This book is designed to not only expose beginning tax students to tax law, but to also teach the practical intricacies involved in preparation of a tax return. Emphasizing a hands-on approach to tax education, every concept introduced in the text includes meaningful exercises that allow students to reinforce what they are learning.

Actual tax forms are included within the text—from the simplest 1040EZ to the numerous 1040 schedule forms—with real-world data inserted into actual tax forms to demonstrate applied skills. A copy of the individual tax return preparation software TaxACT 2010 Deluxe is also a part of the text package, providing yet another tool to bridge the gap between understanding and practical application of tax law.

Chapter 1: Introduction to Taxation, the Income Tax Formula, and Form 1040EZ

Chapter 2: Expanded Tax Formula, Forms 1040 and 1040A, and Basic Concepts

Chapter 3: Gross Income: Inclusions and Exclusions

Chapter 4: Adjustments for Adjusted Gross Income

Chapter 5: Itemized Deductions

Chapter 6: Self-Employed Business Income

Chapter 7: Capital Gains and Other Sales of Property

Chapter 8: Rental Property, Royalties, Income from Flow Through Entities

Chapter 9: Tax Credits

Chapter 10: Payroll Taxes

Chapter 11: Retirement and Other Tax-Deferred Plans and Annuities: Contributions and Distributions

Chapter 12: Special Property Transactions

Chapter 13: At-Risk/Passive Activity Loss Rules and the Individual Alternative Minimum Tax

Chapter 14: Partnership Taxation

Chapter 15: Corporate Taxation

Appendix A: amended returns

Appendix B: comprehensive tax return problems

Appendix C: concept check answers

Appendix D: 2010 tax table

Appendix E: blank tax forms

Index