South-Western Federal Taxation 2013: Corporations, Partnerships, Estates and Trusts, 36th Edition

Cover 1 Title Page 3 Copyright 4 Preface 7 About the Editors 12 Brief Contents 13 Contents 15 Part 1: Introduction 25 Ch 1: Understanding and Working with the Federal Tax Law 26 1.1 The Whys of the Tax Law 27 1.2 Summary 41 1.3 Reconciling Accounting Concepts 41 1.4 Working with the Tax Law-Tax Sources 41 1.5 Working with the Tax Law-Locating and Using Tax Sources 56 1.6 Working with the Tax Law-Tax Research 60 1.7 Working with the Tax Law-Tax Planning 67 1.8 Taxation on the CPA Examination 70 Key Terms 71 Discussion Questions 72 Problems 74 Research Problems 76 Part 2: Corporations 79 Ch 2: Corporations: Introduction and Operating Rules 80 2.1 Tax Treatment of Various Business Forms 82 2.2 An Introduction to the Income Taxation of Corporations 88 2.3 Determining the Corporate Income Tax Liability 101 2.4 Procedural Matters 104 2.5 Tax Planning 118 Key Terms 124 Discussion Questions 124 Problems 127 Tax Return Problems 132 Research Problems 136 Ch 3: Corporations: Special Situations 138 3 Introduction 140 3.1 Domestic Production Activities Deduction 140 3.2 Alternative Minimum Tax 154 3.3 Penalty Taxes on Corporate Accumulations 165 3.4 Tax Planning 167 Key Terms 170 Discussion Questions 170 Problems 173 Research Problems 177 Ch 4: Corporations: Organization and Capital Structure 178 4 Introduction 180 4.1 Organization of and Transfers to Controlled Corporations 180 4.2 Capital Structure of a Corporation 194 4.3 Investor Losses 198 4.4 Gain from Qualified Small Business Stock 201 4.5 Tax Planning 202 Key Terms 206 Discussion Questions 207 Problems 209 Research Problems 213 Ch 5: Corporations: Earnings & Profits and Dividend Distributions 216 5 Introduction 218 5.1 Corporate Distributions-Overview 218 5.2 Earnings and Profits (E & P)-S 312 218 5.3 Dividends 226 5.4 Tax Planning 236 Key Terms 241 Discussion Questions 241 Problems 244 Research Problems 249 Ch 6: Corporations: Redemptions and Liquidations 252 6 Introduction 254 6.1 Stock Redemptions-In General 254 6.2 Stock Redemptions-Sale or Exchange Treatment 255 6.3 Effect on the Corporation Redeeming Its Stock 264 6.4 Stock Redemptions-Additional Limitations 265 6.5 Liquidations-In General 268 6.6 Liquidations-Effect on the Distributing Corporation 270 6.7 Liquidations-Effect on the Shareholder 274 6.8 Liquidations-Parent-Subsidiary Situations 276 6.9 Tax Planning 280 Key Terms 285 Discussion Questions 285 Problems 287 Research Problems 292 Ch 7: Corporations: Reorganizations 294 7 Introduction 296 7.1 Reorganizations-In General 296 7.2 Types of Tax-Free Reorganizations 302 7.3 Judicial Doctrines 317 7.4 Tax Attribute Carryovers 321 7.5 Tax Planning 329 Key Terms 335 Discussion Questions 335 Problems 336 Research Problems 342 Ch 8: Consolidated Tax Returns 346 8.1 Context of the Consolidated Return Rules 348 8.2 Assessing Consolidated Return Status 351 8.3 Electing Consolidated Return Status 354 8.4 Stock Basis of Subsidiary 362 8.5 Computing Consolidated Taxable Income 363 8.6 Tax Planning 376 Key Terms 379 Discussion Questions 379 Problems 383 Research Problems 387 Ch 9: Taxation of International Transactions 390 9.1 Overview of International Taxation 392 9.2 Tax Treaties 394 9.3 Sourcing of Income and Deductions 395 9.4 Foreign Currency Transactions 403 9.5 U.S. Persons with Foreign Income 405 9.6 U.S. Taxation of Nonresident Aliens and Foreign Corporations 422 9.7 Reporting Requirements 428 9.8 Tax Planning 429 Key Terms 432 Discussion Questions 433 Problems 434 Tax Return Problems 441 Research Problems 441 Part 3: Flow-Through Entities 445 Ch 10: Partnerships: Formation, Operation, and Basis 446 10.1 Overview of Partnership Taxation 448 10.2 Formation of a Partnership: Tax Effects 452 10.3 Operations of the Partnership 463 10.4 Transactions between Partner and Partnership 481 10.5 Tax Planning 485 Key Terms 489 Discussion