2009 TAX TABLES

AND RATE SCHEDULES

ISBN 0-558-86017-6

2010 WITHHOLDING TABLES

(PARTIAL)

T-1
Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

T-2 Individuals 2009 Tax Tables and Rate Schedules

2009
Tax Table
If line 43
(taxable
income) is
At
least

But
less
than

0
5
15
25
50
75
100
125
150
175
200
225
250
275
300
325
350
375
400
425
450
475
500
525
550
575
600
625
650
675
700
725
750
775
800
825
850
875
900
925
950
975

CAUTION

If line 43
(taxable
income) is

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

At
least

0
1
2
4
6
9
11
14
16
19
21
24
26
29
31
34
36
39
41
44
46
49
51
54
56
59
61
64
66
69
71
74
76
79
81
84
86
89
91
94
96
99

0
1
2
4
6
9
11
14
16
19
21
24
26
29
31
34
36
39
41
44
46
49
51
54
56
59
61
64
66
69
71
74
76
79
81
84
86
89
91
94
96
99

0
1
2
4
6
9
11
14
16
19
21
24
26
29
31
34
36
39
41
44
46
49
51
54
56
59
61
64
66
69
71
74
76
79
81
84
86
89
91
94
96
99

0
1
2
4
6
9
11
14
16
19
21
24
26
29
31
34
36
39
41
44
46
49
51
54
56
59
61
64
66
69
71
74
76
79
81
84
86
89
91
94
96
99

1,025
1,050
1,075
1,100
1,125
1,150
1,175
1,200
1,225
1,250
1,275
1,300

101
104
106
109
111
114
116
119
121
124
126
129

101
104
106
109
111
114
116
119
121
124
126
129

101
104
106
109
111
114
116
119
121
124
126
129

101
104
106
109
111
114
116
119
121
124
126
129

At
least

But
less
than

1,300
1,325
1,350
1,375
1,400
1,425
1,450
1,475
1,500
1,525
1,550
1,575
1,600
1,625
1,650
1,675
1,700
1,725
1,750
1,775
1,800
1,825
1,850
1,875
1,900
1,925
1,950
1,975

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

1,325
1,350
1,375
1,400
1,425
1,450
1,475
1,500
1,525
1,550
1,575
1,600
1,625
1,650
1,675
1,700
1,725
1,750
1,775
1,800
1,825
1,850
1,875
1,900
1,925
1,950
1,975
2,000

131
134
136
139
141
144
146
149
151
154
156
159
161
164
166
169
171
174
176
179
181
184
186
189
191
194
196
199

131
134
136
139
141
144
146
149
151
154
156
159
161
164
166
169
171
174
176
179
181
184
186
189
191
194
196
199

131
134
136
139
141
144
146
149
151
154
156
159
161
164
166
169
171
174
176
179
181
184
186
189
191
194
196
199

131
134
136
139
141
144
146
149
151
154
156
159
161
164
166
169
171
174
176
179
181
184
186
189
191
194
196
199

2,025
2,050
2,075
2,100
2,125
2,150
2,175
2,200
2,225
2,250
2,275
2,300
2,325
2,350
2,375
2,400
2,425
2,450
2,475
2,500
2,525
2,550
2,575
2,600
2,625
2,650
2,675
2,700

201
204
206
209
211
214
216
219
221
224
226
229
231
234
236
239
241
244
246
249
251
254
256
259
261
264
266
269

201
204
206
209
211
214
216
219
221
224
226
229
231
234
236
239
241
244
246
249
251
254
256
259
261
264
266
269

201
204
206
209
211
214
216
219
221
224
226
229
231
234
236
239
241
244
246
249
251
254
256
259
261
264
266
269

201
204
206
209
211
214
216
219
221
224
226
229
231
234
236
239
241
244
246
249
251
254
256
259
261
264
266
269

2,000
2,000
2,025
2,050
2,075
2,100
2,125
2,150
2,175
2,200
2,225
2,250
2,275
2,300
2,325
2,350
2,375
2,400
2,425
2,450
2,475
2,500
2,525
2,550
2,575
2,600
2,625
2,650
2,675

* This column must also be used by a qualifying widow(er).

25,200
25,250
25,300
25,350

25,250
25,300
25,350
25,400

Single Married
filing
jointly
*

3,366
3,374
3,381
3,389

If line 43
(taxable
income) is

And you are

Single

But
less
than

At
least

But
less
than

2,700
2,725
2,750
2,775
2,800
2,825
2,850
2,875
2,900
2,925
2,950
2,975

Married
filing
separately

Head
of a
household

Your tax is
2,949 3,366
2,956 3,374
2,964 3,381
2,971 3,389

3,186
3,194
3,201
3,209

And you are

Single

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

2,725
2,750
2,775
2,800
2,825
2,850
2,875
2,900
2,925
2,950
2,975
3,000

271
274
276
279
281
284
286
289
291
294
296
299

271
274
276
279
281
284
286
289
291
294
296
299

271
274
276
279
281
284
286
289
291
294
296
299

271
274
276
279
281
284
286
289
291
294
296
299

3,050
3,100
3,150
3,200
3,250
3,300
3,350
3,400
3,450
3,500
3,550
3,600
3,650
3,700
3,750
3,800
3,850
3,900
3,950
4,000

303
308
313
318
323
328
333
338
343
348
353
358
363
368
373
378
383
388
393
398

303
308
313
318
323
328
333
338
343
348
353
358
363
368
373
378
383
388
393
398

303
308
313
318
323
328
333
338
343
348
353
358
363
368
373
378
383
388
393
398

303
308
313
318
323
328
333
338
343
348
353
358
363
368
373
378
383
388
393
398

4,050
4,100
4,150
4,200
4,250
4,300
4,350
4,400
4,450
4,500
4,550
4,600
4,650
4,700
4,750
4,800
4,850
4,900
4,950
5,000

403
408
413
418
423
428
433
438
443
448
453
458
463
468
473
478
483
488
493
498

403
408
413
418
423
428
433
438
443
448
453
458
463
468
473
478
483
488
493
498

403
408
413
418
423
428
433
438
443
448
453
458
463
468
473
478
483
488
493
498

403
408
413
418
423
428
433
438
443
448
453
458
463
468
473
478
483
488
493
498

3,000
3,000
3,050
3,100
3,150
3,200
3,250
3,300
3,350
3,400
3,450
3,500
3,550
3,600
3,650
3,700
3,750
3,800
3,850
3,900
3,950

4,000
4,000
4,050
4,100
4,150
4,200
4,250
4,300
4,350
4,400
4,450
4,500
4,550
4,600
4,650
4,700
4,750
4,800
4,850
4,900
4,950

(Continued on page T-3)

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

ISBN 0-558-86017-6

5
15
25
50
75
100
125
150
175
200
225
250
275
300
325
350
375
400
425
450
475
500
525
550
575
600
625
650
675
700
725
750
775
800
825
850
875
900
925
950
975
1,000

1,000
1,000
1,025
1,050
1,075
1,100
1,125
1,150
1,175
1,200
1,225
1,250
1,275

Sample Table

Example. Mr. and Mrs. Brown are filing a joint return. Their
taxable income on Form 1040, line 43, is $25,300. First, they
find the $25,300 25,350 taxable income line. Next, they find
the column for married filing jointly and read down the column.
The amount shown where the taxable income line and filing
status column meet is $2,964. This is the tax amount they
should enter on Form 1040, line 44.

And you are

Single

See the instructions for line 44 that begin on

page 37 to see if you must use the Tax Table
below to figure your tax.

2009 Tax Tables and Rate Schedules Individuals T-3

2009 Tax Table Continued

If line 43
(taxable
income) is
At
least

But
less
than

If line 43
(taxable
income) is

And you are

Single

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

5,000
5,000
5,050
5,100
5,150
5,200
5,250
5,300
5,350
5,400
5,450
5,500
5,550
5,600
5,650
5,700
5,750
5,800
5,850
5,900
5,950

503
508
513
518
523
528
533
538
543
548
553
558
563
568
573
578
583
588
593
598

503
508
513
518
523
528
533
538
543
548
553
558
563
568
573
578
583
588
593
598

503
508
513
518
523
528
533
538
543
548
553
558
563
568
573
578
583
588
593
598

503
508
513
518
523
528
533
538
543
548
553
558
563
568
573
578
583
588
593
598

ISBN 0-558-86017-6

Single

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

8,000
8,050
8,100
8,150
8,200
8,250
8,300
8,350
8,400
8,450
8,500
8,550
8,600
8,650
8,700
8,750
8,800
8,850
8,900
8,950

6,050
6,100
6,150
6,200
6,250
6,300
6,350
6,400
6,450
6,500
6,550
6,600
6,650
6,700
6,750
6,800
6,850
6,900
6,950
7,000

603
608
613
618
623
628
633
638
643
648
653
658
663
668
673
678
683
688
693
698

603
608
613
618
623
628
633
638
643
648
653
658
663
668
673
678
683
688
693
698

603
608
613
618
623
628
633
638
643
648
653
658
663
668
673
678
683
688
693
698

603
608
613
618
623
628
633
638
643
648
653
658
663
668
673
678
683
688
693
698

803
808
813
818
823
828
833
839
846
854
861
869
876
884
891
899
906
914
921
929

803
808
813
818
823
828
833
838
843
848
853
858
863
868
873
878
883
888
893
898

803
808
813
818
823
828
833
839
846
854
861
869
876
884
891
899
906
914
921
929

803
808
813
818
823
828
833
838
843
848
853
858
863
868
873
878
883
888
893
898

703
708
713
718
723
728
733
738
743
748
753
758
763
768
773
778
783
788
793
798

703
708
713
718
723
728
733
738
743
748
753
758
763
768
773
778
783
788
793
798

703
708
713
718
723
728
733
738
743
748
753
758
763
768
773
778
783
788
793
798

703
708
713
718
723
728
733
738
743
748
753
758
763
768
773
778
783
788
793
798

9,000 9,050
9,050 9,100
9,100 9,150
9,150 9,200
9,200 9,250
9,250 9,300
9,300 9,350
9,350 9,400
9,400 9,450
9,450 9,500
9,500 9,550
9,550 9,600
9,600 9,650
9,650 9,700
9,700 9,750
9,750 9,800
9,800 9,850
9,850 9,900
9,900 9,950
9,950 10,000

10,000
10,050
10,100
10,150
10,200
10,250
10,300
10,350
10,400
10,450
10,500
10,550
10,600
10,650
10,700
10,750
10,800
10,850
10,900
10,950

But
less
than

Single

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

10,050
10,100
10,150
10,200
10,250
10,300
10,350
10,400
10,450
10,500
10,550
10,600
10,650
10,700
10,750
10,800
10,850
10,900
10,950
11,000

11,000
11,050
11,100
11,150
11,200
11,250
11,300
11,350
11,400
11,450
11,500
11,550
11,600
11,650
11,700
11,750
11,800
11,850
11,900
11,950

11,050
11,100
11,150
11,200
11,250
11,300
11,350
11,400
11,450
11,500
11,550
11,600
11,650
11,700
11,750
11,800
11,850
11,900
11,950
12,000

1,236
1,244
1,251
1,259
1,266
1,274
1,281
1,289
1,296
1,304
1,311
1,319
1,326
1,334
1,341
1,349
1,356
1,364
1,371
1,379

1,103
1,108
1,113
1,118
1,123
1,128
1,133
1,138
1,143
1,148
1,153
1,158
1,163
1,168
1,173
1,178
1,183
1,188
1,193
1,198

1,236
1,244
1,251
1,259
1,266
1,274
1,281
1,289
1,296
1,304
1,311
1,319
1,326
1,334
1,341
1,349
1,356
1,364
1,371
1,379

1,103
1,108
1,113
1,118
1,123
1,128
1,133
1,138
1,143
1,148
1,153
1,158
1,163
1,168
1,173
1,178
1,183
1,188
1,193
1,199

1,386
1,394
1,401
1,409
1,416
1,424
1,431
1,439
1,446
1,454
1,461
1,469
1,476
1,484
1,491
1,499
1,506
1,514
1,521
1,529

1,203
1,208
1,213
1,218
1,223
1,228
1,233
1,238
1,243
1,248
1,253
1,258
1,263
1,268
1,273
1,278
1,283
1,288
1,293
1,298

1,386
1,394
1,401
1,409
1,416
1,424
1,431
1,439
1,446
1,454
1,461
1,469
1,476
1,484
1,491
1,499
1,506
1,514
1,521
1,529

1,206
1,214
1,221
1,229
1,236
1,244
1,251
1,259
1,266
1,274
1,281
1,289
1,296
1,304
1,311
1,319
1,326
1,334
1,341
1,349

1,536
1,544
1,551
1,559
1,566
1,574
1,581
1,589
1,596
1,604
1,611
1,619
1,626
1,634
1,641
1,649
1,656
1,664
1,671
1,679

1,303
1,308
1,313
1,318
1,323
1,328
1,333
1,338
1,343
1,348
1,353
1,358
1,363
1,368
1,373
1,378
1,383
1,388
1,393
1,398

1,536
1,544
1,551
1,559
1,566
1,574
1,581
1,589
1,596
1,604
1,611
1,619
1,626
1,634
1,641
1,649
1,656
1,664
1,671
1,679

1,356
1,364
1,371
1,379
1,386
1,394
1,401
1,409
1,416
1,424
1,431
1,439
1,446
1,454
1,461
1,469
1,476
1,484
1,491
1,499

12,000
936
944
951
959
966
974
981
989
996
1,004
1,011
1,019
1,026
1,034
1,041
1,049
1,056
1,064
1,071
1,079

903
908
913
918
923
928
933
938
943
948
953
958
963
968
973
978
983
988
993
998

936
944
951
959
966
974
981
989
996
1,004
1,011
1,019
1,026
1,034
1,041
1,049
1,056
1,064
1,071
1,079

903
908
913
918
923
928
933
938
943
948
953
958
963
968
973
978
983
988
993
998

10,000
7,050
7,100
7,150
7,200
7,250
7,300
7,350
7,400
7,450
7,500
7,550
7,600
7,650
7,700
7,750
7,800
7,850
7,900
7,950
8,000

At
least

And you are

11,000
8,050
8,100
8,150
8,200
8,250
8,300
8,350
8,400
8,450
8,500
8,550
8,600
8,650
8,700
8,750
8,800
8,850
8,900
8,950
9,000

9,000

7,000
7,000
7,050
7,100
7,150
7,200
7,250
7,300
7,350
7,400
7,450
7,500
7,550
7,600
7,650
7,700
7,750
7,800
7,850
7,900
7,950

But
less
than

8,000
5,050
5,100
5,150
5,200
5,250
5,300
5,350
5,400
5,450
5,500
5,550
5,600
5,650
5,700
5,750
5,800
5,850
5,900
5,950
6,000

6,000
6,000
6,050
6,100
6,150
6,200
6,250
6,300
6,350
6,400
6,450
6,500
6,550
6,600
6,650
6,700
6,750
6,800
6,850
6,900
6,950

At
least

If line 43
(taxable
income) is

And you are

12,000
12,050
12,100
12,150
12,200
12,250
12,300
12,350
12,400
12,450
12,500
12,550
12,600
12,650
12,700
12,750
12,800
12,850
12,900
12,950

12,050
12,100
12,150
12,200
12,250
12,300
12,350
12,400
12,450
12,500
12,550
12,600
12,650
12,700
12,750
12,800
12,850
12,900
12,950
13,000

13,000
1,086
1,094
1,101
1,109
1,116
1,124
1,131
1,139
1,146
1,154
1,161
1,169
1,176
1,184
1,191
1,199
1,206
1,214
1,221
1,229

1,003
1,008
1,013
1,018
1,023
1,028
1,033
1,038
1,043
1,048
1,053
1,058
1,063
1,068
1,073
1,078
1,083
1,088
1,093
1,098

1,086
1,094
1,101
1,109
1,116
1,124
1,131
1,139
1,146
1,154
1,161
1,169
1,176
1,184
1,191
1,199
1,206
1,214
1,221
1,229

1,003
1,008
1,013
1,018
1,023
1,028
1,033
1,038
1,043
1,048
1,053
1,058
1,063
1,068
1,073
1,078
1,083
1,088
1,093
1,098

13,000
13,050
13,100
13,150
13,200
13,250
13,300
13,350
13,400
13,450
13,500
13,550
13,600
13,650
13,700
13,750
13,800
13,850
13,900
13,950

13,050
13,100
13,150
13,200
13,250
13,300
13,350
13,400
13,450
13,500
13,550
13,600
13,650
13,700
13,750
13,800
13,850
13,900
13,950
14,000

* This column must also be used by a qualifying widow(er).

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

(Continued on page T-4)

T-4 Individuals 2009 Tax Tables and Rate Schedules

2009 Tax Table Continued

If line 43
(taxable
income) is
At
least

But
less
than

If line 43
(taxable
income) is

And you are

Single

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

14,000
14,000
14,050
14,100
14,150
14,200
14,250
14,300
14,350
14,400
14,450
14,500
14,550
14,600
14,650
14,700
14,750
14,800
14,850
14,900
14,950

14,050
14,100
14,150
14,200
14,250
14,300
14,350
14,400
14,450
14,500
14,550
14,600
14,650
14,700
14,750
14,800
14,850
14,900
14,950
15,000

15,050
15,100
15,150
15,200
15,250
15,300
15,350
15,400
15,450
15,500
15,550
15,600
15,650
15,700
15,750
15,800
15,850
15,900
15,950
16,000

1,403
1,408
1,413
1,418
1,423
1,428
1,433
1,438
1,443
1,448
1,453
1,458
1,463
1,468
1,473
1,478
1,483
1,488
1,493
1,498

1,686
1,694
1,701
1,709
1,716
1,724
1,731
1,739
1,746
1,754
1,761
1,769
1,776
1,784
1,791
1,799
1,806
1,814
1,821
1,829

1,506
1,514
1,521
1,529
1,536
1,544
1,551
1,559
1,566
1,574
1,581
1,589
1,596
1,604
1,611
1,619
1,626
1,634
1,641
1,649

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

17,000
17,050
17,100
17,150
17,200
17,250
17,300
17,350
17,400
17,450
17,500
17,550
17,600
17,650
17,700
17,750
17,800
17,850
17,900
17,950

17,050
17,100
17,150
17,200
17,250
17,300
17,350
17,400
17,450
17,500
17,550
17,600
17,650
17,700
17,750
17,800
17,850
17,900
17,950
18,000

1,836
1,844
1,851
1,859
1,866
1,874
1,881
1,889
1,896
1,904
1,911
1,919
1,926
1,934
1,941
1,949
1,956
1,964
1,971
1,979

1,503
1,508
1,513
1,518
1,523
1,528
1,533
1,538
1,543
1,548
1,553
1,558
1,563
1,568
1,573
1,578
1,583
1,588
1,593
1,598

1,836
1,844
1,851
1,859
1,866
1,874
1,881
1,889
1,896
1,904
1,911
1,919
1,926
1,934
1,941
1,949
1,956
1,964
1,971
1,979

1,656
1,664
1,671
1,679
1,686
1,694
1,701
1,709
1,716
1,724
1,731
1,739
1,746
1,754
1,761
1,769
1,776
1,784
1,791
1,799

18,000
18,050
18,100
18,150
18,200
18,250
18,300
18,350
18,400
18,450
18,500
18,550
18,600
18,650
18,700
18,750
18,800
18,850
18,900
18,950

18,050
18,100
18,150
18,200
18,250
18,300
18,350
18,400
18,450
18,500
18,550
18,600
18,650
18,700
18,750
18,800
18,850
18,900
18,950
19,000

1,603
1,608
1,613
1,618
1,623
1,628
1,633
1,638
1,643
1,648
1,653
1,658
1,663
1,668
1,674
1,681
1,689
1,696
1,704
1,711

1,986
1,994
2,001
2,009
2,016
2,024
2,031
2,039
2,046
2,054
2,061
2,069
2,076
2,084
2,091
2,099
2,106
2,114
2,121
2,129

1,806
1,814
1,821
1,829
1,836
1,844
1,851
1,859
1,866
1,874
1,881
1,889
1,896
1,904
1,911
1,919
1,926
1,934
1,941
1,949

19,000
19,050
19,100
19,150
19,200
19,250
19,300
19,350
19,400
19,450
19,500
19,550
19,600
19,650
19,700
19,750
19,800
19,850
19,900
19,950

19,050
19,100
19,150
19,200
19,250
19,300
19,350
19,400
19,450
19,500
19,550
19,600
19,650
19,700
19,750
19,800
19,850
19,900
19,950
20,000

* This column must also be used by a qualifying widow(er).

But
less
than

Single

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

20,000
2,136
2,144
2,151
2,159
2,166
2,174
2,181
2,189
2,196
2,204
2,211
2,219
2,226
2,234
2,241
2,249
2,256
2,264
2,271
2,279

1,719
1,726
1,734
1,741
1,749
1,756
1,764
1,771
1,779
1,786
1,794
1,801
1,809
1,816
1,824
1,831
1,839
1,846
1,854
1,861

2,136
2,144
2,151
2,159
2,166
2,174
2,181
2,189
2,196
2,204
2,211
2,219
2,226
2,234
2,241
2,249
2,256
2,264
2,271
2,279

1,956
1,964
1,971
1,979
1,986
1,994
2,001
2,009
2,016
2,024
2,031
2,039
2,046
2,054
2,061
2,069
2,076
2,084
2,091
2,099

20,000
20,050
20,100
20,150
20,200
20,250
20,300
20,350
20,400
20,450
20,500
20,550
20,600
20,650
20,700
20,750
20,800
20,850
20,900
20,950

20,050
20,100
20,150
20,200
20,250
20,300
20,350
20,400
20,450
20,500
20,550
20,600
20,650
20,700
20,750
20,800
20,850
20,900
20,950
21,000

2,586
2,594
2,601
2,609
2,616
2,624
2,631
2,639
2,646
2,654
2,661
2,669
2,676
2,684
2,691
2,699
2,706
2,714
2,721
2,729

2,169
2,176
2,184
2,191
2,199
2,206
2,214
2,221
2,229
2,236
2,244
2,251
2,259
2,266
2,274
2,281
2,289
2,296
2,304
2,311

2,586
2,594
2,601
2,609
2,616
2,624
2,631
2,639
2,646
2,654
2,661
2,669
2,676
2,684
2,691
2,699
2,706
2,714
2,721
2,729

2,406
2,414
2,421
2,429
2,436
2,444
2,451
2,459
2,466
2,474
2,481
2,489
2,496
2,504
2,511
2,519
2,526
2,534
2,541
2,549

2,736
2,744
2,751
2,759
2,766
2,774
2,781
2,789
2,796
2,804
2,811
2,819
2,826
2,834
2,841
2,849
2,856
2,864
2,871
2,879

2,319
2,326
2,334
2,341
2,349
2,356
2,364
2,371
2,379
2,386
2,394
2,401
2,409
2,416
2,424
2,431
2,439
2,446
2,454
2,461

2,736
2,744
2,751
2,759
2,766
2,774
2,781
2,789
2,796
2,804
2,811
2,819
2,826
2,834
2,841
2,849
2,856
2,864
2,871
2,879

2,556
2,564
2,571
2,579
2,586
2,594
2,601
2,609
2,616
2,624
2,631
2,639
2,646
2,654
2,661
2,669
2,676
2,684
2,691
2,699

2,886
2,894
2,901
2,909
2,916
2,924
2,931
2,939
2,946
2,954
2,961
2,969
2,976
2,984
2,991
2,999
3,006
3,014
3,021
3,029

2,469
2,476
2,484
2,491
2,499
2,506
2,514
2,521
2,529
2,536
2,544
2,551
2,559
2,566
2,574
2,581
2,589
2,596
2,604
2,611

2,886
2,894
2,901
2,909
2,916
2,924
2,931
2,939
2,946
2,954
2,961
2,969
2,976
2,984
2,991
2,999
3,006
3,014
3,021
3,029

2,706
2,714
2,721
2,729
2,736
2,744
2,751
2,759
2,766
2,774
2,781
2,789
2,796
2,804
2,811
2,819
2,826
2,834
2,841
2,849

21,000
2,286
2,294
2,301
2,309
2,316
2,324
2,331
2,339
2,346
2,354
2,361
2,369
2,376
2,384
2,391
2,399
2,406
2,414
2,421
2,429

1,869
1,876
1,884
1,891
1,899
1,906
1,914
1,921
1,929
1,936
1,944
1,951
1,959
1,966
1,974
1,981
1,989
1,996
2,004
2,011

2,286
2,294
2,301
2,309
2,316
2,324
2,331
2,339
2,346
2,354
2,361
2,369
2,376
2,384
2,391
2,399
2,406
2,414
2,421
2,429

2,106
2,114
2,121
2,129
2,136
2,144
2,151
2,159
2,166
2,174
2,181
2,189
2,196
2,204
2,211
2,219
2,226
2,234
2,241
2,249

19,000
1,986
1,994
2,001
2,009
2,016
2,024
2,031
2,039
2,046
2,054
2,061
2,069
2,076
2,084
2,091
2,099
2,106
2,114
2,121
2,129

At
least

And you are

21,000
21,050
21,100
21,150
21,200
21,250
21,300
21,350
21,400
21,450
21,500
21,550
21,600
21,650
21,700
21,750
21,800
21,850
21,900
21,950

21,050
21,100
21,150
21,200
21,250
21,300
21,350
21,400
21,450
21,500
21,550
21,600
21,650
21,700
21,750
21,800
21,850
21,900
21,950
22,000

22,000
2,436
2,444
2,451
2,459
2,466
2,474
2,481
2,489
2,496
2,504
2,511
2,519
2,526
2,534
2,541
2,549
2,556
2,564
2,571
2,579

2,019
2,026
2,034
2,041
2,049
2,056
2,064
2,071
2,079
2,086
2,094
2,101
2,109
2,116
2,124
2,131
2,139
2,146
2,154
2,161

2,436
2,444
2,451
2,459
2,466
2,474
2,481
2,489
2,496
2,504
2,511
2,519
2,526
2,534
2,541
2,549
2,556
2,564
2,571
2,579

2,256
2,264
2,271
2,279
2,286
2,294
2,301
2,309
2,316
2,324
2,331
2,339
2,346
2,354
2,361
2,369
2,376
2,384
2,391
2,399

22,000
22,050
22,100
22,150
22,200
22,250
22,300
22,350
22,400
22,450
22,500
22,550
22,600
22,650
22,700
22,750
22,800
22,850
22,900
22,950

22,050
22,100
22,150
22,200
22,250
22,300
22,350
22,400
22,450
22,500
22,550
22,600
22,650
22,700
22,750
22,800
22,850
22,900
22,950
23,000

(Continued on page T-5)

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

ISBN 0-558-86017-6

16,050
16,100
16,150
16,200
16,250
16,300
16,350
16,400
16,450
16,500
16,550
16,600
16,650
16,700
16,750
16,800
16,850
16,900
16,950
17,000

Single

18,000

16,000
16,000
16,050
16,100
16,150
16,200
16,250
16,300
16,350
16,400
16,450
16,500
16,550
16,600
16,650
16,700
16,750
16,800
16,850
16,900
16,950

But
less
than

And you are

17,000
1,686
1,694
1,701
1,709
1,716
1,724
1,731
1,739
1,746
1,754
1,761
1,769
1,776
1,784
1,791
1,799
1,806
1,814
1,821
1,829

15,000
15,000
15,050
15,100
15,150
15,200
15,250
15,300
15,350
15,400
15,450
15,500
15,550
15,600
15,650
15,700
15,750
15,800
15,850
15,900
15,950

At
least

If line 43
(taxable
income) is

2009 Tax Tables and Rate Schedules Individuals T-5

2009 Tax Table Continued

If line 43
(taxable
income) is
At
least

But
less
than

If line 43
(taxable
income) is

And you are

Single

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

23,000
23,000
23,050
23,100
23,150
23,200
23,250
23,300
23,350
23,400
23,450
23,500
23,550
23,600
23,650
23,700
23,750
23,800
23,850
23,900
23,950

23,050
23,100
23,150
23,200
23,250
23,300
23,350
23,400
23,450
23,500
23,550
23,600
23,650
23,700
23,750
23,800
23,850
23,900
23,950
24,000

24,050
24,100
24,150
24,200
24,250
24,300
24,350
24,400
24,450
24,500
24,550
24,600
24,650
24,700
24,750
24,800
24,850
24,900
24,950
25,000

2,619
2,626
2,634
2,641
2,649
2,656
2,664
2,671
2,679
2,686
2,694
2,701
2,709
2,716
2,724
2,731
2,739
2,746
2,754
2,761

3,036
3,044
3,051
3,059
3,066
3,074
3,081
3,089
3,096
3,104
3,111
3,119
3,126
3,134
3,141
3,149
3,156
3,164
3,171
3,179

2,856
2,864
2,871
2,879
2,886
2,894
2,901
2,909
2,916
2,924
2,931
2,939
2,946
2,954
2,961
2,969
2,976
2,984
2,991
2,999

ISBN 0-558-86017-6

25,050
25,100
25,150
25,200
25,250
25,300
25,350
25,400
25,450
25,500
25,550
25,600
25,650
25,700
25,750
25,800
25,850
25,900
25,950
26,000

Single

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

26,000
26,050
26,100
26,150
26,200
26,250
26,300
26,350
26,400
26,450
26,500
26,550
26,600
26,650
26,700
26,750
26,800
26,850
26,900
26,950

26,050
26,100
26,150
26,200
26,250
26,300
26,350
26,400
26,450
26,500
26,550
26,600
26,650
26,700
26,750
26,800
26,850
26,900
26,950
27,000

3,186
3,194
3,201
3,209
3,216
3,224
3,231
3,239
3,246
3,254
3,261
3,269
3,276
3,284
3,291
3,299
3,306
3,314
3,321
3,329

2,769
2,776
2,784
2,791
2,799
2,806
2,814
2,821
2,829
2,836
2,844
2,851
2,859
2,866
2,874
2,881
2,889
2,896
2,904
2,911

3,186
3,194
3,201
3,209
3,216
3,224
3,231
3,239
3,246
3,254
3,261
3,269
3,276
3,284
3,291
3,299
3,306
3,314
3,321
3,329

3,006
3,014
3,021
3,029
3,036
3,044
3,051
3,059
3,066
3,074
3,081
3,089
3,096
3,104
3,111
3,119
3,126
3,134
3,141
3,149

27,000
27,050
27,100
27,150
27,200
27,250
27,300
27,350
27,400
27,450
27,500
27,550
27,600
27,650
27,700
27,750
27,800
27,850
27,900
27,950

27,050
27,100
27,150
27,200
27,250
27,300
27,350
27,400
27,450
27,500
27,550
27,600
27,650
27,700
27,750
27,800
27,850
27,900
27,950
28,000

3,069
3,076
3,084
3,091
3,099
3,106
3,114
3,121
3,129
3,136
3,144
3,151
3,159
3,166
3,174
3,181
3,189
3,196
3,204
3,211

3,486
3,494
3,501
3,509
3,516
3,524
3,531
3,539
3,546
3,554
3,561
3,569
3,576
3,584
3,591
3,599
3,606
3,614
3,621
3,629

3,306
3,314
3,321
3,329
3,336
3,344
3,351
3,359
3,366
3,374
3,381
3,389
3,396
3,404
3,411
3,419
3,426
3,434
3,441
3,449

2,919
2,926
2,934
2,941
2,949
2,956
2,964
2,971
2,979
2,986
2,994
3,001
3,009
3,016
3,024
3,031
3,039
3,046
3,054
3,061

3,336
3,344
3,351
3,359
3,366
3,374
3,381
3,389
3,396
3,404
3,411
3,419
3,426
3,434
3,441
3,449
3,456
3,464
3,471
3,479

3,156
3,164
3,171
3,179
3,186
3,194
3,201
3,209
3,216
3,224
3,231
3,239
3,246
3,254
3,261
3,269
3,276
3,284
3,291
3,299

28,000
28,050
28,100
28,150
28,200
28,250
28,300
28,350
28,400
28,450
28,500
28,550
28,600
28,650
28,700
28,750
28,800
28,850
28,900
28,950

28,050
28,100
28,150
28,200
28,250
28,300
28,350
28,400
28,450
28,500
28,550
28,600
28,650
28,700
28,750
28,800
28,850
28,900
28,950
29,000

But
less
than

Single

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

29,000
29,050
29,100
29,150
29,200
29,250
29,300
29,350
29,400
29,450
29,500
29,550
29,600
29,650
29,700
29,750
29,800
29,850
29,900
29,950

29,050
29,100
29,150
29,200
29,250
29,300
29,350
29,400
29,450
29,500
29,550
29,600
29,650
29,700
29,750
29,800
29,850
29,900
29,950
30,000

3,936
3,944
3,951
3,959
3,966
3,974
3,981
3,989
3,996
4,004
4,011
4,019
4,026
4,034
4,041
4,049
4,056
4,064
4,071
4,079

3,519
3,526
3,534
3,541
3,549
3,556
3,564
3,571
3,579
3,586
3,594
3,601
3,609
3,616
3,624
3,631
3,639
3,646
3,654
3,661

3,936
3,944
3,951
3,959
3,966
3,974
3,981
3,989
3,996
4,004
4,011
4,019
4,026
4,034
4,041
4,049
4,056
4,064
4,071
4,079

3,756
3,764
3,771
3,779
3,786
3,794
3,801
3,809
3,816
3,824
3,831
3,839
3,846
3,854
3,861
3,869
3,876
3,884
3,891
3,899

4,086
4,094
4,101
4,109
4,116
4,124
4,131
4,139
4,146
4,154
4,161
4,169
4,176
4,184
4,191
4,199
4,206
4,214
4,221
4,229

3,669
3,676
3,684
3,691
3,699
3,706
3,714
3,721
3,729
3,736
3,744
3,751
3,759
3,766
3,774
3,781
3,789
3,796
3,804
3,811

4,086
4,094
4,101
4,109
4,116
4,124
4,131
4,139
4,146
4,154
4,161
4,169
4,176
4,184
4,191
4,199
4,206
4,214
4,221
4,229

3,906
3,914
3,921
3,929
3,936
3,944
3,951
3,959
3,966
3,974
3,981
3,989
3,996
4,004
4,011
4,019
4,026
4,034
4,041
4,049

4,236
4,244
4,251
4,259
4,266
4,274
4,281
4,289
4,296
4,304
4,311
4,319
4,326
4,334
4,341
4,349
4,356
4,364
4,371
4,379

3,819
3,826
3,834
3,841
3,849
3,856
3,864
3,871
3,879
3,886
3,894
3,901
3,909
3,916
3,924
3,931
3,939
3,946
3,954
3,961

4,236
4,244
4,251
4,259
4,266
4,274
4,281
4,289
4,296
4,304
4,311
4,319
4,326
4,334
4,341
4,349
4,356
4,364
4,371
4,379

4,056
4,064
4,071
4,079
4,086
4,094
4,101
4,109
4,116
4,124
4,131
4,139
4,146
4,154
4,161
4,169
4,176
4,184
4,191
4,199

30,000
3,636
3,644
3,651
3,659
3,666
3,674
3,681
3,689
3,696
3,704
3,711
3,719
3,726
3,734
3,741
3,749
3,756
3,764
3,771
3,779

3,219
3,226
3,234
3,241
3,249
3,256
3,264
3,271
3,279
3,286
3,294
3,301
3,309
3,316
3,324
3,331
3,339
3,346
3,354
3,361

3,636
3,644
3,651
3,659
3,666
3,674
3,681
3,689
3,696
3,704
3,711
3,719
3,726
3,734
3,741
3,749
3,756
3,764
3,771
3,779

3,456
3,464
3,471
3,479
3,486
3,494
3,501
3,509
3,516
3,524
3,531
3,539
3,546
3,554
3,561
3,569
3,576
3,584
3,591
3,599

28,000
3,336
3,344
3,351
3,359
3,366
3,374
3,381
3,389
3,396
3,404
3,411
3,419
3,426
3,434
3,441
3,449
3,456
3,464
3,471
3,479

At
least

And you are

29,000
3,486
3,494
3,501
3,509
3,516
3,524
3,531
3,539
3,546
3,554
3,561
3,569
3,576
3,584
3,591
3,599
3,606
3,614
3,621
3,629

27,000

25,000
25,000
25,050
25,100
25,150
25,200
25,250
25,300
25,350
25,400
25,450
25,500
25,550
25,600
25,650
25,700
25,750
25,800
25,850
25,900
25,950

But
less
than

26,000
3,036
3,044
3,051
3,059
3,066
3,074
3,081
3,089
3,096
3,104
3,111
3,119
3,126
3,134
3,141
3,149
3,156
3,164
3,171
3,179

24,000
24,000
24,050
24,100
24,150
24,200
24,250
24,300
24,350
24,400
24,450
24,500
24,550
24,600
24,650
24,700
24,750
24,800
24,850
24,900
24,950

At
least

If line 43
(taxable
income) is

And you are

30,000
30,050
30,100
30,150
30,200
30,250
30,300
30,350
30,400
30,450
30,500
30,550
30,600
30,650
30,700
30,750
30,800
30,850
30,900
30,950

30,050
30,100
30,150
30,200
30,250
30,300
30,350
30,400
30,450
30,500
30,550
30,600
30,650
30,700
30,750
30,800
30,850
30,900
30,950
31,000

31,000
3,786
3,794
3,801
3,809
3,816
3,824
3,831
3,839
3,846
3,854
3,861
3,869
3,876
3,884
3,891
3,899
3,906
3,914
3,921
3,929

3,369
3,376
3,384
3,391
3,399
3,406
3,414
3,421
3,429
3,436
3,444
3,451
3,459
3,466
3,474
3,481
3,489
3,496
3,504
3,511

3,786
3,794
3,801
3,809
3,816
3,824
3,831
3,839
3,846
3,854
3,861
3,869
3,876
3,884
3,891
3,899
3,906
3,914
3,921
3,929

3,606
3,614
3,621
3,629
3,636
3,644
3,651
3,659
3,666
3,674
3,681
3,689
3,696
3,704
3,711
3,719
3,726
3,734
3,741
3,749

31,000
31,050
31,100
31,150
31,200
31,250
31,300
31,350
31,400
31,450
31,500
31,550
31,600
31,650
31,700
31,750
31,800
31,850
31,900
31,950

31,050
31,100
31,150
31,200
31,250
31,300
31,350
31,400
31,450
31,500
31,550
31,600
31,650
31,700
31,750
31,800
31,850
31,900
31,950
32,000

* This column must also be used by a qualifying widow(er).

