Solution and Answer Guide: Young, Nellen, Persellin, Lassar, Cuccia, Cripe, SWFT Individual Income Taxes 2026-2027 (34pages)

All Chapters Solutions Manual Complete files download link at the end of this file. Solution and Answer Guide YOUNG, NELLEN, PERSELLIN, LASSAR, CUCCIA, CRIPE, SWFT INDIVIDUAL INCOME TAXES 2026; CHAPTER 1: AN INTRODUCTION TO TAXATION AND UNDERSTANDING THE FEDERAL TAX LAW TABLE OF CONTENTS Discussion Questions...........................................................................................................1 Research Problems........................................................................................................... 10 Solution To Ethics & Equity Feature................................................................................. 11 Solutions To Becker CPA Review Questions....................................................................12 DISCUSSION QUESTIONS 1. (LO 1) Various answers are possible, including using the Key Terms at the end of each chapter, referring to the Glossary (Appendix C), looking up the footnote resources to the Internal Revenue Code in Appendix D, using chapter features (e.g., Global Tax Issues, Ethics & Equity, Tax Planning, and Framework 1040), examining the tax forms used in the chapters, and completing additional end-of-chapter assignments. All of these resources will help students engage more deeply with the materials and help their understanding. 2. (LO 1, 4) a. John must now document rental receipts and separate his home expenses between personal and rental use, and he may be subject to the transient occupancy tax. b. Theresa has become self-employed. Now she will be subject to self-employment tax and may have to make quarterly installment payments of estimated income and self-employment tax. Theresa will be required to make payroll tax payments if she hires individuals to work in her business. c. Paul’s employer might have some moving expenses that it can deduct (in general, Paul cannot deduct moving expenses). Paul’s personal taxes will change because Florida does not impose an income tax but California does. 3. (LO 1, 4) The income tax consequences that result are Marvin’s principal concern. Any rent he receives is taxed as income, but operating expenses and depreciation will generate deductions that offset some or all of the income or even yield a loss. Marvin must also consider the effect of other taxes. Because the property is being converted from residential to commercial use, he can expect an increase in the ad valorem property taxes levied by the local (and perhaps even the state) taxing authorities. Besides the real estate taxes, personal property taxes could be imposed on the furnishings.