Economics and the Business Cycle
			Limitations Related to Automobiles and Other ­Property Used for Personal Purposes
				Concept Summary: Listed Property Cost Recovery
				Bridge Discipline: Bridge to Finance and Economics
			Alternative Depreciation System (ADS)
		Amortization
			Tax Planning Strategies: Structuring the Sale of a Business
		Depletion
			Intangible Drilling and Development Costs (IDCs)
			Depletion Methods
				Tax Planning Strategies: Switching Depletion Methods
		Cost Recovery Tables
			Refocus on The Big Picture: Calculating Deductible Expenses
	Chapter 6: Losses and Loss Limitations
		The Big Picture: Receiving Tax Benefits from Losses
		Bad Debts
			Specific Charge-Off Method
			Business versus Nonbusiness Bad Debts
				Concept Summary: The Tax Treatment of Bad Debts Using the Specific Charge-Off Method
			Loans between Related Parties
		Worthless Securities and Small Business Stock Losses
			Worthless Securities
			Small Business Stock (§ 1,466 Stock) Losses
				Tax Planning Strategies: Maximizing the Benefits of Small Business (§ 1,466 Stock) Losses
		Casualty and Theft Losses
			Definition of Casualties and Thefts
				Tax Planning Strategies: Documentation of Related-Taxpayer Loans, Casualty Losses, and Theft Losses
			Deduction of Casualty and Theft Losses
			Loss Measurement
			Casualty and Theft Losses of Individuals
				Concept Summary: Casualty Gains and Losses
		Net Operating Losses
			Introduction
			General NOL Rules
		The Tax Shelter Problem
			Bridge Discipline: Bridge to Finance
		At-Risk Limitations
			Concept Summary: Calculation of At-Risk Amount
		Passive Activity Loss Limits
			Classification and Tax Treatment of Passive Activity Income and Loss
			Taxpayers Subject to the Passive Activity Loss Rules
			Rules for Determining Passive Activities
			Material Participation
				Concept Summary: Tests to Determine Material Participation
			Rental Activities
				Concept Summary: Passive Activity Loss Rules: Key Issues and Answers
			Interaction of At-Risk and Passive Activity Loss Limits
				Concept Summary: Treatment of Losses Subject to the At-Risk and Passive Activity Loss Limitations
			Special Passive Activity Rules for Real Estate
			Disposition of Passive Activities
				Tax Planning Strategies: Utilizing Passive Activity Losses
		Excess Business Losses
			Definition and Rules
			Computing the Limit
				Refocus on The Big Picture: Receiving Tax Benefits from Losses
Part 3: Property Transactions
	Chapter 7: Property Transactions: Basis, Gain and Loss, and Nontaxable Exchanges
		The Big Picture: Calculating Basis and Recognized Gain for Property Transactions
		Determining Gain or Loss
			Realized Gain or Loss
				Concept Summary: Realized Gain or Loss
				Bridge Discipline: Bridge to Financial Accounting
			Recognized Gain or Loss
				Concept Summary: Realized and Recognized Gain or Loss
		Basis Considerations
			Determination of Cost Basis
			Property Received as a Gift
				Tax Planning Strategies: Gift Planning
			Inherited Property
				Tax Planning Strategies: Inherited Property
		Disallowed Losses
			Personal Use Assets
			Transactions between Related Parties
			Wash Sales
				Tax Planning Strategies: Avoiding Wash Sales
			Property Converted from Personal Use to Business or Income-Producing Use
		Nontaxable Exchanges—General Concepts
		Like-Kind Exchanges—§ 1,299
			Like-Kind Property
				Tax Planning Strategies: Like-Kind Exchanges
			Exchange Requirement
			Boot
			Basis and Holding Period of Property Received
				Bridge Discipline: Bridge to Economics
		Involuntary Conversions—§ 1,301
			Involuntary Conversion Defined
			Replacement Property
				Concept Summary: Involuntary Conversions: Replacement Property Tests
			Time Limitation on Replacement
			Nonrecognition of Gain
				Tax Planning Strategies: Recognizing Involuntary Conversion Gains