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

(Continued on page T-6)

T-6 Individuals 2009 Tax Tables and Rate Schedules

2009 Tax Table Continued

If line 43
(taxable
income) is
At
least

But
less
than

If line 43
(taxable
income) is

And you are

Single

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

32,000
32,000
32,050
32,100
32,150
32,200
32,250
32,300
32,350
32,400
32,450
32,500
32,550
32,600
32,650
32,700
32,750
32,800
32,850
32,900
32,950

32,050
32,100
32,150
32,200
32,250
32,300
32,350
32,400
32,450
32,500
32,550
32,600
32,650
32,700
32,750
32,800
32,850
32,900
32,950
33,000

33,050
33,100
33,150
33,200
33,250
33,300
33,350
33,400
33,450
33,500
33,550
33,600
33,650
33,700
33,750
33,800
33,850
33,900
33,950
34,000

3,969
3,976
3,984
3,991
3,999
4,006
4,014
4,021
4,029
4,036
4,044
4,051
4,059
4,066
4,074
4,081
4,089
4,096
4,104
4,111

4,386
4,394
4,401
4,409
4,416
4,424
4,431
4,439
4,446
4,454
4,461
4,469
4,476
4,484
4,491
4,499
4,506
4,514
4,521
4,529

4,206
4,214
4,221
4,229
4,236
4,244
4,251
4,259
4,266
4,274
4,281
4,289
4,296
4,304
4,311
4,319
4,326
4,334
4,341
4,349

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

35,000
35,050
35,100
35,150
35,200
35,250
35,300
35,350
35,400
35,450
35,500
35,550
35,600
35,650
35,700
35,750
35,800
35,850
35,900
35,950

35,050
35,100
35,150
35,200
35,250
35,300
35,350
35,400
35,450
35,500
35,550
35,600
35,650
35,700
35,750
35,800
35,850
35,900
35,950
36,000

4,536
4,544
4,551
4,559
4,566
4,574
4,581
4,589
4,596
4,604
4,611
4,619
4,626
4,634
4,641
4,649
4,656
4,664
4,671
4,681

4,119
4,126
4,134
4,141
4,149
4,156
4,164
4,171
4,179
4,186
4,194
4,201
4,209
4,216
4,224
4,231
4,239
4,246
4,254
4,261

4,536
4,544
4,551
4,559
4,566
4,574
4,581
4,589
4,596
4,604
4,611
4,619
4,626
4,634
4,641
4,649
4,656
4,664
4,671
4,681

4,356
4,364
4,371
4,379
4,386
4,394
4,401
4,409
4,416
4,424
4,431
4,439
4,446
4,454
4,461
4,469
4,476
4,484
4,491
4,499

36,000
36,050
36,100
36,150
36,200
36,250
36,300
36,350
36,400
36,450
36,500
36,550
36,600
36,650
36,700
36,750
36,800
36,850
36,900
36,950

36,050
36,100
36,150
36,200
36,250
36,300
36,350
36,400
36,450
36,500
36,550
36,600
36,650
36,700
36,750
36,800
36,850
36,900
36,950
37,000

4,269
4,276
4,284
4,291
4,299
4,306
4,314
4,321
4,329
4,336
4,344
4,351
4,359
4,366
4,374
4,381
4,389
4,396
4,404
4,411

4,694
4,706
4,719
4,731
4,744
4,756
4,769
4,781
4,794
4,806
4,819
4,831
4,844
4,856
4,869
4,881
4,894
4,906
4,919
4,931

4,506
4,514
4,521
4,529
4,536
4,544
4,551
4,559
4,566
4,574
4,581
4,589
4,596
4,604
4,611
4,619
4,626
4,634
4,641
4,649

37,000
37,050
37,100
37,150
37,200
37,250
37,300
37,350
37,400
37,450
37,500
37,550
37,600
37,650
37,700
37,750
37,800
37,850
37,900
37,950

37,050
37,100
37,150
37,200
37,250
37,300
37,350
37,400
37,450
37,500
37,550
37,600
37,650
37,700
37,750
37,800
37,850
37,900
37,950
38,000

* This column must also be used by a qualifying widow(er).

But
less
than

Single

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

38,000
4,944
4,956
4,969
4,981
4,994
5,006
5,019
5,031
5,044
5,056
5,069
5,081
5,094
5,106
5,119
5,131
5,144
5,156
5,169
5,181

4,419
4,426
4,434
4,441
4,449
4,456
4,464
4,471
4,479
4,486
4,494
4,501
4,509
4,516
4,524
4,531
4,539
4,546
4,554
4,561

4,944
4,956
4,969
4,981
4,994
5,006
5,019
5,031
5,044
5,056
5,069
5,081
5,094
5,106
5,119
5,131
5,144
5,156
5,169
5,181

4,656
4,664
4,671
4,679
4,686
4,694
4,701
4,709
4,716
4,724
4,731
4,739
4,746
4,754
4,761
4,769
4,776
4,784
4,791
4,799

38,000
38,050
38,100
38,150
38,200
38,250
38,300
38,350
38,400
38,450
38,500
38,550
38,600
38,650
38,700
38,750
38,800
38,850
38,900
38,950

38,050
38,100
38,150
38,200
38,250
38,300
38,350
38,400
38,450
38,500
38,550
38,600
38,650
38,700
38,750
38,800
38,850
38,900
38,950
39,000

5,694
5,706
5,719
5,731
5,744
5,756
5,769
5,781
5,794
5,806
5,819
5,831
5,844
5,856
5,869
5,881
5,894
5,906
5,919
5,931

4,869
4,876
4,884
4,891
4,899
4,906
4,914
4,921
4,929
4,936
4,944
4,951
4,959
4,966
4,974
4,981
4,989
4,996
5,004
5,011

5,694
5,706
5,719
5,731
5,744
5,756
5,769
5,781
5,794
5,806
5,819
5,831
5,844
5,856
5,869
5,881
5,894
5,906
5,919
5,931

5,106
5,114
5,121
5,129
5,136
5,144
5,151
5,159
5,166
5,174
5,181
5,189
5,196
5,204
5,211
5,219
5,226
5,234
5,241
5,249

5,944
5,956
5,969
5,981
5,994
6,006
6,019
6,031
6,044
6,056
6,069
6,081
6,094
6,106
6,119
6,131
6,144
6,156
6,169
6,181

5,019
5,026
5,034
5,041
5,049
5,056
5,064
5,071
5,079
5,086
5,094
5,101
5,109
5,116
5,124
5,131
5,139
5,146
5,154
5,161

5,944
5,956
5,969
5,981
5,994
6,006
6,019
6,031
6,044
6,056
6,069
6,081
6,094
6,106
6,119
6,131
6,144
6,156
6,169
6,181

5,256
5,264
5,271
5,279
5,286
5,294
5,301
5,309
5,316
5,324
5,331
5,339
5,346
5,354
5,361
5,369
5,376
5,384
5,391
5,399

6,194
6,206
6,219
6,231
6,244
6,256
6,269
6,281
6,294
6,306
6,319
6,331
6,344
6,356
6,369
6,381
6,394
6,406
6,419
6,431

5,169
5,176
5,184
5,191
5,199
5,206
5,214
5,221
5,229
5,236
5,244
5,251
5,259
5,266
5,274
5,281
5,289
5,296
5,304
5,311

6,194
6,206
6,219
6,231
6,244
6,256
6,269
6,281
6,294
6,306
6,319
6,331
6,344
6,356
6,369
6,381
6,394
6,406
6,419
6,431

5,406
5,414
5,421
5,429
5,436
5,444
5,451
5,459
5,466
5,474
5,481
5,489
5,496
5,504
5,511
5,519
5,526
5,534
5,541
5,549

39,000
5,194
5,206
5,219
5,231
5,244
5,256
5,269
5,281
5,294
5,306
5,319
5,331
5,344
5,356
5,369
5,381
5,394
5,406
5,419
5,431

4,569
4,576
4,584
4,591
4,599
4,606
4,614
4,621
4,629
4,636
4,644
4,651
4,659
4,666
4,674
4,681
4,689
4,696
4,704
4,711

5,194
5,206
5,219
5,231
5,244
5,256
5,269
5,281
5,294
5,306
5,319
5,331
5,344
5,356
5,369
5,381
5,394
5,406
5,419
5,431

4,806
4,814
4,821
4,829
4,836
4,844
4,851
4,859
4,866
4,874
4,881
4,889
4,896
4,904
4,911
4,919
4,926
4,934
4,941
4,949

37,000
4,694
4,706
4,719
4,731
4,744
4,756
4,769
4,781
4,794
4,806
4,819
4,831
4,844
4,856
4,869
4,881
4,894
4,906
4,919
4,931

At
least

And you are

39,000
39,050
39,100
39,150
39,200
39,250
39,300
39,350
39,400
39,450
39,500
39,550
39,600
39,650
39,700
39,750
39,800
39,850
39,900
39,950

39,050
39,100
39,150
39,200
39,250
39,300
39,350
39,400
39,450
39,500
39,550
39,600
39,650
39,700
39,750
39,800
39,850
39,900
39,950
40,000

40,000
5,444
5,456
5,469
5,481
5,494
5,506
5,519
5,531
5,544
5,556
5,569
5,581
5,594
5,606
5,619
5,631
5,644
5,656
5,669
5,681

4,719
4,726
4,734
4,741
4,749
4,756
4,764
4,771
4,779
4,786
4,794
4,801
4,809
4,816
4,824
4,831
4,839
4,846
4,854
4,861

5,444
5,456
5,469
5,481
5,494
5,506
5,519
5,531
5,544
5,556
5,569
5,581
5,594
5,606
5,619
5,631
5,644
5,656
5,669
5,681

4,956
4,964
4,971
4,979
4,986
4,994
5,001
5,009
5,016
5,024
5,031
5,039
5,046
5,054
5,061
5,069
5,076
5,084
5,091
5,099

40,000
40,050
40,100
40,150
40,200
40,250
40,300
40,350
40,400
40,450
40,500
40,550
40,600
40,650
40,700
40,750
40,800
40,850
40,900
40,950

40,050
40,100
40,150
40,200
40,250
40,300
40,350
40,400
40,450
40,500
40,550
40,600
40,650
40,700
40,750
40,800
40,850
40,900
40,950
41,000

(Continued on page T-7)

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

ISBN 0-558-86017-6

34,050
34,100
34,150
34,200
34,250
34,300
34,350
34,400
34,450
34,500
34,550
34,600
34,650
34,700
34,750
34,800
34,850
34,900
34,950
35,000

Single

36,000

34,000
34,000
34,050
34,100
34,150
34,200
34,250
34,300
34,350
34,400
34,450
34,500
34,550
34,600
34,650
34,700
34,750
34,800
34,850
34,900
34,950

But
less
than

And you are

35,000
4,386
4,394
4,401
4,409
4,416
4,424
4,431
4,439
4,446
4,454
4,461
4,469
4,476
4,484
4,491
4,499
4,506
4,514
4,521
4,529

33,000
33,000
33,050
33,100
33,150
33,200
33,250
33,300
33,350
33,400
33,450
33,500
33,550
33,600
33,650
33,700
33,750
33,800
33,850
33,900
33,950

At
least

If line 43
(taxable
income) is

2009 Tax Tables and Rate Schedules Individuals T-7

2009 Tax Table Continued

If line 43
(taxable
income) is
At
least

But
less
than

If line 43
(taxable
income) is

And you are

Single

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

41,000
41,000
41,050
41,100
41,150
41,200
41,250
41,300
41,350
41,400
41,450
41,500
41,550
41,600
41,650
41,700
41,750
41,800
41,850
41,900
41,950

41,050
41,100
41,150
41,200
41,250
41,300
41,350
41,400
41,450
41,500
41,550
41,600
41,650
41,700
41,750
41,800
41,850
41,900
41,950
42,000

42,050
42,100
42,150
42,200
42,250
42,300
42,350
42,400
42,450
42,500
42,550
42,600
42,650
42,700
42,750
42,800
42,850
42,900
42,950
43,000

5,319
5,326
5,334
5,341
5,349
5,356
5,364
5,371
5,379
5,386
5,394
5,401
5,409
5,416
5,424
5,431
5,439
5,446
5,454
5,461

6,444
6,456
6,469
6,481
6,494
6,506
6,519
6,531
6,544
6,556
6,569
6,581
6,594
6,606
6,619
6,631
6,644
6,656
6,669
6,681

5,556
5,564
5,571
5,579
5,586
5,594
5,601
5,609
5,616
5,624
5,631
5,639
5,646
5,654
5,661
5,669
5,676
5,684
5,691
5,699

ISBN 0-558-86017-6

43,050
43,100
43,150
43,200
43,250
43,300
43,350
43,400
43,450
43,500
43,550
43,600
43,650
43,700
43,750
43,800
43,850
43,900
43,950
44,000

Single

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

44,000
44,050
44,100
44,150
44,200
44,250
44,300
44,350
44,400
44,450
44,500
44,550
44,600
44,650
44,700
44,750
44,800
44,850
44,900
44,950

44,050
44,100
44,150
44,200
44,250
44,300
44,350
44,400
44,450
44,500
44,550
44,600
44,650
44,700
44,750
44,800
44,850
44,900
44,950
45,000

6,694
6,706
6,719
6,731
6,744
6,756
6,769
6,781
6,794
6,806
6,819
6,831
6,844
6,856
6,869
6,881
6,894
6,906
6,919
6,931

5,469
5,476
5,484
5,491
5,499
5,506
5,514
5,521
5,529
5,536
5,544
5,551
5,559
5,566
5,574
5,581
5,589
5,596
5,604
5,611

6,694
6,706
6,719
6,731
6,744
6,756
6,769
6,781
6,794
6,806
6,819
6,831
6,844
6,856
6,869
6,881
6,894
6,906
6,919
6,931

5,706
5,714
5,721
5,729
5,736
5,744
5,751
5,759
5,766
5,774
5,781
5,789
5,796
5,804
5,811
5,819
5,826
5,834
5,841
5,849

45,000
45,050
45,100
45,150
45,200
45,250
45,300
45,350
45,400
45,450
45,500
45,550
45,600
45,650
45,700
45,750
45,800
45,850
45,900
45,950

45,050
45,100
45,150
45,200
45,250
45,300
45,350
45,400
45,450
45,500
45,550
45,600
45,650
45,700
45,750
45,800
45,850
45,900
45,950
46,000

5,769
5,776
5,784
5,791
5,799
5,806
5,814
5,821
5,829
5,836
5,844
5,851
5,859
5,866
5,874
5,881
5,889
5,896
5,904
5,911

7,194
7,206
7,219
7,231
7,244
7,256
7,269
7,281
7,294
7,306
7,319
7,331
7,344
7,356
7,369
7,381
7,394
7,406
7,419
7,431

6,006
6,014
6,021
6,029
6,036
6,044
6,051
6,059
6,066
6,074
6,081
6,089
6,096
6,104
6,111
6,119
6,126
6,134
6,141
6,149

5,619
5,626
5,634
5,641
5,649
5,656
5,664
5,671
5,679
5,686
5,694
5,701
5,709
5,716
5,724
5,731
5,739
5,746
5,754
5,761

6,944
6,956
6,969
6,981
6,994
7,006
7,019
7,031
7,044
7,056
7,069
7,081
7,094
7,106
7,119
7,131
7,144
7,156
7,169
7,181

5,856
5,864
5,871
5,879
5,886
5,894
5,901
5,909
5,916
5,924
5,931
5,939
5,946
5,954
5,961
5,969
5,976
5,984
5,991
5,999

46,000
46,050
46,100
46,150
46,200
46,250
46,300
46,350
46,400
46,450
46,500
46,550
46,600
46,650
46,700
46,750
46,800
46,850
46,900
46,950

46,050
46,100
46,150
46,200
46,250
46,300
46,350
46,400
46,450
46,500
46,550
46,600
46,650
46,700
46,750
46,800
46,850
46,900
46,950
47,000

But
less
than

Single

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

47,000
47,050
47,100
47,150
47,200
47,250
47,300
47,350
47,400
47,450
47,500
47,550
47,600
47,650
47,700
47,750
47,800
47,850
47,900
47,950

47,050
47,100
47,150
47,200
47,250
47,300
47,350
47,400
47,450
47,500
47,550
47,600
47,650
47,700
47,750
47,800
47,850
47,900
47,950
48,000

7,944
7,956
7,969
7,981
7,994
8,006
8,019
8,031
8,044
8,056
8,069
8,081
8,094
8,106
8,119
8,131
8,144
8,156
8,169
8,181

6,219
6,226
6,234
6,241
6,249
6,256
6,264
6,271
6,279
6,286
6,294
6,301
6,309
6,316
6,324
6,331
6,339
6,346
6,354
6,361

7,944
7,956
7,969
7,981
7,994
8,006
8,019
8,031
8,044
8,056
8,069
8,081
8,094
8,106
8,119
8,131
8,144
8,156
8,169
8,181

6,609
6,621
6,634
6,646
6,659
6,671
6,684
6,696
6,709
6,721
6,734
6,746
6,759
6,771
6,784
6,796
6,809
6,821
6,834
6,846

8,194
8,206
8,219
8,231
8,244
8,256
8,269
8,281
8,294
8,306
8,319
8,331
8,344
8,356
8,369
8,381
8,394
8,406
8,419
8,431

6,369
6,376
6,384
6,391
6,399
6,406
6,414
6,421
6,429
6,436
6,444
6,451
6,459
6,466
6,474
6,481
6,489
6,496
6,504
6,511

8,194
8,206
8,219
8,231
8,244
8,256
8,269
8,281
8,294
8,306
8,319
8,331
8,344
8,356
8,369
8,381
8,394
8,406
8,419
8,431

6,859
6,871
6,884
6,896
6,909
6,921
6,934
6,946
6,959
6,971
6,984
6,996
7,009
7,021
7,034
7,046
7,059
7,071
7,084
7,096

8,444
8,456
8,469
8,481
8,494
8,506
8,519
8,531
8,544
8,556
8,569
8,581
8,594
8,606
8,619
8,631
8,644
8,656
8,669
8,681

6,519
6,526
6,534
6,541
6,549
6,556
6,564
6,571
6,579
6,586
6,594
6,601
6,609
6,616
6,624
6,631
6,639
6,646
6,654
6,661

8,444
8,456
8,469
8,481
8,494
8,506
8,519
8,531
8,544
8,556
8,569
8,581
8,594
8,606
8,619
8,631
8,644
8,656
8,669
8,681

7,109
7,121
7,134
7,146
7,159
7,171
7,184
7,196
7,209
7,221
7,234
7,246
7,259
7,271
7,284
7,296
7,309
7,321
7,334
7,346

48,000
7,444
7,456
7,469
7,481
7,494
7,506
7,519
7,531
7,544
7,556
7,569
7,581
7,594
7,606
7,619
7,631
7,644
7,656
7,669
7,681

5,919
5,926
5,934
5,941
5,949
5,956
5,964
5,971
5,979
5,986
5,994
6,001
6,009
6,016
6,024
6,031
6,039
6,046
6,054
6,061

7,444
7,456
7,469
7,481
7,494
7,506
7,519
7,531
7,544
7,556
7,569
7,581
7,594
7,606
7,619
7,631
7,644
7,656
7,669
7,681

6,156
6,164
6,171
6,179
6,186
6,194
6,201
6,209
6,216
6,224
6,234
6,246
6,259
6,271
6,284
6,296
6,309
6,321
6,334
6,346

46,000
6,944
6,956
6,969
6,981
6,994
7,006
7,019
7,031
7,044
7,056
7,069
7,081
7,094
7,106
7,119
7,131
7,144
7,156
7,169
7,181

At
least

And you are

47,000
7,194
7,206
7,219
7,231
7,244
7,256
7,269
7,281
7,294
7,306
7,319
7,331
7,344
7,356
7,369
7,381
7,394
7,406
7,419
7,431

45,000

43,000
43,000
43,050
43,100
43,150
43,200
43,250
43,300
43,350
43,400
43,450
43,500
43,550
43,600
43,650
43,700
43,750
43,800
43,850
43,900
43,950

But
less
than

44,000
6,444
6,456
6,469
6,481
6,494
6,506
6,519
6,531
6,544
6,556
6,569
6,581
6,594
6,606
6,619
6,631
6,644
6,656
6,669
6,681

42,000
42,000
42,050
42,100
42,150
42,200
42,250
42,300
42,350
42,400
42,450
42,500
42,550
42,600
42,650
42,700
42,750
42,800
42,850
42,900
42,950

At
least

If line 43
(taxable
income) is

And you are

48,000
48,050
48,100
48,150
48,200
48,250
48,300
48,350
48,400
48,450
48,500
48,550
48,600
48,650
48,700
48,750
48,800
48,850
48,900
48,950

48,050
48,100
48,150
48,200
48,250
48,300
48,350
48,400
48,450
48,500
48,550
48,600
48,650
48,700
48,750
48,800
48,850
48,900
48,950
49,000

49,000
7,694
7,706
7,719
7,731
7,744
7,756
7,769
7,781
7,794
7,806
7,819
7,831
7,844
7,856
7,869
7,881
7,894
7,906
7,919
7,931

6,069
6,076
6,084
6,091
6,099
6,106
6,114
6,121
6,129
6,136
6,144
6,151
6,159
6,166
6,174
6,181
6,189
6,196
6,204
6,211

7,694
7,706
7,719
7,731
7,744
7,756
7,769
7,781
7,794
7,806
7,819
7,831
7,844
7,856
7,869
7,881
7,894
7,906
7,919
7,931

6,359
6,371
6,384
6,396
6,409
6,421
6,434
6,446
6,459
6,471
6,484
6,496
6,509
6,521
6,534
6,546
6,559
6,571
6,584
6,596

49,000
49,050
49,100
49,150
49,200
49,250
49,300
49,350
49,400
49,450
49,500
49,550
49,600
49,650
49,700
49,750
49,800
49,850
49,900
49,950

49,050
49,100
49,150
49,200
49,250
49,300
49,350
49,400
49,450
49,500
49,550
49,600
49,650
49,700
49,750
49,800
49,850
49,900
49,950
50,000

* This column must also be used by a qualifying widow(er).

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

(Continued on page T-8)

T-8 Individuals 2009 Tax Tables and Rate Schedules

2009 Tax Table Continued

If line 43
(taxable
income) is
At
least

But
less
than

If line 43
(taxable
income) is

And you are

Single

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

50,000
50,000
50,050
50,100
50,150
50,200
50,250
50,300
50,350
50,400
50,450
50,500
50,550
50,600
50,650
50,700
50,750
50,800
50,850
50,900
50,950

50,050
50,100
50,150
50,200
50,250
50,300
50,350
50,400
50,450
50,500
50,550
50,600
50,650
50,700
50,750
50,800
50,850
50,900
50,950
51,000

51,050
51,100
51,150
51,200
51,250
51,300
51,350
51,400
51,450
51,500
51,550
51,600
51,650
51,700
51,750
51,800
51,850
51,900
51,950
52,000

6,669
6,676
6,684
6,691
6,699
6,706
6,714
6,721
6,729
6,736
6,744
6,751
6,759
6,766
6,774
6,781
6,789
6,796
6,804
6,811

8,694
8,706
8,719
8,731
8,744
8,756
8,769
8,781
8,794
8,806
8,819
8,831
8,844
8,856
8,869
8,881
8,894
8,906
8,919
8,931

7,359
7,371
7,384
7,396
7,409
7,421
7,434
7,446
7,459
7,471
7,484
7,496
7,509
7,521
7,534
7,546
7,559
7,571
7,584
7,596

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

53,000
53,050
53,100
53,150
53,200
53,250
53,300
53,350
53,400
53,450
53,500
53,550
53,600
53,650
53,700
53,750
53,800
53,850
53,900
53,950

53,050
53,100
53,150
53,200
53,250
53,300
53,350
53,400
53,450
53,500
53,550
53,600
53,650
53,700
53,750
53,800
53,850
53,900
53,950
54,000

8,944
8,956
8,969
8,981
8,994
9,006
9,019
9,031
9,044
9,056
9,069
9,081
9,094
9,106
9,119
9,131
9,144
9,156
9,169
9,181

6,819
6,826
6,834
6,841
6,849
6,856
6,864
6,871
6,879
6,886
6,894
6,901
6,909
6,916
6,924
6,931
6,939
6,946
6,954
6,961

8,944
8,956
8,969
8,981
8,994
9,006
9,019
9,031
9,044
9,056
9,069
9,081
9,094
9,106
9,119
9,131
9,144
9,156
9,169
9,181

7,609
7,621
7,634
7,646
7,659
7,671
7,684
7,696
7,709
7,721
7,734
7,746
7,759
7,771
7,784
7,796
7,809
7,821
7,834
7,846

54,000
54,050
54,100
54,150
54,200
54,250
54,300
54,350
54,400
54,450
54,500
54,550
54,600
54,650
54,700
54,750
54,800
54,850
54,900
54,950

54,050
54,100
54,150
54,200
54,250
54,300
54,350
54,400
54,450
54,500
54,550
54,600
54,650
54,700
54,750
54,800
54,850
54,900
54,950
55,000

6,969
6,976
6,984
6,991
6,999
7,006
7,014
7,021
7,029
7,036
7,044
7,051
7,059
7,066
7,074
7,081
7,089
7,096
7,104
7,111

9,194
9,206
9,219
9,231
9,244
9,256
9,269
9,281
9,294
9,306
9,319
9,331
9,344
9,356
9,369
9,381
9,394
9,406
9,419
9,431

7,859
7,871
7,884
7,896
7,909
7,921
7,934
7,946
7,959
7,971
7,984
7,996
8,009
8,021
8,034
8,046
8,059
8,071
8,084
8,096

55,000
55,050
55,100
55,150
55,200
55,250
55,300
55,350
55,400
55,450
55,500
55,550
55,600
55,650
55,700
55,750
55,800
55,850
55,900
55,950

55,050
55,100
55,150
55,200
55,250
55,300
55,350
55,400
55,450
55,500
55,550
55,600
55,650
55,700
55,750
55,800
55,850
55,900
55,950
56,000

* This column must also be used by a qualifying widow(er).

But
less
than

Single

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

56,000
9,444
9,456
9,469
9,481
9,494
9,506
9,519
9,531
9,544
9,556
9,569
9,581
9,594
9,606
9,619
9,631
9,644
9,656
9,669
9,681

7,119
7,126
7,134
7,141
7,149
7,156
7,164
7,171
7,179
7,186
7,194
7,201
7,209
7,216
7,224
7,231
7,239
7,246
7,254
7,261

9,444
9,456
9,469
9,481
9,494
9,506
9,519
9,531
9,544
9,556
9,569
9,581
9,594
9,606
9,619
9,631
9,644
9,656
9,669
9,681

8,109
8,121
8,134
8,146
8,159
8,171
8,184
8,196
8,209
8,221
8,234
8,246
8,259
8,271
8,284
8,296
8,309
8,321
8,334
8,346

56,000
56,050
56,100
56,150
56,200
56,250
56,300
56,350
56,400
56,450
56,500
56,550
56,600
56,650
56,700
56,750
56,800
56,850
56,900
56,950

56,050
56,100
56,150
56,200
56,250
56,300
56,350
56,400
56,450
56,500
56,550
56,600
56,650
56,700
56,750
56,800
56,850
56,900
56,950
57,000

10,194
10,206
10,219
10,231
10,244
10,256
10,269
10,281
10,294
10,306
10,319
10,331
10,344
10,356
10,369
10,381
10,394
10,406
10,419
10,431

7,569
7,576
7,584
7,591
7,599
7,606
7,614
7,621
7,629
7,636
7,644
7,651
7,659
7,666
7,674
7,681
7,689
7,696
7,704
7,711

10,194
10,206
10,219
10,231
10,244
10,256
10,269
10,281
10,294
10,306
10,319
10,331
10,344
10,356
10,369
10,381
10,394
10,406
10,419
10,431

8,859
8,871
8,884
8,896
8,909
8,921
8,934
8,946
8,959
8,971
8,984
8,996
9,009
9,021
9,034
9,046
9,059
9,071
9,084
9,096

10,444
10,456
10,469
10,481
10,494
10,506
10,519
10,531
10,544
10,556
10,569
10,581
10,594
10,606
10,619
10,631
10,644
10,656
10,669
10,681

7,719
7,726
7,734
7,741
7,749
7,756
7,764
7,771
7,779
7,786
7,794
7,801
7,809
7,816
7,824
7,831
7,839
7,846
7,854
7,861

10,444
10,456
10,469
10,481
10,494
10,506
10,519
10,531
10,544
10,556
10,569
10,581
10,594
10,606
10,619
10,631
10,644
10,656
10,669
10,681

9,109
9,121
9,134
9,146
9,159
9,171
9,184
9,196
9,209
9,221
9,234
9,246
9,259
9,271
9,284
9,296
9,309
9,321
9,334
9,346

10,694
10,706
10,719
10,731
10,744
10,756
10,769
10,781
10,794
10,806
10,819
10,831
10,844
10,856
10,869
10,881
10,894
10,906
10,919
10,931

7,869
7,876
7,884
7,891
7,899
7,906
7,914
7,921
7,929
7,936
7,944
7,951
7,959
7,966
7,974
7,981
7,989
7,996
8,004
8,011

10,694
10,706
10,719
10,731
10,744
10,756
10,769
10,781
10,794
10,806
10,819
10,831
10,844
10,856
10,869
10,881
10,894
10,906
10,919
10,931

9,359
9,371
9,384
9,396
9,409
9,421
9,434
9,446
9,459
9,471
9,484
9,496
9,509
9,521
9,534
9,546
9,559
9,571
9,584
9,596

57,000
9,694
9,706
9,719
9,731
9,744
9,756
9,769
9,781
9,794
9,806
9,819
9,831
9,844
9,856
9,869
9,881
9,894
9,906
9,919
9,931

7,269
7,276
7,284
7,291
7,299
7,306
7,314
7,321
7,329
7,336
7,344
7,351
7,359
7,366
7,374
7,381
7,389
7,396
7,404
7,411

9,694
9,706
9,719
9,731
9,744
9,756
9,769
9,781
9,794
9,806
9,819
9,831
9,844
9,856
9,869
9,881
9,894
9,906
9,919
9,931

8,359
8,371
8,384
8,396
8,409
8,421
8,434
8,446
8,459
8,471
8,484
8,496
8,509
8,521
8,534
8,546
8,559
8,571
8,584
8,596

55,000
9,194
9,206
9,219
9,231
9,244
9,256
9,269
9,281
9,294
9,306
9,319
9,331
9,344
9,356
9,369
9,381
9,394
9,406
9,419
9,431

At
least

And you are

57,000
57,050
57,100
57,150
57,200
57,250
57,300
57,350
57,400
57,450
57,500
57,550
57,600
57,650
57,700
57,750
57,800
57,850
57,900
57,950

57,050
57,100
57,150
57,200
57,250
57,300
57,350
57,400
57,450
57,500
57,550
57,600
57,650
57,700
57,750
57,800
57,850
57,900
57,950
58,000

58,000
9,944
9,956
9,969
9,981
9,994
10,006
10,019
10,031
10,044
10,056
10,069
10,081
10,094
10,106
10,119
10,131
10,144
10,156
10,169
10,181

7,419
7,426
7,434
7,441
7,449
7,456
7,464
7,471
7,479
7,486
7,494
7,501
7,509
7,516
7,524
7,531
7,539
7,546
7,554
7,561

9,944
9,956
9,969
9,981
9,994
10,006
10,019
10,031
10,044
10,056
10,069
10,081
10,094
10,106
10,119
10,131
10,144
10,156
10,169
10,181

8,609
8,621
8,634
8,646
8,659
8,671
8,684
8,696
8,709
8,721
8,734
8,746
8,759
8,771
8,784
8,796
8,809
8,821
8,834
8,846

58,000
58,050
58,100
58,150
58,200
58,250
58,300
58,350
58,400
58,450
58,500
58,550
58,600
58,650
58,700
58,750
58,800
58,850
58,900
58,950

58,050
58,100
58,150
58,200
58,250
58,300
58,350
58,400
58,450
58,500
58,550
58,600
58,650
58,700
58,750
58,800
58,850
58,900
58,950
59,000

(Continued on page T-9)

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

ISBN 0-558-86017-6

52,050
52,100
52,150
52,200
52,250
52,300
52,350
52,400
52,450
52,500
52,550
52,600
52,650
52,700
52,750
52,800
52,850
52,900
52,950
53,000

Single

54,000

52,000
52,000
52,050
52,100
52,150
52,200
52,250
52,300
52,350
52,400
52,450
52,500
52,550
52,600
52,650
52,700
52,750
52,800
52,850
52,900
52,950

But
less
than

And you are

53,000
8,694
8,706
8,719
8,731
8,744
8,756
8,769
8,781
8,794
8,806
8,819
8,831
8,844
8,856
8,869
8,881
8,894
8,906
8,919
8,931

51,000
51,000
51,050
51,100
51,150
51,200
51,250
51,300
51,350
51,400
51,450
51,500
51,550
51,600
51,650
51,700
51,750
51,800
51,850
51,900
51,950

At
least

If line 43
(taxable
income) is

2009 Tax Tables and Rate Schedules Individuals T-9

2009 Tax Table Continued

If line 43
(taxable
income) is
At
least

But
less
than

If line 43
(taxable
income) is

And you are

Single

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

59,000
59,000
59,050
59,100
59,150
59,200
59,250
59,300
59,350
59,400
59,450
59,500
59,550
59,600
59,650
59,700
59,750
59,800
59,850
59,900
59,950

59,050
59,100
59,150
59,200
59,250
59,300
59,350
59,400
59,450
59,500
59,550
59,600
59,650
59,700
59,750
59,800
59,850
59,900
59,950
60,000

60,050
60,100
60,150
60,200
60,250
60,300
60,350
60,400
60,450
60,500
60,550
60,600
60,650
60,700
60,750
60,800
60,850
60,900
60,950
61,000

8,019
8,026
8,034
8,041
8,049
8,056
8,064
8,071
8,079
8,086
8,094
8,101
8,109
8,116
8,124
8,131
8,139
8,146
8,154
8,161

10,944
10,956
10,969
10,981
10,994
11,006
11,019
11,031
11,044
11,056
11,069
11,081
11,094
11,106
11,119
11,131
11,144
11,156
11,169
11,181

9,609
9,621
9,634
9,646
9,659
9,671
9,684
9,696
9,709
9,721
9,734
9,746
9,759
9,771
9,784
9,796
9,809
9,821
9,834
9,846

ISBN 0-558-86017-6

61,050
61,100
61,150
61,200
61,250
61,300
61,350
61,400
61,450
61,500
61,550
61,600
61,650
61,700
61,750
61,800
61,850
61,900
61,950
62,000

Single

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

At
least

62,000
62,050
62,100
62,150
62,200
62,250
62,300
62,350
62,400
62,450
62,500
62,550
62,600
62,650
62,700
62,750
62,800
62,850
62,900
62,950

62,050
62,100
62,150
62,200
62,250
62,300
62,350
62,400
62,450
62,500
62,550
62,600
62,650
62,700
62,750
62,800
62,850
62,900
62,950
63,000

10,359
10,371
10,384
10,396
10,409
10,421
10,434
10,446
10,459
10,471
10,484
10,496
10,509
10,521
10,534
10,546
10,559
10,571
10,584
10,596

65,000
65,050
65,100
65,150
65,200
65,250
65,300
65,350
65,400
65,450
65,500
65,550
65,600
65,650
65,700
65,750
65,800
65,850
65,900
65,950

11,194
11,206
11,219
11,231
11,244
11,256
11,269
11,281
11,294
11,306
11,319
11,331
11,344
11,356
11,369
11,381
11,394
11,406
11,419
11,431

8,169
8,176
8,184
8,191
8,199
8,206
8,214
8,221
8,229
8,236
8,244
8,251
8,259
8,266
8,274
8,281
8,289
8,296
8,304
8,311

11,194
11,206
11,219
11,231
11,244
11,256
11,269
11,281
11,294
11,306
11,319
11,331
11,344
11,356
11,369
11,381
11,394
11,406
11,419
11,431

9,859
9,871
9,884
9,896
9,909
9,921
9,934
9,946
9,959
9,971
9,984
9,996
10,009
10,021
10,034
10,046
10,059
10,071
10,084
10,096

63,000
63,050
63,100
63,150
63,200
63,250
63,300
63,350
63,400
63,450
63,500
63,550
63,600
63,650
63,700
63,750
63,800
63,850
63,900
63,950

63,050
63,100
63,150
63,200
63,250
63,300
63,350
63,400
63,450
63,500
63,550
63,600
63,650
63,700
63,750
63,800
63,850
63,900
63,950
64,000

8,469
8,476
8,484
8,491
8,499
8,506
8,514
8,521
8,529
8,536
8,544
8,551
8,559
8,566
8,574
8,581
8,589
8,596
8,604
8,611

11,694
11,706
11,719
11,731
11,744
11,756
11,769
11,781
11,794
11,806
11,819
11,831
11,844
11,856
11,869
11,881
11,894
11,906
11,919
11,931

8,319
8,326
8,334
8,341
8,349
8,356
8,364
8,371
8,379
8,386
8,394
8,401
8,409
8,416
8,424
8,431
8,439
8,446
8,454
8,461

11,444
11,456
11,469
11,481
11,494
11,506
11,519
11,531
11,544
11,556
11,569
11,581
11,594
11,606
11,619
11,631
11,644
11,656
11,669
11,681

10,109
10,121
10,134
10,146
10,159
10,171
10,184
10,196
10,209
10,221
10,234
10,246
10,259
10,271
10,284
10,296
10,309
10,321
10,334
10,346

64,000
64,050
64,100
64,150
64,200
64,250
64,300
64,350
64,400
64,450
64,500
64,550
64,600
64,650
64,700
64,750
64,800
64,850
64,900
64,950

64,050
64,100
64,150
64,200
64,250
64,300
64,350
64,400
64,450
64,500
64,550
64,600
64,650
64,700
64,750
64,800
64,850
64,900
64,950
65,000

* This column must also be used by a qualifying widow(er).

