Present the big picture with a practice-based approach to understanding tax laws so students can develop critical thinking and problem-solving skills that prepare them for the real world. Fundamentals of Taxation for Individuals and Business Entities, 2025 Edition introduces a logical foundation for the income tax system so students can understand why a law exists and how to apply the law to practical tax problems. Professional skill-building exercises develop critical thinking and communication skills and the ability to identify and address ethical dilemmas, preparing students to be effective tax professionals.
Table of Contents
Part I Introduction to Income Taxation1 The Professional Practice of Taxation 1-1
2 Fundamentals of the Federal Income Tax System 2-1
3 Tax Authority, Research, Compliance Rules, and Professional Responsibilities 3-1
4 Dependents and Filing Status 4-1
Part II Income
5 Framework for Income Recognition 5-1
6 Income from Personal Activities 6-1
7 Income from Services 7-1
Part II (Ch. 5-7): Comprehensive Tax Return Problem
Part III Deductions
8 Framework for Deductions 8-1
9 Deductions for AGI and Itemized Deductions 9-1
10 Business Expenses 10-1
11 Limitations on Business Losses and Expenses 11-1
Part III (Ch. 8-11): Comprehensive Tax Return Problem
Part IV Taxation of Property Transactions
12 Taxation of Investment Income 12-1
13 Cost Recovery of Property 13-1
14 Taxation of Assets Used in a Trade or Business 14-1
15 Property Transactions: Nonrecognition of Gains and Losses 15-1
Part IV (Ch. 12-15): Comprehensive Tax Return Problem
Part V Other Individual Topics
16 Personal Tax Credits 16-1
17 Alternative Minimum Tax and Other Taxes 17-1
Parts II-V (Ch. 4-17): Comprehensive Tax Return Problem
Part VI CPA Evolution: Core - Tax
18 Business Entity Topics: CPA Exam Core - Taxation and Regulation 18-1
Part VI (Ch. 18): Comprehensive Tax Return Problem
APPENDIX A Tax Formula Items A-1
APPENDIX B Tax Forms B-1
GLOSSARY G-1
INDEX I-1
