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South-Western Federal Taxation 2027: Corporations, Partnerships, Estates and Trusts

By Annette Nellen, James C. Young, Brad Cripe, Sharon Lassar, Mark Persellin, Andrew D. Cuccia

50th Edition © 2027
Discipline:Taxation
Course:Taxation
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Nellen/Young/Cripe/Lassar/Persellin/Cuccia’s "South-Western Federal Taxation 2027: Corporations, Partnerships, Estates and Trusts," 50th Edition, introduces today's most recent tax laws as well as the important underlying concepts and policies. This leading resource thoroughly explains the taxation of corporations and the tax treatment of income earned by flow-through entities, including partnerships, S corporations, estates and trusts. Up-to-date coverage highlights the latest 2026 tax laws and reforms. Examples, summaries and recent tax scenarios clarify concepts and sharpen critical-thinking, writing and research skills. Sample exam questions from Becker CPA Exam Review assist in study. This edition provides you and your students with online access to Intuit® ProConnect tax software, Checkpoint® Edge (Student Edition) from Thomson Reuters and the online learning platform CNOWv2.

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About this product

Nellen/Young/Cripe/Lassar/Persellin/Cuccia’s "South-Western Federal Taxation 2027: Corporations, Partnerships, Estates and Trusts," 50th Edition, introduces today's most recent tax laws as well as the important underlying concepts and policies. This leading resource thoroughly explains the taxation of corporations and the tax treatment of income earned by flow-through entities, including partnerships, S corporations, estates and trusts. Up-to-date coverage highlights the latest 2026 tax laws and reforms. Examples, summaries and recent tax scenarios clarify concepts and sharpen critical-thinking, writing and research skills. Sample exam questions from Becker CPA Exam Review assist in study. This edition provides you and your students with online access to Intuit® ProConnect tax software, Checkpoint® Edge (Student Edition) from Thomson Reuters and the online learning platform CNOWv2.

This edition's unique presentation integrates memorable, clear taxation examples throughout, making it easy for students to read and quickly understand even complex taxation concepts.

Memorable learning videos correspond with practical applications to strengthen students' comprehension and ensure they understand how to complete end-of-chapter homework successfully.

Explore practical tax scenarios at the start and end of each chapter. Big Picture: Tax Solutions for the Real World scenarios examine lives, careers and tax situations facing typical tax filers.

Numerous proven learning features such as Ethics and Equity features, Global Tax Issues and Decision-Making Problems help readers strengthen professional skills.

Table of contents

Chapters

Cover Page
Title Page
Copyright Page
General Editors
Contributing Authors
Section Content
Preface
Acknowledgments
Special Thanks
The South-Western Federal Taxation Series
About the Editors
Part 1. Introduction to Taxation and Business Entities
Part 2. Corporations
Part 3. Flow-Through Entities
Part 4. Advanced Tax Practice Considerations
Part 5. Family Tax Planning
Appendix A. Tax Formulas, Tax Rate Schedules, and Tables
Appendix B. Tax Forms
Appendix D. Table of Code Sections Cited
Appendix E. Present Value and Future Value Tables
Appendix. Depreciation and the Accelerated Cost Recovery System (ACRS)
Appendix. Affordable Care Act Provisions
Show more

Part 1. Introduction to Taxation and Business Entities

Chapter 1. Understanding and Working with the Federal Tax Law
Preview this section ↗
1-1. The Whys of the Tax Law ↗
1-1a. Revenue Needs ↗
1-1b. Economic Considerations ↗
1-1c. Social Considerations ↗
1-1d. Equity Considerations ↗
1-1e. Political Considerations ↗
1-1f. Influence of the Internal Revenue Service ↗
1-1g. Influence of the Courts ↗
1-2. Summary ↗
1-3. Reconciling Accounting Concepts ↗
1-4. Working with the Tax Law—Tax Sources ↗
1-4a. Statutory Sources of the Tax Law ↗
1-4b. Administrative Sources of the Tax Law ↗
1-4c. Judicial Sources of the Tax Law ↗
1-4d. Other Sources of the Tax Law ↗
1-5. Working with the Tax Law—Locating and Using Tax Sources ↗
1-5a. Commercial Tax Services ↗
1-5b. Using Commercial Tax Services ↗
1-5c. Using Noncommercial Tax Sources ↗
1-6. Working with the Tax Law—Tax Research ↗
1-6a. Identifying the Problem ↗
1-6b. Locating the Appropriate Tax Law Sources ↗
1-6c. Assessing the Validity of Tax Law Sources ↗
1-6d. Arriving at the Solution or at Alternative Solutions ↗
1-6e. Communicating Tax Research ↗
1-6f. Use of Generative AI for Tax Research ↗
1-7. Working with the Tax Law—Tax Planning ↗
1-7a. Nontax Considerations ↗
1-7b. Components of Tax Planning ↗
1-7c. Follow-Up Procedures ↗
1-7d. Tax Planning—A Practical Application ↗
1-8. Taxation on the CPA Examination ↗
1-8a. The Redesigned CPA Exam ↗
1-8b. Taxation and Regulation Section (Core) ↗
1-8c. Tax Compliance and Planning Section (Discipline) ↗
1-8d. Preparation Blueprints ↗
1-8e. Foundational Competencies Framework for Aspiring CPAs ↗
Key Terms ↗
Discussion Questions ↗
Problems ↗
Research Problems ↗
Chapter 2. The Deduction for Qualified Business Income for Noncorporate Taxpayers
2-1. Organizational Forms in Which Business May be Conducted
2-2. Nontax Factors Affecting the Choice of Organizational Form
2-2a. Limited Liability
2-2b. Other Factors
2-2c. Capital Formation
2-3. Tax Treatment of Various Business Forms
2-3a. Sole Proprietorships
2-3b. Partnerships
2-3c. Corporations
2-3d. Limited Liability Companies
2-4. The Challenges of Taxing Business Activities: Entity Tax Rates
2-4a. Challenges of Lowering Tax Rates
2-4b. Lowering Tax Rates for Different Business Forms
2-5. The Deduction for Qualified Business Income
2-5a. General Rule
2-5b. The Overall Limitation: Modified Taxable Income
2-5c. What is Qualified Business Income?
2-5d. What is a Qualified Trade or Business?
2-5e. Limitations on the QBI Deduction
2-5f. Limitation Based on Wages and Capital Investment
2-5g. Limitation for “Specified Services” Businesses
2-5h. Reporting the Qualified Business Income Deduction
2-5i. Aggregation of Qualified Trades and Businesses Under the § 199A Regulations
2-5j. Treatment of Losses
2-5k. Coordination with Other Rules
2-5l. Considerations for Partnerships and S Corporations
2-5m. Other Items in the §199A Regulations
2-6. Tax Planning
2-6a. Corporate versus Noncorporate Forms of Business Organization
2-6b. Optimizing the Deduction for Qualified Business Income
Key Terms
Discussion Questions
Computational Exercises
Problems
Research Problems
Becker CPA Review Questions

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