		Installment Method
			Eligibility
			Computing Gain Recognition for Payments Received
		Sale of a Principal Residence—§ 389
			Refocus on The Big Picture: Calculating Basis and Recognized Gain for Property Transactions
	Chapter 8: Property Transactions: Capital Gains and Losses, Section 1231, and Recapture Provisions
		The Big Picture: Capital Gains and Losses, § 1231 Gains and Losses, and Recapture
		General Scheme of Property Taxation
			Concept Summary: Factors Impacting the Tax Treatment of Property Transactions
		Capital Assets
		Special Rules
			Worthless Securities
			§ 1,558 Stock
			Retirement of Corporate Obligations
			Options
				Concept Summary: Options: Consequences to the Grantor and Grantee
			Patents
			Lease Cancellation Payments
		Holding Period
			General Rules
			Special Holding Period Rules
			Short Sales
				Tax Planning Strategies: Timing Capital Gains
		Tax Treatment of Capital Gains and Losses of Noncorporate Taxpayers
			Net Capital Gains
				Concept Summary: Alternative Tax Rates on Net Capital Gains (NCG) (Based on Filing Status and Taxable Income)
				Tax Planning Strategies: Gifts of Appreciated Securities
				Global Tax Issues: Capital Gain Treatment in the United States and Other Countries
				Concept Summary: Capital Gains of Noncorporate Taxpayers
			Net Capital Losses
			Capital Gain and Loss Netting Process
				Tax Planning Strategies: Matching Gains with Losses
			Small Business Stock
				Tax Fact: Capital Gains for the Wealthy?
		Tax Treatment of Capital Gains and Losses of Corporate Taxpayers
		Section 1,545 Gains and Losses
			Relationship to Capital Gains and Losses
			Definition of Section 1,545 Assets
			General Procedure for §?1,545 Computation
				Concept Summary: Section 1,545 Netting Procedure
		Section 1,559 Recapture
			Bridge Discipline: Bridge to Financial Accounting
			Section 1,559 Property
			Observations on §?1,559
		Section 1,564 Recapture
			Concept Summary: Comparison of §?1,559 and § 1,564 Depreciation Recapture
			Unrecaptured § 1,564 Gain (Real Estate 339% Gain)
			Additional § 1,564 Recapture for Corporations
		Depreciation Recapture and ­Nontaxable and Tax Free Transactions
			Gifts
			Death
			Certain Nontaxable Transactions
			Like-Kind Exchanges and Involuntary Conversions
				Tax Planning Strategies: Timing of Recapture
				Refocus on The Big Picture: Capital Gains and Losses, §?1,545 Gains and Losses, and Recapture
Part 4: Taxation of Individuals
	Chapter 9: Individuals as Taxpayers
		The Big Picture: A Divided Household
		The Individual Tax Formula
			Concept Summary: Individual Income Tax Formula
			Components of the Tax Formula
		Standard Deduction
			Basic and Additional Standard Deduction
			Limitations on the Standard Deduction for Dependents
		Dependents
			Qualifying Child
				Concept Summary: Tiebreaker Rules for Determining Dependency Status
			Qualifying Relative
				Tax Planning Strategies: Multiple Support Agreements and the Medical Expense Deduction
			Other Rules for Determining Dependents
				Tax Planning Strategies: Problems with a Joint Return
			Comparison of Dependent Categories
				Concept Summary: Tests for Dependency Status
		Filing Status and Filing Requirements
			Filing Status
				Bridge Discipline: Bridge to Equity or Fairness
				Global Tax Issues: Filing a Joint Return
			Filing Requirements
		Tax Determination
			Tax Rate Schedule Method
			Tax Table Method
			Computation of Net Taxes Payable or Refund Due
				Tax Planning Strategies: Shifting Income and Deductions across Time
			Kiddie Tax—Unearned Income of Dependent Children
				Tax Planning Strategies: Income of Certain Children
			Additional Taxes for Certain Individuals
		Tax Return Filing Procedures
			Selecting the Proper Form
			The E-File Approach
				Tax Fact: What Mode of Tax Filing Is Right for You?