Single

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

65,050
65,100
65,150
65,200
65,250
65,300
65,350
65,400
65,450
65,500
65,550
65,600
65,650
65,700
65,750
65,800
65,850
65,900
65,950
66,000

12,444
12,456
12,469
12,481
12,494
12,506
12,519
12,531
12,544
12,556
12,569
12,581
12,594
12,606
12,619
12,631
12,644
12,656
12,669
12,681

8,919
8,926
8,934
8,941
8,949
8,956
8,964
8,971
8,979
8,986
8,994
9,001
9,009
9,016
9,024
9,031
9,039
9,046
9,054
9,061

12,444
12,456
12,469
12,481
12,494
12,506
12,519
12,531
12,544
12,556
12,569
12,581
12,594
12,606
12,619
12,631
12,644
12,656
12,669
12,681

11,109
11,121
11,134
11,146
11,159
11,171
11,184
11,196
11,209
11,221
11,234
11,246
11,259
11,271
11,284
11,296
11,309
11,321
11,334
11,346

12,694
12,706
12,719
12,731
12,744
12,756
12,769
12,781
12,794
12,806
12,819
12,831
12,844
12,856
12,869
12,881
12,894
12,906
12,919
12,931

9,069
9,076
9,084
9,091
9,099
9,106
9,114
9,121
9,129
9,136
9,144
9,151
9,159
9,166
9,174
9,181
9,189
9,196
9,204
9,211

12,694
12,706
12,719
12,731
12,744
12,756
12,769
12,781
12,794
12,806
12,819
12,831
12,844
12,856
12,869
12,881
12,894
12,906
12,919
12,931

11,359
11,371
11,384
11,396
11,409
11,421
11,434
11,446
11,459
11,471
11,484
11,496
11,509
11,521
11,534
11,546
11,559
11,571
11,584
11,596

12,944
12,956
12,969
12,981
12,994
13,006
13,019
13,031
13,044
13,056
13,069
13,081
13,094
13,106
13,119
13,131
13,144
13,156
13,169
13,181

9,219
9,226
9,234
9,241
9,249
9,256
9,264
9,271
9,279
9,286
9,294
9,301
9,309
9,316
9,324
9,331
9,339
9,346
9,356
9,369

12,944
12,956
12,969
12,981
12,994
13,006
13,019
13,031
13,044
13,056
13,069
13,081
13,094
13,106
13,119
13,131
13,144
13,156
13,169
13,181

11,609
11,621
11,634
11,646
11,659
11,671
11,684
11,696
11,709
11,721
11,734
11,746
11,759
11,771
11,784
11,796
11,809
11,821
11,834
11,846

66,000
11,944
11,956
11,969
11,981
11,994
12,006
12,019
12,031
12,044
12,056
12,069
12,081
12,094
12,106
12,119
12,131
12,144
12,156
12,169
12,181

8,619
8,626
8,634
8,641
8,649
8,656
8,664
8,671
8,679
8,686
8,694
8,701
8,709
8,716
8,724
8,731
8,739
8,746
8,754
8,761

11,944
11,956
11,969
11,981
11,994
12,006
12,019
12,031
12,044
12,056
12,069
12,081
12,094
12,106
12,119
12,131
12,144
12,156
12,169
12,181

10,609
10,621
10,634
10,646
10,659
10,671
10,684
10,696
10,709
10,721
10,734
10,746
10,759
10,771
10,784
10,796
10,809
10,821
10,834
10,846

64,000
11,444
11,456
11,469
11,481
11,494
11,506
11,519
11,531
11,544
11,556
11,569
11,581
11,594
11,606
11,619
11,631
11,644
11,656
11,669
11,681

But
less
than

And you are

65,000
11,694
11,706
11,719
11,731
11,744
11,756
11,769
11,781
11,794
11,806
11,819
11,831
11,844
11,856
11,869
11,881
11,894
11,906
11,919
11,931

63,000

61,000
61,000
61,050
61,100
61,150
61,200
61,250
61,300
61,350
61,400
61,450
61,500
61,550
61,600
61,650
61,700
61,750
61,800
61,850
61,900
61,950

But
less
than

62,000
10,944
10,956
10,969
10,981
10,994
11,006
11,019
11,031
11,044
11,056
11,069
11,081
11,094
11,106
11,119
11,131
11,144
11,156
11,169
11,181

60,000
60,000
60,050
60,100
60,150
60,200
60,250
60,300
60,350
60,400
60,450
60,500
60,550
60,600
60,650
60,700
60,750
60,800
60,850
60,900
60,950

At
least

If line 43
(taxable
income) is

And you are

66,000
66,050
66,100
66,150
66,200
66,250
66,300
66,350
66,400
66,450
66,500
66,550
66,600
66,650
66,700
66,750
66,800
66,850
66,900
66,950

66,050
66,100
66,150
66,200
66,250
66,300
66,350
66,400
66,450
66,500
66,550
66,600
66,650
66,700
66,750
66,800
66,850
66,900
66,950
67,000

67,000
12,194
12,206
12,219
12,231
12,244
12,256
12,269
12,281
12,294
12,306
12,319
12,331
12,344
12,356
12,369
12,381
12,394
12,406
12,419
12,431

8,769
8,776
8,784
8,791
8,799
8,806
8,814
8,821
8,829
8,836
8,844
8,851
8,859
8,866
8,874
8,881
8,889
8,896
8,904
8,911

12,194
12,206
12,219
12,231
12,244
12,256
12,269
12,281
12,294
12,306
12,319
12,331
12,344
12,356
12,369
12,381
12,394
12,406
12,419
12,431

10,859
10,871
10,884
10,896
10,909
10,921
10,934
10,946
10,959
10,971
10,984
10,996
11,009
11,021
11,034
11,046
11,059
11,071
11,084
11,096

67,000
67,050
67,100
67,150
67,200
67,250
67,300
67,350
67,400
67,450
67,500
67,550
67,600
67,650
67,700
67,750
67,800
67,850
67,900
67,950

67,050
67,100
67,150
67,200
67,250
67,300
67,350
67,400
67,450
67,500
67,550
67,600
67,650
67,700
67,750
67,800
67,850
67,900
67,950
68,000

(Continued on page T-10)

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

T-10 Individuals 2009 Tax Tables and Rate Schedules

2009 Tax Table Continued

If line 43
(taxable
income) is
At
least

But
less
than

If line 43
(taxable
income) is

And you are

Single

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

At
least

11,859
11,871
11,884
11,896
11,909
11,921
11,934
11,946
11,959
11,971
11,984
11,996
12,009
12,021
12,034
12,046
12,059
12,071
12,084
12,096

71,000
71,050
71,100
71,150
71,200
71,250
71,300
71,350
71,400
71,450
71,500
71,550
71,600
71,650
71,700
71,750
71,800
71,850
71,900
71,950

68,000
68,000
68,050
68,100
68,150
68,200
68,250
68,300
68,350
68,400
68,450
68,500
68,550
68,600
68,650
68,700
68,750
68,800
68,850
68,900
68,950

68,050
68,100
68,150
68,200
68,250
68,300
68,350
68,400
68,450
68,500
68,550
68,600
68,650
68,700
68,750
68,800
68,850
68,900
68,950
69,000

69,050
69,100
69,150
69,200
69,250
69,300
69,350
69,400
69,450
69,500
69,550
69,600
69,650
69,700
69,750
69,800
69,850
69,900
69,950
70,000

9,381
9,394
9,406
9,419
9,431
9,444
9,456
9,469
9,481
9,494
9,506
9,519
9,531
9,544
9,556
9,569
9,581
9,594
9,606
9,619

13,194
13,206
13,219
13,231
13,244
13,256
13,269
13,281
13,294
13,306
13,319
13,333
13,347
13,361
13,375
13,389
13,403
13,417
13,431
13,445

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

At
least

71,050
71,100
71,150
71,200
71,250
71,300
71,350
71,400
71,450
71,500
71,550
71,600
71,650
71,700
71,750
71,800
71,850
71,900
71,950
72,000

13,944
13,956
13,969
13,981
13,994
14,006
14,019
14,031
14,044
14,056
14,069
14,081
14,094
14,106
14,119
14,131
14,144
14,156
14,169
14,181

10,131
10,144
10,156
10,169
10,181
10,194
10,206
10,219
10,231
10,244
10,256
10,269
10,281
10,294
10,306
10,319
10,331
10,344
10,356
10,369

12,609
12,621
12,634
12,646
12,659
12,671
12,684
12,696
12,709
12,721
12,734
12,746
12,759
12,771
12,784
12,796
12,809
12,821
12,834
12,846

74,000
74,050
74,100
74,150
74,200
74,250
74,300
74,350
74,400
74,450
74,500
74,550
74,600
74,650
74,700
74,750
74,800
74,850
74,900
74,950

13,444
13,456
13,469
13,481
13,494
13,506
13,519
13,531
13,544
13,556
13,569
13,581
13,594
13,606
13,619
13,631
13,644
13,656
13,669
13,681

9,631
9,644
9,656
9,669
9,681
9,694
9,706
9,719
9,731
9,744
9,756
9,769
9,781
9,794
9,806
9,819
9,831
9,844
9,856
9,869

13,459
13,473
13,487
13,501
13,515
13,529
13,543
13,557
13,571
13,585
13,599
13,613
13,627
13,641
13,655
13,669
13,683
13,697
13,711
13,725

12,109
12,121
12,134
12,146
12,159
12,171
12,184
12,196
12,209
12,221
12,234
12,246
12,259
12,271
12,284
12,296
12,309
12,321
12,334
12,346

72,000
72,050
72,100
72,150
72,200
72,250
72,300
72,350
72,400
72,450
72,500
72,550
72,600
72,650
72,700
72,750
72,800
72,850
72,900
72,950

72,050
72,100
72,150
72,200
72,250
72,300
72,350
72,400
72,450
72,500
72,550
72,600
72,650
72,700
72,750
72,800
72,850
72,900
72,950
73,000

9,881
9,894
9,906
9,919
9,931
9,944
9,956
9,969
9,981
9,994
10,006
10,019
10,031
10,044
10,056
10,069
10,081
10,094
10,106
10,119

13,739
13,753
13,767
13,781
13,795
13,809
13,823
13,837
13,851
13,865
13,879
13,893
13,907
13,921
13,935
13,949
13,963
13,977
13,991
14,005

12,359
12,371
12,384
12,396
12,409
12,421
12,434
12,446
12,459
12,471
12,484
12,496
12,509
12,521
12,534
12,546
12,559
12,571
12,584
12,596

73,000
73,050
73,100
73,150
73,200
73,250
73,300
73,350
73,400
73,450
73,500
73,550
73,600
73,650
73,700
73,750
73,800
73,850
73,900
73,950

73,050
73,100
73,150
73,200
73,250
73,300
73,350
73,400
73,450
73,500
73,550
73,600
73,650
73,700
73,750
73,800
73,850
73,900
73,950
74,000

* This column must also be used by a qualifying widow(er).

Single

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

14,694
14,706
14,719
14,731
14,744
14,756
14,769
14,781
14,794
14,806
14,819
14,831
14,844
14,856
14,869
14,881
14,894
14,906
14,919
14,931

10,881
10,894
10,906
10,919
10,931
10,944
10,956
10,969
10,981
10,994
11,006
11,019
11,031
11,044
11,056
11,069
11,081
11,094
11,106
11,119

14,859
14,873
14,887
14,901
14,915
14,929
14,943
14,957
14,971
14,985
14,999
15,013
15,027
15,041
15,055
15,069
15,083
15,097
15,111
15,125

13,359
13,371
13,384
13,396
13,409
13,421
13,434
13,446
13,459
13,471
13,484
13,496
13,509
13,521
13,534
13,546
13,559
13,571
13,584
13,596

14,944
14,956
14,969
14,981
14,994
15,006
15,019
15,031
15,044
15,056
15,069
15,081
15,094
15,106
15,119
15,131
15,144
15,156
15,169
15,181

11,131
11,144
11,156
11,169
11,181
11,194
11,206
11,219
11,231
11,244
11,256
11,269
11,281
11,294
11,306
11,319
11,331
11,344
11,356
11,369

15,139
15,153
15,167
15,181
15,195
15,209
15,223
15,237
15,251
15,265
15,279
15,293
15,307
15,321
15,335
15,349
15,363
15,377
15,391
15,405

13,609
13,621
13,634
13,646
13,659
13,671
13,684
13,696
13,709
13,721
13,734
13,746
13,759
13,771
13,784
13,796
13,809
13,821
13,834
13,846

15,194
15,206
15,219
15,231
15,244
15,256
15,269
15,281
15,294
15,306
15,319
15,331
15,344
15,356
15,369
15,381
15,394
15,406
15,419
15,431

11,381
11,394
11,406
11,419
11,431
11,444
11,456
11,469
11,481
11,494
11,506
11,519
11,531
11,544
11,556
11,569
11,581
11,594
11,606
11,619

15,419
15,433
15,447
15,461
15,475
15,489
15,503
15,517
15,531
15,545
15,559
15,573
15,587
15,601
15,615
15,629
15,643
15,657
15,671
15,685

13,859
13,871
13,884
13,896
13,909
13,921
13,934
13,946
13,959
13,971
13,984
13,996
14,009
14,021
14,034
14,046
14,059
14,071
14,084
14,096

74,000
14,019
14,033
14,047
14,061
14,075
14,089
14,103
14,117
14,131
14,145
14,159
14,173
14,187
14,201
14,215
14,229
14,243
14,257
14,271
14,285

74,050
74,100
74,150
74,200
74,250
74,300
74,350
74,400
74,450
74,500
74,550
74,600
74,650
74,700
74,750
74,800
74,850
74,900
74,950
75,000

75,000
14,194
14,206
14,219
14,231
14,244
14,256
14,269
14,281
14,294
14,306
14,319
14,331
14,344
14,356
14,369
14,381
14,394
14,406
14,419
14,431

10,381
10,394
10,406
10,419
10,431
10,444
10,456
10,469
10,481
10,494
10,506
10,519
10,531
10,544
10,556
10,569
10,581
10,594
10,606
10,619

14,299
14,313
14,327
14,341
14,355
14,369
14,383
14,397
14,411
14,425
14,439
14,453
14,467
14,481
14,495
14,509
14,523
14,537
14,551
14,565

12,859
12,871
12,884
12,896
12,909
12,921
12,934
12,946
12,959
12,971
12,984
12,996
13,009
13,021
13,034
13,046
13,059
13,071
13,084
13,096

73,000
13,694
13,706
13,719
13,731
13,744
13,756
13,769
13,781
13,794
13,806
13,819
13,831
13,844
13,856
13,869
13,881
13,894
13,906
13,919
13,931

But
less
than

And you are

75,000
75,050
75,100
75,150
75,200
75,250
75,300
75,350
75,400
75,450
75,500
75,550
75,600
75,650
75,700
75,750
75,800
75,850
75,900
75,950

75,050
75,100
75,150
75,200
75,250
75,300
75,350
75,400
75,450
75,500
75,550
75,600
75,650
75,700
75,750
75,800
75,850
75,900
75,950
76,000

76,000
14,444
14,456
14,469
14,481
14,494
14,506
14,519
14,531
14,544
14,556
14,569
14,581
14,594
14,606
14,619
14,631
14,644
14,656
14,669
14,681

10,631
10,644
10,656
10,669
10,681
10,694
10,706
10,719
10,731
10,744
10,756
10,769
10,781
10,794
10,806
10,819
10,831
10,844
10,856
10,869

14,579
14,593
14,607
14,621
14,635
14,649
14,663
14,677
14,691
14,705
14,719
14,733
14,747
14,761
14,775
14,789
14,803
14,817
14,831
14,845

13,109
13,121
13,134
13,146
13,159
13,171
13,184
13,196
13,209
13,221
13,234
13,246
13,259
13,271
13,284
13,296
13,309
13,321
13,334
13,346

76,000
76,050
76,100
76,150
76,200
76,250
76,300
76,350
76,400
76,450
76,500
76,550
76,600
76,650
76,700
76,750
76,800
76,850
76,900
76,950

76,050
76,100
76,150
76,200
76,250
76,300
76,350
76,400
76,450
76,500
76,550
76,600
76,650
76,700
76,750
76,800
76,850
76,900
76,950
77,000

(Continued on page T-11)

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

ISBN 0-558-86017-6

70,050
70,100
70,150
70,200
70,250
70,300
70,350
70,400
70,450
70,500
70,550
70,600
70,650
70,700
70,750
70,800
70,850
70,900
70,950
71,000

Single

72,000

70,000
70,000
70,050
70,100
70,150
70,200
70,250
70,300
70,350
70,400
70,450
70,500
70,550
70,600
70,650
70,700
70,750
70,800
70,850
70,900
70,950

And you are

71,000
13,194
13,206
13,219
13,231
13,244
13,256
13,269
13,281
13,294
13,306
13,319
13,331
13,344
13,356
13,369
13,381
13,394
13,406
13,419
13,431

69,000
69,000
69,050
69,100
69,150
69,200
69,250
69,300
69,350
69,400
69,450
69,500
69,550
69,600
69,650
69,700
69,750
69,800
69,850
69,900
69,950

But
less
than

If line 43
(taxable
income) is

2009 Tax Tables and Rate Schedules Individuals T-11

2009 Tax Table Continued

If line 43
(taxable
income) is
At
least

But
less
than

If line 43
(taxable
income) is

And you are

Single

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

At
least

15,444
15,456
15,469
15,481
15,494
15,506
15,519
15,531
15,544
15,556
15,569
15,581
15,594
15,606
15,619
15,631
15,644
15,656
15,669
15,681

11,631
11,644
11,656
11,669
11,681
11,694
11,706
11,719
11,731
11,744
11,756
11,769
11,781
11,794
11,806
11,819
11,831
11,844
11,856
11,869

14,109
14,121
14,134
14,146
14,159
14,171
14,184
14,196
14,209
14,221
14,234
14,246
14,259
14,271
14,284
14,296
14,309
14,321
14,334
14,346

80,000
80,050
80,100
80,150
80,200
80,250
80,300
80,350
80,400
80,450
80,500
80,550
80,600
80,650
80,700
80,750
80,800
80,850
80,900
80,950

77,000
77,000
77,050
77,100
77,150
77,200
77,250
77,300
77,350
77,400
77,450
77,500
77,550
77,600
77,650
77,700
77,750
77,800
77,850
77,900
77,950

77,050
77,100
77,150
77,200
77,250
77,300
77,350
77,400
77,450
77,500
77,550
77,600
77,650
77,700
77,750
77,800
77,850
77,900
77,950
78,000

78,050
78,100
78,150
78,200
78,250
78,300
78,350
78,400
78,450
78,500
78,550
78,600
78,650
78,700
78,750
78,800
78,850
78,900
78,950
79,000

ISBN 0-558-86017-6

79,050
79,100
79,150
79,200
79,250
79,300
79,350
79,400
79,450
79,500
79,550
79,600
79,650
79,700
79,750
79,800
79,850
79,900
79,950
80,000

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

At
least

80,050
80,100
80,150
80,200
80,250
80,300
80,350
80,400
80,450
80,500
80,550
80,600
80,650
80,700
80,750
80,800
80,850
80,900
80,950
81,000

16,194
16,206
16,219
16,231
16,244
16,256
16,269
16,281
16,294
16,306
16,319
16,331
16,344
16,356
16,369
16,381
16,394
16,406
16,419
16,431

12,381
12,394
12,406
12,419
12,431
12,444
12,456
12,469
12,481
12,494
12,506
12,519
12,531
12,544
12,556
12,569
12,581
12,594
12,606
12,619

14,859
14,871
14,884
14,896
14,909
14,921
14,934
14,946
14,959
14,971
14,984
14,996
15,009
15,021
15,034
15,046
15,059
15,071
15,084
15,096

83,000
83,050
83,100
83,150
83,200
83,250
83,300
83,350
83,400
83,450
83,500
83,550
83,600
83,650
83,700
83,750
83,800
83,850
83,900
83,950

15,694
15,706
15,719
15,731
15,744
15,756
15,769
15,781
15,794
15,806
15,819
15,831
15,844
15,856
15,869
15,881
15,894
15,906
15,919
15,931

11,881
11,894
11,906
11,919
11,931
11,944
11,956
11,969
11,981
11,994
12,006
12,019
12,031
12,044
12,056
12,069
12,081
12,094
12,106
12,119

15,979
15,993
16,007
16,021
16,035
16,049
16,063
16,077
16,091
16,105
16,119
16,133
16,147
16,161
16,175
16,189
16,203
16,217
16,231
16,245

14,359
14,371
14,384
14,396
14,409
14,421
14,434
14,446
14,459
14,471
14,484
14,496
14,509
14,521
14,534
14,546
14,559
14,571
14,584
14,596

81,000
81,050
81,100
81,150
81,200
81,250
81,300
81,350
81,400
81,450
81,500
81,550
81,600
81,650
81,700
81,750
81,800
81,850
81,900
81,950

81,050
81,100
81,150
81,200
81,250
81,300
81,350
81,400
81,450
81,500
81,550
81,600
81,650
81,700
81,750
81,800
81,850
81,900
81,950
82,000

12,131
12,144
12,156
12,169
12,181
12,194
12,206
12,219
12,231
12,244
12,256
12,269
12,281
12,294
12,306
12,319
12,331
12,344
12,356
12,369

16,259
16,273
16,287
16,301
16,315
16,329
16,343
16,357
16,371
16,385
16,399
16,413
16,427
16,441
16,455
16,469
16,483
16,497
16,511
16,525

14,609
14,621
14,634
14,646
14,659
14,671
14,684
14,696
14,709
14,721
14,734
14,746
14,759
14,771
14,784
14,796
14,809
14,821
14,834
14,846

82,000
82,050
82,100
82,150
82,200
82,250
82,300
82,350
82,400
82,450
82,500
82,550
82,600
82,650
82,700
82,750
82,800
82,850
82,900
82,950

82,050
82,100
82,150
82,200
82,250
82,300
82,350
82,400
82,450
82,500
82,550
82,600
82,650
82,700
82,750
82,800
82,850
82,900
82,950
83,000

* This column must also be used by a qualifying widow(er).

Single

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

83,050
83,100
83,150
83,200
83,250
83,300
83,350
83,400
83,450
83,500
83,550
83,600
83,650
83,700
83,750
83,800
83,850
83,900
83,950
84,000

16,967
16,981
16,995
17,009
17,023
17,037
17,051
17,065
17,079
17,093
17,107
17,121
17,135
17,149
17,163
17,177
17,191
17,205
17,219
17,233

13,131
13,144
13,156
13,169
13,181
13,194
13,206
13,219
13,231
13,244
13,256
13,269
13,281
13,294
13,306
13,319
13,331
13,344
13,356
13,369

17,379
17,393
17,407
17,421
17,435
17,449
17,463
17,477
17,491
17,505
17,519
17,533
17,547
17,561
17,575
17,589
17,603
17,617
17,631
17,645

15,609
15,621
15,634
15,646
15,659
15,671
15,684
15,696
15,709
15,721
15,734
15,746
15,759
15,771
15,784
15,796
15,809
15,821
15,834
15,846

17,247
17,261
17,275
17,289
17,303
17,317
17,331
17,345
17,359
17,373
17,387
17,401
17,415
17,429
17,443
17,457
17,471
17,485
17,499
17,513

13,381
13,394
13,406
13,419
13,431
13,444
13,456
13,469
13,481
13,494
13,506
13,519
13,531
13,544
13,556
13,569
13,581
13,594
13,606
13,619

17,659
17,673
17,687
17,701
17,715
17,729
17,743
17,757
17,771
17,785
17,799
17,813
17,827
17,841
17,855
17,869
17,883
17,897
17,911
17,925

15,859
15,871
15,884
15,896
15,909
15,921
15,934
15,946
15,959
15,971
15,984
15,996
16,009
16,021
16,034
16,046
16,059
16,071
16,084
16,096

17,527
17,541
17,555
17,569
17,583
17,597
17,611
17,625
17,639
17,653
17,667
17,681
17,695
17,709
17,723
17,737
17,751
17,765
17,779
17,793

13,631
13,644
13,656
13,669
13,681
13,694
13,706
13,719
13,731
13,744
13,756
13,769
13,781
13,794
13,806
13,819
13,831
13,844
13,856
13,869

17,939
17,953
17,967
17,981
17,995
18,009
18,023
18,037
18,051
18,065
18,079
18,093
18,107
18,121
18,135
18,149
18,163
18,177
18,191
18,205

16,109
16,121
16,134
16,146
16,159
16,171
16,184
16,196
16,209
16,221
16,234
16,246
16,259
16,271
16,284
16,296
16,309
16,321
16,334
16,346

84,000
16,444
16,456
16,469
16,481
16,494
16,506
16,519
16,531
16,544
16,556
16,569
16,581
16,594
16,606
16,619
16,631
16,644
16,656
16,669
16,681

12,631
12,644
12,656
12,669
12,681
12,694
12,706
12,719
12,731
12,744
12,756
12,769
12,781
12,794
12,806
12,819
12,831
12,844
12,856
12,869

16,819
16,833
16,847
16,861
16,875
16,889
16,903
16,917
16,931
16,945
16,959
16,973
16,987
17,001
17,015
17,029
17,043
17,057
17,071
17,085

15,109
15,121
15,134
15,146
15,159
15,171
15,184
15,196
15,209
15,221
15,234
15,246
15,259
15,271
15,284
15,296
15,309
15,321
15,334
15,346

82,000
15,944
15,956
15,969
15,981
15,994
16,006
16,019
16,031
16,044
16,056
16,069
16,081
16,094
16,106
16,119
16,131
16,144
16,156
16,169
16,181

But
less
than

And you are

83,000
16,539
16,553
16,567
16,581
16,595
16,609
16,623
16,637
16,651
16,665
16,679
16,693
16,707
16,721
16,735
16,749
16,763
16,777
16,791
16,805

81,000

79,000
79,000
79,050
79,100
79,150
79,200
79,250
79,300
79,350
79,400
79,450
79,500
79,550
79,600
79,650
79,700
79,750
79,800
79,850
79,900
79,950

Single

80,000
15,699
15,713
15,727
15,741
15,755
15,769
15,783
15,797
15,811
15,825
15,839
15,853
15,867
15,881
15,895
15,909
15,923
15,937
15,951
15,965

78,000
78,000
78,050
78,100
78,150
78,200
78,250
78,300
78,350
78,400
78,450
78,500
78,550
78,600
78,650
78,700
78,750
78,800
78,850
78,900
78,950

But
less
than

If line 43
(taxable
income) is

And you are

84,000
84,050
84,100
84,150
84,200
84,250
84,300
84,350
84,400
84,450
84,500
84,550
84,600
84,650
84,700
84,750
84,800
84,850
84,900
84,950

84,050
84,100
84,150
84,200
84,250
84,300
84,350
84,400
84,450
84,500
84,550
84,600
84,650
84,700
84,750
84,800
84,850
84,900
84,950
85,000

85,000
16,694
16,706
16,719
16,731
16,744
16,757
16,771
16,785
16,799
16,813
16,827
16,841
16,855
16,869
16,883
16,897
16,911
16,925
16,939
16,953

12,881
12,894
12,906
12,919
12,931
12,944
12,956
12,969
12,981
12,994
13,006
13,019
13,031
13,044
13,056
13,069
13,081
13,094
13,106
13,119

17,099
17,113
17,127
17,141
17,155
17,169
17,183
17,197
17,211
17,225
17,239
17,253
17,267
17,281
17,295
17,309
17,323
17,337
17,351
17,365

15,359
15,371
15,384
15,396
15,409
15,421
15,434
15,446
15,459
15,471
15,484
15,496
15,509
15,521
15,534
15,546
15,559
15,571
15,584
15,596

85,000
85,050
85,100
85,150
85,200
85,250
85,300
85,350
85,400
85,450
85,500
85,550
85,600
85,650
85,700
85,750
85,800
85,850
85,900
85,950

85,050
85,100
85,150
85,200
85,250
85,300
85,350
85,400
85,450
85,500
85,550
85,600
85,650
85,700
85,750
85,800
85,850
85,900
85,950
86,000

(Continued on page T-12)

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

T-12 Individuals 2009 Tax Tables and Rate Schedules

2009 Tax Table Continued

If line 43
(taxable
income) is
At
least

But
less
than

If line 43
(taxable
income) is

And you are

Single

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

At
least

17,807
17,821
17,835
17,849
17,863
17,877
17,891
17,905
17,919
17,933
17,947
17,961
17,975
17,989
18,003
18,017
18,031
18,045
18,059
18,073

13,881
13,894
13,906
13,919
13,931
13,944
13,956
13,969
13,981
13,994
14,006
14,019
14,031
14,044
14,056
14,069
14,081
14,094
14,106
14,119

16,359
16,371
16,384
16,396
16,409
16,421
16,434
16,446
16,459
16,471
16,484
16,496
16,509
16,521
16,534
16,546
16,559
16,571
16,584
16,596

89,000
89,050
89,100
89,150
89,200
89,250
89,300
89,350
89,400
89,450
89,500
89,550
89,600
89,650
89,700
89,750
89,800
89,850
89,900
89,950

86,000
86,000
86,050
86,100
86,150
86,200
86,250
86,300
86,350
86,400
86,450
86,500
86,550
86,600
86,650
86,700
86,750
86,800
86,850
86,900
86,950

86,050
86,100
86,150
86,200
86,250
86,300
86,350
86,400
86,450
86,500
86,550
86,600
86,650
86,700
86,750
86,800
86,850
86,900
86,950
87,000

87,050
87,100
87,150
87,200
87,250
87,300
87,350
87,400
87,450
87,500
87,550
87,600
87,650
87,700
87,750
87,800
87,850
87,900
87,950
88,000

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

At
least

89,050
89,100
89,150
89,200
89,250
89,300
89,350
89,400
89,450
89,500
89,550
89,600
89,650
89,700
89,750
89,800
89,850
89,900
89,950
90,000

18,647
18,661
18,675
18,689
18,703
18,717
18,731
18,745
18,759
18,773
18,787
18,801
18,815
18,829
18,843
18,857
18,871
18,885
18,899
18,913

14,631
14,644
14,656
14,669
14,681
14,694
14,706
14,719
14,731
14,744
14,756
14,769
14,781
14,794
14,806
14,819
14,831
14,844
14,856
14,869

17,109
17,121
17,134
17,146
17,159
17,171
17,184
17,196
17,209
17,221
17,234
17,246
17,259
17,271
17,284
17,296
17,309
17,321
17,334
17,346

92,000
92,050
92,100
92,150
92,200
92,250
92,300
92,350
92,400
92,450
92,500
92,550
92,600
92,650
92,700
92,750
92,800
92,850
92,900
92,950

18,087
18,101
18,115
18,129
18,143
18,157
18,171
18,185
18,199
18,213
18,227
18,241
18,255
18,269
18,283
18,297
18,311
18,325
18,339
18,353

14,131
14,144
14,156
14,169
14,181
14,194
14,206
14,219
14,231
14,244
14,256
14,269
14,281
14,294
14,306
14,319
14,331
14,344
14,356
14,369

18,499
18,513
18,527
18,541
18,555
18,569
18,583
18,597
18,611
18,625
18,639
18,653
18,667
18,681
18,695
18,709
18,723
18,737
18,751
18,765

16,609
16,621
16,634
16,646
16,659
16,671
16,684
16,696
16,709
16,721
16,734
16,746
16,759
16,771
16,784
16,796
16,809
16,821
16,834
16,846

90,000
90,050
90,100
90,150
90,200
90,250
90,300
90,350
90,400
90,450
90,500
90,550
90,600
90,650
90,700
90,750
90,800
90,850
90,900
90,950

90,050
90,100
90,150
90,200
90,250
90,300
90,350
90,400
90,450
90,500
90,550
90,600
90,650
90,700
90,750
90,800
90,850
90,900
90,950
91,000

14,381
14,394
14,406
14,419
14,431
14,444
14,456
14,469
14,481
14,494
14,506
14,519
14,531
14,544
14,556
14,569
14,581
14,594
14,606
14,619

18,779
18,793
18,807
18,821
18,835
18,849
18,863
18,877
18,891
18,905
18,919
18,933
18,947
18,961
18,975
18,989
19,003
19,017
19,031
19,045

16,859
16,871
16,884
16,896
16,909
16,921
16,934
16,946
16,959
16,971
16,984
16,996
17,009
17,021
17,034
17,046
17,059
17,071
17,084
17,096

91,000
91,050
91,100
91,150
91,200
91,250
91,300
91,350
91,400
91,450
91,500
91,550
91,600
91,650
91,700
91,750
91,800
91,850
91,900
91,950

91,050
91,100
91,150
91,200
91,250
91,300
91,350
91,400
91,450
91,500
91,550
91,600
91,650
91,700
91,750
91,800
91,850
91,900
91,950
92,000

* This column must also be used by a qualifying widow(er).

Single

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

19,487
19,501
19,515
19,529
19,543
19,557
19,571
19,585
19,599
19,613
19,627
19,641
19,655
19,669
19,683
19,697
19,711
19,725
19,739
19,753

15,381
15,394
15,406
15,419
15,431
15,444
15,456
15,469
15,481
15,494
15,506
15,519
15,531
15,544
15,556
15,569
15,581
15,594
15,606
15,619

19,899
19,913
19,927
19,941
19,955
19,969
19,983
19,997
20,011
20,025
20,039
20,053
20,067
20,081
20,095
20,109
20,123
20,137
20,151
20,165

17,859
17,871
17,884
17,896
17,909
17,921
17,934
17,946
17,959
17,971
17,984
17,996
18,009
18,021
18,034
18,046
18,059
18,071
18,084
18,096

19,767
19,781
19,795
19,809
19,823
19,837
19,851
19,865
19,879
19,893
19,907
19,921
19,935
19,949
19,963
19,977
19,991
20,005
20,019
20,033

15,631
15,644
15,656
15,669
15,681
15,694
15,706
15,719
15,731
15,744
15,756
15,769
15,781
15,794
15,806
15,819
15,831
15,844
15,856
15,869

20,179
20,193
20,207
20,221
20,235
20,249
20,263
20,277
20,291
20,305
20,319
20,333
20,347
20,361
20,375
20,389
20,403
20,417
20,431
20,445

18,109
18,121
18,134
18,146
18,159
18,171
18,184
18,196
18,209
18,221
18,234
18,246
18,259
18,271
18,284
18,296
18,309
18,321
18,334
18,346

20,047
20,061
20,075
20,089
20,103
20,117
20,131
20,145
20,159
20,173
20,187
20,201
20,215
20,229
20,243
20,257
20,271
20,285
20,299
20,313

15,881
15,894
15,906
15,919
15,931
15,944
15,956
15,969
15,981
15,994
16,006
16,019
16,031
16,044
16,056
16,069
16,081
16,094
16,106
16,119

20,459
20,473
20,487
20,501
20,515
20,529
20,543
20,557
20,571
20,585
20,599
20,613
20,627
20,641
20,655
20,669
20,683
20,697
20,711
20,725

18,359
18,371
18,384
18,396
18,409
18,421
18,434
18,446
18,459
18,471
18,484
18,496
18,509
18,521
18,534
18,546
18,559
18,571
18,584
18,596

92,000
19,059
19,073
19,087
19,101
19,115
19,129
19,143
19,157
19,171
19,185
19,199
19,213
19,227
19,241
19,255
19,269
19,283
19,297
19,311
19,325

92,050
92,100
92,150
92,200
92,250
92,300
92,350
92,400
92,450
92,500
92,550
92,600
92,650
92,700
92,750
92,800
92,850
92,900
92,950
93,000

93,000
18,927
18,941
18,955
18,969
18,983
18,997
19,011
19,025
19,039
19,053
19,067
19,081
19,095
19,109
19,123
19,137
19,151
19,165
19,179
19,193

14,881
14,894
14,906
14,919
14,931
14,944
14,956
14,969
14,981
14,994
15,006
15,019
15,031
15,044
15,056
15,069
15,081
15,094
15,106
15,119

19,339
19,353
19,367
19,381
19,395
19,409
19,423
19,437
19,451
19,465
19,479
19,493
19,507
19,521
19,535
19,549
19,563
19,577
19,591
19,605

17,359
17,371
17,384
17,396
17,409
17,421
17,434
17,446
17,459
17,471
17,484
17,496
17,509
17,521
17,534
17,546
17,559
17,571
17,584
17,596

91,000
18,367
18,381
18,395
18,409
18,423
18,437
18,451
18,465
18,479
18,493
18,507
18,521
18,535
18,549
18,563
18,577
18,591
18,605
18,619
18,633

But
less
than

And you are

93,000
93,050
93,100
93,150
93,200
93,250
93,300
93,350
93,400
93,450
93,500
93,550
93,600
93,650
93,700
93,750
93,800
93,850
93,900
93,950

93,050
93,100
93,150
93,200
93,250
93,300
93,350
93,400
93,450
93,500
93,550
93,600
93,650
93,700
93,750
93,800
93,850
93,900
93,950
94,000

94,000
19,207
19,221
19,235
19,249
19,263
19,277
19,291
19,305
19,319
19,333
19,347
19,361
19,375
19,389
19,403
19,417
19,431
19,445
19,459
19,473

15,131
15,144
15,156
15,169
15,181
15,194
15,206
15,219
15,231
15,244
15,256
15,269
15,281
15,294
15,306
15,319
15,331
15,344
15,356
15,369

19,619
19,633
19,647
19,661
19,675
19,689
19,703
19,717
19,731
19,745
19,759
19,773
19,787
19,801
19,815
19,829
19,843
19,857
19,871
19,885

17,609
17,621
17,634
17,646
17,659
17,671
17,684
17,696
17,709
17,721
17,734
17,746
17,759
17,771
17,784
17,796
17,809
17,821
17,834
17,846

94,000
94,050
94,100
94,150
94,200
94,250
94,300
94,350
94,400
94,450
94,500
94,550
94,600
94,650
94,700
94,750
94,800
94,850
94,900
94,950

94,050
94,100
94,150
94,200
94,250
94,300
94,350
94,400
94,450
94,500
94,550
94,600
94,650
94,700
94,750
94,800
94,850
94,900
94,950
95,000

(Continued on page T-13)

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

ISBN 0-558-86017-6

88,050
88,100
88,150
88,200
88,250
88,300
88,350
88,400
88,450
88,500
88,550
88,600
88,650
88,700
88,750
88,800
88,850
88,900
88,950
89,000

Single

90,000

88,000
88,000
88,050
88,100
88,150
88,200
88,250
88,300
88,350
88,400
88,450
88,500
88,550
88,600
88,650
88,700
88,750
88,800
88,850
88,900
88,950

And you are

89,000
18,219
18,233
18,247
18,261
18,275
18,289
18,303
18,317
18,331
18,345
18,359
18,373
18,387
18,401
18,415
18,429
18,443
18,457
18,471
18,485

87,000
87,000
87,050
87,100
87,150
87,200
87,250
87,300
87,350
87,400
87,450
87,500
87,550
87,600
87,650
87,700
87,750
87,800
87,850
87,900
87,950

But
less
than

If line 43
(taxable
income) is

2009 Tax Tables and Rate Schedules Individuals T-13

2009 Tax Table Continued

If line 43
(taxable
income) is
At
least

But
less
than

If line 43
(taxable
income) is

And you are

Single

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

At
least

20,327
20,341
20,355
20,369
20,383
20,397
20,411
20,425
20,439
20,453
20,467
20,481
20,495
20,509
20,523
20,537
20,551
20,565
20,579
20,593

16,131
16,144
16,156
16,169
16,181
16,194
16,206
16,219
16,231
16,244
16,256
16,269
16,281
16,294
16,306
16,319
16,331
16,344
16,356
16,369

18,609
18,621
18,634
18,646
18,659
18,671
18,684
18,696
18,709
18,721
18,734
18,746
18,759
18,771
18,784
18,796
18,809
18,821
18,834
18,846

97,000
97,050
97,100
97,150
97,200
97,250
97,300
97,350
97,400
97,450
97,500
97,550
97,600
97,650
97,700
97,750
97,800
97,850
97,900
97,950

95,000
95,000
95,050
95,100
95,150
95,200
95,250
95,300
95,350
95,400
95,450
95,500
95,550
95,600
95,650
95,700
95,750
95,800
95,850
95,900
95,950

95,050
95,100
95,150
95,200
95,250
95,300
95,350
95,400
95,450
95,500
95,550
95,600
95,650
95,700
95,750
95,800
95,850
95,900
95,950
96,000

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

At
least

97,050
97,100
97,150
97,200
97,250
97,300
97,350
97,400
97,450
97,500
97,550
97,600
97,650
97,700
97,750
97,800
97,850
97,900
97,950
98,000

But
less
than

20,887
20,901
20,915
20,929
20,943
20,957
20,971
20,985
20,999
21,013
21,027
21,041
21,055
21,069
21,083
21,097
21,111
21,125
21,139
21,153

16,631
16,644
16,656
16,669
16,681
16,694
16,706
16,719
16,731
16,744
16,756
16,769
16,781
16,794
16,806
16,819
16,831
16,844
16,856
16,869

21,299
21,313
21,327
21,341
21,355
21,369
21,383
21,397
21,411
21,425
21,439
21,453
21,467
21,481
21,495
21,509
21,523
21,537
21,551
21,565

19,109
19,121
19,134
19,146
19,159
19,171
19,184
19,196
19,209
19,221
19,234
19,246
19,259
19,271
19,284
19,296
19,309
19,321
19,334
19,346

99,000 99,050
99,050 99,100
99,100 99,150
99,150 99,200
99,200 99,250
99,250 99,300
99,300 99,350
99,350 99,400
99,400 99,450
99,450 99,500
99,500 99,550
99,550 99,600
99,600 99,650
99,650 99,700
99,700 99,750
99,750 99,800
99,800 99,850
99,850 99,900
99,900 99,950
99,950 100,000

21,167
21,181
21,195
21,209
21,223
21,237
21,251
21,265
21,279
21,293
21,307
21,321
21,335
21,349
21,363
21,377
21,391
21,405
21,419
21,433

16,881
16,894
16,906
16,919
16,931
16,944
16,956
16,969
16,981
16,994
17,006
17,019
17,031
17,044
17,056
17,069
17,081
17,094
17,106
17,119

21,579
21,593
21,607
21,621
21,635
21,649
21,663
21,677
21,691
21,705
21,719
21,733
21,747
21,761
21,775
21,789
21,803
21,817
21,831
21,845

19,359
19,371
19,384
19,396
19,409
19,421
19,434
19,446
19,459
19,471
19,484
19,496
19,509
19,521
19,534
19,546
19,559
19,571
19,584
19,596

And you are

Single

Married Married
filing
filing
jointly sepa*
rately
Your tax is

Head
of a
household

21,447
21,461
21,475
21,489
21,503
21,517
21,531
21,545
21,559
21,573
21,587
21,601
21,615
21,629
21,643
21,657
21,671
21,685
21,699
21,713

17,131
17,144
17,156
17,169
17,181
17,194
17,206
17,219
17,231
17,244
17,256
17,269
17,281
17,294
17,306
17,319
17,331
17,344
17,356
17,369

19,609
19,621
19,634
19,646
19,659
19,671
19,684
19,696
19,709
19,721
19,734
19,746
19,759
19,771
19,784
19,796
19,809
19,821
19,834
19,846

99,000

98,000
20,607
20,621
20,635
20,649
20,663
20,677
20,691
20,705
20,719
20,733
20,747
20,761
20,775
20,789
20,803
20,817
20,831
20,845
20,859
20,873

16,381
16,394
16,406
16,419
16,431
16,444
16,456
16,469
16,481
16,494
16,506
16,519
16,531
16,544
16,556
16,569
16,581
16,594
16,606
16,619

21,019
21,033
21,047
21,061
21,075
21,089
21,103
21,117
21,131
21,145
21,159
21,173
21,187
21,201
21,215
21,229
21,243
21,257
21,271
21,285

18,859
18,871
18,884
18,896
18,909
18,921
18,934
18,946
18,959
18,971
18,984
18,996
19,009
19,021
19,034
19,046
19,059
19,071
19,084
19,096

98,000
98,050
98,100
98,150
98,200
98,250
98,300
98,350
98,400
98,450
98,500
98,550
98,600
98,650
98,700
98,750
98,800
98,850
98,900
98,950

98,050
98,100
98,150
98,200
98,250
98,300
98,350
98,400
98,450
98,500
98,550
98,600
98,650
98,700
98,750
98,800
98,850
98,900
98,950
99,000

$100,000
or over
use the Tax
Computation
Worksheet
on page 89

ISBN 0-558-86017-6

96,050
96,100
96,150
96,200
96,250
96,300
96,350
96,400
96,450
96,500
96,550
96,600
96,650
96,700
96,750
96,800
96,850
96,900
96,950
97,000

Single

97,000
20,739
20,753
20,767
20,781
20,795
20,809
20,823
20,837
20,851
20,865
20,879
20,893
20,907
20,921
20,935
20,949
20,963
20,977
20,991
21,005

96,000
96,000
96,050
96,100
96,150
96,200
96,250
96,300
96,350
96,400
96,450
96,500
96,550
96,600
96,650
96,700
96,750
96,800
96,850
96,900
96,950

But
less
than

If line 43
(taxable
income) is

And you are

* This column must also be used by a qualifying widow(er).

