South-Western Federal Taxation 2016: Essentials of Taxation: Individuals and Business Entities, Professional Edition, 19th Edition

  • includes H&R Block™ CD-ROM
  • William A. Raabe University of Wisconsin - Whitewater
  • David M. Maloney University of Virginia
  • James C. Young Northern Illinois University
  • James E. Smith College of William and Mary
  • Annette Nellen San José State University
  • ISBN-10: 1305395352  |  ISBN-13: 9781305395350
  • 992 Pages
  • Previous Editions: 2015, 2014, 2013
  • © 2016 | Published
  • List Price = $ 386.95
  • For quantity discounts, Contact your Representative
  • For single copy purchases, visit



Master today’s most important concepts for the taxation of individuals and business entities and gain a solid understanding of the most current, ever-changing tax legislation with SOUTH-WESTERN FEDERAL TAXATION 2016: ESSENTIALS OF TAXATION: INDIVIDUALS AND BUSINESS ENTITIES, 19E. Renowned for its understandable and time-tested presentation, this leading book remains the most effective solution for helping you thoroughly grasp taxation concepts and applications. This edition now offers even more important coverage of tax planning. You’ll learn using the very latest tax legislation. New and proven learning features, such as additional “Big Picture” examples, memorable tax scenarios and “What If?” case variations, clarify concepts. You’ll find numerous opportunities to sharpen the critical-thinking, writing skills, and online research skills most important for career success. Trust SOUTH-WESTERN FEDERAL TAXATION 2016: ESSENTIALS OF TAXATION: INDIVIDUALS AND BUSINESS ENTITIES for the tax coverage you need for immediate and long-term success.

Features and Benefits

  • Chapter Outlines Help You and Your Students Prepare For Class. Each chapter begins with a chapter outline that directs your students to the right topics for study or reference.
  • Practical Tax Scenarios Start Every Chapter. The “Big Picture: Tax Solutions for the Real World” feature gives a glimpse into the lives, families, careers and tax situations of typical individual filers. Each Big Picture case asks students to apply what they will learn in the upcoming chapter to develop the best tax solution for these real-life dilemmas.
  • Big Picture Examples Help Students Follow Clients Through The Chapter. Approximately four examples out of the many in every chapter are based on the “Big Picture” tax situation that opens the chapter. These examples help students understand new topics as they bring a more consistent application of data and practical tax stories that span the whole chapter.
  • Practical Conclusions Reinforce Tax Scenarios Introduced In Big Picture Examples. Returning to the client situations introduced in the chapter opening, end-of-chapter “Refocus on the Big Picture” summaries and tax planning scenarios apply concepts and chapter topics with professional solutions. A “What If?” section demonstrates how tax treatments can vary as a result of potential changes in the filer’s situation, further preparing readers for tax planning.
  • Real-World Features Help Students Understand Today’s Modern Tax Environment. Drawn from today’s business and popular press, “Tax in the News” features enliven class discussions by presenting current issues that illustrate the chapter material and applying them to real life. The examples in each chapter use realistic situations to illustrate the complexities of the tax law and allow students to integrate chapter concepts with illustrations and examples.
  • Timely Materials Highlight Today’s High Interest Controversial Topics. Intriguing taxation coverage will captivate students and bring concepts to life as this edition emphasizes controversial materials and topics of current interest topics, such as the Alternative Minimum Tax (AMT).
  • Proven Learning Features Help Students Develop Professional Skills. “Ethics and Equity” features spark critical thinking and discussion as students evaluate their own value systems while reviewing ethical scenarios. Most chapters include a separate section that details how the tax law can be applied to reach taxpayer’s goals. Tax planning applications also appear throughout each chapter. “Global Tax Issues” highlight how taxation is affected by international concerns and illustrate tax laws across the globe. Students develop decision-making and analytical skills with Decision-Making Problems.
  • Extensive Appendices Increase The Flexibility Of This Reliable Time-Tested Tax Text. Comprehensive appendices offer you the flexibility to extend the scope of research and thoroughness of coverage in your course. You’ll find material on tax rate schedules, tax forms, an extensive glossary of tax terms, tables of code sections, regulations, revenue procedures and revenue rulings cited.
  • CengageNOW Optimizes Student Learning And Produces Desired Outcomes. CengageNOW is a powerful course management system and online learning tool that provides control and customization for your course. CengageNOW includes end-of-chapter homework from the text, “What If” versions of problems, algorithms, detailed feedback, test bank questions, student personalized study plan, superior tagging, and more.
  • H&R Block® Tax Preparation Software Accompanies Each Text. One of today’s most popular tax preparation software choices, H&R Block® software is available with each new copy of this edition and provides an ideal tool for guiding students through the tax return process with a dependable, user-friendly approach.