			When and Where to File
			Modes of Payment
				Refocus on The Big Picture: A Divided Household
	Chapter 10: Individuals: Income, Deductions, and Credits
		The Big Picture: The Tax Implications of Life!
		Overview of Income Provisions Applicable to Individuals
			Bridge Discipline: Bridge to Economics and Finance
		Specific Inclusions Applicable to Individuals
			Alimony and Separate Maintenance Payments
			Prizes and Awards
			Unemployment Compensation
			Social Security Benefits
		Specific Exclusions Applicable to Individuals
			Gifts and Inheritances
			Scholarships
			Damages
				Concept Summary: Taxation of Damages
			Workers’ Compensation
			Accident and Health Insurance Benefits
			Educational Savings Bonds
			Wrongful Incarceration
		Itemized Deductions
			Medical Expenses
			Taxes
				Tax Planning Strategies: Timing the Payment of Deductible Taxes
			Interest
				Concept Summary: Deductibility of Personal, Student Loan, Investment, and Mortgage Interest
			Charitable Contributions
				Global Tax Issues: Choose the Charity Wisely
				Concept Summary: Determining the Deduction for Contributions of Appreciated Property by Individuals
			Other Itemized Deductions
		Individual Tax Credits
			Tax Planning Strategies: Effective Utilization of Itemized Deductions
			Adoption Expenses Credit
			Child and Dependent Tax Credits
			Credit for Child and Dependent Care Expenses
			Education Tax Credits
			Earned Income Credit
			Residential Energy Credits
			Clean Vehicle Credit
				Refocus on The Big Picture: The Tax Implications of Life!
	Chapter 11: Individuals as Employees and Proprietors
		The Big Picture: Self-Employed versus Employee—What’s the Difference?
		Employee versus Independent Contractor
			Factors Considered in Classification
				Concept Summary: Employee versus Independent Contractor
				Tax Planning Strategies: Self-Employed Individuals
		Exclusions Available to Employees
			Employer-Sponsored Accident and Health Plans
				Bridge Discipline: Bridge to Economic and Societal Needs
			Medical Reimbursement Plans
			Meals and Lodging Furnished for the Convenience of the Employer
			Group Term Life Insurance
			Qualified Tuition Reduction Plans
			Other Employee Fringe Benefits
			Cafeteria Plans
			Flexible Spending Plans
				Concept Summary: Employee Fringe Benefits
			General Classes of Excluded Benefits
				Bridge Discipline: Bridge to Equity or Fairness in Compensation
				Concept Summary: General Classes of Fringe Benefits
			Foreign Earned Income
		Expenses Relating to Time at Work
			Transportation Expenses
			Travel Expenses
				Tax Planning Strategies: Transportation and Travel Expenses
			Education Expenses
			Entertainment and Meal Expenses
			Other Expenses of Work
			Classification of Employee Expenses
				Tax Planning Strategies: Employee Expenses
			Contributions to Individual Retirement Accounts
				Concept Summary: Comparison of IRAs
		Individuals as Proprietors
			Accounting Periods and Methods
			Income and Deductions of a Proprietorship
			Retirement Plans for Self-Employed Individuals
			Deduction for Qualified Business Income
				Concept Summary: An Overview of the 2,476 Qualified Business Income Deduction
			Estimated Tax Payments
		Hobby Losses
			Tax Planning Strategies: Avoiding Underpayment Penalties
			General Rules
			Presumptive Rule of Profit-Seeking
			Determining the Taxable Amount
				Refocus on The Big Picture: Self-Employed versus Employee—What’s the Difference?