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

21,859
21,873
21,887
21,901
21,915
21,929
21,943
21,957
21,971
21,985
21,999
22,013
22,027
22,041
22,055
22,069
22,083
22,097
22,111
22,125

T-14 Individuals 2009 Tax Tables and Rate Schedules

2009
Tax Rate
Schedules

The Tax Rate Schedules are shown so you can see the tax rate that applies
to all levels of taxable income. Do not use them to figure your tax. Instead,
see the instructions for line 44 that begin on page 37.
CAUTION

Schedule XIf your filing status is Single

If your taxable
income is:
Over

The tax is:

of the
amount
over

But not
over

$0

$8,350

10%

$0

8,350

33,950

$835.00 + 15%

8,350

33,950

82,250

4,675.00 + 25%

33,950

82,250

171,550

16,750.00 + 28%

82,250

171,550

372,950

41,754.00 + 33%

171,550

108,216.00 + 35%

372,950

372,950

Schedule Y-1 If your filing status is Married filing jointly or Qualifying widow(er)
If your taxable
income is:
Over

The tax is:

of the
amount
over

But not
over

$16,700

10%

$0

16,700

67,900

$1,670.00 + 15%

16,700

67,900

137,050

9,350.00 + 25%

67,900

137,050

208,850

26,637.50 + 28%

137,050

208,850

372,950

46,741.50 + 33%

208,850

100,894.50 + 35%

372,950

$0

372,950

Schedule Y-2 If your filing status is Married filing separately

If your taxable
income is:
Over

The tax is:

of the
amount
over

But not
over

$0

$8,350

10%

$0

8,350

33,950

$835.00 + 15%

8,350

33,950

68,525

4,675.00 + 25%

33,950

68,525

104,425

13,318.75 + 28%

68,525

104,425

186,475

23,370.75 + 33%

104,425

50,447.25 + 35%

186,475

186,475

Schedule ZIf your filing status is Head of household

If your taxable
income is:
Over

The tax is:

of the
amount
over

But not
over

$11,950

10%

$0

45,500

$1,195.00 + 15%

11,950

45,500

117,450

6,227.50 + 25%

45,500

117,450

190,200

24,215.00 + 28%

117,450

190,200

372,950

44,585.00 + 33%

190,200

104,892.50 + 35%

372,950

372,950

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

ISBN 0-558-86017-6

$0
11,950

2009 Tax Tables and Rate Schedules Individuals T-15

SINGLE PersonsMONTHLY Payroll Period

(For Wages Paid in 2010)
And the wages are
At least

But less
than

And the number of withholding allowances claimed is

0

10

ISBN 0-558-86017-6

The amount of income, social security, and Medicare taxes to be withheld is

$0
220
230
240
250
260
270
280
290
300
320
340
360
380
400
420
440
460
480
500
520
540
560
580
600
640
680
720
760
800
840
880
920
960
1000
1040
1080
1120
1160
1200
1240
1280
1320
1360
1400
1440
1480
1520
1560
1600
1640
1680
1720
1760
1800
1840
1880
1920
1960
2000
2040
2080
2120
2160
2200
2240
2280
2320
2360
2400
2440
2480
2520
2560
2600

$220
230
240
250
260
270
280
290
300
320
340
360
380
400
420
440
460
480
500
520
540
560
580
600
640
680
720
760
800
840
880
920
960
1000
1040
1080
1120
1160
1200
1240
1280
1320
1360
1400
1440
1480
1520
1560
1600
1640
1680
1720
1760
1800
1840
1880
1920
1960
2000
2040
2080
2120
2160
2200
2240
2280
2320
2360
2400
2440
2480
2520
2560
2600
2640

7.65%
17.21
17.98
18.74
19.51
20.27
21.04
21.80
22.57
23.72
25.25
26.78
28.31
29.84
31.37
32.90
34.43
35.96
37.49
40.02
43.55
47.08
50.61
54.14
59.43
66.49
73.55
80.61
87.67
94.73
101.79
109.85
118.91
127.97
137.03
146.09
155.15
164.21
173.27
182.33
191.39
200.45
209.51
218.57
227.63
236.69
245.75
254.81
263.87
272.93
281.99
291.05
300.11
309.17
318.23
327.29
336.35
345.41
354.47
363.53
372.59
381.65
390.71
399.77
408.83
417.89
426.95
436.01
445.07
454.13
463.19
472.25
481.31
490.37
499.43

7.65%
17.21
17.98
18.74
19.51
20.27
21.04
21.80
22.57
23.72
25.25
26.78
28.31
29.84
31.37
32.90
34.43
35.96
37.49
39.02
40.55
42.08
43.61
45.14
47.43
50.49
53.55
56.61
59.67
63.73
70.79
77.85
84.91
91.97
99.03
106.09
113.15
120.21
128.27
137.33
146.39
155.45
164.51
173.57
182.63
191.69
200.75
209.81
218.87
227.93
236.99
246.05
255.11
264.17
273.23
282.29
291.35
300.41
309.47
318.53
327.59
336.65
345.71
354.77
363.83
372.89
381.95
391.01
400.07
409.13
418.19
427.25
436.31
445.37
454.43

7.65%
17.21
17.98
18.74
19.51
20.27
21.04
21.80
22.57
23.72
25.25
26.78
28.31
29.84
31.37
32.90
34.43
35.96
37.49
39.02
40.55
42.08
43.61
45.14
47.43
50.49
53.55
56.61
59.67
62.73
65.79
68.85
71.91
74.97
78.03
81.09
84.15
90.21
97.27
104.33
111.39
118.45
125.51
132.57
139.63
146.69
154.75
163.81
172.87
181.93
190.99
200.05
209.11
218.17
227.23
236.29
245.35
254.41
263.47
272.53
281.59
290.65
299.71
308.77
317.83
326.89
335.95
345.01
354.07
363.13
372.19
381.25
390.31
399.37
408.43

7.65%
17.21
17.98
18.74
19.51
20.27
21.04
21.80
22.57
23.72
25.25
26.78
28.31
29.84
31.37
32.90
34.43
35.96
37.49
39.02
40.55
42.08
43.61
45.14
47.43
50.49
53.55
56.61
59.67
62.73
65.79
68.85
71.91
74.97
78.03
81.09
84.15
87.21
90.27
93.33
96.39
99.45
102.51
105.57
108.63
115.69
122.75
129.81
136.87
143.93
150.99
158.05
165.11
172.17
181.23
190.29
199.35
208.41
217.47
226.53
235.59
244.65
253.71
262.77
271.83
280.89
289.95
299.01
308.07
317.13
326.19
335.25
344.31
353.37
362.43

7.65%
17.21
17.98
18.74
19.51
20.27
21.04
21.80
22.57
23.72
25.25
26.78
28.31
29.84
31.37
32.90
34.43
35.96
37.49
39.02
40.55
42.08
43.61
45.14
47.43
50.49
53.55
56.61
59.67
62.73
65.79
68.85
71.91
74.97
78.03
81.09
84.15
87.21
90.27
93.33
96.39
99.45
102.51
105.57
108.63
111.69
114.75
117.81
120.87
123.93
126.99
130.05
135.11
142.17
149.23
156.29
163.35
170.41
177.47
184.53
191.59
199.65
208.71
217.77
226.83
235.89
244.95
254.01
263.07
272.13
281.19
290.25
299.31
308.37
317.43

7.65%
17.21
17.98
18.74
19.51
20.27
21.04
21.80
22.57
23.72
25.25
26.78
28.31
29.84
31.37
32.90
34.43
35.96
37.49
39.02
40.55
42.08
43.61
45.14
47.43
50.49
53.55
56.61
59.67
62.73
65.79
68.85
71.91
74.97
78.03
81.09
84.15
87.21
90.27
93.33
96.39
99.45
102.51
105.57
108.63
111.69
114.75
117.81
120.87
123.93
126.99
130.05
133.11
136.17
139.23
142.29
145.35
148.41
151.47
154.53
161.59
168.65
175.71
182.77
189.83
196.89
203.95
211.01
218.07
226.13
235.19
244.25
253.31
262.37
271.43

7.65%
17.21
17.98
18.74
19.51
20.27
21.04
21.80
22.57
23.72
25.25
26.78
28.31
29.84
31.37
32.90
34.43
35.96
37.49
39.02
40.55
42.08
43.61
45.14
47.43
50.49
53.55
56.61
59.67
62.73
65.79
68.85
71.91
74.97
78.03
81.09
84.15
87.21
90.27
93.33
96.39
99.45
102.51
105.57
108.63
111.69
114.75
117.81
120.87
123.93
126.99
130.05
133.11
136.17
139.23
142.29
145.35
148.41
151.47
154.53
157.59
160.65
163.71
166.77
169.83
172.89
175.95
180.01
187.07
194.13
201.19
208.25
215.31
222.37
229.43

7.65%
17.21
17.98
18.74
19.51
20.27
21.04
21.80
22.57
23.72
25.25
26.78
28.31
29.84
31.37
32.90
34.43
35.96
37.49
39.02
40.55
42.08
43.61
45.14
47.43
50.49
53.55
56.61
59.67
62.73
65.79
68.85
71.91
74.97
78.03
81.09
84.15
87.21
90.27
93.33
96.39
99.45
102.51
105.57
108.63
111.69
114.75
117.81
120.87
123.93
126.99
130.05
133.11
136.17
139.23
142.29
145.35
148.41
151.47
154.53
157.59
160.65
163.71
166.77
169.83
172.89
175.95
179.01
182.07
185.13
188.19
191.25
194.31
197.37
200.43

7.65%
17.21
17.98
18.74
19.51
20.27
21.04
21.80
22.57
23.72
25.25
26.78
28.31
29.84
31.37
32.90
34.43
35.96
37.49
39.02
40.55
42.08
43.61
45.14
47.43
50.49
53.55
56.61
59.67
62.73
65.79
68.85
71.91
74.97
78.03
81.09
84.15
87.21
90.27
93.33
96.39
99.45
102.51
105.57
108.63
111.69
114.75
117.81
120.87
123.93
126.99
130.05
133.11
136.17
139.23
142.29
145.35
148.41
151.47
154.53
157.59
160.65
163.71
166.77
169.83
172.89
175.95
179.01
182.07
185.13
188.19
191.25
194.31
197.37
200.43

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

7.65%
17.21
17.98
18.74
19.51
20.27
21.04
21.80
22.57
23.72
25.25
26.78
28.31
29.84
31.37
32.90
34.43
35.96
37.49
39.02
40.55
42.08
43.61
45.14
47.43
50.49
53.55
56.61
59.67
62.73
65.79
68.85
71.91
74.97
78.03
81.09
84.15
87.21
90.27
93.33
96.39
99.45
102.51
105.57
108.63
111.69
114.75
117.81
120.87
123.93
126.99
130.05
133.11
136.17
139.23
142.29
145.35
148.41
151.47
154.53
157.59
160.65
163.71
166.77
169.83
172.89
175.95
179.01
182.07
185.13
188.19
191.25
194.31
197.37
200.43

7.65%
17.21
17.98
18.74
19.51
20.27
21.04
21.80
22.57
23.72
25.25
26.78
28.31
29.84
31.37
32.90
34.43
35.96
37.49
39.02
40.55
42.08
43.61
45.14
47.43
50.49
53.55
56.61
59.67
62.73
65.79
68.85
71.91
74.97
78.03
81.09
84.15
87.21
90.27
93.33
96.39
99.45
102.51
105.57
108.63
111.69
114.75
117.81
120.87
123.93
126.99
130.05
133.11
136.17
139.23
142.29
145.35
148.41
151.47
154.53
157.59
160.65
163.71
166.77
169.83
172.89
175.95
179.01
182.07
185.13
188.19
191.25
194.31
197.37
200.43

T-16 Individuals 2009 Tax Tables and Rate Schedules

SINGLE PersonsMONTHLY Payroll Period

(For Wages Paid in 2010)
And the wages are
At least

But less
than

And the number of withholding allowances claimed is

0

10

The amount of income, social security, and Medicare taxes to be withheld is

$2640
2680
2720
2760
2800
2840
2880
2920
2960
3000
3040
3080
3120
3160
3200
3240
3280
3320
3360
3400
3440
3480
3520
3560
3600
3640
3680
3720
3760
3800
3840
3880
3920
3960
4000
4040
4080
4120
4160
4200
4240
4280
4320
4360
4400
4440
4480
4520
4560
4600
4640
4680
4720
4760
4800
4840
4880
4920
4960
5000

$5040 and over

$2680
2720
2760
2800
2840
2880
2920
2960
3000
3040
3080
3120
3160
3200
3240
3280
3320
3360
3400
3440
3480
3520
3560
3600
3640
3680
3720
3760
3800
3840
3880
3920
3960
4000
4040
4080
4120
4160
4200
4240
4280
4320
4360
4400
4440
4480
4520
4560
4600
4640
4680
4720
4760
4800
4840
4880
4920
4960
5000
5040

$508.49
517.55
526.61
535.67
544.73
553.79
562.85
571.91
580.97
592.03
605.09
618.15
631.21
644.27
657.33
670.39
683.45
696.51
709.57
722.63
735.69
748.75
761.81
774.87
787.93
800.99
814.05
827.11
840.17
853.23
866.29
879.35
892.41
905.47
918.53
931.59
944.65
957.71
970.77
983.83
996.89
1009.95
1023.01
1036.07
1049.13
1062.19
1075.25
1088.31
1101.37
1114.43
1127.49
1140.55
1153.61
1166.67
1179.73
1192.79
1205.85
1218.91
1231.97
1245.03

$463.49
472.55
481.61
490.67
499.73
508.79
517.85
526.91
535.97
545.03
554.09
563.15
572.21
581.27
590.33
599.39
608.45
620.51
633.57
646.63
659.69
672.75
685.81
698.87
711.93
724.99
738.05
751.11
764.17
777.23
790.29
803.35
816.41
829.47
842.53
855.59
868.65
881.71
894.77
907.83
920.89
933.95
947.01
960.07
973.13
986.19
999.25
1012.31
1025.37
1038.43
1051.49
1064.55
1077.61
1090.67
1103.73
1116.79
1129.85
1142.91
1155.97
1169.03

$417.49
426.55
435.61
444.67
453.73
462.79
471.85
480.91
489.97
499.03
508.09
517.15
526.21
535.27
544.33
553.39
562.45
571.51
580.57
589.63
598.69
607.75
616.81
625.87
635.93
648.99
662.05
675.11
688.17
701.23
714.29
727.35
740.41
753.47
766.53
779.59
792.65
805.71
818.77
831.83
844.89
857.95
871.01
884.07
897.13
910.19
923.25
936.31
949.37
962.43
975.49
988.55
1001.61
1014.67
1027.73
1040.79
1053.85
1066.91
1079.97
1093.03

$371.49
380.55
389.61
398.67
407.73
416.79
425.85
434.91
443.97
453.03
462.09
471.15
480.21
489.27
498.33
507.39
516.45
525.51
534.57
543.63
552.69
561.75
570.81
579.87
588.93
597.99
607.05
616.11
625.17
634.23
643.29
652.35
664.41
677.47
690.53
703.59
716.65
729.71
742.77
755.83
768.89
781.95
795.01
808.07
821.13
834.19
847.25
860.31
873.37
886.43
899.49
912.55
925.61
938.67
951.73
964.79
977.85
990.91
1003.97
1017.03

$326.49
335.55
344.61
353.67
362.73
371.79
380.85
389.91
398.97
408.03
417.09
426.15
435.21
444.27
453.33
462.39
471.45
480.51
489.57
498.63
507.69
516.75
525.81
534.87
543.93
552.99
562.05
571.11
580.17
589.23
598.29
607.35
616.41
625.47
634.53
643.59
652.65
661.71
670.77
679.83
692.89
705.95
719.01
732.07
745.13
758.19
771.25
784.31
797.37
810.43
823.49
836.55
849.61
862.67
875.73
888.79
901.85
914.91
927.97
941.03

$280.49
289.55
298.61
307.67
316.73
325.79
334.85
343.91
352.97
362.03
371.09
380.15
389.21
398.27
407.33
416.39
425.45
434.51
443.57
452.63
461.69
470.75
479.81
488.87
497.93
506.99
516.05
525.11
534.17
543.23
552.29
561.35
570.41
579.47
588.53
597.59
606.65
615.71
624.77
633.83
642.89
651.95
661.01
670.07
679.13
688.19
697.25
708.31
721.37
734.43
747.49
760.55
773.61
786.67
799.73
812.79
825.85
838.91
851.97
865.03

$236.49
243.55
252.61
261.67
270.73
279.79
288.85
297.91
306.97
316.03
325.09
334.15
343.21
352.27
361.33
370.39
379.45
388.51
397.57
406.63
415.69
424.75
433.81
442.87
451.93
460.99
470.05
479.11
488.17
497.23
506.29
515.35
524.41
533.47
542.53
551.59
560.65
569.71
578.77
587.83
596.89
605.95
615.01
624.07
633.13
642.19
651.25
660.31
669.37
678.43
687.49
696.55
705.61
714.67
723.73
735.79
748.85
761.91
774.97
788.03

$206.49
213.55
220.61
227.67
234.73
241.79
248.85
255.91
262.97
271.03
280.09
289.15
298.21
307.27
316.33
325.39
334.45
343.51
352.57
361.63
370.69
379.75
388.81
397.87
406.93
415.99
425.05
434.11
443.17
452.23
461.29
470.35
479.41
488.47
497.53
506.59
515.65
524.71
533.77
542.83
551.89
560.95
570.01
579.07
588.13
597.19
606.25
615.31
624.37
633.43
642.49
651.55
660.61
669.67
678.73
687.79
696.85
705.91
714.97
724.03

$203.49
206.55
209.61
212.67
215.73
218.79
221.85
224.91
231.97
239.03
246.09
253.15
260.21
267.27
274.33
281.39
288.45
297.51
306.57
315.63
324.69
333.75
342.81
351.87
360.93
369.99
379.05
388.11
397.17
406.23
415.29
424.35
433.41
442.47
451.53
460.59
469.65
478.71
487.77
496.83
505.89
514.95
524.01
533.07
542.13
551.19
560.25
569.31
578.37
587.43
596.49
605.55
614.61
623.67
632.73
641.79
650.85
659.91
668.97
678.03

$203.49
206.55
209.61
212.67
215.73
218.79
221.85
224.91
227.97
231.03
234.09
237.15
240.21
243.27
246.33
251.39
258.45
265.51
272.57
279.63
286.69
293.75
300.81
307.87
315.93
324.99
334.05
343.11
352.17
361.23
370.29
379.35
388.41
397.47
406.53
415.59
424.65
433.71
442.77
451.83
460.89
469.95
479.01
488.07
497.13
506.19
515.25
524.31
533.37
542.43
551.49
560.55
569.61
578.67
587.73
596.79
605.85
614.91
623.97
633.03

$203.49
206.55
209.61
212.67
215.73
218.79
221.85
224.91
227.97
231.03
234.09
237.15
240.21
243.27
246.33
249.39
252.45
255.51
258.57
261.63
264.69
267.75
270.81
276.87
283.93
290.99
298.05
305.11
312.17
319.23
326.29
333.35
342.41
351.47
360.53
369.59
378.65
387.71
396.77
405.83
414.89
423.95
433.01
442.07
451.13
460.19
469.25
478.31
487.37
496.43
505.49
514.55
523.61
532.67
541.73
550.79
559.85
568.91
577.97
587.03

Do not use this table. See page 46 for instructions.

ISBN 0-558-86017-6
Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

2009 Tax Tables and Rate Schedules Individuals T-17

MARRIED PersonsMONTHLY Payroll Period

(For Wages Paid in 2010)
And the wages are
At least

But less
than

And the number of withholding allowances claimed is

0

10

ISBN 0-558-86017-6

The amount of income, social security, and Medicare taxes to be withheld is

$0
540
560
580
600
640
680
720
760
800
840
880
920
960
1000
1040
1080
1120
1160
1200
1240
1280
1320
1360
1400
1440
1480
1520
1560
1600
1640
1680
1720
1760
1800
1840
1880
1920
1960
2000
2040
2080
2120
2160
2200
2240
2280
2320
2360
2400
2440
2480
2520
2560
2600
2640
2680
2720
2760
2800
2840
2880
2920
2960
3000
3040
3080
3120
3160
3200
3240
3280
3320
3360
3400

$540
560
580
600
640
680
720
760
800
840
880
920
960
1000
1040
1080
1120
1160
1200
1240
1280
1320
1360
1400
1440
1480
1520
1560
1600
1640
1680
1720
1760
1800
1840
1880
1920
1960
2000
2040
2080
2120
2160
2200
2240
2280
2320
2360
2400
2440
2480
2520
2560
2600
2640
2680
2720
2760
2800
2840
2880
2920
2960
3000
3040
3080
3120
3160
3200
3240
3280
3320
3360
3400
3440

7.65%
42.08
43.61
45.14
47.43
50.49
53.55
56.61
59.67
62.73
65.79
68.85
71.91
74.97
78.03
81.09
84.15
87.21
93.27
100.33
107.39
114.45
121.51
128.57
135.63
142.69
149.75
156.81
163.87
170.93
177.99
185.05
192.11
199.17
206.23
213.29
220.35
227.41
234.47
241.53
249.59
258.65
267.71
276.77
285.83
294.89
303.95
313.01
322.07
331.13
340.19
349.25
358.31
367.37
376.43
385.49
394.55
403.61
412.67
421.73
430.79
439.85
448.91
457.97
467.03
476.09
485.15
494.21
503.27
512.33
521.39
530.45
539.51
548.57
557.63

7.65%
42.08
43.61
45.14
47.43
50.49
53.55
56.61
59.67
62.73
65.79
68.85
71.91
74.97
78.03
81.09
84.15
87.21
90.27
93.33
96.39
99.45
102.51
105.57
108.63
112.69
119.75
126.81
133.87
140.93
147.99
155.05
162.11
169.17
176.23
183.29
190.35
197.41
204.47
211.53
218.59
225.65
232.71
239.77
246.83
253.89
260.95
268.01
277.07
286.13
295.19
304.25
313.31
322.37
331.43
340.49
349.55
358.61
367.67
376.73
385.79
394.85
403.91
412.97
422.03
431.09
440.15
449.21
458.27
467.33
476.39
485.45
494.51
503.57
512.63

7.65%
42.08
43.61
45.14
47.43
50.49
53.55
56.61
59.67
62.73
65.79
68.85
71.91
74.97
78.03
81.09
84.15
87.21
90.27
93.33
96.39
99.45
102.51
105.57
108.63
111.69
114.75
117.81
120.87
123.93
126.99
130.05
133.11
139.17
146.23
153.29
160.35
167.41
174.47
181.53
188.59
195.65
202.71
209.77
216.83
223.89
230.95
238.01
245.07
252.13
259.19
266.25
273.31
280.37
287.43
294.49
303.55
312.61
321.67
330.73
339.79
348.85
357.91
366.97
376.03
385.09
394.15
403.21
412.27
421.33
430.39
439.45
448.51
457.57
466.63

7.65%
42.08
43.61
45.14
47.43
50.49
53.55
56.61
59.67
62.73
65.79
68.85
71.91
74.97
78.03
81.09
84.15
87.21
90.27
93.33
96.39
99.45
102.51
105.57
108.63
111.69
114.75
117.81
120.87
123.93
126.99
130.05
133.11
136.17
139.23
142.29
145.35
148.41
151.47
154.53
157.59
164.65
171.71
178.77
185.83
192.89
199.95
207.01
214.07
221.13
228.19
235.25
242.31
249.37
256.43
263.49
270.55
277.61
284.67
291.73
298.79
305.85
312.91
320.97
330.03
339.09
348.15
357.21
366.27
375.33
384.39
393.45
402.51
411.57
420.63

7.65%
42.08
43.61
45.14
47.43
50.49
53.55
56.61
59.67
62.73
65.79
68.85
71.91
74.97
78.03
81.09
84.15
87.21
90.27
93.33
96.39
99.45
102.51
105.57
108.63
111.69
114.75
117.81
120.87
123.93
126.99
130.05
133.11
136.17
139.23
142.29
145.35
148.41
151.47
154.53
157.59
160.65
163.71
166.77
169.83
172.89
175.95
179.01
184.07
191.13
198.19
205.25
212.31
219.37
226.43
233.49
240.55
247.61
254.67
261.73
268.79
275.85
282.91
289.97
297.03
304.09
311.15
318.21
325.27
332.33
339.39
348.45
357.51
366.57
375.63

7.65%
42.08
43.61
45.14
47.43
50.49
53.55
56.61
59.67
62.73
65.79
68.85
71.91
74.97
78.03
81.09
84.15
87.21
90.27
93.33
96.39
99.45
102.51
105.57
108.63
111.69
114.75
117.81
120.87
123.93
126.99
130.05
133.11
136.17
139.23
142.29
145.35
148.41
151.47
154.53
157.59
160.65
163.71
166.77
169.83
172.89
175.95
179.01
182.07
185.13
188.19
191.25
194.31
197.37
200.43
203.49
209.55
216.61
223.67
230.73
237.79
244.85
251.91
258.97
266.03
273.09
280.15
287.21
294.27
301.33
308.39
315.45
322.51
329.57
336.63

7.65%
42.08
43.61
45.14
47.43
50.49
53.55
56.61
59.67
62.73
65.79
68.85
71.91
74.97
78.03
81.09
84.15
87.21
90.27
93.33
96.39
99.45
102.51
105.57
108.63
111.69
114.75
117.81
120.87
123.93
126.99
130.05
133.11
136.17
139.23
142.29
145.35
148.41
151.47
154.53
157.59
160.65
163.71
166.77
169.83
172.89
175.95
179.01
182.07
185.13
188.19
191.25
194.31
197.37
200.43
203.49
206.55
209.61
212.67
215.73
218.79
221.85
224.91
228.97
236.03
243.09
250.15
257.21
264.27
271.33
278.39
285.45
292.51
299.57
306.63

7.65%
42.08
43.61
45.14
47.43
50.49
53.55
56.61
59.67
62.73
65.79
68.85
71.91
74.97
78.03
81.09
84.15
87.21
90.27
93.33
96.39
99.45
102.51
105.57
108.63
111.69
114.75
117.81
120.87
123.93
126.99
130.05
133.11
136.17
139.23
142.29
145.35
148.41
151.47
154.53
157.59
160.65
163.71
166.77
169.83
172.89
175.95
179.01
182.07
185.13
188.19
191.25
194.31
197.37
200.43
203.49
206.55
209.61
212.67
215.73
218.79
221.85
224.91
227.97
231.03
234.09
237.15
240.21
243.27
246.33
249.39
255.45
262.51
269.57
276.63

7.65%
42.08
43.61
45.14
47.43
50.49
53.55
56.61
59.67
62.73
65.79
68.85
71.91
74.97
78.03
81.09
84.15
87.21
90.27
93.33
96.39
99.45
102.51
105.57
108.63
111.69
114.75
117.81
120.87
123.93
126.99
130.05
133.11
136.17
139.23
142.29
145.35
148.41
151.47
154.53
157.59
160.65
163.71
166.77
169.83
172.89
175.95
179.01
182.07
185.13
188.19
191.25
194.31
197.37
200.43
203.49
206.55
209.61
212.67
215.73
218.79
221.85
224.91
227.97
231.03
234.09
237.15
240.21
243.27
246.33
249.39
252.45
255.51
258.57
261.63

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

7.65%
42.08
43.61
45.14
47.43
50.49
53.55
56.61
59.67
62.73
65.79
68.85
71.91
74.97
78.03
81.09
84.15
87.21
90.27
93.33
96.39
99.45
102.51
105.57
108.63
111.69
114.75
117.81
120.87
123.93
126.99
130.05
133.11
136.17
139.23
142.29
145.35
148.41
151.47
154.53
157.59
160.65
163.71
166.77
169.83
172.89
175.95
179.01
182.07
185.13
188.19
191.25
194.31
197.37
200.43
203.49
206.55
209.61
212.67
215.73
218.79
221.85
224.91
227.97
231.03
234.09
237.15
240.21
243.27
246.33
249.39
252.45
255.51
258.57
261.63

7.65%
42.08
43.61
45.14
47.43
50.49
53.55
56.61
59.67
62.73
65.79
68.85
71.91
74.97
78.03
81.09
84.15
87.21
90.27
93.33
96.39
99.45
102.51
105.57
108.63
111.69
114.75
117.81
120.87
123.93
126.99
130.05
133.11
136.17
139.23
142.29
145.35
148.41
151.47
154.53
157.59
160.65
163.71
166.77
169.83
172.89
175.95
179.01
182.07
185.13
188.19
191.25
194.31
197.37
200.43
203.49
206.55
209.61
212.67
215.73
218.79
221.85
224.91
227.97
231.03
234.09
237.15
240.21
243.27
246.33
249.39
252.45
255.51
258.57
261.63

T-18 Individuals 2009 Tax Tables and Rate Schedules

MARRIED PersonsMONTHLY Payroll Period

(For Wages Paid in 2010)
And the wages are
At least

But less
than

And the number of withholding allowances claimed is

0

10

The amount of income, social security, and Medicare taxes to be withheld is

$3440
3480
3520
3560
3600
3640
3680
3720
3760
3800
3840
3880
3920
3960
4000
4040
4080
4120
4160
4200
4240
4280
4320
4360
4400
4440
4480
4520
4560
4600
4640
4680
4720
4760
4800
4840
4880
4920
4960
5000
5040
5080
5120
5160
5200
5240
5280
5320
5360
5400
5440
5480
5520
5560
5600
5640
5680
5720
5760
5800

$5840 and over

$3480
3520
3560
3600
3640
3680
3720
3760
3800
3840
3880
3920
3960
4000
4040
4080
4120
4160
4200
4240
4280
4320
4360
4400
4440
4480
4520
4560
4600
4640
4680
4720
4760
4800
4840
4880
4920
4960
5000
5040
5080
5120
5160
5200
5240
5280
5320
5360
5400
5440
5480
5520
5560
5600
5640
5680
5720
5760
5800
5840

$566.69
575.75
584.81
593.87
602.93
611.99
621.05
630.11
639.17
648.23
657.29
666.35
675.41
684.47
693.53
702.59
711.65
720.71
729.77
738.83
747.89
756.95
766.01
775.07
784.13
793.19
802.25
811.31
820.37
829.43
838.49
847.55
856.61
865.67
874.73
883.79
892.85
901.91
910.97
920.03
929.09
938.15
947.21
956.27
965.33
974.39
983.45
992.51
1001.57
1010.63
1019.69
1028.75
1037.81
1046.87
1055.93
1064.99
1074.05
1083.11
1092.17
1101.23

$521.69
530.75
539.81
548.87
557.93
566.99
576.05
585.11
594.17
603.23
612.29
621.35
630.41
639.47
648.53
657.59
666.65
675.71
684.77
693.83
702.89
711.95
721.01
730.07
739.13
748.19
757.25
766.31
775.37
784.43
793.49
802.55
811.61
820.67
829.73
838.79
847.85
856.91
865.97
875.03
884.09
893.15
902.21
911.27
920.33
929.39
938.45
947.51
956.57
965.63
974.69
983.75
992.81
1001.87
1010.93
1019.99
1029.05
1038.11
1047.17
1056.23

$475.69
484.75
493.81
502.87
511.93
520.99
530.05
539.11
548.17
557.23
566.29
575.35
584.41
593.47
602.53
611.59
620.65
629.71
638.77
647.83
656.89
665.95
675.01
684.07
693.13
702.19
711.25
720.31
729.37
738.43
747.49
756.55
765.61
774.67
783.73
792.79
801.85
810.91
819.97
829.03
838.09
847.15
856.21
865.27
874.33
883.39
892.45
901.51
910.57
919.63
928.69
937.75
946.81
955.87
964.93
973.99
983.05
992.11
1001.17
1010.23

$429.69
438.75
447.81
456.87
465.93
474.99
484.05
493.11
502.17
511.23
520.29
529.35
538.41
547.47
556.53
565.59
574.65
583.71
592.77
601.83
610.89
619.95
629.01
638.07
647.13
656.19
665.25
674.31
683.37
692.43
701.49
710.55
719.61
728.67
737.73
746.79
755.85
764.91
773.97
783.03
792.09
801.15
810.21
819.27
828.33
837.39
846.45
855.51
864.57
873.63
882.69
891.75
900.81
909.87
918.93
927.99
937.05
946.11
955.17
964.23

$384.69
393.75
402.81
411.87
420.93
429.99
439.05
448.11
457.17
466.23
475.29
484.35
493.41
502.47
511.53
520.59
529.65
538.71
547.77
556.83
565.89
574.95
584.01
593.07
602.13
611.19
620.25
629.31
638.37
647.43
656.49
665.55
674.61
683.67
692.73
701.79
710.85
719.91
728.97
738.03
747.09
756.15
765.21
774.27
783.33
792.39
801.45
810.51
819.57
828.63
837.69
846.75
855.81
864.87
873.93
882.99
892.05
901.11
910.17
919.23

$343.69
350.75
357.81
365.87
374.93
383.99
393.05
402.11
411.17
420.23
429.29
438.35
447.41
456.47
465.53
474.59
483.65
492.71
501.77
510.83
519.89
528.95
538.01
547.07
556.13
565.19
574.25
583.31
592.37
601.43
610.49
619.55
628.61
637.67
646.73
655.79
664.85
673.91
682.97
692.03
701.09
710.15
719.21
728.27
737.33
746.39
755.45
764.51
773.57
782.63
791.69
800.75
809.81
818.87
827.93
836.99
846.05
855.11
864.17
873.23

$313.69
320.75
327.81
334.87
341.93
348.99
356.05
363.11
370.17
377.23
384.29
393.35
402.41
411.47
420.53
429.59
438.65
447.71
456.77
465.83
474.89
483.95
493.01
502.07
511.13
520.19
529.25
538.31
547.37
556.43
565.49
574.55
583.61
592.67
601.73
610.79
619.85
628.91
637.97
647.03
656.09
665.15
674.21
683.27
692.33
701.39
710.45
719.51
728.57
737.63
746.69
755.75
764.81
773.87
782.93
791.99
801.05
810.11
819.17
828.23

$283.69
290.75
297.81
304.87
311.93
318.99
326.05
333.11
340.17
347.23
354.29
361.35
368.41
375.47
382.53
389.59
396.65
403.71
410.77
419.83
428.89
437.95
447.01
456.07
465.13
474.19
483.25
492.31
501.37
510.43
519.49
528.55
537.61
546.67
555.73
564.79
573.85
582.91
591.97
601.03
610.09
619.15
628.21
637.27
646.33
655.39
664.45
673.51
682.57
691.63
700.69
709.75
718.81
727.87
736.93
745.99
755.05
764.11
773.17
782.23

$264.69
267.75
270.81
273.87
280.93
287.99
295.05
302.11
309.17
316.23
323.29
330.35
337.41
344.47
351.53
358.59
365.65
372.71
379.77
386.83
393.89
400.95
408.01
415.07
422.13
429.19
437.25
446.31
455.37
464.43
473.49
482.55
491.61
500.67
509.73
518.79
527.85
536.91
545.97
555.03
564.09
573.15
582.21
591.27
600.33
609.39
618.45
627.51
636.57
645.63
654.69
663.75
672.81
681.87
690.93
699.99
709.05
718.11
727.17
736.23

$264.69
267.75
270.81
273.87
276.93
279.99
283.05
286.11
289.17
292.23
295.29
300.35
307.41
314.47
321.53
328.59
335.65
342.71
349.77
356.83
363.89
370.95
378.01
385.07
392.13
399.19
406.25
413.31
420.37
427.43
434.49
441.55
448.61
455.67
464.73
473.79
482.85
491.91
500.97
510.03
519.09
528.15
537.21
546.27
555.33
564.39
573.45
582.51
591.57
600.63
609.69
618.75
627.81
636.87
645.93
654.99
664.05
673.11
682.17
691.23

$264.69
267.75
270.81
273.87
276.93
279.99
283.05
286.11
289.17
292.23
295.29
298.35
301.41
304.47
307.53
310.59
313.65
316.71
319.77
325.83
332.89
339.95
347.01
354.07
361.13
368.19
375.25
382.31
389.37
396.43
403.49
410.55
417.61
424.67
431.73
438.79
445.85
452.91
459.97
467.03
474.09
482.15
491.21
500.27
509.33
518.39
527.45
536.51
545.57
554.63
563.69
572.75
581.81
590.87
599.93
608.99
618.05
627.11
636.17
645.23

Do not use this table. See page 46 for instructions.

ISBN 0-558-86017-6
Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

2010

TAX RATE SCHEDULES

INDIVIDUAL TAXPAYERS
Single: [1(c)]:
If taxable income is:
The tax is:
Not over $8,375 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10% of taxable income.
Over $8,375 but not over $34,000 . . . . . . . . . . . . . . . . . $837.50, plus 15% of the excess over $8,375.
Over $34,000 but not over $82,400 . . . . . . . . . . . . . . . . $4,681.25, plus 25% of the excess over $34,000.
Over $82,400 but not over $171,850 . . . . . . . . . . . . . . . $16,781.25, plus 28% of the excess over $82,400.
Over $171,850 but not over $373,650 . . . . . . . . . . . . . . $41,827.25, plus 33% of the excess over $171,850.
Over $373,650 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $108,421.25, plus 35% of the excess over $373,650.

Trimmed 10.875

Head of Household: [1(b)]:

If taxable income is:
The tax is:
Not over $11,950 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10% of taxable income.
Over $11,950 but not over $45,550 . . . . . . . . . . . . . . . . $1,195.00, plus 15% of the excess over $11,950.
Over $45,550 but not over $117,650 . . . . . . . . . . . . . . . $6,235.00, plus 25% of the excess over $45,550.
Over $117,650 but not over $190,550 . . . . . . . . . . . . . . $24,260.00 plus 28% of the excess over $117,650.
Over $190,550 but not over $373,650 . . . . . . . . . . . . . . $44,672.00, plus 33% of the excess over $190,550.
Over $373,650 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $105,095.00, plus 35% of the excess over $373,650.
Married, Filing Joint and Surviving Spouse: [1(a)]:
If taxable income is:
The tax is:
Not over $16,750 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10% of taxable income.
Over $16,750 but not over $68,000 . . . . . . . . . . . . . . . . $1,675.00, plus 15% of the excess over $16,750.
Over $68,000 but not over $137,300 . . . . . . . . . . . . . . . $9,362.50, plus 25% of the excess over $68,000.
Over $137,300 but not over $209,250 . . . . . . . . . . . . . . $26,687.50, plus 28% of the excess over $137,300.
Over $209,250 but not over $373,650 . . . . . . . . . . . . . . $46,833.50, plus 33% of the excess over $209,250.
Over $373,650 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $101,085.50, plus 35% of the excess over $373,650.
Married, Filing Separate: [1(d)]:
If taxable income is:
The tax is:
Not over $8,375 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10% of taxable income.
Over $8,375 but not over $34,000 . . . . . . . . . . . . . . . . . $837.50, plus 15% of the excess over $8,375.
Over $34,000 but not over $68,650 . . . . . . . . . . . . . . . . $4,681.25, plus 25% of the excess over $34,000.
Over $68,650 but not over $104,625 . . . . . . . . . . . . . . . $13,343.75, plus 28% of the excess over $68,650.
Over $104,625 but not over $186,825 . . . . . . . . . . . . . . $23,416.75, plus 33% of the excess over $104,625.
Over $186,825 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $50,542.75, plus 35% of the excess over $186,825.

