Shirley Dennis-Escoffier - Taxation for decision makers

1. Chapter 2
2. Chapter 4
3. Chapter 5
4. Chapter 6
5. Chapter 7
6. Chapter 8
7. Chapter 9
8. Chapter 10
9. Chapter 11

1. Chapter 1
2. Chapter 2
3. Chapter 3
4. Chapter 4
5. Chapter 5
6. Chapter 7
7. Chapter 8
8. Chapter 9
9. Chapter 10
10. Chapter 11
11. Chapter 12

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This book was previously published by Pearson Education, Inc.

ISBN: 978-1-119-37373-5 (PBK)

ISBN: 978-1-119-37364-3 (EVALC)

Serial Record: ISSN 2006209815

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To the memory of Marty Escoffier who was always ready with a willing hand to help, a word of encouragement as deadlines neared, and a sense of humor that never failed to make us laugh when we needed it most. His presence has been missed as we have worked on this revision.

Shirley Dennis-Escoffier and Karen A. Fortin

This text is designed for a one-semester introductory tax course at either the undergraduate or graduate level. It is ideal for an MBA course or any program emphasizing a decision-making approach. This text introduces all tax topics on the CPA exam in only 12 chapters.

This text covers basic taxation of all taxable entitiesindividuals, corporations, S corporations, partnerships, and fiduciary entities, emphasizing a balance between concepts and details. Tax concepts and applications are presented in a clear, concise, student-friendly writing style with sufficient technical detail to provide a foundation for future practice in taxation and consulting while not overwhelming the student with seldom-encountered details.

In addition to updating all chapters for changes to the tax law, was modified to include a more complete discussion of the tax model allowing students to focus on the basic sections. The decision-making focus of this text is also introduced in this first chapter through simple problems on the choice of business form.

now includes a discussion of the prospects for tax reform with a review of current proposals. As tax reform legislation is passed, updates will be posted on the companion website for this text.

New tax forms are now introduced in several chapters of the text. A complete set of filled-in forms for a C corporation, partnership, S corporation, and sole proprietorship are also included on the companion website for this text.

Finally, the authors went over the text line-by-line, not only to update it, but to improve readability.

The importance of tax planning is emphasized throughout the text. Margin icons are woven into each chapter to highlight planning opportunities. Tax planning strategies are introduced early in along with the impact of taxes on cash flow.

Each chapter begins with learning objectives for that specific chapter as well as a basic introduction to the included topics, emphasizing why decision makers need to understand these topics. Each chapter is organized by learning objective making is easy to identify relevant topics.

Each chapter opens with a case that focuses on one or more key issues within the chapter to promote critical analysis and decision-making skills. The case is then revisited at the end of the chapter with a suggested solution to stimulate further class discussion.

Rigorous topics are tackled through numerous simple but realistic examples.

When Alex Rodriguez, the former Texas Rangers shortstop, lived in Texas (a state with no individual income tax), he owed more than $271,000 to California (which assesses a nonresident income tax) for games he played in that state during baseball season. It was estimated that if the Rangers had played all their games at home, A-Rods state tax bill could have been reduced by more than half a million dollars a year. When A-Rod switched to the New York Yankees, his state and local tax burden increased dramatically. On the $155 million that A-Rod was to be paid over his seven-year contract, he was expected to owe $3.57 million to New York City and an additional $6.19 million to the State of New York for income taxes. His tax burden increased further when he renegotiated his contract in a deal worth $275 million over ten years.