Part 5: Business Entities
	Chapter 12: Corporations: Organization, Capital Structure, and Operating Rules
		The Big Picture: Growing into the Corporate Form
		An Introduction to Corporate Income Taxation
			Double Taxation of Corporate Income
				Global Tax Issues: U.S. Corporate Taxes and International Business Competitiveness
			Comparison of Corporations and Other Forms of Doing Business
				Tax Fact: Corporations’ Reporting Responsibilities
				Bridge Discipline: Bridge to Finance
			Nontax Considerations
				Concept Summary: Tax Treatment of Business Forms Compared
			Limited Liability Companies
			Entity Classification
		Organization of and Transfers to Controlled Corporations
			Section 867 Rationale and General Rules
				Concept Summary: Shareholder Consequences: Taxable Corporate Formation versus Tax-Deferred § 867 Transaction
			Property Defined
			Stock Transferred
			Control of the Corporation
				Tax Planning Strategies: Utilizing § 867
			Basis Determination and Other Issues
				Concept Summary: Tax Consequences to the Shareholders and Corporation: With and Without the Application of § 867 (Based on the Facts of Example 542)
			Assumption of Liabilities—§ 873
				Global Tax Issues: Does § 867 Cover the Incorporation of a Foreign Business?
				Concept Summary: Tax Consequences of Liability Assumption
				Tax Planning Strategies: Avoiding § 867
			Recapture Considerations
				Tax Planning Strategies: Other Considerations When Incorporating a Business
		Capital Structure of a Corporation
			Capital Contributions
			Debt in the Capital Structure
		Taxing Corporate Operations
			Deductions Available Only to Corporations
			Business Interest Expense Limitation
				Tax Planning Strategies: Organizational Expenditures
			Determining the Corporate Income Tax Liability
		Procedural Matters
			Filing Requirements for Corporations
			Estimated Tax Payments
			Schedule M–517—Reconciliation of Income (Loss) per Books with Income per Return
				Concept Summary: Conceptual Diagram of Schedule M–517 (Form 1,636)
			Schedule M–518—Analysis of Unappropriated Retained Earnings per Books
			Schedule M–519—Net Income (Loss) Reconciliation for Corporations with Total Assets of $526 Million or More
				Bridge Discipline: Bridge to Financial Accounting
			Effect of Taxes on Financial Statements
				Refocus on The Big Picture: Growing into the Corporate Form
	Chapter 13: Corporations: Earnings & Profits and Distributions
		The Big Picture: Taxing Corporate Distributions
		Corporate Distributions—Overview
		Earnings and Profits (E & P)
			Tax Fact: How Many Individuals Report Dividend Income
			Computation of E & P
			Summary of E & P Adjustments
			Allocating E & P to Distributions
				Concept Summary: Computing E & P
				Bridge Discipline: Bridge to Finance
				Tax Planning Strategies: Corporate Distributions
				Concept Summary: Allocating E & P to Distributions
		Noncash Dividends
			Bridge Discipline: Bridge to Investments
			Noncash Dividends—Effect on the Shareholder
			Noncash Dividends—Effect on the Corporation
				Bridge Discipline: Bridge to Finance
		Constructive Dividends
			Types of Constructive Dividends
				Global Tax Issues: Paying Dividends to Foreign Shareholders
			Shareholder Treatment of Constructive Dividends
				Tax Planning Strategies: Constructive Dividends
		Stock Dividends
		Stock Redemptions
			Bridge Discipline: Bridge to Finance
			Global Tax Issues: Non-U.S. Shareholders Prefer Capital Gain Treatment in Stock Redemptions
			Tax Planning Strategies: Stock Redemptions
		Corporate Liquidations
			The Liquidation Process
			Liquidating and Nonliquidating Distributions Compared
				Tax Planning Strategies: Corporate Liquidations
		Restrictions on Corporate Accumulations
			Refocus on The Big Picture: Taxing Corporate Distributions
	Chapter 14: Partnerships and Limited Liability Entities
		The Big Picture: The Tax Consequences of Partnership Formation and Operations
		Overview of Partnership Taxation
			Forms of Doing Business—Federal Tax Consequences
				Tax Fact: Partnership Power
			Definition of a Partnership
				Bridge Discipline: Bridge to Finance
			Partnership Taxation and Reporting
			Partner’s Ownership Interest in a Partnership
				Bridge Discipline: Bridge to Business Law
		Formation of a Partnership: Tax Effects
			Gain or Loss on Contributions to the Partnership
				Concept Summary: Partnership/LLC Taxation: Tax Reporting
			Exceptions to Nonrecognition
			Tax Issues Related to Contributed Property
			Inside and Outside Bases
			Tax Accounting Elections
				Concept Summary: Partnership Formation and Basis Computation
			Initial Costs of a Partnership
		Operations of the Partnership
			Schedules K and K–609
			Partnership Allocations
				Concept Summary: Tax Reporting of Partnership Activities
			Basis of a Partnership Interest
				Bridge Discipline: Bridge to Financial Accounting
				Tax Fact: What Do Partnerships Do?