ISBN 0-558-86017-6

Capital Gains and Dividends

Capital gains and losses are assigned to baskets. Four tax rates will apply to most capital gains and losses:
Ordinary income rates (up to 35% in 2010) for gain on assets held one year or less.
28% rate on collectibles gains and Sec. 1202 gains.
15% rate on gains on assets held for more than one year and qualified dividends (for taxpayers whose regular tax bracket is higher than 15%)
0% rate (5% for years prior to 2008) on gains on assets held more than one year and qualified dividends (and taxpayers regular tax bracket not higher than 15%).
Note: The 15% maximum rates for 2010 on long-term capital gains and qualified dividends expire on December 31,
2010. It is uncertain what Congress will do in this area of the tax law, but after 2010, it is possible for dividends
to be taxed at the highest ordinary income rate and the capital gain rate be raised to 20% from the current 15%.

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

Alternative Minimum Tax2010

If AMTI minus the
exemption is:

Over
$0
175,000*
175,000*

Category

Rate

Dollar Limit

OASDI
Medicare

6.20%
1.45%

$106,800
None

Total

7.65%

The Tax Is:

Of the
Amount
Over

But Not
Over
$175,000*

Social Security Tax2010

26%
$45,500*  28%

*$87,500 and $22,750 for married taxpayers filing separately.

Self-Employment Tax2010

$0
Category

Rate

Dollar Limit

OASDI
Medicare

12.40%
2.90%

$106,800
None

STANDARD DEDUCTION
Filing Status

2010 Amount

Married individuals filing joint returns and surviving spouses

Heads of households
Unmarried individuals (other than surviving spouses and heads of households)
Married individuals filing separate return
Additional standard deductions for the aged and the blind
Individual who is married and surviving spouses
Individual who is unmarried and not a surviving spouse
Taxpayer claimed as dependent on another taxpayers return

$11,400
8,400
5,700
5,700
1,100*
1,400*
950

*These amounts are $2,200 and $2,800, respectively, for a taxpayer who is both aged and blind.

Personal Exemption 2010: $3,650 Prior to 2010, personal exemptions were subject to a reduction for higher income taxpayers. This reduction has been eliminated for 2010 and future years although there has been some discussion about
bringing this provision back into the law to raise additional revenue for the government.

Itemized Deductions
Prior to 2010, total itemized deductions were subject to a reduction for higher income taxpayers. This reduction has
been eliminated for 2010 and future years. Whether the elimination is permanent is uncertain.

ISBN 0-558-86017-6
Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

2010

TAX RATE SCHEDULES

ESTATES AND TRUSTS [1 (e)]:
If taxable income is:
The tax is:
Not over $2,300 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15% of taxable income.
Over $2,300 but not over $5,350 . . . . . . . . . . . . . . . . . $345.00, plus 25% of the excess over $2,300.
Over $5,350 but not over $8,200 . . . . . . . . . . . . . . . . . $1,107.50, plus 28% of the excess over $5,350.
Over $8,200 but not over $11,200 . . . . . . . . . . . . . . . . $1,905.50, plus 33% of the excess over $8,200.
Over $11,200 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,895.50, plus 35% of the excess over $11,200.

CORPORATIONS
If Taxable Income Is:
Over
$

0
50,000
75,000
100,000
335,000
10,000,000
15,000,000
18,333,333

The Tax Is:

But Not Over

$

50,000
75,000
100,000
335,000
10,000,000
15,000,000
18,333,333

Of the Amount Over

15%
7,500  25%
13,750  34%
22,250  39%
113,900  34%
3,400,000  35%
5,150,000  38%
6,416,667  35%

0
50,000
75,000
100,000
335,000
10,000,000
15,000,000
18,333,333

UNIFIED CREDIT AMOUNT FOR ESTATE AND GIFT TAX

ISBN 0-558-86017-6

Year of Gift/Year of Death

Amount of Credit

January through June, 1977

$ 30,000 (6,000)*
July through December, 1977
30,000
1978
34,000
1979
38,000
1980
42,500
1981
47,000
1982
62,800
1983
79,300
1984
96,300
1985
121,800
1986
155,800
1987 through 1997
192,800
1998
202,050
1999
211,300
2000
220,550
2001
220,550
2002 and 2003
345,800
2004 and 2005
555,800 (345,800)*
2006, 2007, and 2008
780,800 (345,800)*
2009
1,455,800 (345,800)*
2010
** (330,800)*
2011***
345,800 (345,800)*

Exemption Equivalent
$ 120,666 (30,000)*
120,666
134,000
147,333
161,563
175,625
225,000
275,000
325,000
400,000
500,000
600,000
625,000
650,000
675,000
675,000
1,000,000
1,500,000 (1,000,000)*
2,000,000 (1,000,000)*
3,500,000 (1,000,000)*
** (1,000,000)*
1,000,000 (1,000,000)*

* The numbers in parentheses represent the credit and exemption equivalent amounts for the gift tax. The gift tax credit decreases in 2010 because the top gift tax rate
drops to 35% for that year. ** At the date of publication of this textbook, the estate tax is repealed because Congress did not act by December 31, 2009. Although
uncertain, it is expected for Congress to extend the 2009 unified credit amount and the unified transfer tax rates to 2010 on a retroactive basis. *** Unless Congress
acts otherwise, in 2011, the estate and gift tax rules will revert to what they would have been had Congress not enacted the 2001 Act.

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

UNIFIED TRANSFER TAX RATES

For Transfers Made in 1984 through 2001:*
If the Amount with Respect to Which
the Tentative Tax to Be Computed Is:
Not over $10,000
Over $10,000 but not over $20,000
Over $20,000 but not over $40,000
Over $40,000 but not over $60,000
Over $60,000 but not over $80,000
Over $80,000 but not over $100,000
Over $100,000 but not over $150,000
Over $150,000 but not over $250,000
Over $250,000 but not over $500,000
Over $500,000 but not over $750,000
Over $750,000 but not over $1,000,000
Over $1,000,000 but not over
$1,250,000
Over $1,250,000 but not over
$1,500,000
Over $1,500,000 but not over
$2,000,000
Over $2,000,000 but not over
$2,500,000
Over $2,500,000 but not over
$3,000,000
Over $3,000,000

The Tentative Tax Is:

18% of such amount.
$1,800, plus 20% of the excess of such amount over $10,000.
$3,800, plus 22% of the excess of such amount over $20,000.
$8,200, plus 24% of the excess of such amount over $40,000.
$13,000, plus 26% of the excess of such amount over $60,000.
$18,200, plus 28% of the excess of such amount over $80,000.
$23,800, plus 30% of the excess of such amount over $100,000.
$38,800, plus 32% of the excess of such amount over $150,000.
$70,800, plus 34% of the excess of such amount over $250,000.
$155,800, plus 37% of the excess of such amount over $500,000.
$248,300, plus 39% of the excess of such amount over $750,000.
$345,800, plus 41% of the excess of such amount
over $1,000,000.
$448,300, plus 43% of the excess of such amount
over $1,250,000.
$555,800, plus 45% of the excess of such amount
over $1,500,000.
$780,800, plus 49% of the excess of such amount
over $2,000,000.
$1,025,800, plus 53% of the excess of such amount
over $2,500,000.
$1,290,800, plus 55% of the excess of such amount
over $3,000,000.

* For decedents dying after 2001 and gifts made after 2001, the maximum tax rates decrease as follows:

Year

If the Amount with Respect to Which

the Tentative Tax to Be Computed Is:

The Tentative Tax Is:

2002
2003
2004
2005
2006
20072009
2010

Over $2,500,000
Over $2,000,000
Over $2,000,000
Over $2,000,000
Over $2,000,000
Over $1,500,000
Over $500,000**

$1,025,800, plus 50% of the excess of such amount over $2,500,000.

$780,800, plus 49% of the excess of such amount over $2,000,000.
$780,800, plus 48% of the excess of such amount over $2,000,000.
$780,800, plus 47% of the excess of such amount over $2,000,000.
$780,800, plus 46% of the excess of such amount over $2,000,000.
$555,800, plus 45% of the excess of such amount over $1,500,000.
$155,800, plus 35% of the excess of such amount over $500,000.**
ISBN 0-558-86017-6

** Gift tax only.

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

A P P E N D I X

TAX RESEARCH WORKING

PAPER FILE

INDEX TO TAX RESEARCH FILE*

ISBN 0-558-86017-6

Item

Page Reference

Determine the Facts

A-2

Identify the Issues

A-2

Locate Applicable Authorities

A-2

Evaluate Authorities

A-4

Analyze the Facts in Terms of Applicable Authorities

A-4

Communicate Conclusions and Recommendations to Others

A-5

Memorandum-to-the-File

A-6

Client Letter

A-7

*Most accounting firms maintain a client file for each of their clients. Typically, this file
contains copies of client letters, memoranda-to-the-file, relevant primary and secondary
authorities, and billing information. In our case, the client file for Mercy Hospital would
include copies of the following: (1) the December 12 letter to Elizabeth Feghali, (2) the
December 9 memorandum-to-the-file, (3) Sec. 119, (4) Reg. Sec. 1.119-1, (5) the
Kowalski opinion, (6) the Standard Federal Tax Reporter annotation, and (7) pertinent
billing information.
A-1
Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

A-2 Individuals Appendix A

TAX RESEARCH FILE

As mentioned in Chapter C:1 the tax research process entails six steps.
1.
2.
3.
4.
5.
6.

Determine the facts

Identify the issues
Locate applicable authorities
Evaluate these authorities
Analyze the facts in terms of applicable authorities
Communicate conclusions and recommendations to others.

Let us walk through each of these steps.

Determine the Facts Assume that we have determined the facts to be as follows:
Mercy Hospital maintains a cafeteria on its premises. In addition, it rents space to MacDougals, a privately owned sandwich shop. The cafeteria closes at 8:00 p.m. MacDougals is
open 24 hours. Mercy provides meal vouchers to each of its 240 medical employees to
enable them to remain on call in case of emergency. The vouchers are redeemable either at
the cafeteria or at MacDougals. Although the employees are not required to remain on or
near the premises during meal hours, they generally do. Elizabeth Fegali, Mercys Chief
Administrator, has approached you with the following question: Is the value of a meal
voucher includible in the employees gross income?

At this juncture, be sure you understand the facts before proceeding further. Remember,
researching the wrong facts could produce the wrong results.
Identify the Issues Identifying the issues presupposes a minimum level of proficiency in
tax accounting. This proficiency will come with time, effort, and perseverance. The central issue raised by the facts is the taxability of the meal vouchers. A resolution of this
issue will hinge on the resolution of other issues raised in the course of the research.
Locate Applicable Authorities For some students, this step is the most difficult in the
research process. It raises the perplexing question, Where do I begin to look? The
answer depends on the tax resources at ones disposal, as well as ones research preferences. Four rules of thumb apply:
1. Adopt an approach with which you are comfortable, and that you are confident will
produce reliable results.
2. Always consult the IRC and other primary authorities.
3. Be as thorough as possible, taking into consideration time and billing constraints.
4. Make sure that the authorities you consult are current.

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

ISBN 0-558-86017-6

One approach is to conduct a topical search. Begin by consulting the index to the Internal
Revenue Code (IRC). Then read the relevant IRC section(s). If the language of the IRC is
vague or ambiguous, turn to the Treasury Regulations. Read the relevant regulation section that elaborates or expounds on the IRC provision. If the language of the regulation is
confusing or unclear, go to a commercial tax service. Read the relevant tax service paragraphs that explain or analyze the statutory and regulatory provisions. For references to
other authorities, browse through the footnotes and annotations of the service. Then,
consult these authorities directly. Finally, check the currency of the authorities consulted,
with the aid of a citator or status (finding) list.
If a pertinent court decision or IRS ruling has been called to your attention, consult
this authority directly. Alternatively, browse through the status (finding) list of a tax service for references to tax service paragraphs that discuss this authority. Better still, consult
a citator or status list for references to court opinions or rulings that cite the authority. If
you subscribe to a computerized tax service, conduct a keyword, citation, contents, or
topical search. (For a discussion of these types of searches, see the computerized research
supplement available for download at www.prenhall.com/phtax.) Then, hyperlink to the
authorities cited within the text of the documents retrieved. So numerous are the

Tax Research Working Paper File Individuals A-3

approaches to tax research that one is virtually free to pick and choose. All that is
required of the researcher is a basic level of skill and some imagination.
Let us adopt a topical approach to the issue of the meal vouchers. If we consult an
index to the IRC, we are likely to find the heading Meals and Lodging. Below this
heading are likely to be several subheadings, some pertaining to deductions, others to
exclusions. Because the voucher issue pertains to an exclusion, let us browse through
these subheadings. In so doing, we will notice that most of these subheadings refer to Sec.
119. If we look up this IRC section, we will see the following passage:
Sec. 119. Meals or lodging furnished for the convenience of the employer.
(a) Meals and lodging furnished to employee, his spouse, and his dependents, pursuant to
employment.
There shall be excluded from gross income of an employee the value of any meals or lodging
furnished to him . . . by, or on behalf of his employer for the convenience of the employer, but
only if
(1) in the case of meals, the meals are furnished on the business premises of the employer
...
(b) Special rules. For purposes of subsection (a)
(4) Meals furnished to employees on business premises where meals of most employees are
otherwise excludable. All meals furnished on the business premises of an employer to such
employers employees shall be treated as furnished for the convenience of the employer if
. . . more than half of the employees to whom such meals are furnished on such premises
are furnished such meals for the convenience of the employer.

Section 119 appears to be applicable. It deals with meals furnished to an employee on

the business premises of the employer. Our case deals with meal vouchers furnished to
employees for redemption at employer-maintained and employer-rented-out facilities. But
here, additional issues arise. For purposes of Sec. 119, are meal vouchers the same as
meals? (Do not assume they are.) Are employer-maintained and employer-rented-out
facilities the same as the business premises of the employer? (Again, do not assume they
are.) And what does the IRC mean by for the convenience of the employer? Because the
IRC offers no guidance in this respect, let us turn to the Treasury Regulations.
The applicable regulation is Reg. Sec. 1.119-1. How do we know this? Because
Treasury Regulation section numbers track the IRC section numbers. Regulation Sec.
1.119-1 is the only regulation under Sec. 119. If we browse through this regulation, we
will find the following provision:

ISBN 0-558-86017-6

(a) Meals . . .
(2) Meals furnished without a charge
(i) Meals furnished by an employer without charge to the employee will be regarded
as furnished for the convenience of the employer if such meals are furnished for a substantial noncompensatory business reason of the employer . . .
(ii) (a) Meals will be regarded as furnished for a substantial noncompensatory business reason of the employer when the meals are furnished to the employee during his
working hours to have the employee available for emergency call during his meal
period . . .
(c) Business premises of the employer.
(1) In general. For purposes of this section, the term business premises of the employer
generally means the place of employment of the employee . . .

Based on a reading of this provision, we might conclude that the hospital meals are furnished for the convenience of the employer. Why? Because they are furnished for a substantial noncompensatory business reason of the employer, namely, to have the employees
available for emergency call during their meal periods. They also are furnished during the
employees working hours. Moreover, under Sec. 119(b)(4), if more than half the employees satisfy the for the convenience of the employer test, all employees will be regarded as
satisfying the test. But are the meals furnished on the business premises of the employer?
Under the regulation, the answer would depend. If the meals are furnished in the hospital
cafeteria, they probably are furnished on the business premises of the employer. The hospital is the place of employment of the medical employees. The cafeteria is part of the hospital. On the other hand, if the meals are furnished at MacDougals, they probably are not
Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

A-4 Individuals Appendix A

furnished on the business premises of the employer. MacDougals is not the place of
employment of the medical employees. Nor is it a part of the hospital. Thus, Reg. Sec.
1.119-1 is enlightening with respect to two statutory terms: for the convenience of the
employer and the business premises of the employer. However, it is obscure with
respect to the third term, meals. Because of this obscurity, let us turn to a tax service.
Although the index to CCHs Standard Federal Tax Reporter does not list meal
vouchers, it does list cash allowances in lieu of meals as a subtopic under Meals and
Lodging. Are meal vouchers the same as cash meal allowances?perhaps so; let us see.
Next to the heading cash allowances in lieu of meals is a reference to CCH 7222.59.
If we look up this reference, we will find the following annotation:
7222.59 Meal allowances.Cash meal allowances received by an employee (state trooper) from
his employer were not excludible from income. R.J. Kowalski, SCt, 77-2 USTC 9748, 434 US 77.1

Here we discover that, in the Kowalski case, the U.S. Supreme Court decided that cash
meal allowances received by an employee were not excludible from the employees
income. Is the Kowalski case similar to our case? It might be. Let us find out. If we turn to
paragraph 9748 of the second 1977 volume of United States Tax Cases, we will find the
text of the Kowalski opinion. A synopsis of this opinion is present below.
In the mid-1970s, the State of New Jersey provided cash meal allowances to its state
troopers. The state did not require the troopers to use the allowances exclusively for
meals. Nor did it require them to consume their meals on its business premises. One
trooper, Robert J. Kowalski, failed to report a portion of his allowance on his tax return.
The IRS assessed a deficiency, and Kowalski took the IRS to court. In court, Kowalski
argued that the meal allowances were excludible, because they were furnished for the
convenience of the employer. The IRS contended that the allowances were taxable
because they amounted to compensation. The Supreme Court took up the case and sided
with the IRS. The Court held that the Sec. 119 income exclusion does not apply to cash
payments; it applies only to meals in kind.2
For the sake of illustration, let us assume that Sec. 119, Reg. Sec. 1.119-1, and the
Kowalski case are the only authorities on point. How should we evaluate them?
Evaluate Authorities Section 119 is the key authority applicable to our case. It supplies
the operative rule for resolving the issue of the meal vouchers. It is vague, however, with
respect to three terms: meals, business premises of the employer, and for the convenience of the employer. The principal judicial authority is the Kowalski case. It provides an official interpretation of the term meals. Because the U.S. Supreme Court
decided Kowalski, the case should be assigned considerable weight. The relevant administrative authority is Reg. Sec. 1.119-1. It expounds on the terms business premises of the
employer and for the convenience of the employer. Because neither the IRC nor
Kowalski explain these terms, Reg. Sec. 1.119-1 should be accorded great weight. But
what if Kowalski had conflicted with Reg. Sec. 1.119-1? Which should be considered
more authoritative? As a general rule, high court decisions trump the Treasury
Regulations (and all IRS pronouncements for that matter). The more recent the decision,
the greater its precedential weight. Had there been no Supreme Court decision and a division of appellate authority, equal weight should have been assigned to each of the appellate court decisions.
Analyze the Facts in Terms of Applicable Authorities Analyzing the facts in terms of
applicable authorities involves applying the abstraction of the law to the concreteness of
the facts. It entails expressing the generalities of the law in terms of the specifics of the
facts. In this process, every legal condition must be satisfied for the result implied by the

2 At this juncture, the researcher should consult a citator to determine

whether Kowalski is still good law, and to locate other authorities that cite
Kowalski.

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

ISBN 0-558-86017-6

1 The researcher also might read the main Standard Federal Tax Reporter
paragraph that discusses meals and lodging furnished by the employer (CCH
7222.01). Within this paragraph are likely to be references to other primary
authorities.

Tax Research Working Paper File Individuals A-5

general rule to ensue. Thus, in our case, the conditions of furnishing meals, on the
business premises of the employer, and for the convenience of the employer must be
satisfied for the value of the meals to be excluded from the employees income.
When analyzing the facts in terms of case law, the researcher should always draw an
analogy between case facts and client facts. Likewise, he or she should always draw a distinction between case facts and client facts. Remember, under the rule of precedent, a
court deciding the clients case will be bound by the precedent of cases involving similar
facts and issues. By the same token, it will not be bound by the precedent of cases involving dissimilar facts and issues.
The most useful vehicle for analyzing client facts is the memorandum-to-the-file (see
page A-6). The purpose of this document is threefold: first, it assists the researcher in recollecting transactions long transpired; second, it apprises colleagues and supervisors of
the nature of ones research; third, it provides substantial authority for the tax treatment of a particular item. Let us analyze the facts of our case by way of a memorandumto-the-file. Notice the format of this document; it generally tracks the steps in the research
process itself.

ISBN 0-558-86017-6

Communicate Conclusions and Recommendations to Others For three practical reasons, research results always should be communicated to the client in writing. First, a
written communication can be made after extensive revisions. An oral communication
cannot. Second, in a written communication, the researcher can delve into the intricacies
of tax law. Often, in an oral communication, he or she cannot. Third, a written communication reinforces an oral understanding. Alternatively, it brings to light an oral misunderstanding.
The written communication usually takes the form of a client letter (see page A-7). The
purpose of this letter is two-fold: first, it apprises the client of the results of ones research
and, second, it recommends to the client a course of action based on these results. A sample client letter is presented below. Notice the organization of this document; it is similar
to that of the memorandum-to-the-file.

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A-6 Individuals Appendix A

Memorandum-to-the-File
Date: December 9, 20X1
From: Rosina Havacek
Re:
The taxability of meal vouchers furnished by Mercy Hospital to its medical staff.
Facts
[State only the facts that are relevant to the Issue(s) and necessary for the Analysis.] Our client, Mercy Hospital (Mercy), provides
meal vouchers to its medical employees to enable them to remain on emergency call. The vouchers are redeemable at Mercys onsite cafeteria and at MacDougals, a privately owned sandwich shop. MacDougals rents business space from the hospital. Although Mercy does
not require its employees to remain on or near its premises during their meal hours, the employees generally do. Elizabeth Fegali, Mercys
Chief Administrator, has asked us to research whether the value of the meal vouchers is taxable to the employees.
Issues
[Identify the issue(s) raised by the facts. Be specific.] The taxability of the meal vouchers depends on three issues: first, whether the meals
are furnished for the convenience of the employer; second, whether they are furnished on the business premises of the employer;
and third, whether the vouchers are equivalent to cash.
Applicable Law
[Discuss those legal principles that both strengthen and weaken the clients case. Because the primary authority for tax law is the IRC,
begin with the IRC.] Section 119 provides that the value of meals is excludible from an employees income if the meals are furnished for
the convenience of, and on the business premises of the employer. [Discuss how administrative and/or judicial authorities expound on
statutory terms.] Under Reg. Sec. 1.119-1, a meal is furnished for the convenience of the employer if it is furnished for a substantial
noncompensatory business reason. A substantial noncompensatory business reason includes the need to have the employee available
for emergency calls during his or her meal period. Under Sec. 119(b)(4), if more than half the employees satisfy the for the convenience
of the employer test, all employees will be regarded as satisfying the test. Regulation Sec. 1.119-1 defines business premises of the
employer as the place of employment of the employee.
[When discussing court cases, present case facts in such a way as to enable the reader to draw an analogy with client facts.] A Supreme
Court case, Kowalski v. CIR, 434 U.S. 77, 77-2 USTC 9748, discusses what constitutes meals for purposes of Sec. 119. In Kowalski,
the State of New Jersey furnished cash meal allowances to its state troopers to enable them to eat while on duty. It did not require the
troopers to use the allowances exclusively for meals. Nor did it require them to consume their meals on its business premises. One
trooper, R.J. Kowalski, excluded the value of his allowances from his income. The IRS disputed this treatment, and Kowalski took the
IRS to Court. In Court, Kowalski argued that the allowances were excludible because they were furnished for the convenience of the
employer. The IRS contended that the allowances were taxable because they amounted to compensation. The U.S. Supreme Court took
up the case and decided for the IRS. The Court held that the Sec. 119 income exlusion does not apply to payments in cash.
Analysis
[The analysis should (a) apply applicable law to the facts and (b) address the issue(s). In this section, every proposition should be supported by either authority, logic, or plausible assumptions.]
Issue 1: The meals provided by Mercy seem to be furnished for the convenience of the employer. They are furnished to have employees available for emergency call during their meal breaks. This is a substantial noncompensatory reason within the meaning of Reg.
Sec. 1.119-1.
Issue 2: Although the hospital cafeteria appears to be the business premises of the employer, MacDougals does not appear to be. The
hospital is the place of employment of the medical employees. MacDougals is not.
Issue 3: [In applying case law to the facts, indicate how case facts are similar to/dissimilar from client facts. If the analysis does not support a yes-no answer, do not give one.] Based on the foregoing authorities, it is unclear whether the vouchers are equivalent to cash.
On the one hand, they are redeemable only in meals. Thus, they resemble meals-in-kind. On the other hand, they are redeemable at more
than one institution. Thus, they resemble cash. Nor is it clear whether a court deciding this case would reach the same conclusion as the
Supreme Court did in Kowalski. In the latter case, the State of New Jersey provided its meal allowances in the form of cash. It did not
require its employees to use the allowances exclusively for meals. Nor did it require them to consume their meals on its business premises. In our case, Mercy provides its meal allowances in the form of vouchers. Thus, it indirectly requires its employees to use the
allowances exclusively for meals. On the other hand, it does not require them to consume their meals on its business premises.
Conclusion
[The conclusion should (a) logically flow from the analysis, and (b) address the issue(s).] Although it appears that the meals acquired by
voucher in the hospital cafeteria are furnished for the convenience of the employer and on the business premises of the employer, it
is unclear whether the vouchers are equivalent to cash. If they are equivalent to cash, or if they are redeemed at MacDougals, their value
is likely to be taxable to the employees. On the other hand, if they are not equivalent to cash, and they are redeemed only in the hospital cafeteria, their value is likely to be excludible.
ISBN 0-558-86017-6
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Copyright 2011 by Pearson Education, Inc.

Tax Research Working Paper File Individuals A-7

Professional Accounting Associates

2701 First City Plaza
Suite 905
Dallas, Texas 75019
December 12, 20X1
Elizabeth Feghali, Chief Administrator
Mercy Hospital
22650 West Haven Drive
Arlington, Texas 75527
Dear Ms. Feghali:
[Introduction. Set a cordial tone.] It was great to see you at last Thursdays football game. If not for that last minute fumble, the
Longhorns might have taken the Big 12 Conference championship!
[Issue/Purpose.] In our meeting of December 6, you asked us to research whether the value of the meal vouchers that Mercy provides to its medical employees is taxable to the employees. [Short Answer.] I regret to inform you that if the vouchers are redeemed at
MacDougals, their value is likely to be taxable to the employees. On the other hand, if the vouchers are redeemed in the hospital cafeteria, their value is likely to be excludible from the employees income. [The remainder of the letter should elaborate, support, and qualify
this answer.]
[Steps taken in deriving conclusion.] In reaching this conclusion, we consulted relevant provisions of the Internal Revenue Code
(IRC), applicable Treasury Regulations under the IRC, and a pertinent Supreme Court case. In addition, we reviewed the documents
on employee benefits that you submitted to us at our earlier meeting.
[Facts. State only the facts that are relevant to the issue and necessary for the analysis.] The facts as we understand them are as follows: Mercy provides meal vouchers to its medical employees to enable them to eat while on emergency call. The vouchers are
redeemable either in the hospital cafeteria or at MacDougals. MacDougals is a privately owned institution that rents business space
from the hospital. Although Mercys employees are not required to remain on or near the premises during their meal hours, they generally do.
[Applicable law. State, do not interpret.] Under the IRC, the value of meals is excludible from an employees income if two conditions are met: first, the meals are furnished for the convenience of the employer and second, they are provided on the business premises of the employer. Although the IRC does not explain what is meant by for the convenience of the employer, business premises of
the employer, and meals, other authorities do. Specifically, the Treasury Regulations define business premises of the employer to
be the place of employment of the employees. The regulations state that providing meals during work hours to have an employee available for emergency calls is for the convenience of the employer. Moreover, under the IRC, if more than half the employees satisfy the
for the convenience of the employer test, all the employees will be regarded as satisfying the test. The Supreme Court has interpreted
meals to mean food-in-kind. The Court has held that cash allowances do not qualify as meals.
[Analysis. Express the generalities of applicable law in terms of the specifics of the facts.] Clearly, the meals furnished by Mercy are
for the convenience of the employer. They are furnished during the employees work hours to have the employees available for emergency call. Although the meals provided in the hospital cafeteria appear to be furnished on the business premises of the employer, the
meals provided at MacDougals do not appear to be. The hospital is the place of employment of the medical employees. MacDougals is
not. What is unclear is whether the meal vouchers are equivalent to food-in-kind. On the one hand, they are redeemable at more than
one institution and thus resemble cash allowances. On the other hand, they are redeemable only in meals and thus resemble food-inkind.
[Conclusion/Recommendation.] Because of this lack of clarity, we suggest that you modify your employee benefits plan to allow for
the provision of meals-in-kind exclusively in the hospital cafeteria. In this way, you will dispel any doubt that Mercy is furnishing
meals, for the convenience of the employer, on the premises of the employer.
[Closing/Follow Up.] Please call me at 475-2020 if you have any questions concerning this conclusion. May I suggest that we meet
next week to discuss the possibility of revising your employee benefits plan.

ISBN 0-558-86017-6

[Circular 230 Disclaimer.] U.S. Treasury Regulations require us to advise you that, unless otherwise specifically noted, any federal
tax advice in this communication (including any attachments, enclosures, or other accompanying materials) was not intended or written
to be used, and it cannot be used, by any taxpayer for the purpose of avoiding penalties; furthermore, this communication was not
intended or written to support the promotion or marketing of any of the transactions or matters it addresses.
Very truly yours,
Professional Accounting Associates

By: Rosina Havacek, Junior Associate

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

ISBN 0-558-86017-6
Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

A P P E N D I X

2009 TAX FORMS

Form #

Form Title

Page No.

1040

U.S. Individual Income Tax Return

I2-8

1040

Schedule AItemized Deductions

I7-36

1040

Schedule BInterest and Dividend Income

I3-32

1040

Schedule DCapital Gains and Losses

I5-35

1040

Schedule SESocial Security Self-Employment Tax

B-2

2106

Employee Business Expenses

I9-47

2120

Multiple Support Declaration

I2-18

2210

Underpayment of Estimated Tax by Individuals, Estates, and Trusts

B-4

2441

Child and Dependent Care Expenses

B-8

4562

Depreciation and Amortization

I10-28

4684

Casualties and Thefts

I13-26

4797

Sales of Business Property

I13-25

6251

Alternative Minimum TaxIndividuals

B-10

6252

Installment Sale Income

I11-29

8283

Noncash Charitable Contributions

B-12

8582

Passive Activity Loss Limitations

B-14

8615

Tax For Children Under Age 14 Who Have Investment Income

of More Than $1,500

B-17

ISBN 0-558-86017-6

Note: Because of the availability of tax forms from many sources, only a limited number
of forms are reprinted in this textbook. All federal forms are available from the
Internal Revenue Service, either in paper form or from the IRS Web site,
http://www.irs.gov.

B-1
Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

B-2 Individuals Appendix B

SCHEDULE SE
(Form 1040)

OMB No. 1545-0074

Self-Employment Tax

Department of the Treasury

Attach to Form 1040.
Internal Revenue Service (99)
Name of person with self-employment income (as shown on Form 1040)

2009
Attachment
Sequence No. 17

See Instructions for Schedule SE (Form 1040).

Social security number of person
with self-employment income

Who Must File Schedule SE

You must file Schedule SE if:
You had net earnings from self-employment from other than church employee income (line 4 of Short Schedule SE or line 4c of
Long Schedule SE) of $400 or more, or
You had church employee income of $108.28 or more. Income from services you performed as a minister or a member of a
religious order is not church employee income (see page SE-1).
Note. Even if you had a loss or a small amount of income from self-employment, it may be to your benefit to file Schedule SE and use
either optional method in Part II of Long Schedule SE (see page SE-4).
Exception. If your only self-employment income was from earnings as a minister, member of a religious order, or Christian Science
practitioner and you filed Form 4361 and received IRS approval not to be taxed on those earnings, do not file Schedule SE. Instead,
write ExemptForm 4361 on Form 1040, line 56.

May I Use Short Schedule SE or Must I Use Long Schedule SE?

Note. Use this flowchart only if you must file Schedule SE. If unsure, see Who Must File Schedule SE, above.
Did you receive wages or tips in 2009?
No

Are you a minister, member of a religious order, or Christian

Science practitioner who received IRS approval not to be taxed
on earnings from these sources, but you owe self-employment
tax on other earnings?

Yes

Was the total of your wages and tips subject to social security
or railroad retirement (tier 1) tax plus your net earnings from
self-employment more than $106,800?

Yes

No

Are you using one of the optional methods to figure your net
earnings (see page SE-4)?

No
Did you receive tips subject to social security or Medicare tax
that you did not report to your employer?

Yes

Yes

No

No
Did you receive church employee income reported on Form
W-2 of $108.28 or more?

Yes

Yes

No

Did you report any wages on Form 8919, Uncollected Social

Security and Medicare Tax on Wages?

Yes

No
You may use Short Schedule SE below

You must use Long Schedule SE on page 2

Section AShort Schedule SE. Caution. Read above to see if you can use Short Schedule SE.
1a

Net farm profit or (loss) from Schedule F, line 36, and farm partnerships, Schedule K-1 (Form
1065), box 14, code A . . . . . . . . . . . . . . . . . . . . . . . .
b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve
Program payments included on Schedule F, line 6b, or listed on Schedule K-1 (Form 1065), box 20, code Y

3
4
5

For Paperwork Reduction Act Notice, see Form 1040 instructions.

Cat. No. 11358Z

1b (

2
3
4

Schedule SE (Form 1040) 2009

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

ISBN 0-558-86017-6

Net profit or (loss) from Schedule C, line 31; Schedule C-EZ, line 3; Schedule K-1 (Form 1065),
box 14, code A (other than farming); and Schedule K-1 (Form 1065-B), box 9, code J1.
Ministers and members of religious orders, see page SE-1 for types of income to report on this
line. See page SE-3 for other income to report . . . . . . . . . . . . . . .
Combine lines 1a, 1b, and 2 . . . . . . . . . . . . . . . . . . . . . .
Net earnings from self-employment. Multiply line 3 by 92.35% (.9235). If less than $400, do
not file this schedule; you do not owe self-employment tax . . . . . . . . . . .
Self-employment tax. If the amount on line 4 is:
$106,800 or less, multiply line 4 by 15.3% (.153). Enter the result here and on Form 1040, line 56.
More than $106,800, multiply line 4 by 2.9% (.029). Then, add $13,243.20 to the result.
Enter the total here and on Form 1040, line 56. . . . . . . . . . . . . . . .
Deduction for one-half of self-employment tax. Multiply line 5
by 50% (.50). Enter the result here and on Form 1040, line 27
6

1a

Tax Forms Individuals B-3

Schedule SE (Form 1040) 2009

Attachment Sequence No. 17

Name of person with self-employment income (as shown on Form 1040)

Social security number of person

with self-employment income

Page 2

Section BLong Schedule SE

Part I

Self-Employment Tax

Note. If your only income subject to self-employment tax is church employee income, skip lines 1 through 4b. Enter -0- on line 4c
and go to line 5a. Income from services you performed as a minister or a member of a religious order is not church employee
income. See page SE-1.
A
If you are a minister, member of a religious order, or Christian Science practitioner and you filed Form 4361, but you
had $400 or more of other net earnings from self-employment, check here and continue with Part I . . . . . .
1a Net farm profit or (loss) from Schedule F, line 36, and farm partnerships, Schedule K-1 (Form 1065),
1a
box 14, code A. Note. Skip lines 1a and 1b if you use the farm optional method (see page SE-4)
b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve
)
1b (
Program payments included on Schedule F, line 6b, or listed on Schedule K-1 (Form 1065), box 20, code Y
Net profit or (loss) from Schedule C, line 31; Schedule C-EZ, line 3; Schedule K-1 (Form 1065),
box 14, code A (other than farming); and Schedule K-1 (Form 1065-B), box 9, code J1.
Ministers and members of religious orders, see page SE-1 for types of income to report on this
line. See page SE-3 for other income to report. Note. Skip this line if you use the nonfarm
optional method (see page SE-4) . . . . . . . . . . . . . . . . . . . .
3
Combine lines 1a, 1b, and 2 . . . . . . . . . . . . . . . . . . . . . .
4a If line 3 is more than zero, multiply line 3 by 92.35% (.9235). Otherwise, enter amount from line 3
b If you elect one or both of the optional methods, enter the total of lines 15 and 17 here . .
c Combine lines 4a and 4b. If less than $400, stop; you do not owe self-employment tax.
Exception. If less than $400 and you had church employee income, enter -0- and continue
5a Enter your church employee income from Form W-2. See page
5a
SE-1 for definition of church employee income. . . . . .
b Multiply line 5a by 92.35% (.9235). If less than $100, enter -0- . . . . . . . . . .
6
Net earnings from self-employment. Add lines 4c and 5b . . . . . . . . . . .
7
Maximum amount of combined wages and self-employment earnings subject to social security
tax or the 6.2% portion of the 7.65% railroad retirement (tier 1) tax for 2009 . . . . . .
8a Total social security wages and tips (total of boxes 3 and 7 on
Form(s) W-2) and railroad retirement (tier 1) compensation.
8a
If $106,800 or more, skip lines 8b through 10, and go to line 11
b Unreported tips subject to social security tax (from Form 4137, line 10)
8b
c Wages subject to social security tax (from Form 8919, line 10)
8c
d Add lines 8a, 8b, and 8c . . . . . . . . . . . . . . . . . . . . . . .
9
Subtract line 8d from line 7. If zero or less, enter -0- here and on line 10 and go to line 11 .
10
Multiply the smaller of line 6 or line 9 by 12.4% (.124) . . . . . . . . . . . . .
11
Multiply line 6 by 2.9% (.029) . . . . . . . . . . . . . . . . . . . . .
12
Self-employment tax. Add lines 10 and 11. Enter here and on Form 1040, line 56. . . .
13
Deduction for one-half of self-employment tax. Multiply line 12
by 50% (.50). Enter the result here and on Form 1040, line 27 .
13
2

Part II

ISBN 0-558-86017-6

1
2

4c

5b
6

106,800 00

8d
9
10
11
12

Optional Methods To Figure Net Earnings (see page SE-4)

Farm Optional Method. You may use this method only if (a) your gross farm income1 was not more
than $6,540, or (b) your net farm profits2 were less than $4,721.
14
Maximum income for optional methods
15
Enter the smaller of: two-thirds (2/3) of gross farm income1 (not less than zero) or $4,360. Also
include this amount on line 4b above . . . . . . . . . . . . . . . . . . .
Nonfarm Optional Method. You may use this method only if (a) your net nonfarm profits3 were less
than $4,721 and also less than 72.189% of your gross nonfarm income,4 and (b) you had net earnings
from self-employment of at least $400 in 2 of the prior 3 years. Caution. You may use this method no
more than five times.
16
Subtract line 15 from line 14 . . . . . . . . . . . . . . . . . . . . . .
17

2
3
4a
4b

Enter the smaller of: two-thirds (2/3) of gross nonfarm income4 (not less than zero) or the
amount on line 16. Also include this amount on line 4b above . . . . . . . . . .

4,360 00

14
15

16
17

From Sch. F, line 11, and Sch. K-1 (Form 1065), box 14, code B.

From Sch. F, line 36, and Sch. K-1 (Form 1065), box 14, code A
minus the amount you would have entered on line 1b had you not
used the optional method.

From Sch. C, line 31; Sch. C-EZ, line 3; Sch. K-1 (Form 1065), box 14,
code A; and Sch. K-1 (Form 1065-B), box 9, code J1.

From Sch. C, line 7; Sch. C-EZ, line 1; Sch. K-1 (Form 1065), box 14,
code C; and Sch. K-1 (Form 1065-B), box 9, code J2.
Schedule SE (Form 1040) 2009

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

B-4 Individuals Appendix B

Form

Underpayment of
Estimated Tax by Individuals, Estates, and Trusts

2210

See separate instructions.

Attach to Form 1040, 1040A, 1040NR, 1040NR-EZ, or 1041.

Department of the Treasury

Internal Revenue Service
Name(s) shown on tax return

OMB No. 1545-0140

2009

Attachment
Sequence No. 06
Identifying number

Do You Have To File Form 2210?

Complete lines 1 through 7 below. Is line 7 less than $1,000?

Yes

Do not file Form 2210. You do not owe a penalty.

Yes

You do not owe a penalty. Do not file Form 2210 (but

if box E in Part II applies, you must file page 1
of Form 2210).

Yes

You must file Form 2210. Does box B, C, or

D in Part II apply?
No
Yes
You must figure your penalty.

No
Complete lines 8 and 9 below. Is line 6 equal to or more than
line 9?
No
You may owe a penalty. Does any box in Part II below apply?
No
Do not file Form 2210. You are not required to figure
your penalty because the IRS will figure it and send
you a bill for any unpaid amount. If you want to figure
it, you may use Part III or Part IV as a worksheet and
enter your penalty amount on your tax return, but do
not file Form 2210.

