# Chapter 3 Tax Formula and Tax Determination; an Overview of Property Transactions Solutions to Problem Materials

Pages: 40 (7858 words) Published: October 3, 2012
CHAPTER 3

TAX FORMULA AND TAX DETERMINATION;
AN OVERVIEW OF PROPERTY TRANSACTIONS

SOLUTIONS TO PROBLEM MATERIALS

| | | | |Status: |Q/P | |Question/ |Learning | | |Present | in Prior | |Problem |Objective |Topic | |Edition | Edition | | | | | | | | | | | | 1 |LO 1 |Tax formula | |Modified |1 | | 2 |LO 1, 5, 8, 9 |Transactions with various income tax effects | |Modified |2 | | 3 |LO 1 |Gross income: inclusions | |Modified |3 | | 4 |LO 1 |Gross income: exclusions | |Modified |4 | | 5 |LO 1 |U. S. income tax: applicable to expatriates | |New | | | 6 |LO 1 |“Deductions for”: meaning and various designations | |New | | | 7 |LO 1, 8, 9 |Effect of AGI on some deductions from | |Unchanged |6 | | 8 |LO 2 |Choice between standard deduction and itemizing; variables | |Modified |7 | | | |involved | | | | | 9 |LO 2 |Standard deduction: characteristics of | |Unchanged |8 | | 10 |LO 2, 3, 5 |Dependents and the determination of their standard deduction and| |Updated |9 | | | |personal exemptions | | | | | 11 |LO 2 |Dependents: determination of their standard deduction | |New | | | 12 |LO 4 |Dependency exemption: qualifying child and earned income | |New | | | 13 |LO 4 |Dependency exemption: children as qualifying child and as | |Unchanged |10 | | | |qualifying relative | | | | | 14 |LO 4 |Qualifying child: tie-breaker rules | |Modified |11 | | 15 |LO 4 |Dependency exemption: ex-spouse and relationship test | |Unchanged |12 | | 16 |LO 4 |Multiple support agreement: choice of eligible taxpayers | |Modified |13 | | 17 |LO 4 |Dependency exemption: children of divorced parents | |Unchanged |14 | |Instructor: For difficulty, timing, and assessment information about each item, see p. 3-4. |

| | | | |Status: | Q/P | |Question/ |Learning | | |Present |in Prior | |Problem |Objective |Topic...