Table of Contents

1. Introduction to Taxation.
2. Working with the Tax Law.
3. Taxes on the Financial Statements.
4. Gross Income.
5. Business Deductions.
6. Losses and Loss Limitations.
7. Property Transactions: Basis, Gain and Loss, and Nontaxable Exchanges.
8. Property Transactions: Capital Gains and Losses, Section 1231, and Recapture Provisions.
9. Individuals as the Taxpayer.
10. Individuals: Income, Deductions, and Credits.
11. Individuals as Employees and Proprietors.
12. Corporations: Organization, Capital Structure, and Operating Rules.
13. Corporations: Earnings & Profits and Distributions.
14. Partnerships and Limited Liability Entities.
15. S Corporations.
16. Multijurisdictional Taxation.
17. Business Tax Credits and Corporate Alternative Minimum Tax.
18. Comparative Forms of Doing Business.

What's New

  • New End-Of-Chapter Computational Exercises Provide Essential Practice. Students gain critical hands-on experience and practice with new Computational Exercises in most chapters that connect directly to chapter Learning Objectives.
  • New Clear Design For This Edition’s Examples Clarifies and Reinforces Concepts. Enhancements to this edition’s design make it easier for students to read, practice, and quickly understand the concepts.
  • Additional Concept Summaries Assist In Review and Ensure Understanding. At least three fresh new Concept Summaries per chapter recap key points and demonstrate the value of what readers are learning.
  • More CengageNOW Algorithmic Problems Provide Significant Hands-On Practice. Additional algorithmic problems within the CengageNOW online resource reinforce tax content in each chapter.
  • Engaging New Interior Design and Distinctive Learning Features Capture and Direct Readers’ Attention. New full-color interior design with streamlined coverage and clear labeling of chapter learning features enhance a thorough understanding of each chapter’s concepts.

Learning Resource Bundles

Choose the textbook packaged with the resources that best meet your course and student needs. Contact your Learning Consultant for more information.

Printed Text + H&R Block™ CD + CengageNOW™, 1 term Instant Access

ISBN-10: 1337082481 | ISBN-13: 9781337082488

List Price = $400.95  | CengageBrain Price = $400.95


All supplements have been updated in coordination with the main title. Select the main title's "About" tab, then select "What's New" for updates specific to title's edition.

For more information about these supplements, or to obtain them, contact your Learning Consultant.

Instructor Supplements

Instructor's Companion Website  (ISBN-10: 1305395395 | ISBN-13: 9781305395398)

All instructor resources for SOUTH-WESTERN FEDERAL TAXATION 2016: ESSENTIALS OF TAXATION: INDIVIDUALS AND BUSINESS ENTITIES are now available instantly through the Instructor Companion Website. Resources available include: Solutions Manual, Test Bank, Instructor’s Guide, and Instructor PowerPoint Lectures.

Instructor's Solutions Manual  (ISBN-10: 1305395409 | ISBN-13: 9781305395404)

Written by the South-Western Federal Taxation editors and authors, the Solutions Manual organizes solutions according to the sequence of chapter material. Solutions to all homework items are tagged with Level of Difficulty and Learning Objectives as well as the AACSB’s and AICPA’s core competencies. You have more control than ever in selecting homework to match the topics covered. The Solutions Manual is available in print and on the Instructor’s Companion Website.

Cengage Learning Testing, powered by Cognero® Instant Access  (ISBN-10: 1305395468 | ISBN-13: 9781305395466)

This flexible, online system allows you to author, edit, and manage test bank content from multiple Cengage Learning solutions. You can create multiple test versions in an instant and deliver tests from your learning management system or your classroom! Written by the text editors and authors, the Test Bank contains approximately 2,200 items and solutions arranged by the sequence of chapter material. Each test item is tagged with Level of Difficulty and Learning Objective(s) as well as the AACSB’s and AICPA’s core competencies--for easier instructor planning and test item selection.

CengageNOW™, 1 term Instant Access  (ISBN-10: 1305395425 | ISBN-13: 9781305395428)

CengageNOW goes beyond memorization and basic homework practice to engage you, the student, in relevant multimedia study tools, detailed feedback, and assessment tools that help you reach true understanding. Activities are carefully constructed and aligned to learning taxonomies with the entire workflow in mind – from basic knowledge and comprehension to application and analysis.

List Price = $162.00  | CengageBrain Price = $162.00  | College Bookstore Wholesale Price = $162.00

Student Supplements

CengageNOW™, 1 term Instant Access  (ISBN-10: 1305395425 | ISBN-13: 9781305395428)

CengageNOW goes beyond memorization and basic homework practice to engage you, the student, in relevant multimedia study tools, detailed feedback, and assessment tools that help you reach true understanding. Activities are carefully constructed and aligned to learning taxonomies with the entire workflow in mind – from basic knowledge and comprehension to application and analysis.