Part I

You are not required to figure your penalty because the IRS
will figure it and send you a bill for any unpaid amount. If
you want to figure it, you may use Part III or Part IV as a
worksheet and enter your penalty amount on your tax return,
but file only page 1 of Form 2210.

Required Annual Payment

1 Enter your 2009 tax after credits from Form 1040, line 55 (see instructions if not filing Form 1040)
2 Other taxes, including self-employment tax (see page 2 of the instructions) . . . . . . .

1
2

3 Refundable credits. Enter the total of your making work pay and government retiree credits,
earned income credit, additional child tax credit, refundable education credit, first-time
homebuyer credit, credit for federal tax paid on fuels, refundable credit for prior year minimum
)
tax, and health coverage tax credit . . . . . . . . . . . . . . . . . . . .
3 (
4 Current year tax. Combine lines 1, 2, and 3. If less than $1,000, stop; you do not owe a penalty.
Do not file Form 2210 . . . . . . . . . . . . . . . . . . . . . . . .
4
5 Multiply line 4 by 90% (.90) . . . . . . . . . . . . .
5
6 Withholding taxes. Do not include estimated tax payments (see page 3 of the instructions) .
6
7 Subtract line 6 from line 4. If less than $1,000, stop; you do not owe a penalty. Do not file Form 2210
7
8 Maximum required annual payment based on prior years tax (see page 3 of the instructions) .
8
9 Required annual payment. Enter the smaller of line 5 or line 8 . . . . . . . . . .
9
Next: Is line 9 more than line 6?
No. You do not owe a penalty. Do not file Form 2210 unless box E below applies.
Yes. You may owe a penalty, but do not file Form 2210 unless one or more boxes in Part II below applies.
If box B, C, or D applies, you must figure your penalty and file Form 2210.
If box A, E, or F applies (but not B, C, or D) file only page 1 of Form 2210. You are not required to figure your penalty; the
IRS will figure it and send you a bill for any unpaid amount. If you want to figure your penalty, you may use Part III or IV as a
worksheet and enter your penalty on your tax return, but file only page 1 of Form 2210.
Part II Reasons for Filing. Check applicable boxes. If none apply, do not file Form 2210.
A
B
C

E
F

You are certifying that more than 50% of the gross income shown on your 2008 tax return is income from a small business
(as defined in the instructions) and your adjusted gross income for 2008 is less than $500,000 (less than $250,000 if your
2009 filing status is married filing separately).
Form 2210 (2009)
Cat. No. 11744P
Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

For Paperwork Reduction Act Notice, see page 7 of separate instructions.

ISBN 0-558-86017-6

You request a waiver (see page 2 of the instructions) of your entire penalty. You must check this box and file page 1 of Form
2210, but you are not required to figure your penalty.
You request a waiver (see page 2 of the instructions) of part of your penalty. You must figure your penalty and waiver
amount and file Form 2210.
Your income varied during the year and your penalty is reduced or eliminated when figured using the annualized income
installment method. You must figure the penalty using Schedule Al and file Form 2210.
Your penalty is lower when figured by treating the federal income tax withheld from your income as paid on the dates it was
actually withheld, instead of in equal amounts on the payment due dates. You must figure your penalty and file Form 2210.
You filed or are filing a joint return for either 2008 or 2009, but not for both years, and line 8 above is smaller than line 5
above. You must file page 1 of Form 2210, but you are not required to figure your penalty (unless box B, C, or D applies).

Tax Forms Individuals B-5

Page 2

Form 2210 (2009)

Part III

Short Method
You may use the short method if:
You made no estimated tax payments (or your only payments were withheld
federal income tax), or
You paid the same amount of estimated tax on each of the four payment
due dates.

Can You Use the

Short Method?

You must use the regular method (Part IV) instead of the short method if:
You made any estimated tax payments late,
You checked box C or D in Part II, or
You are filing Form 1040NR or 1040NR-EZ and you did not receive wages
as an employee subject to U.S. income tax withholding.
Note: If any payment was made earlier than the due date, you may use the short method, but using it may cause you to pay a
larger penalty than the regular method. If the payment was only a few days early, the difference is likely to be small.

Must You Use the

Regular Method?

10 Enter the amount from Form 2210, line 9 .

11 Enter the amount, if any, from Form 2210, line 6 .

10

13

11

12 Enter the total amount, if any, of estimated tax payments you made
(see page 3 of the instructions) . . . . . . . . . . .
13 Add lines 11 and 12 .

12
.

14 Total underpayment for year. Subtract line 13 from line 10. If zero or less, stop; you do not
owe a penalty. Do not file Form 2210 unless you checked box E or F in Part II . . . . .

14

15 Multiply line 14 by .02660 .

15

16 If the amount on line 14 was paid on or after 4/15/10, enter -0-.

If the amount on line 14 was paid before 4/15/10, make the following computation to find the
amount to enter on line 16.
Number of days paid
Amount on
before 4/15/10
.00011 . . . . . . . . . .
line 14

16

17 Penalty. Subtract line 16 from line 15. Enter the result here and on Form 1040, line 76;
Form 1040A, line 49; Form 1040NR, line 71; Form 1040NR-EZ, line 26; or Form 1041, line 26.
Do not file Form 2210 unless you checked a box in Part II . . . . . . . . . . .

17

ISBN 0-558-86017-6

Form 2210 (2009)

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

B-6 Individuals Appendix B

Page 3

Form 2210 (2009)

Part IV

Regular Method (See page 3 of the instructions if you are filing Form 1040NR or 1040NR-EZ.)
Payment Due Dates
Section AFigure Your Underpayment
(c)
(b)
(a)
4/15/09
18 Required installments. If box C in Part II applies, enter
the amounts from Schedule AI, line 25. Otherwise, enter
25% (.25) of line 9, Form 2210, in each column . . .
19 Estimated tax paid and tax withheld (see page 3 of the
instructions). For column (a) only, also enter the amount
from line 19 on line 23. If line 19 is equal to or more than
line 18 for all payment periods, stop here; you do not
owe a penalty. Do not file Form 2210 unless you
checked a box in Part II . . . . . . . . . .
Complete lines 20 through 26 of one column before
going to line 20 of the next column.
20 Enter the amount, if any, from line 26 in the previous
column . . . . . . . . . . . . . . . .
21 Add lines 19 and 20 . . . . . . . . . . . .
22 Add the amounts on lines 24 and 25 in the previous column
23 Subtract line 22 from line 21. If zero or less, enter -0-.
For column (a) only, enter the amount from line 19 . .
24 If line 23 is zero, subtract line 21 from line 22. Otherwise,
enter -0- . . . . . . . . . . . . . . . .
25 Underpayment. If line 18 is equal to or more than line
23, subtract line 23 from line 18. Then go to line 20 of the
next column. Otherwise, go to line 26 . . . . . .
26 Overpayment. If line 23 is more than line 18, subtract line
18 from line 23. Then go to line 20 of the next column.

6/15/09

(d)
1/15/10

9/15/09

18

19

20
21
22
23
24

25
26

Section BFigure the Penalty (Complete lines 29 through 30 of one column before going to the next column.)
Note: Only one underpayment rate applies for all underpayments of required installments. To reduce the number of computations,
we have removed lines 27 and 28.
April 16, 2009April 15, 2010
4/15/09
6/15/09
9/15/09
1/15/10
29 Number of days from the date shown above line 29 to
the date the amount on line 25 was paid or 4/15/10,
whichever is earlier . . . . . . . . . . . .
30
Number of days
Underpayment on line 25
(see page 5 of the instructions)

on line 29
365

Days:

Days:

Days:

Days:

29

.04

30 $
$
$
31 Penalty. Add the amounts in each column of line 30. Enter the total here and on Form 1040, line 76; Form
1040A, line 49; Form 1040NR, line 71; Form 1040NR-EZ, line 26; or Form 1041, line 26. Do not file Form
2210 unless you checked a box in Part II . . . . . . . . . . . . . . . . . . .

31
Form 2210 (2009)

ISBN 0-558-86017-6
Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

Tax Forms Individuals B-7

Page 4

Form 2210 (2009)

Schedule AIAnnualized Income Installment Method (See pages 5 through 7 of the instructions.)
Estates and trusts, do not use the period ending dates shown to the
right. Instead, use the following: 2/28/09, 4/30/09, 7/31/09, and
11/30/09.

Part I

(a)
1/1/093/31/09

(b)
1/1/095/31/09

(c)
1/1/098/31/09

(d)
1/1/0912/31/09

2.4

1.5

2.4

1.5

22.5%

45%

67.5%

90%

$26,700

$44,500

$71,200

$106,800

0.496

0.2976

0.186

0.124

0.116

0.0696

0.0435

0.029

Annualized Income Installments

1 Enter your adjusted gross income for each period (see

instructions). (Estates and trusts, enter your taxable income
without your exemption for each period.) . . . . . . .
2 Annualization amounts. (Estates and trusts, see instructions) .
3 Annualized income. Multiply line 1 by line 2 . . . . . .

1
2
3

4 If you itemize, enter itemized deductions for the period shown in

each column. All others enter -0-, and skip to line 7. Exception:
Estates and trusts, skip to line 9 and enter amount from line 3 .
5 Annualization amounts . . . . . . . . . . . .

6 Multiply line 4 by line 5 (see instructions if line 3 is more than

$83,400) .

7 In each column, enter the full amount of your standard

deduction from Form 1040, line 40a, or Form 1040A, line 24a.
(Form 1040NR or 1040NR-EZ filers, enter -0-. Exception: Indian
students and business apprentices, see instructions.) . . .
8 Enter the larger of line 6 or line 7 . . . . . . . . .

9 Subtract line 8 from line 3 .

7
8
9

10 In each column, multiply $3,650 by the total number of

exemptions claimed (see instructions if line 3 is more than
$125,100). (Estates, trusts, and Form 1040NR or 1040NR-EZ
filers, see instructions.) . . . . . . . . . . . .
11 Subtract line 10 from line 9. If zero or less, enter -0- . . .
12 Figure your tax on the amount on line 11 (see instructions) .

13
14
15
16

Self-employment tax from line 34 (complete Part II below) . .

Enter other taxes for each payment period (see instructions) .
Total tax. Add lines 12, 13, and 14. . . . . . . . .

For each period, enter the same type of credits as allowed on

Form 2210, Part I, lines 1 and 3 (see instructions) . . . .
17 Subtract line 16 from line 15. If zero or less, enter -0- . . .

18 Applicable percentage . .
19 Multiply line 17 by line 18 .

.
.

.
.

.
.

.
.

.
.

.
.

.
.

.
.

.
.

.
.

10
11
12
13
14
15
16
17
18
19

Complete lines 2025 of one column before going to line 20

of the next column.

20
21
22
23

Enter 25% (.25) of line 9 on page 1 of Form 2210 in each column

20
21
22

Subtract line 25 of the previous column from line 24 of that

column. . . . . . . . . . . . . . . . .
24 Add lines 22 and 23 . . . . . . . . . . . . .

23
24

25 Enter the smaller of line 21 or line 24 here and on Form 2210,

line 18 . . . . . . . . . . . . . . . .

25

Enter the total of the amounts in all previous columns of line 25

Subtract line 20 from line 19. If zero or less, enter -0- . . .

Part II

Annualized Self-Employment Tax (Form 1040 filers only)

26 Net earnings from self-employment for the period (see

instructions) .

27 Prorated social security tax limit . . . . . . . . .

28 Enter actual wages for the period subject to social security tax or

ISBN 0-558-86017-6

the 6.2% portion of the 7.65% railroad retirement (tier 1) tax.

Exception: If you filed Form 4137 or Form 8919, see instructions

29
30
31
32
33
34

Subtract line 28 from line 27. If zero or less, enter -0- .

Annualization amounts . . . . . . . . . .
Multiply line 30 by the smaller of line 26 or line 29 . .

.
.
.

.
.
.

Annualization amounts . . . . . . . . . .
Multiply line 26 by line 32 . . . . . . . . .
Add lines 31 and 33. Enter here and on line 13 above .

.
.

.
.

26
27

28
29
30
31
32
33
34

Form 2210 (2009)

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

B-8 Individuals Appendix B

Form

Child and Dependent Care Expenses

2441

OMB No. 1545-0074

1040

..........

1040A
..........

2009

1040NR

Attach to Form 1040, Form 1040A, or Form 1040NR.

Department of the Treasury

Internal Revenue Service (99)

2441

See separate instructions.

Your social security number

Name(s) shown on return

Part I
1

Attachment
Sequence No. 21

Persons or Organizations Who Provided the CareYou must complete this part.
(If you have more than two care providers, see the instructions.)
(b) Address
(number, street, apt. no., city, state, and ZIP code)

(a) Care providers

name

(c) Identifying number

(SSN or EIN)

(d) Amount paid

(see instructions)

Did you receive

No
Complete only Part II below.
dependent care benefits?
Yes
Complete Part III on the back next.
Caution. If the care was provided in your home, you may owe employment taxes. If you do, you cannot file Form 1040A. For details,
see the instructions for Form 1040, line 59, or Form 1040NR, line 56.

Part II
2

Credit for Child and Dependent Care Expenses

Information about your qualifying person(s). If you have more than two qualifying persons, see the instructions.
(b) Qualifying persons social
security number

(a) Qualifying persons name

First

Last

Add the amounts in column (c) of line 2. Do not enter more than $3,000 for one qualifying
person or $6,000 for two or more persons. If you completed Part III, enter the amount
from line 34 . . . . . . . . . . . . . . . . . . . . . . . . . .

4
5

Enter your earned income. See instructions . . . . . . . . . . . . . . .

If married filing jointly, enter your spouses earned income (if your spouse was a student
or was disabled, see the instructions); all others, enter the amount from line 4 . . . .

6
7

Enter the smallest of line 3, 4, or 5 . . . . . . .

Enter the amount from Form 1040, line 38; Form
1040A, line 22; or Form 1040NR, line 36. . . . .

$015,000
15,00017,000
17,00019,000
19,00021,000
21,00023,000
23,00025,000
25,00027,000
27,00029,000

10

12
13

5
6

Decimal
amount is
.35
.34
.33
.32
.31
.30
.29
.28

If line 7 is:
But not
over
Over

Decimal
amount is

$29,00031,000
31,00033,000

.27
.26

33,00035,000
35,00037,000
37,00039,000

.25
.24
.23

39,00041,000

.22

41,00043,000
43,000No limit

.21
.20

Multiply line 6 by the decimal amount on line 8. If you paid 2008 expenses in 2009, see
the instructions . . . . . . . . . . . . . . . . . . . . . . . . .
Enter the amount from Form 1040, line 46; Form
1040A, line 28; or Form 1040NR, line 43. . . . .
10
Enter the amount from Form 1040, line 47; or Form
1040NR, line 44. Form 1040A filers, enter -0- . . .
11
Subtract line 11 from line 10. If zero or less, stop. You cannot take the credit . . . .
Credit for child and dependent care expenses. Enter the smaller of line 9 or line 12
here and on Form 1040, line 48; Form 1040A, line 29; or Form 1040NR, line 45 . . . .

For Paperwork Reduction Act Notice, see page 4 of the instructions.

X.

12
13

Cat. No. 11862M

Form 2441 (2009)

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

ISBN 0-558-86017-6

11

3
4

7
Enter on line 8 the decimal amount shown below that applies to the amount on line 7
If line 7 is:
But not
over
Over

(c) Qualified expenses you

incurred and paid in 2009 for the
person listed in column (a)

Tax Forms Individuals B-9

Page 2

Form 2441 (2009)

Part III

Dependent Care Benefits

14 Enter the total amount of dependent care benefits you received in 2009. Amounts you
received as an employee should be shown in box 10 of your Form(s) W-2. Do not include
amounts reported as wages in box 1 of Form(s) W-2. If you were self-employed or a
partner, include amounts you received under a dependent care assistance program from
your sole proprietorship or partnership . . . . . . . . . . . . . . . . . .
15 Enter the amount, if any, you carried over from 2008 and used in 2009 during the grace
period. See instructions . . . . . . . . . . . . . . . . . . . . . . .
16 Enter the amount, if any, you forfeited or carried forward to 2010. See instructions . . .
17 Combine lines 14 through 16. See instructions . . . . . . . . . . . . . . .
18 Enter the total amount of qualified expenses incurred
in 2009 for the care of the qualifying person(s) . . .
18
19
19 Enter the smaller of line 17 or 18 . . . . . . . .
20
20 Enter your earned income. See instructions . . . .
21 Enter the amount shown below that applies
to you.

14
15
16 (
17

If

married filing jointly, enter your

spouses earned income (if your
spouse was a student or was disabled,
see the instructions for line 5).
If married filing separately, see
instructions.

All others, enter the amount from line 20.

22 Enter the smallest of line 19, 20, or 21 . . . . . .
23 Enter $5,000 ($2,500 if married filing separately and
you were required to enter your spouses earned
income on line 21) . . . . . . . . . . . . .

21

22

23
24 Are you filing Form 1040A?
Yes. Skip lines 24 through 27 and go to line 28.
No. Enter the amount from line 14 that you received from your sole proprietorship or
partnership. If you did not receive any such amounts, enter -0- . . . . . . . . .
25
25 Subtract line 24 from line 17 . . . . . . . . .
26
26 Enter the smaller of line 22 or 23 . . . . . . . .
27 Deductible benefits. Enter the smallest of line 22, 23, or 24. Also, include this amount on
the appropriate line(s) of your return. See instructions . . . . . . . . . . . . .
28 Excluded benefits. Form 1040 and 1040NR filers: Subtract line 27 from line 26. If zero or
less, enter-0-. Form 1040A filers: Enter the smaller of line 22 or line 23 . . . . . . .
29 Taxable benefits. Form 1040 and 1040NR filers: Subtract line 28 from line 25. If zero or
less, enter -0-. Also, include this amount on Form 1040, line 7; or Form 1040NR, line 8. On
the dotted line next to Form 1040, line 7; or Form 1040NR, line 8, enter DCB.
Form 1040A filers: Subtract line 28 from line 17. Also, include this amount on Form 1040A,
line 7. In the space to the left of line 7, enter DCB . . . . . . . . . . . . . .

24

27
28

29

ISBN 0-558-86017-6

To claim the child and dependent care

credit, complete lines 30 through 34 below.
30 Enter $3,000 ($6,000 if two or more qualifying persons) . . . . . . . . . . . .
31 Form 1040 and 1040NR filers: Add lines 27 and 28. Form 1040A filers: Enter the amount
from line 28 . . . . . . . . . . . . . . . . . . . . . . . . . . .
32 Subtract line 31 from line 30. If zero or less, stop. You cannot take the credit.
Exception. If you paid 2008 expenses in 2009, see the instructions for line 9 . . . . .
33 Complete line 2 on the front of this form. Do not include in column (c) any benefits shown
on line 31 above. Then, add the amounts in column (c) and enter the total here. . . . .
34 Enter the smaller of line 32 or 33. Also, enter this amount on line 3 on the front of this form
and complete lines 4 through 13 . . . . . . . . . . . . . . . . . . . .

30
31
32
33
34
Form 2441 (2009)

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

B-10 Individuals Appendix B

Form

Alternative Minimum TaxIndividuals

6251

2009

See separate instructions.

Department of the Treasury

Internal Revenue Service (99)
Name(s) shown on Form 1040 or Form 1040NR

Part I

OMB No. 1545-0074

Attachment
Sequence No. 32
Your social security number

Attach to Form 1040 or Form 1040NR.

Alternative Minimum Taxable Income (See instructions for how to complete each line.)

1 If filing Schedule A (Form 1040), enter the amount from Form 1040, line 41 (minus any amount on Form 8914,
line 6), and go to line 2. Otherwise, enter the amount from Form 1040, line 38 (minus any amount on Form 8914,
line 6), and go to line 7. (If less than zero, enter as a negative amount.) . . . . . . . . . . . . .
2 Medical and dental. Enter the smaller of Schedule A (Form 1040), line 4, or 2.5% (.025) of Form 1040, line 38. If
zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 Taxes from Schedule A (Form 1040), lines 5, 6, and 8 . . . . . . . . . . . . . . . . . .
4 Enter the home mortgage interest adjustment, if any, from line 6 of the worksheet on page 2 of the instructions
5 Miscellaneous deductions from Schedule A (Form 1040), line 27 . . . . . . . . . . . . . . .
6 If Form 1040, line 38, is over $166,800 (over $83,400 if married filing separately), enter the amount from
line 11 of the Itemized Deductions Worksheet on page A-11 of the instructions for Schedule A (Form 1040) .
7 If filing Schedule L (Form 1040A or 1040), enter as a negative amount the sum of lines 6 and 20 from that schedule . . .
8 Tax refund from Form 1040, line 10 or line 21 . . . . . . . . . . . . . . . . . . . .
9 Investment interest expense (difference between regular tax and AMT) . . . . . . . . . . . . .
10 Depletion (difference between regular tax and AMT) . . . . . . . . . . . . . . . . . .
11 Net operating loss deduction from Form 1040, line 21. Enter as a positive amount .
12 Alternative tax net operating loss deduction . . . . . . . . . . . . .
13 Interest from specified private activity bonds exempt from the regular tax . . . .
14 Qualified small business stock (7% of gain excluded under section 1202) . . . .
15 Exercise of incentive stock options (excess of AMT income over regular tax income) .

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16 Estates and trusts (amount from Schedule K-1 (Form 1041), box 12, code A) . . .
17 Electing large partnerships (amount from Schedule K-1 (Form 1065-B), box 6) . . . . . .
18 Disposition of property (difference between AMT and regular tax gain or loss) . . . . . .
19 Depreciation on assets placed in service after 1986 (difference between regular tax and AMT) .
20 Passive activities (difference between AMT and regular tax income or loss)
. . . . . .
21 Loss limitations (difference between AMT and regular tax income or loss) . . . . . . .
22 Circulation costs (difference between regular tax and AMT) . . . . . . . . . . .
23 Long-term contracts (difference between AMT and regular tax income) . .
24 Mining costs (difference between regular tax and AMT) . . . . . .
25 Research and experimental costs (difference between regular tax and AMT)
26 Income from certain installment sales before January 1, 1987. . . . .
27 Intangible drilling costs preference . . . . . . . . . . . .
28 Other adjustments, including income-based related adjustments
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26 (
27
28

29 Alternative minimum taxable income. Combine lines 1 through 28. (If married filing separately and line 29 is
more than $216,900, see page 8 of the instructions.) . . . . . . . . . . . . . . . . . .

)
)
)

29

Part II Alternative Minimum Tax (AMT)

30 Exemption. (If you were under age 24 at the end of 2009, see page 8 of the instructions.)
IF your filing status is . . .
AND line 29 is not over . . .
THEN enter on line 30 . . .
Single or head of household . . . . .
$112,500. . . . . . .
$46,700
Married filing jointly or qualifying widow(er) .
150,000
. . . . . .
70,950
Married filing separately. . . . . . .
75,000
. . . . . .
35,475
If line 29 is over the amount shown above for your filing status, see page 8 of the instructions.

.
30

31 Subtract line 30 from line 29. If more than zero, go to line 32. If zero or less, enter -0- here and on lines 34 and 36 and skip the rest of Part II .
32 If you are filing Form 2555 or 2555-EZ, see page 9 of the instructions for the amount to enter.
If you reported capital gain distributions directly on Form 1040, line 13; you reported qualified dividends
on Form 1040, line 9b; or you had a gain on both lines 15 and 16 of Schedule D (Form 1040) (as refigured
. .
for the AMT, if necessary), complete Part III on the back and enter the amount from line 55 here.
All others: If line 31 is $175,000 or less ($87,500 or less if married filing separately), multiply line 31 by 26% (.26).
Otherwise, multiply line 31 by 28% (.28) and subtract $3,500 ($1,750 if married filing separately) from the result.

31

33 Alternative minimum tax foreign tax credit (see page 9 of the instructions) .
34 Tentative minimum tax. Subtract line 33 from line 32 . . . . . . .

.
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33
34

35 Tax from Form 1040, line 44 (minus any tax from Form 4972 and any foreign tax credit from Form 1040,
line 47). If you used Schedule J to figure your tax, the amount from line 44 of Form 1040 must be refigured
without using Schedule J (see page 11 of the instructions) . . . . . . . . . . . . . . . .

35

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36 AMT. Subtract line 35 from line 34. If zero or less, enter -0-. Enter here and on Form 1040, line 45 . . .
For Paperwork Reduction Act Notice, see page 12 of the instructions.
Cat. No. 13600G

.
.

36

Form 6251 (2009)

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

ISBN 0-558-86017-6

.
.

32

Tax Forms Individuals B-11

Form 6251 (2009)

Page

Part III Tax Computation Using Maximum Capital Gains Rates

37 Enter the amount from Form 6251, line 31. If you are filing Form 2555 or 2555-EZ, enter the amount from line 3
of the worksheet on page 9 of the instructions . . . . . . . . . . . . . . . . . . . .
38 Enter the amount from line 6 of the Qualified Dividends and Capital Gain Tax
Worksheet in the instructions for Form 1040, line 44, or the amount from line 13 of

37

the Schedule D Tax Worksheet on page D-10 of the instructions for Schedule D
(Form 1040), whichever applies (as refigured for the AMT, if necessary) (see page
11 of the instructions). If you are filing Form 2555 or 2555-EZ, see page 11 of the
instructions for the amount to enter

38

39 Enter the amount from Schedule D (Form 1040), line 19 (as refigured for the AMT, if
necessary) (see page 11 of the instructions). If you are filing Form 2555 or 2555-EZ,
see page 11 of the instructions for the amount to enter . . . . . . . . .

39

40 If you did not complete a Schedule D Tax Worksheet for the regular tax or the
AMT, enter the amount from line 38. Otherwise, add lines 38 and 39, and enter
the smaller of that result or the amount from line 10 of the Schedule D Tax
Worksheet (as refigured for the AMT, if necessary). If you are filing Form 2555 or
2555-EZ, see page 11 of the instructions for the amount to enter
. . . . .
41 Enter the smaller of line 37 or line 40 . . . . . . . . . . . . . .

40
.

41

42 Subtract line 41 from line 37

42

43 If line 42 is $175,000 or less ($87,500 or less if married filing separately), multiply line 42 by 26% (.26). Otherwise,
multiply line 42 by 28% (.28) and subtract $3,500 ($1,750 if married filing separately) from the result . . .
44 Enter:
$67,900 if married filing jointly or qualifying widow(er),
$33,950 if single or married filing separately, or
$45,500 if head of household.

44

45 Enter the amount from line 7 of the Qualified Dividends and Capital Gain Tax
Worksheet in the instructions for Form 1040, line 44, or the amount from line 14 of
the Schedule D Tax Worksheet on page D-10 of the instructions for Schedule D
(Form 1040), whichever applies (as figured for the regular tax). If you did not
complete either worksheet for the regular tax, enter -0- . . . . . . . .

45

46 Subtract line 45 from line 44. If zero or less, enter -0- .

46

47 Enter the smaller of line 37 or line 38

47

48 Enter the smaller of line 46 or line 47

48
49

49 Subtract line 48 from line 47

50 Multiply line 49 by 15% (.15)

43

50

52

If line 39 is zero or blank, skip lines 51 and 52 and go to line 53. Otherwise, go to line 51.
51 Subtract line 47 from line 41

52 Multiply line 51 by 25% (.25)

53 Add lines 43, 50, and 52

51

54
55

ISBN 0-558-86017-6

54 If line 37 is $175,000 or less ($87,500 or less if married filing separately), multiply line 37 by 26% (.26). Otherwise,
multiply line 37 by 28% (.28) and subtract $3,500 ($1,750 if married filing separately) from the result . . . .
55 Enter the smaller of line 53 or line 54 here and on line 32. If you are filing Form 2555 or 2555-EZ, do not enter
this amount on line 32. Instead, enter it on line 4 of the worksheet on page 9 of the instructions. . . . . .

53

Form

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

6251

(2009)

B-12 Individuals Appendix B

Form

8283

Noncash Charitable Contributions



(Rev. December 2006)

Department of the Treasury
Internal Revenue Service

OMB No. 1545-0908

Attach to your tax return if you claimed a total deduction

of over $500 for all contributed property.


Attachment
Sequence No.

See separate instructions.

Name(s) shown on your income tax return

155

Identifying number

Note. Figure the amount of your contribution deduction before completing this form. See your tax return instructions.

Section A. Donated Property of $5,000 or Less and Certain Publicly Traded SecuritiesList in this section only
items (or groups of similar items) for which you claimed a deduction of $5,000 or less. Also, list certain
publicly traded securities even if the deduction is more than $5,000 (see instructions).
Information on Donated PropertyIf you need more space, attach a statement.
Part I
(a) Name and address of the
donee organization

(b) Description of donated property

(For a donated vehicle, enter the year, make, model, condition, and mileage,
and attach Form 1098-C if required.)

A
B
C
D
E
Note. If the amount you claimed as a deduction for an item is $500 or less, you do not have to complete columns (d), (e), and (f).
(c) Date of the
contribution

(d) Date acquired

by donor (mo., yr.)

(e) How acquired

by donor

(f) Donors cost

or adjusted basis

(g) Fair market value

(see instructions)

(h) Method used to determine

the fair market value

A
B
C
D
E

Part II

Partial Interests and Restricted Use PropertyComplete lines 2a through 2e if you gave less than an
entire interest in a property listed in Part I. Complete lines 3a through 3c if conditions were placed on a
contribution listed in Part I; also attach the required statement (see instructions).

2a Enter the letter from Part I that identifies the property for which you gave less than an entire interest
If Part II applies to more than one property, attach a separate statement.


.
b Total amount claimed as a deduction for the property listed in Part I: (1) For this tax year

(2) For any prior tax years
.
c Name and address of each organization to which any such contribution was made in a prior year (complete only if different
from the donee organization above):
Name of charitable organization (donee)

Address (number, street, and room or suite no.)

City or town, state, and ZIP code

d For tangible property, enter the place where the property is located or kept 
e Name of any person, other than the donee organization, having actual possession of the property

Yes No
ISBN 0-558-86017-6

3a Is there a restriction, either temporary or permanent, on the donees right to use or dispose of the donated
property?
b Did you give to anyone (other than the donee organization or another organization participating with the donee
organization in cooperative fundraising) the right to the income from the donated property or to the possession of
the property, including the right to vote donated securities, to acquire the property by purchase or otherwise, or
to designate the person having such income, possession, or right to acquire?
c Is there a restriction limiting the donated property for a particular use?
For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 62299J

Form

8283

(Rev. 12-2006)

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

Tax Forms Individuals B-13

Form 8283 (Rev. 12-2006)

Page

Name(s) shown on your income tax return

Identifying number

Section B. Donated Property Over $5,000 (Except Certain Publicly Traded Securities) List in this section only items (or groups of similar
items) for which you claimed a deduction of more than $5,000 per item or group (except contributions of certain publicly traded
securities reported in Section A). An appraisal is generally required for property listed in Section B (see instructions).

Information on Donated PropertyTo be completed by the taxpayer and/or the appraiser.

Part I
4

Check the box that describes the type of property donated:

Art* (contribution of $20,000 or more)

Qualified Conservation Contribution

Art* (contribution of less than $20,000)

Other Real Estate

Intellectual Property

Collectibles**

Equipment
Securities
Other

*Art includes paintings, sculptures, watercolors, prints, drawings, ceramics, antiques, decorative arts, textiles, carpets, silver, rare manuscripts, historical memorabilia, and
other similar objects.
**Collectibles include coins, stamps, books, gems, jewelry, sports memorabilia, dolls, etc., but not art as defined above.

Note. In certain cases, you must attach a qualified appraisal of the property. See instructions.
(a) Description of donated property (if you need
more space, attach a separate statement)

(b) If tangible property was donated, give a brief summary of the overall
physical condition of the property at the time of the gift

(c) Appraised fair

market value

A
B
C
D
(d) Date acquired
by donor (mo., yr.)

(e) How acquired

by donor

(f) Donors cost or

adjusted basis

(g) For bargain sales, enter

amount received

See instructions
(i) Average trading price
(h) Amount claimed as a
of securities
deduction

A
B
C
D

Part II

Taxpayer (Donor) StatementList each item included in Part I above that the appraisal identifies as having
a value of $500 or less. See instructions.

I declare that the following item(s) included in Part I above has to the best of my knowledge and belief an appraised value of not more than $500
(per item). Enter identifying letter from Part I and describe the specific item. See instructions. 
Signature of taxpayer (donor)

Part III

Date

Declaration of Appraiser

I declare that I am not the donor, the donee, a party to the transaction in which the donor acquired the property, employed by, or related to any of the foregoing persons, or
married to any person who is related to any of the foregoing persons. And, if regularly used by the donor, donee, or party to the transaction, I performed the majority of my
appraisals during my tax year for other persons.
Also, I declare that I hold myself out to the public as an appraiser or perform appraisals on a regular basis; and that because of my qualifications as described in the
appraisal, I am qualified to make appraisals of the type of property being valued. I certify that the appraisal fees were not based on a percentage of the appraised property
value. Furthermore, I understand that a false or fraudulent overstatement of the property value as described in the qualified appraisal or this Form 8283 may subject me to
the penalty under section 6701(a) (aiding and abetting the understatement of tax liability). In addition, I understand that a substantial or gross valuation misstatement
resulting from the appraisal of the value of the property that I know, or reasonably should know, would be used in connection with a return or claim for refund, may subject
me to the penalty under section 6695A. I affirm that I have not been barred from presenting evidence or testimony by the Office of Professional Responsibility.

Sign
Here

Signature

Title

Date 

Business address (including room or suite no.)

Identifying number

City or town, state, and ZIP code

Part IV

Donee AcknowledgmentTo be completed by the charitable organization.

This charitable organization acknowledges that it is a qualified organization under section 170(c) and that it received the donated property as described
in Section B, Part I, above on the following date 

ISBN 0-558-86017-6

Furthermore, this organization affirms that in the event it sells, exchanges, or otherwise disposes of the property described in Section B, Part I (or any
portion thereof) within 3 years after the date of receipt, it will file Form 8282, Donee Information Return, with the IRS and give the donor a copy of that
form. This acknowledgment does not represent agreement with the claimed fair market value.


Does the organization intend to use the property for an unrelated use?
Name of charitable organization (donee)

Employer identification number

Address (number, street, and room or suite no.)

City or town, state, and ZIP code

Authorized signature

Title

Yes

No

Date

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Form
Printed on Recycled Paper
Copyright 2011 by Pearson Education, Inc.

8283

(Rev. 12-2006)

B-14 Individuals Appendix B

Form

Passive Activity Loss Limitations

8582

OMB No. 1545-1008

2009

See separate instructions.

Attach to Form 1040 or Form 1041.

Department of the Treasury

Internal Revenue Service (99)

Attachment
Sequence No. 88
Identifying number

Name(s) shown on return

Part I

2009 Passive Activity Loss

Caution: Complete Worksheets 1, 2, and 3 on page 2 before completing Part I.

Rental Real Estate Activities With Active Participation (For the definition of active participation, see
Special Allowance for Rental Real Estate Activities on page 3 of the instructions.)
1a Activities with net income (enter the amount from Worksheet 1,
1a
column (a)) . . . . . . . . . . . . . . . . . .
b Activities with net loss (enter the amount from Worksheet 1, column
)
1b (
(b)) . . . . . . . . . . . . . . . . . . . . .
c

Prior years unallowed losses (enter the amount from Worksheet 1,

1c
column (c)) . . . . . . . . . . . . . . . . . .
d Combine lines 1a, 1b, and 1c . . . . . . . . . . . . . . .
Commercial Revitalization Deductions From Rental Real Estate Activities
2a Commercial revitalization deductions from Worksheet 2, column (a) .
2a
b Prior year unallowed commercial revitalization deductions from
2b
Worksheet 2, column (b) . . . . . . . . . . . . . .
c Add lines 2a and 2b . . . . . . . . . . . . . . . . . .
All Other Passive Activities
3a Activities with net income (enter the amount from Worksheet 3,
3a
column (a)) . . . . . . . . . . . . . . . . . .
b Activities with net loss (enter the amount from Worksheet 3, column
3b
(b)) . . . . . . . . . . . . . . . . . . . . .
c Prior years unallowed losses (enter the amount from Worksheet 3,
3c
column (c)) . . . . . . . . . . . . . . . . . .
d Combine lines 3a, 3b, and 3c . . . . . . . . . . . . . . .

)
.

1d

)
.

2c (

)
.

3d

Combine lines 1d, 2c, and 3d. If the result is net income or zero, all losses are allowed, including
any prior year unallowed losses entered on line 1c, 2b, or 3c. Do not complete Form 8582.
4
Report the losses on the forms and schedules normally used . . . . . . . . . . . .
If line 4 is a loss and:
Line 1d is a loss, go to Part II.
Line 2c is a loss (and line 1d is zero or more), skip Part II and go to Part III.
Line 3d is a loss (and lines 1d and 2c are zero or more), skip Parts II and III and go to line 15.
Caution: If your filing status is married filing separately and you lived with your spouse at any time during the year, do not complete
Part II or Part III. Instead, go to line 15.

Part II
5
6
7

8
9
10

Note: Enter all numbers in Part II as positive amounts. See page 8 of the instructions for an example.
Enter the smaller of the loss on line 1d or the loss on line 4 . . . . . . . . . . . .
5
6
Enter $150,000. If married filing separately, see page 8 . . . .
7
Enter modified adjusted gross income, but not less than zero (see page 8)
Note: If line 7 is greater than or equal to line 6, skip lines 8 and 9,
enter -0- on line 10. Otherwise, go to line 8.
8
Subtract line 7 from line 6 . . . . . . . . . . . . .
Multiply line 8 by 50% (.5). Do not enter more than $25,000. If married filing separately, see page 8
9
Enter the smaller of line 5 or line 9 . . . . . . . . . . . . . . . . . . . .
10
If line 2c is a loss, go to Part III. Otherwise, go to line 15.

Part III

Note: Enter all numbers in Part III as positive amounts. See the example for Part II on page 8 of the instructions.
11
Enter $25,000 reduced by the amount, if any, on line 10. If married filing separately, see instructions
12
Enter the loss from line 4 . . . . . . . . . . . . . . . . . . . . . . . .
13
Reduce line 12 by the amount on line 10 . . . . . . . . . . . . . . . . . .
Enter the smallest of line 2c (treated as a positive amount), line 11, or line 13 . . . . . .
14

Part IV
15
16

Special Allowance for Commercial Revitalization Deductions From Rental Real Estate Activities

Total Losses Allowed

Add the income, if any, on lines 1a and 3a and enter the total . . . . . . . . . . . .
Total losses allowed from all passive activities for 2009. Add lines 10, 14, and 15. See page 11 of
the instructions to find out how to report the losses on your tax return . . . . . . . . . .

For Paperwork Reduction Act Notice, see page 12 of the instructions.

Cat. No. 63704F

15
16
Form 8582 (2009)

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

ISBN 0-558-86017-6

11
12
13
14

Special Allowance for Rental Real Estate Activities With Active Participation

Tax Forms Individuals B-15

Page 2

Form 8582 (2009)

Caution: The worksheets must be filed with your tax return. Keep a copy for your records.
Worksheet 1For Form 8582, Lines 1a, 1b, and 1c (See pages 7 and 8 of the instructions.)
Current year
Name of activity

(a) Net income

(line 1a)

Prior years

(b) Net loss

(line 1b)

Overall gain or loss

(c) Unallowed
loss (line 1c)

(d) Gain

(e) Loss

Total. Enter on Form 8582, lines 1a, 1b,

and 1c . . . . . . . . . . .

Worksheet 2For Form 8582, Lines 2a and 2b (See page 8 of the instructions.)
(a) Current year
deductions (line 2a)

Name of activity

(b) Prior year

unallowed deductions (line 2b)

(c) Overall loss

Total. Enter on Form 8582, lines 2a and

2b . . . . . . . . . . . .

Worksheet 3For Form 8582, Lines 3a, 3b, and 3c (See page 8 of the instructions.)
Current year
Name of activity

(a) Net income

(line 3a)

Prior years

(b) Net loss

(line 3b)

Overall gain or loss

(c) Unallowed
loss (line 3c)

(d) Gain

(e) Loss

Total. Enter on Form 8582, lines 3a, 3b,

and 3c . . . . . . . . . . .

