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Principles of Business Taxation (2014)

Principles of Business Taxation (2014)

Author: Linda M. Johnson
Publisher: CCH U.S.
ISBN: 9780808033530
Published In: March 2013
Format: Paperback , 760 pages
Jurisdiction: U.S. ? Disclaimer:
Countri(es) stated herein are used as reference only

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The CCH Principles of Business Taxation course approaches the study of taxation from the perspective of the student who will become a business person faced with decisions that are inevitably affected by tax considerations. This perspective leads to a very different coverage in this textbook -- coverage that is useful for accounting, finance and general business majors. The new edition focuses on the central concepts that build our tax framework and avoids small exceptions. Students studying with this book will confidently master the critical underpinnings of federal taxation and gain a stronger, more solid understanding of federal tax principles.

Many items that pertain specifically to businesses (for example, inventory valuation issues) usually not discussed in a traditional undergraduate tax textbook are covered in this book. Although so many of the exclusions, deductions, and credits apply equally to individual and corporate taxpayers, this book focuses on the business perspective. An advantage to this approach is that most of the students who take only one course in taxation will learn how businesses are taxed and, in turn, will have a better appreciation for how taxes affect business decisions. Another advantage to this approach is that the topics dovetail into other business, finance and accounting course work.

The focus is on concepts and how taxes affect business decisions. This includes various business entities including closely held business, pass-through entities and sole proprietorships.

Principles of Business Taxation is revised annually by a panel of expert tax practitioners and educators. All chapters are reviewed as well as the ancillary materials and new test bank questions are added with each annual edition.

PART I: OVERVIEW OF TAXES AND THE FEDERAL INCOME TAX SYSTEM

Chapter 1: Introduction to Taxation
Why Governments Must Tax
Allocating the Tax Burden
Deciding on a Tax Structure
Major Types of Tax
Factors To Consider When Creating a Tax
The Importance of Studying Federal Income Taxes Imposed on Businesses
Chapter 2: Understanding the Federal Tax Laws
Brief History of Federal Income Tax
Legislative Process and Sources of Law
Legislative Authority
Administrative Authority
Judicial Authority
Federal Tax Research
Chapter 3: Tax Accounting Rules
Accounting Periods
Accounting Methods

PART II: FEDERAL TAXATION OF BUSINESS INCOME AND DEDUCTIONS

Chapter 4:Federal Income Taxes and Gross Income
Calculating Taxable Income
Taxable Income (Gross Income Minus Deductions)
Taxes Owed (Tax Liability Minus Tax Credits Minus Estimated Payments)
Gross Income
Exclusions
Chapter 5: Business Deductions: Ordinary and Necessary Business Expenses
General Requirements for Deductibility
Timing
Start-Up Costs
Interest Expense
Taxes
Research and Experimentation
Dividends
Bad Debt
Charitable Contributions
Chapter 6: Business Deductions: Employment Related Expenses
Compensation Paid to Workers
Employee Benefits
Contributions Made to Employees Retirement Plans
Employment Taxes
Meals and Entertainment Expenses
Travel Expenses
Education
Chapter 7: Depreciation, Depletion, and Amortization
Depreciation
Depletion
Amortization

PART III: TRANSACTIONS INVOLVING BUSINESS PROPERTY

Chapter 8: Property Transactions: Realized and Recognized Gains and Losses
Realized vs. Recognized Gains and Losses
Losses Between Related Parties
Wash Sales
Qualified Small Business Stock
Rollover of Gain on the Sale of Publicly Traded Stock
Like-Kind Exchanges
Involuntary Conversions
Installment Sales
Chapter 9: Property Transactions: Character of Gain or Loss
Significance of Capital Gains and Losses
Generating Capital Gains and Losses
Sale or Exchange of Capital Assets
Section 1231 Gains and Losses
Business Casualty and Theft Gains and Losses
Review of Netting Process
Long-Term Capital Gains for Individual Taxpayers

PART IV: CALCULATING TAX LIABILITY AND TAXES OWED

Chapter 10: NOLs, AMT, and Other Business Taxes
Net Operating Losses
Alternative Minimum Tax
Accumulated Earnings Tax
Personal Holding Company Tax
Chapter 11: Tax Credits
Business Tax Credits Aimed at Encouraging Employers to Hire Certain Workers
Tax Credits Aimed at Encouraging Conservation of Energy
Tax Credits Aimed at Rewarding Research in Certain Areas
Tax Credits Aimed at Encouraging Economic Development
Foreign Income Tax Credit

PART V: BUSINESS ENTITY ISSUES

Chapter 12: Corporate Formation, Distributions and Other Corporate Related Tax Issues
Formation of a Corporation
Corporate Distributions
Reconciliation of Net Income and Taxable Income
Chapter 13: Sole Proprietorships, Partnerships, LLPs and LLCs
Taxable Income for Individuals Doing Business as a Sole Proprietor
Tax and Nontax Aspects of Partnerships
Forming a Partnership
Impact of Distributions
Limited Liability Companies and Limited Liability Partnerships
Chapter 14: S Corporations
Introduction to S Corporations
Advantages and Disadvantages of Operating as an S Corp
Allocating S Corporation Items
Tax Consequences to Shareholders
Adjustment of Shareholder’s Basis in Stock
Fringe Benefits for Shareholders
Corporate Tax on Excess Passive Investment Income
Chapter 15: Tax Planning for Business
Objectives of Planning
Basic Income Tax Planning
Other Tax Planning Issues
Family Tax Planning for Closely-Held Businesses
PART VI: Taxation of International Transactions
Chapter 16: Taxation of International Transactions
Inbound Transactions
Income Effectively Connected with a U.S. Trade or Business
Outbound Transactions
Foreign Tax Credit for Individuals
Foreign Tax Credit for Corporations
Tax Status of Nonresident Aliens and Foreign Corporations
Determining Sources of Income and Deductions

Linda M. Johnson, Ph.D., CPA, received her Bachelor of Science degree in Accountancy from the University of Illinois, Urbana-Champaign and her doctorate from Arizona State University. In her over 20 years of collegiate teaching of graduate and undergraduate tax courses, Professor Johnson has received over a dozen departmental, college, and university teaching awards, including the university's top teaching award while on the faculty at Northern Illinois University, and as a teaching assistant at Arizona State University. In addition to being the author of Essentials, Professor Johnson is the coordinating editor of CCH's Federal Tax Course.

Her professional experience includes working in the tax department for three years at Arthur Young & Co. in Houston, Texas and as a faculty intern with Crowe Chizek & Co. at the Oakbrook, Illinois office. Professor Johnson has published several articles on topics in taxation at various professional journals, including the Journal of Accountancy, Taxes The Tax Magazine, The CPA Journal and The Tax Advisor.