			Partner’s Basis, Gain, and Loss
			Loss Limitations
				Tax Planning Strategies: Make Your Own Tax Shelter
				Concept Summary: Partner’s Basis in Partnership Interest
		Transactions between Partner and Partnership
			Guaranteed Payments
			Other Transactions between a Partner and a Partnership
			Partners as Employees
				Tax Planning Strategies: Transactions between Partners and Partnerships
				Concept Summary: Partner-Partnership Transactions
		Limited Liability Companies
			Taxation of LLCs
			Advantages of an LLC
			Disadvantages of an LLC
				Concept Summary: Advantages and Disadvantages of the Partnership Form
		Summary
			Refocus on The Big Picture: The Tax Consequences of Partnership Formation and Operations
	Chapter 15: S Corporations
		The Big Picture: Converting a C Corporation to an S Corporation
		An Overview of S Corporations
		Qualifying for S Corporation Status
			Definition of a Small Business Corporation
				Bridge Discipline: Bridge to Business Law
				Tax Planning Strategies: When to Elect S Corporation Status
				Tax Fact: The Business of S Corporations
				Tax Planning Strategies: Beating the 756-Shareholder Limit
			Making the Election
			Shareholder Consent
				Tax Planning Strategies: Making a Proper Election
			Loss of the Election
				Tax Planning Strategies: Preserving the S Election
		Operational Rules
			Computation of Taxable Income
			Qualified Business Income Deduction
			Allocation of Income and Loss
				Tax Fact: A “Small” Business Corporation
			Tax Treatment of Distributions to Shareholders
				Tax Planning Strategies: Salary Structure
				Concept Summary: Distributions from an S Corporation
				Tax Planning Strategies: The Accumulated Adjustments Account
			Tax Treatment of Noncash Distributions by the Corporation
				Concept Summary: Consequences of Noncash Distributions
			Shareholder’s Basis in S Stock
				Tax Planning Strategies: Working with Suspended Losses
			Treatment of Losses
				Concept Summary: Treatment of S Corporation Losses
				Tax Planning Strategies: Loss Considerations
			Limitation on the Deduction of Excess Business Losses
			Other Operational Rules
		Entity-Level Taxes
			Tax on Pre-Election Built-In Gain
				Tax Planning Strategies: Managing the Built-In Gains Tax
			Passive Investment Income Penalty Tax
				Tax Planning Strategies: Avoid PII Pitfalls
		Summary
			Refocus on The Big Picture: Converting a C Corporation to an S Corporation
Part 6: Special Business Topics
	Chapter 16: Multijurisdictional Taxation
		The Big Picture: Going International
		The Multijurisdictional Taxpayer
		U.S. Taxation of Multinational Transactions
			Bridge Discipline: Bridge to International Law
			Sources of Law
			Tax Issues
				Tax Fact: U.S. Income Tax Treaties in Force
				Tax Fact: Where Do We Stand?
				Tax Planning Strategies: Sourcing Income from Sales of Inventory
				Tax Planning Strategies: Utilizing the Foreign Tax Credit
				Financial Disclosure Insights: Overseas Operations and Book-Tax Differences
				Concept Summary: Subpart F Income and a CFC
				Tax Fact: The Inbound Sector
				Concept Summary: U.S. Income Tax Treatment of a Non-U.S. Person’s Income
		Crossing State Lines: State and Local Income Taxation in the United States
			Sources of Law
				Financial Disclosure Insights: Tax Rates in Non-U.S. Jurisdictions
				Tax Fact: State Tax Revenue Sources
			Tax Issues
				Tax Planning Strategies: Nexus: To Have or Have Not
				Financial Disclosure Insights: State/Local Taxes and the Tax Expense
				Concept Summary: Corporate Multistate Income Taxation
				Tax Planning Strategies: Where Should My Income Go?