Worksheet 4Use this worksheet if an amount is shown on Form 8582, line 10 or 14 (See page 9 of the instructions.)
Form or schedule
and line number
to be reported on
(see instructions)

Name of activity

Total

(a) Loss

(b) Ratio

(c) Special
allowance

(d) Subtract
column (c) from
column (a)

1.00

Worksheet 5Allocation of Unallowed Losses (See page 9 of the instructions.)

Form or schedule
and line number
to be reported on
(see instructions)

ISBN 0-558-86017-6

Name of activity

Total

(a) Loss

(b) Ratio

(c) Unallowed loss

1.00
Form 8582 (2009)

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

B-16 Individuals Appendix B

Page 3

Form 8582 (2009)

Worksheet 6Allowed Losses (See pages 9 and 10 of the instructions.)

Form or schedule
and line number to
be reported on (see
instructions)

Name of activity

Total

(b) Unallowed loss

(a) Loss

(c) Allowed loss

Worksheet 7Activities With Losses Reported on Two or More Forms or Schedules (See page 10 of the instructions.)
Name of activity:

(a)

(b)

(c) Ratio

(d) Unallowed
loss

(e) Allowed loss

Form or schedule and line number

to be reported on (see
instructions):
1a Net loss plus prior year unallowed
loss from form or schedule .
b Net income from form or
schedule . . . . . . .
c

Subtract line 1b from line 1a. If zero or less, enter -0-

Form or schedule and line number

to be reported on (see
instructions):
1a Net loss plus prior year unallowed
loss from form or schedule .
b Net income from form or
schedule . . . . . . .
c

Subtract line 1b from line 1a. If zero or less, enter -0-

Form or schedule and line number

to be reported on (see
instructions):
1a Net loss plus prior year unallowed
loss from form or schedule .
b Net income from form or
schedule . . . . . . .
c
Total .

Subtract line 1b from line 1a. If zero or less, enter -0.

1.00
Form 8582 (2009)

ISBN 0-558-86017-6
Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

Tax Forms Individuals B-17

Form

Tax for Certain Children Who Have Investment

Income of More Than $1,900

8615

Attach only to the child's Form 1040, Form 1040A, or Form 1040NR.
See separate instructions.

Department of the Treasury

Internal Revenue Service (99)
Childs name shown on return

OMB No. 1545-0074

2009

Attachment
Sequence No. 33
Child's social security number

Before you begin: If the child, the parent, or any of the parents other children for whom Form 8615 must be filed must use the Schedule
D Tax Worksheet or has income from farming or fishing, see Pub. 929, Tax Rules for Children and Dependents. It
explains how to figure the childs tax using the Schedule D Tax Worksheet or Schedule J (Form 1040).
A Parents name (first, initial, and last). Caution: See instructions before completing.
B Parents social security number

Parents filing status (check one):

Single

Part I
1
2
3
4
5

7
8
9

Married filing separately

Head of household

Qualifying widow(er)

Enter the childs investment income (see instructions) . . . . . . . . . . . . . . .

If the child did not itemize deductions on Schedule A (Form 1040 or Form 1040NR), enter
$1,900. Otherwise, see instructions . . . . . . . . . . . . . . . . . . . . .
Subtract line 2 from line 1. If zero or less, stop; do not complete the rest of this form but do
attach it to the childs return
. . . . . . . . . . . . . . . . . . . . . . .
Enter the childs taxable income from Form 1040, line 43; Form 1040A, line 27; or Form 1040NR,
line 40. If the child files Form 2555 or 2555-EZ, see the instructions
. . . . . . . . . .
Enter the smaller of line 3 or line 4. If zero, stop; do not complete the rest of this form but do
attach it to the childs return
. . . . . . . . . . . . . . . . . . . . . . .

Part II
6

Married filing jointly

Childs Net Investment Income

2
3
4
5

Tentative Tax Based on the Tax Rate of the Parent

Enter the parents taxable income from Form 1040, line 43; Form 1040A, line 27; Form 1040EZ,
line 6; Form 1040NR, line 40; or Form 1040NR-EZ, line 14. If zero or less, enter -0-. If the parent
files Form 2555 or 2555-EZ, see the instructions . . . . . . . . . . . . . . . . .
Enter the total, if any, from Forms 8615, line 5, of all other children of the parent named above.
Do not include the amount from line 5 above . . . . . . . . . . . . . . . . . .
Add lines 5, 6, and 7 (see instructions) . . . . . . . . . . . . . . . . . . . .

6
7
8

Enter the tax on the amount on line 8 based on the parents filing status above (see instructions).
If the Qualified Dividends and Capital Gain Tax Worksheet, Schedule D Tax Worksheet, or
Schedule J (Form 1040) is used to figure the tax, check here . . . . . . . . .

10

Enter the parents tax from Form 1040, line 44; Form 1040A, line 28, minus any alternative
minimum tax; Form 1040EZ, line 11; Form 1040NR, line 41; or Form 1040NR-EZ, line 15. Do not
include any tax from Form 4972 or 8814 or any tax from recapture of an education credit. If the
parent files Form 2555 or 2555-EZ, see the instructions. If the Qualified Dividends and Capital
Gain Tax Worksheet, Schedule D Tax Worksheet, or Schedule J (Form 1040) was used to figure
the tax, check here
. . . . . . . . . . . . . . . . . . . . . .
Subtract line 10 from line 9 and enter the result. If line 7 is blank, also enter this amount on line
11
13 and go to Part III . . . . . . . . . . . . . . . . . . . . . . . . . .
12a Add lines 5 and 7 . . . . . . . . . . . . . . . . . .
12a
b Divide line 5 by line 12a. Enter the result as a decimal (rounded to at least three places) . . . .
13
Multiply line 11 by line 12b . . . . . . . . . . . . . . . . . . . . . . . .

ISBN 0-558-86017-6

Part III

10
11
12b
13

Childs Tax If lines 4 and 5 above are the same, enter -0- on line 15 and go to line 16.

14

Subtract line 5 from line 4

15

Enter the tax on the amount on line 14 based on the childs filing status (see instructions). If
the Qualified Dividends and Capital Gain Tax Worksheet, Schedule D Tax Worksheet, or
Schedule J (Form 1040) is used to figure the tax, check here . . . . . . . . .

15

16

Add lines 13 and 15

16

17

Enter the tax on the amount on line 4 based on the childs filing status (see instructions). If
the Qualified Dividends and Capital Gain Tax Worksheet, Schedule D Tax Worksheet, or
Schedule J (Form 1040) is used to figure the tax, check here . . . . . . . . .
Enter the larger of line 16 or line 17 here and on the childs Form 1040, line 44; Form 1040A,
line 28; or Form 1040NR, line 41. If the child files Form 2555 or 2555-EZ, see the instructions

17

18

For Paperwork Reduction Act Notice, see the instructions.

14

. .

18

Cat. No. 64113U

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

Form

8615

(2009)

ISBN 0-558-86017-6
Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

A P P E N D I X

MACRS TABLES
MACRS, ADS and ACRS Depreciation Methods Summary
Table No.a

Depreciation Method
System
MACRS & ADS

Characteristics
Personal Property:
1. Accounting convention
2. Life and method
a. 3-year, 5-year,
7-year, 10-year
b. 15-year, 20-year
3. Luxury Automobile Limitations
Real property:
1. Accounting convention
2. Life and method
a. Residential rental
property
b. Nonresidential real
property

MACRS
Half-year or
mid-quarter

Half-year or
mid-quarterb

200% DB or elect
straight-line
150% DB or elect
straight-line

150% DB or elect
straight-line
150% DB or elect
straight-lined

Mid-month

Mid-month

27.5 years,
straight-line
39 years,
straight-linee

40 years
straight-line
40 years
straight-line

Characteristics
ACRSf

Personal Property
1. Accounting convention
2. Life and method
a. 3-year, 5-year,
10-year, 15-year
Real Property
1. Accounting convention
2. Life
a. 15-year property
b. 18-year property
c. 19-year property
3. Method
a. All but low-income
housing
b. Low-income housing
property

ADS

MACRS

ADS

1, 2, 3,
4, 5
1, 2, 3,
4, 5
6

10, 11c

12

12

ACRS
Half-year
150% DB or elect
straight-line
First of month or mid-month
Placed in service after
12/31/80 and before 3/16/84
Placed in service after
3/15/84 and before 5/9/85
Placed in service after 5/8/85
and before 1/1/87
175% DB or elect
straight-line
200% DB or elect
straight-line

All depreciation tables in this appendix are based upon tables contained in Rev. Proc. 87-57, as amended.
General and ADS tables are available for property lives from 2.550.0 years using the straight-line method. These tables are contained in Rev. Proc. 87-57 and are only partially reproduced here.
c The mid-quarter tables are available in Rev. Proc. 87-57, but are not reproduced here.
d Special recovery periods are assigned certain MACRS properties under the alternative depreciation system.
e A 31.5-year recovery period applied to nonresidential real property placed in service under the MACRS rules prior to May 13, 1993 (see Table 8).
f ACRS was effective for years 19811986. ACRS tables are no longer reproduced in this textbook.

ISBN 0-558-86017-6

C-1
Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

C-2 Individuals Appendix C

TABLE 1
General Depreciation SystemMACRS
Personal Property Placed in Service after 12/31/86
Applicable Convention: Half-year
Applicable Depreciation Method: 200 or 150 Percent Declining Balance Switching
to Straight Line
If the
Recovery
Year Is:

And the Recovery Period Is:

3-Year
5-Year
7-Year

10-Year

15-Year

20-Year

The Depreciation Rate Is:

1 . . . . . . . .33.33
20.00
14.29
10.00
5.00
3.750
2 . . . . . . . .44.45
32.00
24.49
18.00
9.50
7.219
3. . . . . . . . 14.81
19.20
17.49
14.40
8.55
6.677
4 . . . . . . . . 7.41
11.52
12.49
11.52
7.70
6.177
5 . . . . . . . . . . . . . . . . . . .11.52
8.93
9.22
6.93
5.713
6 . . . . . . . . . . . . . . . . . . . 5.76
8.92
7.37
6.23
5.285
7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.93
6.55
5.90
4.888
8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.46
6.55
5.90
4.522
9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.56
5.91
4.462
10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.55
5.90
4.461
11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.28
5.91
4.462
12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.90
4.461
13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.91
4.462
14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.90
4.461
15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.91
4.462
16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2.95
4.461
17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4.462
18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4.461
19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4.462
20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4.461
21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2.231

ISBN 0-558-86017-6
Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

MACRS Tables Individuals C-3

TABLE 2
General Depreciation SystemMACRS
Personal Property Placed in Service after 12/31/86
Applicable Convention: Mid-quarter (Property Placed in Service in First Quarter)
Applicable Depreciation Method: 200 or 150 Percent Declining Balance Switching
to Straight Line
If the
Recovery
Year Is:

10-Year

15-Year

20-Year

The Depreciation Rate Is:

. . . . . . . .58.33
35.00
25.00
17.50
8.75
6.563
. . . . . . . .27.78
26.00
21.43
16.50
9.13
7.000
. . . . . . . .12.35
15.60
15.31
13.20
8.21
6.482
. . . . . . . . 1.54
11.01
10.93
10.56
7.39
5.996
. . . . . . . . . . . . . . . . . . .11.01
8.75
8.45
6.65
5.546
. . . . . . . . . . . . . . . . . . . 1.38
8.74
6.76
5.99
5.130
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.75
6.55
5.90
4.746
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.09
6.55
5.91
4.459
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.56
5.90
4.459
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.55
5.91
4.459
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.82
5.90
4.459
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.91
4.460
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.90
4.459
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.91
4.460
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.90
4.459
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .0.74
4.460
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4.459
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4.460
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4.459
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4.460
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .0.557

ISBN 0-558-86017-6

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21

And the Recovery Period Is:

3-Year
5-Year
7-Year

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

C-4 Individuals Appendix C

TABLE 3
General Depreciation SystemMACRS
Personal Property Placed in Service after 12/31/86
Applicable Convention: Mid-quarter (Property Placed in Service in Second
Quarter)
Applicable Depreciation Method: 200 or 150 Percent Declining Balance Switching
to Straight Line
If the
Recovery
Year Is:

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21

And the Recovery Period Is:

3-Year
5-Year
7-Year

10-Year

15-Year

20-Year

The Depreciation Rate Is:

. . . . . . . .41.67
25.00
17.85
12.50
6.25
4.688
. . . . . . . .38.89
30.00
23.47
17.50
9.38
7.148
. . . . . . . .14.14
18.00
16.76
14.00
8.44
6.612
. . . . . . . . 5.30
11.37
11.97
11.20
7.59
6.116
. . . . . . . . . . . . . . . . . . .11.37
8.87
8.96
6.83
5.658
. . . . . . . . . . . . . . . . . . . 4.26
8.87
7.17
6.15
5.233
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.87
6.55
5.91
4.841
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.33
6.55
5.90
4.478
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.56
5.91
4.463
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.55
5.90
4.463
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.46
5.91
4.463
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.90
4.463
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.91
4.463
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.90
4.463
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.91
4.462
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2.21
4.463
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4.462
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4.463
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4.462
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4.463
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1.673

ISBN 0-558-86017-6
Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

MACRS Tables Individuals C-5

TABLE 4
General Depreciation SystemMACRS
Personal Property Placed in Service after 12/31/86
Applicable Convention: Mid-quarter (Property Placed in Service in Third Quarter)
Applicable Depreciation Method: 200 or 150 Percent Declining Balance Switching
to Straight Line
If the
Recovery
Year Is:

10-Year

15-Year

20-Year

The Depreciation Rate Is:

. . . . . . . .25.00
15.00
10.71
7.50
3.75
2.813
. . . . . . . .50.00
34.00
25.51
18.50
9.63
7.289
. . . . . . . .16.67
20.40
18.22
14.80
8.66
6.742
. . . . . . . . 8.33
12.24
13.02
11.84
7.80
6.237
. . . . . . . . . . . . . . . . . . .11.30
9.30
9.47
7.02
5.769
. . . . . . . . . . . . . . . . . . . 7.06
8.85
7.58
6.31
5.336
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.86
6.55
5.90
4.936
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.53
6.55
5.90
4.566
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.56
5.91
4.460
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.55
5.90
4.460
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.10
5.91
4.460
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.90
4.460
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.91
4.461
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.90
4.460
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.91
4.461
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3.69
4.460
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4.461
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4.460
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4.461
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4.460
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2.788

ISBN 0-558-86017-6

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21

And the Recovery Period Is:

3-Year
5-Year
7-Year

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

C-6 Individuals Appendix C

TABLE 5
General Depreciation SystemMACRS
Personal Property Placed in Service after 12/31/86
Applicable Convention: Mid-quarter (Property Placed in Service in Fourth
Quarter)
Applicable Depreciation Method: 200 or 150 Percent Declining Balance Switching
to Straight Line
If the
Recovery
Year Is:

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21

And the Recovery Period Is:

3-Year
5-Year
7-Year

10-Year

15-Year

20-Year

The Depreciation Rate Is:

. . . . . . . . 8.33
5.00
3.57
2.50
1.25
0.938
. . . . . . . .61.11
38.00
27.55
19.50
9.88
7.430
. . . . . . . .20.37
22.80
19.68
15.60
8.89
6.872
. . . . . . . .10.19
13.68
14.06
12.48
8.00
6.357
. . . . . . . . . . . . . . . . . . .10.94
10.04
9.98
7.20
5.880
. . . . . . . . . . . . . . . . . . . 9.58
8.73
7.99
6.48
5.439
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.73
6.55
5.90
5.031
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.64
6.55
5.90
4.654
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.56
5.90
4.458
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.55
5.91
4.458
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.74
5.90
4.458
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.91
4.458
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.90
4.458
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.91
4.458
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.90
4.458
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.17
4.458
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4.458
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4.459
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4.458
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4.459
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3.901

TABLE 6
Luxury Automobile Depreciation Limits

2010

Year Automobile is Placed in Servicea

2009
2008
2007

Maximum Allowable Depreciation (100% Business Use):

Year 1
$3,060
$2,960b
$2,960c
Year 2
4,900
4,800
4,800
Year 3
2,950
2,850
2,850
Year 4 and Each
Succeeding Year
1,775
1,775
1,775

2006

2005

2004

$3,060
4,900
2,850

$2,960
4,800
2,850

$2,960
4,700
2,850

$2,960d
4,800
2,850

1,775

1,775

1,675

1,675

aFor

c$10,960

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

ISBN 0-558-86017-6

years prior to 2004, see the Revenue Procedure for the appropriate year.
in Year 1 (2009) if taxpayer claims bonus depreciation.
in Year 1 (2008) if taxpayer claimed bonus depreciation.
d$10,610 in Year 1 (2004) if taxpayer claimed bonus depreciation.
b$10,960

MACRS Tables Individuals C-7

TABLE 6 (continued)
Truck and Van Depreciation Limits

2010

Year Truck or Van is Placed in Servicea

2009
2008
2007

Maximum Allowable Depreciation (100% Business Use):

Year 1
$3,160
$3,060b
$3,160c
Year 2
5,100
4,900
5,100
Year 3
3,050
2,950
3,050
Year 4 and Each
Succeeding Year
1,875
1,775
1,875

2006

2005

2004

$3,260
5,200
3,050

$3,260
5,200
3,150

$3,260
5,200
3,150

$3,260d
5,300
3,150

1,875

1,875

1,875

1,875

aFor

years prior to 2004, see the Revenue Procedure for the appropriate year.
in Year 1 (2009) if taxpayer claims bonus depreciation.
c$11,160 in Year 1 (2008) if taxpayer claimed bonus depreciation.
d$10,910 in Year 1 (2004) if taxpayer claimed bonus depreciation.
b$11,060

TABLE 7
General Depreciation SystemMACRS
Residential Rental Real Property Placed in Service after 12/31/86
Applicable Recovery Period: 27.5 Years
Applicable Convention: Mid-month
Applicable Depreciation Method: Straight Line

ISBN 0-558-86017-6

If the
Recovery
Year Is:

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29

And the Month in the First Recovery Year the Property Is Placed in Service Is:
1
2
3
4
5
6
7
8
9
The Depreciation Rate Is:
3.485
3.182
2.879
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.637
3.637
3.637
3.636
3.636
3.636
3.637
3.637
3.637
3.636
3.636
3.636
3.637
3.637
3.637
3.636
3.636
3.636
3.637
3.637
3.637
3.636
3.636
3.636
3.637
3.637
3.637
3.636
3.636
3.636
3.637
3.637
3.637
3.636
3.636
3.636
3.637
3.637
3.637
3.636
3.636
3.636
3.637
3.637
3.637
3.636
3.636
3.636
3.637
3.637
3.637
3.636
3.636
3.636
1.970
2.273
2.576
0.000
0.000
0.000

2.576
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
2.879
0.000

2.273
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.182
0.000

1.970
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.485
0.000

1.667
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
0.152

1.364
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
0.455

1.061
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
0.758

10

11

12

0.758
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
1.061

0.455
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
1.364

0.152
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
3.637
3.636
1.667

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

C-8 Individuals Appendix C

TABLE 8
General Depreciation SystemMACRS
Nonresidential Real Property Placed in Service after 12/31/86 and before 5/13/93
Applicable Recovery Period: 31.5 Years
Applicable Convention: Mid-month
Applicable Depreciation Method: Straight Line
If the
Recovery
Year Is:

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33

And the Month in the First Recovery Year the Property Is Placed in Service Is:
1
2
3
4
5
6
7
8
9
The Depreciation Rate Is:
3.042
2.778
2.513
3.175
3.175
3.175
3.175
3.175
3.175
3.175
3.175
3.175
3.175
3.175
3.175
3.175
3.175
3.175
3.175
3.175
3.175
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
1.720
1.984
2.249
0.000
0.000
0.000

2.249
3.175
3.175
3.175
3.175
3.175
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
2.513
0.000

1.984
3.175
3.175
3.175
3.175
3.175
3.175
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
2.778
0.000

1.720
3.175
3.175
3.175
3.175
3.175
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.042
0.000

1.455
3.175
3.175
3.175
3.175
3.175
3.175
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
0.132

1.190
3.175
3.175
3.175
3.175
3.175
3.175
3.175
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
0.397

0.926
3.175
3.175
3.175
3.175
3.175
3.175
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
0.661

10

11

12

0.661
3.175
3.175
3.175
3.175
3.175
3.175
3.175
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
0.926

0.397
3.175
3.175
3.175
3.175
3.175
3.175
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
1.190

0.132
3.175
3.175
3.175
3.175
3.175
3.175
3.175
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
1.455

ISBN 0-558-86017-6
Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

MACRS Tables Individuals C-9

TABLE 9
General Depreciation SystemMACRS
Nonresidential Real Property Placed in Service after 5/12/93
Applicable Recovery Period: 39 years
Applicable Depreciation Method: Straight Line
If the
Recovery
Year Is:

And the Month in the First Recovery Year the Property Is Placed in Service Is:
1
2
3
4
5
6
7
8
9

1
2-39
40

The Depreciation Rate Is:

2.461
2.247
2.033
2.564
2.564
2.564
0.107
0.321
0.535

1.819
2.564
0.749

1.605
2.564
0.963

1.391
2.564
1.177

1.177
2.564
1.391

0.963
2.564
1.605

0.749
2.564
1.819

10

11

12

0.535
2.564
2.033

0.321
2.564
2.247

0.107
2.564
2.461

TABLE 10
Alternative Depreciation SystemMACRS (Partial Table)
Property Placed in Service after 12/31/86
Applicable Convention: Half-year
Applicable Depreciation Method: 150 Percent Declining Balance
Switching to Straight Line
If the
Recovery
Year Is:

The Depreciation Rate Is:

25.00
18.75
37.50
30.47
25.00
20.31
12.50
20.31
10.16

15.00
25.50
17.85
16.66
16.66
8.33

10

12

10.71
19.13
15.03
12.25
12.25
12.25
12.25
6.13

7.50
13.88
11.79
10.02
8.74
8.74
8.74
8.74
8.74
8.74
4.37

6.25
11.72
10.25
8.97
7.85
7.33
7.33
7.33
7.33
7.33
7.32
7.33
3.66

ISBN 0-558-86017-6

1
2
3
4
5
6
7
8
9
10
11
12
13

And the Recovery Period Is:

3
4
5

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

C-10 Individuals Appendix C

TABLE 11
Alternative Depreciation SystemMACRS (Partial Table)
Property Placed in Service after 12/31/86
Applicable Convention: Half-year
Applicable Depreciation Method: Straight Line
If the
Recovery
Year Is:

1
2
3
4
5
6
7
8
9
10
11
12
13

And the Recovery Period Is:

3
4
The Depreciation Rate Is:
16.67
12.50
33.33
25.00
33.33
25.00
16.67
25.00
12.50

10

12

10.00
20.00
20.00
20.00
20.00
10.00

7.14
14.29
14.29
14.28
14.29
14.28
14.29
7.14

5.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
5.00

4.17
8.33
8.33
8.33
8.33
8.33
8.34
8.33
8.34
8.33
8.34
8.33
4.17

TABLE 12
Alternative Depreciation SystemMACRS
Real Property Placed into Service after 12/31/86
Applicable Recovery Period: 40 years
Applicable Convention: Mid-month
Applicable Depreciation Method: Straight Line
If the
Recovery And the Month in the First Recovery Year the Property Is Placed in Service Is:
Year Is:
1
2
3
4
5
6
7
8
9
10
11
12

1
2 to 40
41

The Depreciation Rate Is:

2.396 2.188 1.979 1.771 1.563 1.354 1.146 0.938 0.729 0.521 0.313 0.104
2.500 2.500 2.500 2.500 2.500 2.500 2.500 2.500 2.500 2.500 2.500 2.500
0.104 0.312 0.521 0.729 0.937 1.146 1.354 1.562 1.771 1.979 2.187 2.396

ISBN 0-558-86017-6
Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

MACRS Tables Individuals C-11

TABLE 13
Lease Inclusion Dollar Amounts for Automobiles
(Other Than for Trucks, Vans, or Electronic Automobiles)
With a Lease Term Beginning in Calendar Year 2009a

ISBN 0-558-86017-6

Fair Market Value of

Passenger Automobile

Tax Year During Lease

Over

Not Over

1st

2nd

$18,500
19,000
19,500
20,000
20,500
21,000
21,500
22,000
23,000
24,000
25,000
26,000
27,000
28,000
29,000
30,000
31,000
32,000
33,000
34,000
35,000
36,000
37,000
38,000
39,000
40,000
41,000
42,000
43,000
44,000
45,000
46,000
47,000
48,000
49,000
50,000
51,000
52,000
53,000
54,000
55,000
56,000
57,000
58,000
59,000
60,000
62,000
64,000

$19,000
19,500
20,000
20,500
21,000
21,500
22,000
23,000
24,000
25,000
26,000
27,000
28,000
29,000
30,000
31,000
32,000
33,000
34,000
35,000
36,000
37,000
38,000
39,000
40,000
41,000
42,000
43,000
44,000
45,000
46,000
47,000
48,000
49,000
50,000
51,000
52,000
53,000
54,000
55,000
56,000
57,000
58,000
59,000
60,000
62,000
64,000
66,000

9
10
11
12
13
15
16
17
20
22
24
26
29
31
33
35
38
40
42
44
47
49
51
53
56
58
60
62
65
67
69
71
74
76
78
80
83
85
87
89
92
94
96
98
101
104
109
113

19
21
24
27
29
31
34
38
42
47
52
58
62
67
72
77
82
87
92
97
102
107
112
117
122
127
132
137
141
146
151
157
161
166
171
176
181
186
191
196
201
206
211
216
221
228
238
248

aPer

3rd

4th

28
32
36
39
43
47
50
56
64
71
78
85
93
100
108
115
122
129
137
144
151
159
166
173
180
188
195
203
210
218
225
232
240
247
255
262
269
276
284
291
298
306
313
320
327
339
353
368

Rev. Proc. 2009-24. The table for 2010 had not been released at the date of the printing.

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

34
38
42
46
51
55
60
66
75
84
93
101
110
119
128
137
146
155
163
172
181
189
199
208
216
225
234
242
252
260
269
278
286
296
304
313
322
331
339
349
357
365
375
384
393
406
424
441

5th and
Later
38
43
48
54
58
64
68
76
86
96
107
117
127
138
147
157
167
178
188
199
208
219
228
239
250
259
269
280
290
300
311
320
331
340
351
361
371
381
392
401
412
423
432
442
452
467
488
509

C-12 Individuals Appendix C

TABLE 13a (continued)

Fair Market Value of
Passenger Automobile

Tax Year During Lease

Over

Not Over

1st

2nd

$ 66,000
68,000
70,000
72,000
74,000
76,000
78,000
80,000
85,000
90,000
95,000
100,000
110,000
120,000
130,000
140,000
150,000
160,000
170,000
180,000
190,000
200,000
210,000
220,000
230,000
240,000

68,000
70,000
72,000
74,000
76,000
78,000
80,000
85,000
90,000
95,000
100,000
110,000
120,000
130,000
140,000
150,000
160,000
170,000
180,000
190,000
200,000
210,000
220,000
230,000
240,000
and up

118
122
127
131
136
140
145
152
164
175
186
203
226
248
271
293
316
338
361
383
406
428
451
473
496
518

258
268
277
288
297
307
317
335
359
384
409
446
495
545
594
644
693
743
792
842
891
941
990
1,040
1,089
1,139

aPer

3rd

4th

5th and
Later

382
397
413
427
442
457
471
497
534
570
607
662
736
809
883
956
1,030
1,103
1,177
1,250
1,324
1,397
1,471
1,544
1,618
1,691

459
476
493
511
529
546
564
595
639
683
727
793
881
970
1,058
1,146
1,234
1,322
1,410
1,498
1,586
1,675
1,762
1,851
1,939
2,027

529
550
570
590
610
631
651
686
737
789
839
916
1,018
1,119
1,220
1,322
1,424
1,526
1,628
1,730
1,831
1,932
2,035
2,136
2,238
2,340

Rev. Proc. 2009-24. The table for 2010 had not been released at the date of the printing.

ISBN 0-558-86017-6
Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

MACRS Tables Individuals C-13

TABLE 14
Lease Inclusion Dollar Amounts for Trucks and Vans
With a Lease Term Beginning in Calendar Year 2009a

ISBN 0-558-86017-6

Fair Market Value

of Truck or Van

Tax Year During Lease

Over

Not Over

1st

2nd

$18,500
19,000
19,500
20,000
20,500
21,000
21,500
22,000
23,000
24,000
25,000
26,000
27,000
28,000
29,000
30,000
31,000
32,000
33,000
34,000
35,000
36,000
37,000
38,000
39,000
40,000
41,000
42,000
43,000
44,000
45,000
46,000
47,000
48,000
49,000
50,000
51,000
52,000
53,000
54,000
55,000
56,000
57,000
58,000
59,000
60,000
62,000
64,000
66,000

$19,000
19,500
20,000
20,500
21,000
21,500
22,000
23,000
24,000
25,000
26,000
27,000
28,000
29,000
30,000
31,000
32,000
33,000
34,000
35,000
36,000
37,000
38,000
39,000
40,000
41,000
42,000
43,000
44,000
45,000
46,000
47,000
48,000
49,000
50,000
51,000
52,000
53,000
54,000
55,000
56,000
57,000
58,000
59,000
60,000
62,000
64,000
66,000
68,000

8
9
10
11
12
13
15
16
18
21
23
25
27
30
32
34
36
39
41
43
45
48
50
52
55
57
59
61
64
66
68
70
73
75
77
79
82
84
86
88
91
93
95
97
100
103
107
112
116

17
19
22
25
27
30
32
36
41
45
50
56
61
65
70
75
80
85
90
95
100
105
110
115
120
125
130
135
139
144
149
155
159
164
169
174
179
184
189
194
199
204
209
214
219
226
236
246
256

aPer

3rd

4th

25
29
33
36
40
43
47
52
60
68
75
82
89
97
104
112
119
126
134
141
148
155
163
170
177
185
192
199
207
215
222
229
237
244
251
259
266
273
281
288
295
302
310
317
324
336
351
365
380

Rev. Proc. 2009-24. The table for 2010 had not been released at the date of the printing.

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

30
35
38
43
48
52
56
64
72
81
90
98
107
116
125
134
143
151
160
169
178
187
195
204
213
221
231
240
249
257
266
274
283
292
301
310
318
328
336
345
354
363
371
381
389
402
420
438
455

5th and
Later
35
40
45
50
55
60
66
72
83
93
103
114
124
134
144
154
164
175
184
195
205
215
226
236
246
256
266
276
286
296
307
317
327
338
348
357
368
378
388
399
408
419
429
439
450
465
485
505
526

C-14 Individuals Appendix C

TABLE 14a (continued)

Fair Market Value
of Automobiles

Tax Year During Lease

Over

Not Over

1st

2nd

$ 68,000
70,000
72,000
74,000
76,000
78,000
80,000
85,000
90,000
95,000
100,000
110,000
120,000
130,000
140,000
150,000
160,000
170,000
180,000
190,000
200,000
210,000
220,000
230,000
240,000

70,000
72,000
74,000
76,000
78,000
80,000
85,000
90,000
95,000
100,000
110,000
120,000
130,000
140,000
150,000
160,000
170,000
180,000
190,000
200,000
210,000
220,000
230,000
240,000
and up

121
125
130
134
139
143
151
163
174
185
202
225
247
270
292
315
337
360
382
405
427
450
472
495
517

266
276
286
296
305
316
333
357
382
407
444
493
543
592
642
691
741
790
840
889
939
988
1,038
1,087
1,137

aPer

3rd

4th

5th and
Later

394
409
423
438
454
467
493
531
567
604
659
733
806
880
953
1,027
1,100
1,174
1,247
1,321
1,394
1,468
1,541
1,615
1,688

473
491
509
526
543
561
592
635
680
724
790
878
966
1,054
1,143
1,230
1,319
1,407
1,495
1,583
1,671
1,759
1,847
1,935
2,024

546
566
586
607
627
648
684
735
785
836
912
1,014
1,116
1,218
1,319
1,421
1,522
1,624
1,726
1,828
1,930
2,031
2,134
2,235
2,336

Rev. Proc. 2009-24. The table for 2010 had not been released at the date of the printing.

ISBN 0-558-86017-6
Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

A P P E N D I X

ISBN 0-558-86017-6

G L O S S A RY
Ability to pay A concept in taxation that
holds that taxpayers be taxed according
to their ability to pay such taxes, that is,
taxpayers that have sufficient financial
resources should pay the tax. This concept is
an integral part of vertical equity.
Accelerated Cost Recovery System (ACRS)
Established by ERTA in 1981, the ACRS
provides an accelerated depreciation and
shorter cost-recovery period for real and
personal property. The Tax Reform Act of
1986 changed the previously allowed depreciation tables and assigned recovery periods
that approach the assets true economic life.
The current depreciation system is referred
to as MACRS.
Accounting method The method of determining the taxable year in which income and
expenses are reported for tax purposes.
Generally, the same method must be used
for tax purposes as is used for keeping
books and records. The accounting treatment used for any item of income or
expense and of specific items (e.g., installment sales and contracts) is included in this
term. See also each specific accounting
method.
Accounting period The period of time, usually
12 months, used by taxpayers to compute
their taxable income. Taxpayers who do not
keep records must use a calendar year.
Taxpayers who do keep books and records
may choose between a calendar year or a fiscal year. The accounting period election is
made on the taxpayers first filed return and
cannot be changed without IRS consent.
The accounting period may be less than 12
months if it is the taxpayers first or final
return or if the taxpayer is changing
accounting periods. Certain restrictions
upon the use of a fiscal year apply to partnerships, S corporations, and personal service corporations.
Accountable plan A type of employee reimbursement plan that meets two tests, (1)
substantiation, and (2) return of excess
reimbursement. Under an accountable plan,
reimbursements are excluded from the
employees gross income and the expenses
are not deductible by the employee.
Accrual method of accounting Accounting
method under which income is reported and
expenses are deducted when (1) all events
have occurred that fix the taxpayers right to
receive the income and (2) the amount of the

item can be determined with reasonable

accuracy. Taxpayers with inventories to
report must use this method to report sales
and purchases.
Accumulated earnings tax This penalty tax is
intended to discourage companies from
retaining excessive amounts of earnings if
the funds are invested in earnings that are
unrelated to the businesss needs. The current tax rate is 15%.
Acquiescence policy IRS policy of announcing
whether it agrees or disagrees with a regular
Tax Court decision. Such statements are not
issued for every case.
ACRS See Accelerated Cost Recovery System.
Active income Income that is produced by the
taxpayers involvement or participation
wages, salaries, and other business income
is considered active income. It is the opposite
of passive income.
Additional depreciation The excess of the
actual amount of accelerated depreciation
(or cost-recovery deductions under ACRS)
over the amount of depreciation that
would be deductible under the straight-line
method. Such depreciation applies to
Section 1250 depreciable real property
acquired prior to 1987.
Adjusted current earnings An AMT adjustment item for corporations used to compute
the Alternative Minimum Tax. The term is a
concept based on the traditional earnings
and profits definition found in Sec. 312.
Adjusted gross income (AGI) A measure of
taxable income that falls between gross
income and taxable income. It is the income
amount that is used as the basis for calculating the floor or the ceiling for numerous
other tax computations.
Adjusted sales price The amount realized
from the sale of a residence less any fixingup expenses.
AGI See Adjusted gross income.
Alimony Payments made pursuant to divorce
or separation or written agreement between
spouses subject to conditions specified in the
tax law. Alimony payments (as contrasted to
property settlements) are deductible for AGI
by the payor and are included in the gross
income of the recipient.
All events test Rule holding that an accrual
basis taxpayer must report an item of
income (1) when all events have occurred
that fix the taxpayers right to receive the

item of income and (2) when the amount of

the item can be determined with reasonable
accuracy. This test is not satisfied until economic performance has taken place.
Alternative minimum tax (AMT) Applies to
individuals, corporations, and estates and
trusts only if the tentative minimum tax
(TMT) exceeds the taxpayers regular tax
liability. Most taxpayers are not subject to
this tax.
Amount realized The amount realized equals
the sum of money plus the fair market value
of all other property received from the sale
or other disposition of the property less any
selling expenses (e.g., commissions, advertising, deed preparation costs, and legal
expenses) incurred in connection with the
sale.
AMT

See Alternative Minimum Tax.

Annual accounting period

period.

See Accounting

Annuity A series of regular payments that will

continue for either a fixed period of time or
until the death of the recipient. Pensions are
usually paid in this way.
Applicable federal rate The rate determined
monthly by the federal government which is
based on the rate paid by the government on
borrowed funds. The rate varies with the
term of the loan. Thus, short-term loans are
for a period of under three years, mid-term
loans are for over three years and under nine
years, and long-term loans are for over nine
years.
Asset depreciation range (ADR) system of
depreciation Depreciation method allowed
for property placed in service before January
1, 1981. This method prescribed useful lives
for various classes of assets.
Average tax rate The taxpayers total tax liability divided by the amount of his taxable
income.
Backup withholding A modified withholding
system intended to prevent abusive noncompliance situations.
Bad debt Bona fide debt that is uncollectible
because it is worthless. Such debts are further characterized as business bad debts,
which give rise to an ordinary deduction,
and nonbusiness bad debts, which are
treated as a short-term capital loss. A determination of whether a debt is worthless is

D-1
Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

D-2 Individuals Appendix D

made by reference to all the pertinent evidence (e.g., the debtors general financial
condition and whether the debt is secured
by collateral). Such debts are deductible
subject to certain requirements.
Bona fide debt A debt that (1) arises from a
valid and enforceable obligation to pay a
fixed or determinable sum of money and
(2) results in a debtor-creditor relationship.
Bonus depreciation Special first year depreciation on qualified property (non-real estate)
placed in service after September 10, 2001
and before January 1, 2005 and re-enacted
for 2008 and 2009. The bonus depreciation
rate was 30% for the period 9/11/015/5/03
and 50% for the period 5/6/0312/31/04
and for the tax years 2008 and 2009.
Boot Cash and nonlike-kind property given to
complete an exchange of like-kind property
where the property exchanged is not of
equal value. Gain on the exchange is limited
to the amount of boot received.
Brother-sister controlled group A group of
two or more corporations controlled by five
or fewer individuals. There are two definitions, a 80%-50% definition and a 50%only definition. The definition to be used
depends on the specific application.
Business bad debt See Bad debt.
Cafeteria plan Employer-financed plan that
offers employees the option of choosing
cash or statutory nontaxable fringe benefits
(other than scholarships, fellowships, and
Sec. 132 benefits such as discounts on merchandise). Such plans may not discriminate
in favor of highly compensated individuals
or their dependents or spouses.
Capital addition See Capital expenditure.
Capital asset This category of assets includes
all assets except inventory, notes and
accounts receivable, and depreciable property or land used in a trade or business (e.g.,
property, plant, and machinery).
Capital expenditure An expenditure that adds
to the value of, substantially prolongs the
useful life of, or adapts the property to a
new or different use qualifies as a capital
expenditure.
Capital gain Gain realized on the sale or
exchange of a capital asset.
Capital gain dividend A distribution by a regulated investment company (i.e., a mutual
fund) of capital gains realized from the sale
of investments in the fund. Such dividends
also include undistributed capital gains allocated to the shareholders.

Capital loss Loss realized on the sale or

exchange of a capital asset.
Capital recovery A capital recovery amount is
a deduction for depreciation or cost recovery. It is a factor in the determination of a
propertys adjusted basis.

Cash receipts and disbursements method of accounting See Cash method of accounting.
Casualty loss Loss that arises from an identifiable event that was sudden, unexpected, or
unusual (e.g., fire, storm, shipwreck, other
casualty, or theft). Within certain limitations, individuals may deduct such losses
from AGI. Business casualty losses are
deductible for AGI.
C Corporation Form of business entity that is
taxed as a separate tax-paying entity. Its
income is subject to an initial tax at the corporate level. Its shareholders are subject to a
second tax when dividends are paid from
the corporations earnings and profits.
Under certain conditions, S corporation
status may be elected for tax purposes.
C corporations are sometimes referred to as
regular corporations.
CD

See Certificate of deposit.