Questions 489 Problems 490 Tax Return Problems 497 Research Problems 501 Ch 11: Partnerships: Distributions, Transfer of Interests, and Terminations 504 11 Introduction 506 11.1 Distributions from a Partnership 506 11.2 Liquidating Distributions to Retiring or Deceased Partners 520 11.3 Sale of a Partnership Interest 525 11.4 Other Dispositions of Partnership Interests 530 11.5 Optional Adjustments to Property Basis 532 11.6 Termination of a Partnership 536 11.7 Other Issues 537 11.8 Tax Planning 541 Key Terms 544 Discussion Questions 544 Problems 546 Research Problems 551 Ch 12: S Corporations 554 12.1 Choice of Business Entity 556 12.2 Qualifying for S Corporation Status 558 12.3 Operational Rules 565 12.4 Tax Planning 583 Key Terms 590 Discussion Questions 590 Problems 592 Tax Return Problems 597 Research Problems 599 Ch 13: Comparative Forms of Doing Business 602 13 Introduction 604 13.1 Forms of Doing Business 604 13.2 Nontax Factors 606 13.3 Single versus Double Taxation 608 13.4 Controlling the Entity Tax 611 13.5 Conduit versus Entity Treatment 617 13.6 FICA and Self-Employment Taxes 624 13.7 Disposition of a Business or an Ownership Interest 625 13.8 Converting to Other Entity Types 631 13.9 Overall Comparison of Forms of Doing Business 633 13.10 Tax Planning 637 Key Terms 640 Discussion Questions 640 Problems 643 Research Problems 649 Part 4: Advanced Tax Practice Considerations 651 Ch 14: Taxes on the Financial Statements 652 14 Introduction 654 14.1 Book-Tax Differences 654 14.2 Income Taxes in the Financial Statements 661 14.3 Benchmarking 677 14.4 Tax Planning 680 Key Terms 684 Discussion Questions 684 Problems 687 Research Problems 690 Ch 15: Exempt Entities 692 15 Introduction 694 15.1 Types of Exempt Organizations 695 15.2 Requirements for Exempt Status 697 15.3 Tax Consequences of Exempt Status: General 699 15.4 Private Foundations 703 15.5 Unrelated Business Income Tax 707 15.6 Reporting Requirements 719 15.7 Tax Planning 721 Key Terms 725 Discussion Questions 725 Problems 728 Research Problems 734 Ch 16: Multistate Corporate Taxation 738 16 Introduction 740 16.1 Overview of Corporate State Income Taxation 741 16.2 Allocation and Apportionment of Income 746 16.3 The Unitary Theory 759 16.4 Taxation of S Corporations 763 16.5 Taxation of Partnerships and LLCs 764 16.6 Other State and Local Taxes 765 16.7 Tax Planning 770 Key Terms 779 Discussion Questions 779 Problems 782 Research Problems 789 Ch 17: Tax Practice and Ethics 792 17 Introduction 794 17.1 Tax Administration 794 17.2 The Tax Profession and Tax Ethics 817 17.3 Tax Planning 826 Key Terms 832 Discussion Questions 832 Problems 835 Research Problems 839 Part 5: Family Tax Planning 843 Ch 18: The Federal Gift and Estate Taxes 844 18.1 Transfer Taxes-In General 846 18.2 The Federal Gift Tax 852 18.3 The Federal Estate Tax 861 18.4 The Generation-Skipping Transfer Tax 882 18.5 Tax Planning 884 Key Terms 885 Discussion Questions 885 Problems 889 Tax Return Problems 894 Research Problems 896 Ch 19: Family Tax Planning 900 19 Introduction 902 19.1 Valuation Concepts 902 19.2 Income Tax Concepts 913 19.3 Gift Planning 919 19.4 Estate Planning 924 Key Terms 934 Discussion Questions 934 Problems 938 Research Problems 941 Ch 20: Income Taxation of Trusts and Estates 944 20.1 An Overview of Subchapter J 946 20.2 Nature of Trust and Estate Taxation 950 20.3 Taxable Income of Trusts and Estates 952 20.4 Taxation of Beneficiaries 965 Grantor Trusts 970 Procedural Matters 972 Tax Planning 972 Key Terms 978 Discussion Questions 978 Problems 980 Tax Return Problems 985 Research Problems 986 Appendixes 988 Appendix A: Tax Rate Schedules and Tables 988 Appendix B: Tax Forms 1001 Appendix C: Glossary 1047 Appendix D-1: Table of Code Sections Cited 1075 Appendix D-2: Table of Regulations Cited 1083 Appendix D-3: Table of Revenue Procedures and Revenue Rulings Cited 1086 Appendix E: Table of Cases Cited 1087 Index 1091