Pearson s Federal Taxation Corporations, Partnerships, Estates & Trusts (2018 edition) Textbook Updates

Transcription

1 Pearson s Federal Taxation Corporations, Partnerships, Estates & Trusts (2018 edition) Textbook Updates Several chapters Table of Updates Sorted by Chapter Rev. Proc Notice Chapter C:1 Tax Research Chapter C:2 Corporate Formations and Capital Structure Chapter C:3 The Corporate Income Tax Chapter C:4 Corporate Nonliquidating Distributions Chapter C:5 Other Corporate Tax Levies Chapter C:6 Corporate Liquidating Distributions Chapter C:7 Corporate Acquisitions and Reorganizations Problem C:7-69 Chapter C:8 Consolidated Tax Returns Chapter C:9 Partnership Formation and Operation Chapter C:10 Special Partnership Issues Chapter C:11 S Corporations 1

2 Chapter C:12 The Gift Tax Page C:12-4 Page C:12-9 Problem C:12-34 Chapter C:13 The Estate Tax Chapter C:14 Income Taxation of Trusts and Estates Chapter C:15 Administrative Procedures Page C:15-7 Chapter C:16 U.S. Taxation of Foreign-Related Transactions 2

3 Posted 10/20/2017: Rev. Proc Posted 10/23/2017: Notice Posted 1/11/2018: Table of Updates Sorted by Date of Posting on Web Site Posted 1/18/2018: Posted 1/26/2018: Posted 1/29/2018: Chapter C:15 Administrative Procedures Page C:15-7 Posted 2/12/2018: Chapter C:7 Corporate Acquisitions and Reorganizations Problem C:7-69 Posted 3/20/2018: Chapter C:12 The Gift Tax Page C:12-4 Page C:12-9 Problem C:

4 Textbook Updates (1/29/2018) On December 22, 2017, President Trump signed the Tax Cuts and Jobs Act of 2017 into law. This legislation represents a major reform of the federal income tax system, with changes that affect many areas of the tax law. Most of the provisions apply to tax years beginning in 2018 and, therefore, will be incorporated into the 2019 edition of Pearson s Federal Taxation series. However, given the scope of these changes, many instructors will want to address the reform in their current classes. To aid instructors in this process, we prepared a summary of the tax reform legislation, as well as a summary of how these changes affect the end-of chapter problems in the 2018 edition. Corporations, Partnerships, Estates & Trusts chapters Rev. Proc (10/20/2017) The IRS has issued its annual Revenue Procedure with the inflation-adjusted amounts for the personal exemption, standard deduction, etc. Here is a link to Rev. Proc , which has these inflation-adjusted amounts for 2018: Notice (10/23/2017) The IRS has also issued its annual notice with the inflation-adjusted amounts for qualified retirement plans. Here is a link to Notice , which has these inflation-adjusted amounts for 2018: Chapter C:1 Tax Research Chapter C:2 Corporate Formations and Capital Structure Chapter C:3 The Corporate Income Tax 4

5 Chapter C:4 Corporate Nonliquidating Distributions Chapter C:5 Other Corporate Tax Levies Chapter C:6 Corporate Liquidating Distributions Chapter C:7 Corporate Acquisitions and Reorganizations Problem C:7-69 (2/12/2018) In the solutions manual s answer for part a, the second line should refer to a final tax return covering the period 1/1/17 through 5/31/17 (not 1/1/16 through 5/31/16). Chapter C:8 Consolidated Tax Returns Chapter C:9 Partnership Formation and Operation Chapter C:10 Special Partnership Issues Chapter C:11 S Corporations Chapter C:12 The Gift Tax Page C:12-4 (3/20/2018) Add the following to footnote 5: Alaska is an opt-in community property state. 5

6 Page C:12-9 (3/20/2018) In the What Would You Do in this Situation, the right-hand column should refer to 2017 twice (not 2015). Problem C:12-34 (3/20/2018) In the solutions manual answer for part a, the first line should refer to $184,000 of taxable gifts (not $186,000). The subsequent calculation of this $184,000 is correct. Chapter C:13 The Estate Tax Chapter C:14 Income Taxation of Trusts and Estates Chapter C:15 Administrative Procedures Page C:15-7 (1/29/2018) The second-to-last paragraph should refer to a $50,000 (not $25,000) maximum for a taxpayer to use the small cases procedure of the Tax Court. Chapter C:16 U.S. Taxation of Foreign-Related Transactions 6