List Price = $162.00  | CengageBrain Price = $162.00  | College Bookstore Wholesale Price = $162.00

Meet the Author

Author Bio

William A. Raabe

William A. Raabe, Ph.D., CPA, was the Wisconsin Distinguished Professor of Taxation. He taught at Ohio State, Arizona State, the Capital University (OH) Law School, and the Universities of Wisconsin--Milwaukee and Whitewater. Dr. Raabe also writes the PricewaterhouseCoopers Tax Case Studies. He has written extensively about book-tax differences in financial reporting. Dr. Raabe has been a visiting tax faculty member for a number of public accounting firms, bar associations, and CPA societies. He has received numerous teaching awards, including the Accounting Educator of the Year award from the Wisconsin Institute of CPAs. He has been the faculty adviser for student teams in the Deloitte Tax Case Competition (national finalists at three different schools) and the PricewaterhouseCoopers Extreme Tax policy competition (national finalist). For more information about Dr. Raabe, visit and BillRaabeTax on YouTube and Twitter.

David M. Maloney

David M. Maloney, Ph.D., CPA, is the Carman G. Blough Professor of Accounting Emeritus at the University of Virginia's McIntire School of Commerce. He completed his undergraduate work at the University of Richmond and his graduate work at the University of Illinois at Urbana-Champaign. Upon joining the Virginia faculty in January 1984, Dr. Maloney taught federal taxation in the graduate and undergraduate programs and was a recipient of major research grants from the Ernst & Young and KPMG Foundations. Dr. Maloney has published work in numerous professional journals, including Journal of Taxation, The Tax Adviser, Tax Notes, Corporate Taxation, Accounting Horizons, Journal of Taxation of Investments, and Journal of Accountancy.

James C. Young

Dr. James C. Young is the Crowe Horwath Professor of Accountancy at Northern Illinois University. A graduate of Ferris State University (B.S.) and Michigan State University (M.B.A. and Ph.D.), Dr. Young's research focuses on taxpayer responses to the income tax using archival data. His dissertation received the PricewaterhouseCoopers/American Taxation Association Dissertation Award and his subsequent research has received funding from a number of organizations, including the Ernst & Young Foundation Tax Research Grant Program. His work has been published in a variety of academic and professional journals, including the National Tax Journal, The Journal of the American Taxation Association, and Tax Notes. Dr. Young is a Northern Illinois University Presidential Teaching Professor. A respected educator, he has received the Illinois CPA Society Distinguished Accounting Educator Award in 2012 as well as outstanding teaching awards from George Mason University and Michigan State University.

James E. Smith

Dr. James E. Smith is the John S. Quinn Professor of Accounting at the College of William and Mary. He has been a member of the accounting faculty for more than 30 years. He received his Ph.D. from the University of Arizona. Dr. Smith has served as a discussion leader for Continuing Professional Education programs for the American Institute of Certified Public Accountants (AICPA), Federal Tax Workshops, and various state CPA societies. He has conducted programs in more than 40 states for approximately 25,000 CPAs. Dr. Smith has received the AICPA's Outstanding Discussion Leader Award and the American Taxation Association/Arthur Andersen Teaching Innovation Award. Other awards include the Virginia Society of CPAs' Outstanding Accounting Educator Award and the James Madison University's Outstanding Accounting Educator Award. He was the president of the Administrators of Accounting Programs Group (AAPG) in 1991-1992. Dr. Smith also served as faculty adviser for the William and Mary teams that received first place in the Andersen Tax Challenge for five years and placed first in the Deloitte Tax Case Study Competition for five years.

Annette Nellen

Annette Nellen, CPA, CGMA, Esquire, directs San José State University’s graduate tax program (MST) and teaches courses in tax research, tax fundamentals, accounting methods, property transactions, state taxation, employment tax, ethics, and tax policy. Professor Nellen is a graduate of CSU Northridge, Pepperdine (MBA), and Loyola Law School. Prior to joining SJSU in 1990, she was with a Big 4 firm and the IRS. At SJSU, Professor Nellen is a recipient of the Outstanding Professor and Distinguished Service Awards. Professor Nellen is an active member of the tax sections of the AICPA and American Bar Association. In 2013, she received the AICPA Arthur J. Dixon Memorial Award, the highest award given by the accounting profession in the area of taxation. Professor Nellen is the author of Bloomberg BNA Tax Portfolio, Amortization of Intangibles, and the Bloomberg BNA Internet Law Resource Center Overview of Internet Taxation Issues. She has published numerous articles in the AICPA Tax Insider, Tax Adviser, State Tax Notes, and The Journal of Accountancy. She has testified before the House Ways & Means and Senate Finance Committees, and other committees on Federal and state tax reform. Professor Nellen maintains the 21st Century Taxation website and blog ( as well as websites on tax reform and state tax issues (