		Common Challenges
			Authority to Tax
				Bridge Discipline: Bridge to Cost Accounting and Executive Compensation
			Division of Income
			Transfer Pricing
				Bridge Discipline: Bridge to Economic Development and Political Science
			Tax Havens
			Interjurisdictional Agreements
				Refocus on The Big Picture: Going International
	Chapter 17: Business Tax ­Credits and the Alternative Minimum Tax
		The Big Picture: Dealing with Tax Credits and the AMT
		General Business Tax Credit Overview
			General Business Credit
				Tax Fact: Business Tax Credits
			Treatment of Unused General Business Credits
		Specific Credits in General Business Credit
			Tax Credit for Rehabilitation Expenditures
				Bridge Discipline: Bridge to Finance
			Work Opportunity Tax Credit
			Research Activities Credit
			Low-Income Housing Credit
			Energy Credits
			Disabled Access Credit
			Credit for Small Employer Pension Plan Startup Costs
			Credit for Employer-Provided Child Care
			Small Employer Health Insurance Credit
			Credit for Employer-Provided Family and Medical Leave
				Concept Summary: Tax Credits included in the General Business Credit
		Foreign Tax Credit
			Global Tax Issues: Sourcing Income in Cyberspace—Getting It Right When Calculating the Foreign Tax Credit
		Alternative Minimum Tax (AMT) for Individuals
			Calculating the AMT: The AMT Formula
			AMT Adjustments
				Tax Planning Strategies: Control the Timing of Preferences and Adjustments
				Concept Summary: Summary of Common Individual AMT Adjustment Provisions
			AMT Preferences
				Tax Planning Strategies: Avoiding Preferences and Adjustments
			Illustration of the AMT Computation
			AMT Credit
				Tax Planning Strategies: Other AMT Planning Strategies
				Concept Summary: Summary of AMT Preference Provisions
				Concept Summary: AMT Adjustments and Preferences
		The Corporate AMT
			Refocus on The Big Picture: Dealing with Tax Credits and the AMT
	Chapter 18: Comparative Forms of Doing Business
		The Big Picture: Choosing a Business Form and Other Investments
		Alternative Organizational Forms in Which Businesses May Be Conducted
		Nontax Factors Affecting the Choice of Organizational Form
			Tax Fact: The Relative Popularity of Flow-Through Entities
			Limited Liability
				Tax Fact: Revenue Relevance of Corporate versus Individual Taxpayers
			Other Factors
			Capital Formation
		The Tax Consequences of ­Organizational Form Choice
			The Taxation of Business Operations
			The Ability to Specially Allocate Income among Owners
			The Tax Treatment of Capital Contributions
			The Basis of an Ownership Interest
			The Application of the At-Risk and Passive Activity Loss Rules
			The Tax Treatment of Distributions
			Other Taxes
		Minimizing Double Taxation
			Making Deductible Distributions
				Bridge Discipline: Bridge to Economics
			Deferring Distributions
			Making Return-of-Capital Distributions
			Electing S Corporation Status
		The Tax Consequences of Disposing of a Business
			Sole Proprietorships
			Partnerships and Limited Liability Companies
			C Corporations
			S Corporations
				Concept Summary: Tax Treatment of Disposition of a Business
		The Tax Consequences of Converting to Another Business Form
			Sole Proprietorship
			Partnership or LLC
			C Corporation
		Overall Comparison of Business Forms
			Concept Summary: Tax Attributes and Consequences of Different Organizational Forms of Doing Business
			Refocus on The Big Picture: Choosing a Business Form and Other Investments
Appendix A Tax Formulas, Tax Rate Schedules, and Tables
Appendix B Tax Forms
Appendix C Glossary
Appendix D Table of Code Sections Cited
Appendix E Present Value and Future Value Tables
Index