Charitable contribution deduction Contributions of money or property made to qualified organizations (i.e., public charities and
private nonoperating foundations) may be
deducted from AGI. The amount of the
deduction depends upon (1) the type of
charity receiving the contribution, (2) the
type of property contributed, and (3) other
limitations mandated by the tax law. See
also Unrelated use property.
Child tax credit A credit for individual taxpayers of $1,000 per qualifying child. A
qualifying child must be a U.S. citizen,
under age 17, qualify as the taxpayers
dependent, and be the taxpayers descendent, stepchild, or foster child.
Closed-fact situation Situation or transaction
that has already occurred.
Closely held C corporation For purposes of
the at risk rules, a closely held C corporation is defined as a corporation where more
than 50% of the stock is owned by five or
fewer individuals at any time during the last
half of the corporations taxable year. These
individuals may or may not be members of
the same family.
Community income In any of the eight community property states, such income consists of the income from the personal efforts,
investments, etc. of either spouse.
Community income belongs equally to both
spouses.
Compensation Payment for personal services.
Salaries, wages, fees, commissions, tips,
bonuses, and specialized forms of compensation such as directors fees and jurys fees
fall into this category. However, certain
fringe benefits and some foreign-earned
income are not taxed.

Completed contract method of accounting

Accounting method for long-term contracts
undertaken by smaller companies. Income
from the contract is reported in the taxable
year in which the contract is completed. The
completed contract method is limited to
construction contracts undertaken by
smaller companies.
Constant interest rate method Used to amortize the original issue discount ratably over
the life of the bond, this method determines
the amount of interest income by multiplying the interest yield to maturity by the
adjusted issue price.
Constructive dividend Distribution that is
intended to result in a deduction to the corporation. For example, excessive salary payments to shareholder-employees may be
recharacterized as nondeductible dividends
to the corporation to the extent that such
amounts are not reasonable. The excess
amount may be treated as dividend income
to the shareholder-employees rather than as
compensation provided that certain conditions are met.
Constructive receipt doctrine Rule holding
that cash method taxpayers cannot turn
their backs on the receipt of income if the
funds are unqualifiedly made available.
Constructive stock ownership Shares that are
indirectly or deemed to be owned by another
shareholder due to related party situations.
Contributory pension plan A qualified pension plan to which employees make voluntary contributions.
Controlled group A controlled group is two or
more separately incorporated businesses
owned by the same individuals or entities.
Such groups may consist of parent-subsidiary
corporations, brother-sister corporations, or
a combination of both (combined group).
Cost The amount paid for property in cash or
the fair market value of the property given
in exchange. The costs of acquiring the
property and preparing it for use are
included in the cost of the property.
Cost depletion method Calculation of the
depletion of an asset (e.g., oil and gas properties) under which the assets adjusted basis
is divided by the estimated recoverable units
to arrive at a per-unit depletion. This
amount is then multiplied by the number of
units sold to determine the cost depletion.
This method may be alternated with the percentage depletion method as long as the calculation takes that into account.
Current years exclusion The amount of the
annuity payment that is excluded from gross
income. This amount is determined by multiplying the exclusion ratio by the amount
received during the year.
Customs duties A federal excise tax on
imported goods.
Deductions for AGI Expenses one would see on
an income statement prepared for financial
accounting purposes, for example, compensation paid to employees, repairs to business
property, and depreciation expenses. Certain

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

ISBN 0-558-86017-6

Capital gain property Property that is contributed to a public charity upon which a
long-term capital gain would be recognized
if that property was sold at its fair market
value.

Cash method of accounting Accounting method that requires the taxpayer to report
income for the taxable year in which payments are actually or constructively received.
Expenses are reported in the year they are
paid. Most individuals and service businesses
(i.e., businesses without inventories) use this
method. Small businesses with inventories
that have gross receipts of less than $1 million may also use the cash method.

Glossary Individuals D-3

ISBN 0-558-86017-6

nonbusiness deductions (e.g., alimony payments, moving expenses, and deductible payments to an individual retirement account
(IRA)) are also deductible for AGI.
Deductions from AGI Generally, deductions
are allowed for certain personal expenses
such as medical deductions and charitable
contributions which are referred to as itemized deductions. Alternatively, individuals
may deduct the standard deduction. Personal
and dependency deductions are also deductions from AGI.
Deferred compensation Methods of compensating employees based upon their current
service where the benefits are deferred until
future periods (e.g., a pension plan).
Defined benefit pension plan Qualified pension plan which establishes a contribution
formula based upon actuarial techniques
that are intended to fund a fixed retirement
benefit amount. Thus, the amount that will
be available at the time of retirement is
determined when the contributions are
made.
Defined contribution pension plan Qualified
pension plan under which a separate account
is maintained for each participant and fixed
amounts are contributed based upon a specific percentage-of-compensation formula.
The retirement benefits are based on the
value of the participants account at the time
of retirement. Defined contribution plans for
self-employed individuals are referred to as
H.R. 10 plans.
Dependent care assistance program Employerfinanced programs that provide care for an
employees children or other dependents. An
employee may exclude up to $5,000 from
gross income although the ceiling amount
(i.e., $3,000 or $6,000) on the child care
credit is reduced by the amount of assistance
that is excluded from gross income.
DIF See Discriminate Function System.
Discriminate Function System (DIF) System
used by the IRS to select individual returns
for audit. This system is intended to identify
those tax returns which are most likely to
contain errors.
Dividends-received deduction The deduction
on dividends received by corporate shareholders that attempts to mitigate the triple
taxation that would occur if one corporation
paid dividends to a corporate shareholder
who, in turn, distributed such amounts to its
individual shareholders. Certain restrictions
and limitations apply to this deduction.
E&P See Earnings and profits
Earned income credit A refundable credit that
encourages lower income individuals to
become gainfully employed. The credit is
based on the individuals earned income.
Earnings and profits (E&P) A measure of the
corporations ability to pay a dividend from
its current and accumulated earnings without an impairment of capital.
Economic performance test Economic performance occurs when the property or services to be provided are actually delivered.

Education expense Subject to certain limitations and restrictions, education expenses

are deductible if they are incurred (1) to
improve or maintain the individuals existing skills or (2) to meet requirements that
are requisite to continued employment or
meet the requirements of state law.
Effective tax rate The taxpayers total tax liability divided by his total economic income.
Electronic Filing The method of filing a tax
return with the IRS by electronic means
instead of paper forms.
Employee achievement award Award given
under circumstances that does not create a
likelihood that it is really disguised compensation. It must be in the form of tangible
personal property (other than cash) and be
valued at no more than $400.
Employee stock ownership plan (ESOP) A
qualified stock bonus plan or combined
stock bonus plan and money purchase pension plan. ESOPs are funded by contributions of the employers stock which are held
for the employees benefit.
Employment taxes Social security (FICA) and
federal and state unemployment compensation taxes.
Entertainment expense Entertainment expenses
(e.g., business meals) that are either directly
related to or associated with the active conduct of a trade or business are deductible
within certain limitations and restrictions.
Directly related expenses are those that
(1) derive a business benefit other than
goodwill and (2) are incurred in a clear business setting. Expenses that are associated
with the business are those that show a clear
business purpose (e.g., obtaining new business) and occur on the same day the business is discussed.
ESOP See Employee stock ownership plan.
Estate tax Part of the federal unified transfer
tax system, this tax is based upon the total
property transfers an individual makes during his lifetime and at death.
Excess depreciation See Additional depreciation.
Exchange A transaction in which one receives
a reciprocal transfer of property rather than
cash and/or a cash equivalent.
Excise taxes Federal tax on alcohol, gasoline,
telephone usage, oil and gas production, etc.
State and local governments may impose
similar taxes on goods and services.
Exclusion Any item of income that the tax
law says is not taxable.
Exclusion ratio The portion of the annuity
payment that is excluded from taxation.
This amount equals the investment in the
contract (its cost) divided by the expected
return from the annuity.
Expected return The amount which a taxpayer can expect to receive from an annuity.
It is determined by multiplying the amount
of the annuitys annual payment by the
expected return multiple.
Expected return multiple The number of years
that the annuity is expected to continue.

This amount may be a stated term or for the

remainder of the taxpayers life.
Fair market value (FMV) This amount is the
price at which property would change hands
between a willing buyer and a willing seller
where neither party is under any compulsion to buy or sell.
Federal estate tax See estate tax.
Federal Insurance Contributions Act See FICA.
Federal Unemployment Tax Act See FUTA.
FICA Tax withheld through the payment of
payroll taxes, FICA is intended to finance
social security benefits for individuals who
are not self-employed. Employees and employers contribute matching amounts until a
federally-set annual earnings ceiling is
reached. At that time, no further contributions need be made for that year. No ceiling
exists for the hospital insurance (HI) portion of the tax. Self-employed individuals
are subject to self-employment tax and currently receive a for AGI income tax deduction equal to 50% of their self-employment
tax payments.
Field audit procedure Audit procedure generally used by the IRS for corporations or
individuals engaged in a trade or business
and conducted at either the taxpayers place
of business or his tax advisors office.
Generally, several items on the tax return
are examined.
FIFO method of inventory valuation This
flow of cost method assumes that the first
goods purchased will be the first goods sold.
Thus, the ending inventory consists of the
last goods purchased.
Fiscal year An annual accounting period that
ends on the last day of any month other
than December. A fiscal year may be elected
by taxpayers that keep books and records,
such as businesses.
Flat tax See Proportional tax.
Foreign-earned income An individuals earnings from personal services rendered in a
foreign country.
Foreign tax credit Tax credit given to mitigate
the possibility of double taxation faced by
U.S. taxpayers earning foreign income.
Former passive activity An activity that was
formerly considered passive, but which is
not considered to be passive with respect to
the taxpayer for the current year.
Franchise tax State tax levy sometimes based
upon a weighted average formula consisting
of net worth, income, and sales.
Functional-use test A test used to determine
whether property is considered similar or
related in service or use for purposes of
involuntary conversions of property under
Sec. 1033. The functional-use test requires
that the replacement property be functionally the same as the converted property.
FUTA Federal and state unemployment compensation tax.
GAAP See Generally accepted accounting
principles.

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Copyright 2011 by Pearson Education, Inc.

D-4 Individuals Appendix D

Gain realized See Realized gain.
General business credit Special credit category
consisting of tax credits commonly available
to businesses. The more significant credit
items are (1) the investment tax credit, (2)
the work opportunity credit, (3) the
research credit, (4) the low-income housing
credit, (5) the empowerment zone employment credit, (6) the disabled access credit.
Generally accepted accounting principles
(GAAP) The accounting principles that
govern the preparation of financial reports
to shareholders. GAAP does not apply to
the tax treatment unless the method clearly
reflects income. It is used only when the regulations do not specify the treatment of an
item or when the regulations provide more
than one alternative accounting method.
Gift tax A tax that is imposed upon the donor
for transfers that are not supported by full
and adequate consideration. A $13,000
annual exclusion is allowed per donee in
2009 and 2010 and $12,000 for 20062008.
The annual exclusion in 2005 was $11,000.
Goodwill The excess of the purchase price of
a business over the fair market value of all
identifiable assets acquired.
Gross income All income received in cash,
property, or services, from whatever source
derived and from which the taxpayer
derives a direct economic benefit.
Gross tax For income tax purposes, the
amount determined by multiplying taxable
income by the appropriate tax rate(s). The
gross tax may also be found in the appropriate tax table for the taxpayers filing status.

Imputed interest rule This rule reallocates the

payments received in an installment sale
between interest (fully taxable) and principal (only gain is taxable). To avoid this, the
stated interest rate must equal at least 100%
of the applicable federal rate as determined
monthly according to the rate paid by the
government on borrowed funds.
Incentive stock option plan (ISO) Stock option
plan that allows executives to receive a proprietary interest in the corporation. The
option to participate in this type of plan must
be exercised according to certain requirements and must follow certain procedures.
Income The economic concept of income
measures the amount an individual can consume during a period and remain as well off
at the end of the period as at the beginning.
The accounting concept of income is a
measure of the income that is realized in a
transaction. The tax concept of income is
close to the accounting concept. It includes
both taxable and nontaxable income from
any source. However, it does not include a
return of capital.
Incrementalism A concept in taxation that
described how the tax law has been changed
or modified over the years. Under incrementalism, the tax law is changed on an incremental basis rather than a complete revision
basis.
Indeterminate market value If the market
value of the property in question cannot be
determined by the usual methods, the open
transaction doctrine may be applied and
the tax consequences may be deferred until
the transaction is closed. Alternatively, the
property may be valued by using the fair
market value of the property that is given in
the exchange (e.g., the value of the services
rendered).
Individual retirement account (IRA) Contribution for AGI that is deductible if (1) neither
the taxpayer nor his spouse are active participants in an employer-sponsored retirement
plan or (2) certain income limitations are
met. Taxpayers who do not meet these
requirements may make nondeductible IRA
contributions. See also Roth IRA.
Information Release An administrative pronouncement concerning an issue the IRS
thinks the general public will be interested
in. Such releases are issued in lay terms.
Innocent spouse rule Rule that exempts a
spouse from penalty of from liability for the
tax if such spouse had no knowledge of nor
reason to know about an item of community income.
Installment sale Any disposition of property
which involves receiving at least one payment after the close of the taxable year in
which the sale occurs.
Installment sale method of accounting
Taxpayers may use this method of accounting to reduce the tax burden from gains on
the sale of property paid for in installments.
Under this method, payment of the tax is

deferred until the sale proceeds are collected. This method is not applicable to sales
of publicly traded property or to losses.
Intangible drilling and development costs
(IDCs) Expenditures made by an operator
for wages, fuel, repairs, hauling supplies,
and so forth, incident to and necessary for
the preparation and drilling of oil and gas
wells.
Intangible property Property that does not
have physical substance, such as goodwill,
patents, stocks and bonds, etc.
Interest The cost charged by a lender for the
use of money. For example, finance charges,
loan discounts, premiums, loan origination
fees, and points paid by a buyer to obtain a
mortgage loan are all interest expenses. The
deductibility of the expense depends upon
the purpose for which the indebtedness was
incurred.
Internal Revenue Code The primary legislative source and authority for tax research,
planning, and compliance activities.
Internal Revenue Service (IRS) The branch of
the Treasury Department that is responsible
for administering the federal tax law.
Interpretative Regulations Treasury Regulations that serve to broadly interpret the provisions of the Internal Revenue Code.
Inter vivos gifts Gifts made during the donors
life-time.
Investment expenses All deductions other
than interest that are directly connected
with the production of investment income.
Investment income Gross income from property held for investment and any net gain
attributable to the disposition of such property. See also Net investment income.
Investment interest Interest expense on indebtedness incurred to purchase or carry property held for investment (e.g., income from
interest, dividends, annuities, and royalties).
Interest expenses incurred from passive
activities are not subject to the investment
interest limitations and interest incurred to
purchase or carry tax-exempt securities is
not deductible. Interest incurred from passive activities is subject to the passive activity
loss limitation rules.
Involuntary conversion Such a conversion
occurs when property is compulsorily converted into money or other property due to
theft, seizure, requisition, condemnation, or
partial or complete destruction. For example, an involuntary conversion occurs when
the government exercises its right of eminent domain.
IRA See Individual retirement account.
IRC See Internal Revenue Code.
IRR See Internal rate of return.
IRS See Internal Revenue Service.
ISO See Incentive stock option.
Itemized deductions Also known as deductions from AGI, these personal expenditures are allowable for such items as medical
expenses, state and local taxes, charitable
contributions, unreimbursed employee
business expenses, interest on a personal

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

ISBN 0-558-86017-6

Half year convention An assumption with

respect to depreciation that assumes that all
asset acquisitions and dispositions are made
at the midpoint of the tax year.
Health Savings Account Accounts that may
be contributed to a fund by eligible individuals to enable such individuals to accumulate funds on a tax-free basis to pay qualified medical expenses. These accounts may
only be set up by individuals who are covered under a high-deductible health plan
and, within limits, are tax-deductible.
Holding period The length of time an asset is
held before it is disposed of. This period is
used to determine whether the gain or loss
is long- or short-term.
Horizontal equity A concept in taxation that
refers to the notion that similarly-situated
taxpayers should be treated equally under
the tax law.
H.R. 10 Plan Special retirement plan rules
applicable to self-employed individuals.
Such plans are often referred to as Keogh
plans.
Hybrid method of accounting Accounting
method that combines the cash and accrual
methods. Under this method, taxpayers can
report sales and purchases under the accrual
method and other income and expense items
under the cash method. See also the cash
method of accounting and the accrual
method of accounting.

IDCs See Intangible drilling and development

costs.

Glossary Individuals D-5

residence, and casualty and theft losses.
There are specific requirements for and limitations on the deductibility of each of these
items. In addition, only those taxpayers
whose total itemized deductions exceed the
standard deduction amount can itemize
their deductions. In general, for 2008 and
2009, the total itemized deductions for an
individual is reduced by 1% of AGI (2% in
2006 and 2007, 3% in 2005 and earlier
years) in excess of specified amounts. No
reduction is required for 2010.
Joint income Income from jointly-held
property.
Judicial decisions Decisions of a court of law.

ISBN 0-558-86017-6

Keogh plan Retirement plan for self-employed

individuals. This type of plan is also known
as an H.R. 10 plan.
LCM See Lower of cost or market method of
inventory valuation.
Legislative Regulations Treasury Regulations
issued at the mandate of the Internal
Revenue Code. Legislative regulations have
a higher degree of authority than interpretative regulations.
Letter Ruling Letter rulings originate from the
IRS at the taxpayers request. They describe
how the IRS will treat a proposed transaction. It is only binding on the person
requesting the ruling providing the taxpayer
completes the transaction as proposed in the
ruling. Those of general interest are published as Revenue Rulings.
LIFO method of inventory valuation This
method assumes a last-in, first out flow of
cost. It results in the lowest taxable income
during periods of inflation because it shows
the lowest inventory value. Price indexes are
used for the valuation. The information in
these indexes is grouped into groups (pools)
of similar items. See also Simplified LIFO
method.
Like class Classes of assets defined by the
Regulations that are considered to be property of a like kind for purposes of Sec. 1031.
Like class property is tangible personal
property that is in the same General Asset
Class or the Same Product Class as other
property.
Like-kind exchange A direct exchange of
like-kind property. The transferred property and the received property must be
held for productive use either (1) in a trade
or business or (2) as an investment.
Nonrecognition of gain or loss is mandatory. Certain like-kind exchanges between
related parties are restricted if either party
disposes of the property within two years of
the exchange.
Like-kind property Property with a similar
nature and character. This term does not
refer to either the grade or quality of the
property.
Limited liability company (LLC) A corporation
that is generally taxed under the partnership
rules. Although similar to an S corporation,

there is no limit to (1) the number of shareholders, (2) the number of classes of stock,
or (3) the types of investments in related
entities.
Limited liability partnerships (LLP) LLPs are
taxed as partnerships but enjoy limited liability under state partnership laws (i.e., individual partners are liable for their own acts
and acts of persons under their direction
and control but not for negligence or misconduct by other partners).
Liquidating distribution A distribution that
liquidates a partners entire partnership
interest due to retirement, death, or other
business reason. Such distributions result in
a capital gain or loss to the partner whose
interest is liquidated. In a corporate liquidation, the liquidating corporation generally
recognizes gains and losses on the distribution of the properties and its shareholders
recognize capital gain or loss on the surrender of their stock.
Long-term capital gain (LTCG) Gain realized
on the sale or exchange of a capital asset
held longer than one year.
Long-term capital loss (LTCL) Loss realized
on the sale or exchange of a capital asset
held longer than one year.
Long-term contracts Building, manufacturing,
installation, and construction contracts that
are not completed in the same taxable year in
which they are entered into. Service contracts
do not qualify as long-term contracts. See also
Completed contract method of accounting.
Look-back interest Interest that is assessed on
any additional tax that would have been paid
if the actual total cost of the contract was
used to calculate the tax rather than the estimated cost. Thus, it is applicable to any contract of portion of a contract that is
accounted for under either the hybrid or percentage of completion method of accounting.
Lower of cost or market method (LCM) of
inventory valuation The valuation method
is available to all taxpayers other than those
using LIFO valuation. It is applied to each
separate item in the inventory.
Marginal tax rate The tax that is applied to an
incremental amount of taxable income that
is added to the tax base. This rate can be
used to measure the tax effect of a proposed
transaction. Currently, the highest marginal
tax rate for individuals is 35%.
Market value This term refers to replacement
cost under the lower of cost or market
inventory method. That is, it is the price at
which the taxpayer can replace the goods in
question. See also Fair market value.
Material participation The level of participation by a taxpayer in an activity that determines whether the activity is either passive
or active. If a taxpayer does not meet the
material participation requirements, the
activity is treated as a passive activity.
Medical expense deduction Unreimbursed
medical expenses incurred for medical procedures or treatments that are (1) legal in
the locality in which they are performed and

(2) incurred for the purpose of alleviating a

physical or mental defect or illness that
affects the bodys structure or function are
deductible from AGI. Out-of-pocket travel
costs incurred while en route to a medical
facility, certain capital expenditures affecting the sick person, premiums for medical
insurance, and in-patient hospital care are
also deductible. Certain restrictions and limitations apply to this deduction.
Memorandum decision Decision issued by the
Tax Court. They deal with factual variations
on matters which were decided in earlier
cases.
Method of accounting See Accounting method.
Miscellaneous itemized deductions Certain
unreimbursed employee expenses (e.g.,
required uniforms, travel, entertainment, and
so on) fall into this category. Miscellaneous
itemized deductions also include certain
investment expenses, appraisal fees for charitable contributions and fees for tax return
preparation. The nature of the deduction
depends on whether the taxpayer is an
employee or a self-employed individual.
Modified percentage of completion method A
variation of the regular percentage of completion method where an election may be
made to defer reporting profit from a longterm contract until at least 10% of the estimated total cost has been incurred.
Moving expense Expenses incurred in relation
to employment-related job transfers.
Necessary expense Expense that is deductible
under Sec. 162 because it is appropriate and
helpful in the taxpayers business. Such
expenses must also qualify as ordinary.
Net investment income The excess of the taxpayers investment income over his investment expenses. See also Investment income.
Net operating loss (NOL) A net operating loss
occurs when business expenses exceed business income for any taxable year. Such
losses may be carried back two years or carried forward 20 years to a year in which the
taxpayer has taxable income. Loss must be
carried back first and must be deducted
from years in chronological order.
Net Present Value (NPV) Method used by
investment analysts to determine the anticipated return on an investment. This method
uses a fixed discount rate to compute the net
present value of future cash flows.
NOL

See Net operating loss.

Net unearned income The amount of unearned

income of a child under age 18 (or under 24
if a full-time student and earned income less
than 1/2% of his support) that is taxed at the
childs parents top marginal tax rate.
Nonaccountable plan A type of employee
reimbursement plan that does not meet
either of the two tests for an accountable
plan (see accountable plan). Under a nonaccountable plan, reimbursements are included
in the employees gross income and the
expenses are deductible by the employee,
subject to the 2% of AGI floor.

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

D-6 Individuals Appendix D

Nonbusiness bad debt See Bad debt.
Noncontributory pension plan Only the
employer makes contributions to this type
of pension plan.
Nonliquidating distribution Distribution
that reduces but does not eliminate, a partners partnership interest. Such distributions are generally treated as tax-free
returns of capital.
Nonqualified deferred compensation plan
Type of plan used by employer to provide
incentives or supplementary retirement benefits for executives. Such plans are not subject to the nondiscrimination and vesting
rules.
Nonqualified stock option Stock option that
does not meet the requirements for an incentive stock option.
Nonrefundable credit Allowances, such as the
dependent child care credit, that have been
created for various social, economic, and
political reasons. The tax credits in this category do not result from payments made to
the government in advance. Thus, they can
be deducted from the tax, but they are not
payable to the taxpayer in situations where
the credit exceeds the tax.
NPV See Net Present Value
Office audit procedure IRS audit of a specific
item on an individuals tax return. An office
audit takes place at the IRS branch office.
Open-fact situation A situation that has not
yet occurred. That is, one for which the facts
and events are still controllable and can be
planned for.
Ordinary expense An expense that is deductible
because it is reasonable in amount and bears a
reasonable and proximate relationship to the
income-producing activity or property.
Ordinary income property For purposes of
the charitable contribution deduction, any
property that would result in the recognition of ordinary income if the property were
sold. Such property includes inventory,
works of art or manuscripts created by the
taxpayer, capital assets that have been held
for one year or less, and Section 1231 property that results in ordinary income due to
depreciation recapture.
Organizational expenditures The amortizable
legal, accounting, filing, and other fees incidental to organizing a partnership or a corporation.

as a nondeductible personal expenditure.

See also Interest.
Personal property Property that is other than
real property, such as equipment.
Personal service corporation (PSC) A regular
C corporation whose principal activity is the
performance of personal services that are
substantially performed by owner-employees
who own more than 10% of the value of the
corporations stock.
PHC See Personal holding company.
Portfolio income Dividends, interest, annuities, and royalties not derived in the ordinary course of business. Gains and losses on
property that produces portfolio income are
included in such income.
Primary cite The highest level official reporter
which reports a particular case is called the
primary cite.
Principal partner A partner owning 5% or
more of the partnership profits and capital
interests.
Principal residence The residence that the taxpayer occupies most of the time.
Private activity bond Obligation issued by a
state of local government to finance nongovernmental activities (e.g., a sports arena).
Private Letter Ruling See Letter Ruling
Production activities deduction
A special
deduction for all taxpayers involved in U.S.
manufacturing or production activities. The
deduction is 3% in 2005 and 2006, 6% in
2007-2009 and 9% in 2010 and thereafter
of the lesser of qualified production activities income or taxable income (before the
deduction).
Production of income An activity of the taxpayer that is generally related to investment
activities or matters connected with the
determination of any tax. Deductions
related to production of income activities
are usually from AGI, although is some
instances they may be for AGI, such as
expenses connected with rental property.
Profit-sharing plan A qualified defined benefit plan which may be established in lieu of
or in addition to a qualified pension plan.
Contributions to a profit-sharing plan are
usually based upon profits. Incidental
benefits may or may not be included. In
addition, the plan must meet certain
requirements concerning determination of
the amount and timing of the employers
contribution, how the employee wants to
receive the employers contribution, vesting, and forfeitures.
Progressive rate Tax that increases as the taxpayers taxable income increases. The U.S.
income tax is an example of a progressive
tax.
Property settlement The division of property
between spouses upon their separation or
divorce.
Property tax Federal, state, or local tax levied
on real and/or personal property (e.g., securities, a personal automobile).
Proportional tax A method of taxation under
which the tax rate is the same for all taxpayers

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

ISBN 0-558-86017-6

Parent-subsidiary controlled group To qualify,

a common parent must own at least 80% of
the stock of at least one subsidiary corporation and at least 80% of each other component member of the controlled group must
be owned by other members of the controlled group.
Partnership Syndicate, group pool, joint venture, or other unincorporateed organization
which carries on a business or financial
operation or venture.
Partnership interest The capital and/or profits
interest in a partnership received in exchange
for a contribution of properties or services

(e.g., money or business equipment). The

nature of a partnership interest is similar to
that of corporate stock.
Passive activity To define what constitutes a
passive activity for the purpose of applying
the passive loss rules, it is necessary to (1)
identify what constitutes an activity and (2)
determine whether the taxpayer has materially participated in the activity. Temp. Reg.
Sec. 1.469-4T contains detailed rules for
making these determinations.
Passive income Income from an activity that
does not require the taxpayers material
involvement or participation. Thus, income
from tax shelters and rental activities fall
into the category.
Passive loss Loss generated from a passive
activity. Such losses are computed separately. They may be used to offset income
from other passive activities, but may not be
used to offset either active or portfolio
income.
Percentage depletion method Depletion method
for assets such as oil and gas that is equal to
a specified percentage times the gross income
from the property but which may not exceed
100% of the taxable income before depletion is deducted. Lease bonuses, advance
royalties, and other amounts payable without regard to production may not be
included in the calculation. This method is
only available to small oil and gas producers
and royalty owners and for certain mineral
properties.
Percentage of completion method of accounting
Accounting method generally used for longterm contracts under which income is
reported in proportion to the amount of
work that has been completed in a given
year.
Personal exemption A deduction in an amount
mandated by Congress. The amount for
2009 and 2010 is $3,650 ($3,500 for 2008)
and is adjusted for increases in the cost of
living. An additional exemption is allowed
for each individual who is a dependent.
Personal and dependency exemptions are
phased out for high income taxpayers.
Personal holding company (PHC) A closely
held corporation (1) that is owned by a five
or fewer shareholders who own more than
50% of the corporations outstanding stock
at any time during the last half of its taxable
year and (2) whose PHC income equals at
least 60% of the corporations adjusted
gross income for the tax year. Certain corporations (e.g., S corporations) are exempt
from this definition.
Personal holding company tax This tax is
equal to 15% of the undistributed personal
holding company income. It is intended to
prevent closely held companies from converting an operating company into a nonoperating investment company.
Personal interest All interest other than active
business interest, investment interest, interest incurred in a passive activity, qualified
residence interest, and interest incurred
when paying the estate tax on an installment
basis. Personal interest is currently treated

Glossary Individuals D-7

regardless of their income. State and local
sales taxes are examples of this form of tax.
Proposed Regulations Issued following
changes in the tax law. May or may not be
amended after hearings are conducted and
comments received. Proposed regulations
are not binding on taxpayers.
PSC See Personal service corporation.

ISBN 0-558-86017-6

Qualified pension plan Pension plan that

includes (1) systematic and definite payments made to a pension trust based upon
actuarial methods and (2) usually provides
for incidental benefits such as disability, or
medical insurance benefits.
Qualified plan award Employee achievement
awards given under a written plan or program that does not discriminate in favor
of highly compensated employees. Such
awards must be in the form of tangible personal property other than cash and be worth
no more than $1,600.
Qualified residence interest Interest on an
indebtedness which is secured by the taxpayers qualified residence when it is paid or
accrued. A taxpayer may have two qualified
residences: a principal residence and a residence that he has personally used more than
the greater of 14 days or 10% of the rental
days during the year.
Qualifying children A child of the taxpayer
who meets the four tests of relationship, age
abode, and support. A child who meets
these tests may be claimed as a dependency
exemption by the taxpayer.
Qualifying relative An individual who may be
claimed as a dependent if he or she meets
the relationship, gross income, and support
tests.
Readily ascertainable fair market value The
fair market value of nonqualified stock
options can be readily ascertained where the
option is traded on an established options
exchange.
Real property Property that is land or any
structure permanently attached to the land,
such as buildings.
Realized gain or loss The gain or loss computed by taking the amount realized from a
sale of property and subtracting the propertys adjusted basis.
Recapture provision A provision requiring
recapture of earlier alimony payments as
ordinary income by the payor if the payments decline sharply in either the second or
third year.
Recovery of basis doctrine Rule that allows
taxpayers to recover the basis of an asset
without being taxed. Such amounts are considered a return of capital.
Refundable credit See Tax credit.
Regressive tax A form of taxation under
which the tax rate decreases as the tax base
(e.g., income) increases.
Regular corporation See C corporation.
Regular decision Tax Court decision that is
issued on a particular issue for the first time.

Regulation See Treasury Regulation

Replacement property Property that is
acquired to replace converted property in
order to retain nonrecognition of gain status. Such property must generally be functionally the same as the converted property.
For example, a business machine must be
replaced with a similar business machine.
There are exceptions to this rule: The
taxpayer-use test applies to the involuntary
conversion of rental property owned by an
investor; condemnations of real property
held for business or investment use may be
replaced by like-kind property.
Residential rental property Property from
which at least 80% of the gross rental
income is rental from dwelling units.
Residential units include manufactured
homes that are used for rental purposes, but
not hotels, motels, or other establishments
for transient use.
Restricted property plan Such plans are used
to attract and retain key executives by giving
them an ownership interest in the corporation. The income recognition rules contained
in Sec. 83 govern this type of plan.
Revenue Amounts received by the taxpayer
from any source. It includes both taxable
and nontaxable amounts and items that are
a return of capital. Although closely related
to income or gross income, differences
between these items do exist.
Revenue Procedure Issued by the national
office of the IRS, Revenue Procedures reflect
the IRS position on compliance relating to
tax preparation issues. Revenue Procedures,
which are published in the Cumulative
Bulletin, have less weight than Treasury
Regulations.
Revenue Ruling Issued by the national office
of the IRS, Revenue Rulings reflect the IRSs
interpretation of a narrow tax issue.
Revenue Rulings, which are published in the
Cumulative Bulletin, have less weight than
the Treasury Regulations.
Roth IRA An IRA in which the contributions
are nondeductible, but distributions generally are not subject to tax. Therefore, all
earnings in a Roth IRA are not subject to
taxation.
Royalties Ordinary income arising from
amounts paid for the right to use property
that belongs to another and is transferred
for valuable consideration (e.g., a patent
right where substantially all rights are transferred).
Sale A transaction where one receives cash
and/or the equivalent of cash, including the
assumption of debt, in exchange for an
asset.
Sales tax State or local tax on purchases.
Generally, food items and medicines are
exempt from such tax.
S corporation Small business corporations
may elect S corporation status if they meet
the 100-shareholder limitation, the type of
shareholder restrictions, and the one class of
stock restriction. Taxation of such corpora-

tions parallels the tax rules that apply to

partnerships.
Secondary cite Citation to secondary source
(i.e., unofficial reporter).
Section 401(k) plan Type of plan that is often
used to supplement a companys regular
qualified pension and profit-sharing plan.
Such plans, which generally contain a salary
reduction feature, permit the employer to
receive either cash or an equivalent contribution to the companys profit-sharing plan.
The amount of the contribution is limited.
Section 1231 property Real or depreciable
property that is (1) held for more than one
year and (2) used in a trade or business.
Certain property, such as inventory, U.S.
government publications, copyrights, literary, musical, or artistic compositions, and
letters, are excluded from this definition.
Section 1245 property Certain property subject to depreciation and, in some cases,
amortization. Depreciable personal property such as equipment is Section 1245
property. However, most real property is
not.
Section 1250 property Any real property that
(1) is not Section 1245 property and (2) is
subject to a depreciation allowance.
Security A long-term debt obligation. Longterm is generally defined as 10 years or
more.
Self employment tax A tax imposed on selfemployed individuals. The SE tax is comprised of the FICA tax (Social Security) of
12.4% on first $106,800 of SE income in
2010 plus the Medicare tax of 2.9% on all
SE income.
Separate property All property that is owned
before marriage and any gifts or inheritances acquired after marriage are separate
property. This distinction depends on the
state of residence. However, it is possible
even in community property states.
Severance damages Compensation for a
decline in the value of the property remaining after part of the taxpayers property is
condemned. The IRS considers such damages analogous to the proceeds from property insurance.
Shifting income The process of transferring
income from one family member to another.
Methods for shifting income include gifts of
stock or bonds to family members who are
in lower tax brackets.
Short sale An investment activity where an
investor sells a security at its current price
and purchases the same security at a future
date. A short sale is generally used when the
price of a security is expected to decline.
Short-term capital gain (STCG) Gain realized
on the sale or exchange of a capital asset
held for one year or less.
Short-term capital loss (STCL) Loss realized
on the sale or exchange of a capital asset
held for one year or less.
Simplified LIFO method This method of
inventory valuation allows taxpayers to use
a single LIFO pool rather than multiple
pools. See also LIFO method.

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
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D-8 Individuals Appendix D

must have at least one dependent child living at home during the year.
Syndication fees The nonamortizable fees (e.g.,
brokerage and registration fees) incurred to
promote and market partnership interests.
Such fees are generally associated with taxsheltered limited partnership interests.
Tangible property Property that has physical
substance, such as land, buildings, natural
resources, equipment, etc.
Tax A mandatory assessment levied under the
authority of a political entity for the purpose of raising revenue to be used for public
or governmental purposes. Such taxes may
be levied by the federal, state, or local government.
Taxable income For individuals, taxable
income is adjusted gross income reduced by
deductions from adjusted gross income.
Tax base The amount to which the tax rate is
applied to determine the tax due. For income
tax purposes, the tax base is taxable income.
Tax benefit rule Recovery of an amount in a
subsequent year that produced a tax benefit
in a prior year and is thus taxable to the
recipient.
Tax credit Amount that can be deducted from
the gross tax to arrive at the net tax due or
refund due. Prepaid amounts, that is,
amounts paid to the government during the
year, are tax credits. Such prepaid amounts
are often referred to as refundable credits.
Tax Deferred Bonds Bonds on which the
interest is not subject to current taxation but
is deferred to a future period of time, such
as Series EE U.S. Savings Bonds.
Tax Exempt Bonds Bonds on which the interest is completely exempt from federal
income taxation, such as state and municipal bonds.
Tax law The tax law is comprised of the
Internal Revenue Code, administrative and
judicial interpretations, and the committee
reports issued by the Congressional committees involved in the legislative process.
Taxpayer Compliance Measurement Program
(TCMP) A stratified random sample used
to select tax returns for audit. The program
is intended to test the extent to which taxpayers are in compliance with the law.
Taxpayer-use test A test used to determine
whether property is considered similar or
related in service or use for purposes of
involuntary conversions of property. This
test is used by owner-investors (as opposed
to owner-users) of property.
Tax research Search for the best possible solution to a problem involving either a proposed or completed transaction.
Tax shelter Passive activity which may lack
economic substance other than creating tax
deductions and credits that enable taxpayers
to reduce or eliminate the income tax liability from their regular business activities.
Section 469 restricts the current use of
deductions and credits arising from passive
activities.

Tax year See Accounting period.

TCMP See Taxpayer Compliance Measurement Program.
Technical Advice Memorandum Such memoranda are administrative interpretations
issued in the form of letter ruling. Taxpayers
may request them if they need guidance
about the tax treatment of complicated
technical matters which are being audited.
Temporary Regulations Temporary Regulations are Treasury Regulations that are issued
to provide guidance for taxpayers pending
the issuance of the final regulations. They are
binding upon taxpayers. Temporary Regulations are also required to be issued as proposed regulations and must expire within
three years.
Testamentary gift Transfer of property made
at the death of the donor (i.e., bequests,
devises, and inheritances).
Theft loss Loss of business, investment, or
personal-use property due to crimes such as,
but not limited to, larceny, embezzlement,
robbery, extortion, blackmail, or kidnapping for ransom. Such losses are deductible
from AGI, subject to certain limitations.
Total economic income The amount of the
taxpayers income, including exclusions and
deductions from the tax base (e.g., taxexempt bonds), is categorized as total economic income.
Trade or business A business activity of the
taxpayer in which deductions are allowed as
for AGI deductions.
Transportation expense The deductibility of
this type of expense depends upon whether
it is trade- or business-related, whether it is
related to the production of income,
whether the expense is employment related
and therefore subject to the 2% nondeductible floor for miscellaneous itemized
deductions. Commuting expenses are nondeductible. See also Travel expense.
Travel expense Such expenses include transportation, meals, and lodging incurred in the
pursuit of a trade, business, or employmentrelated activity. There are limitations and
restrictions on the deductibility of these
expenses. See also Transportation expense.
Treasury bill Short-term (i.e., 90-day) obligation that is issued by the government at a
discount from the maturity amount. The
difference between the issue price and the
maturity amount represents the interest
income.
Treasury Regulation The principal administrative source of the federal tax law, these
regulations reflect the Treasurys and the
IRSs interpretation of the Internal Revenue
Code. They may be either legislative or
interpretative and they may be issued in
either proposed, temporary, or final form.
Unfunded deferred compensation plan This
type of plan is used for highly-compensated
employees who wish to defer the recognition of income until future periods. Funding
is generally accomplished through an
escrow account for the employees benefit.

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

ISBN 0-558-86017-6

Small cases procedure When taxes of $50,000

or less are in question for a particular year,
the taxpayer may opt to have the case heard
by a special commissioner rather than the
regular Tax Court. The decision of the commissioner cannot be appealed.
Social security benefits These benefits include
(1) the basic monthly retirement and disability benefits paid under social security and
(2) tier-one railroad retirement benefits.
Sole proprietorship Form of business entity
owned by an individual who reports all
items of income, expense, on his individual
return on Schedule C.
Specific write-off method of accounting
Method of accounting used for bad debts.
Under this method, the taxpayer deducts
each bad debt individually as it becomes
worthless. This is the only allowable
accounting method for bad debts arising
after 1986.
Splitting income The process of creating additional taxable entities, especially corporations, in order to reduce an individuals
effective tax rate.
Standard deduction A floor amount set by
Congress to simplify the tax computation. It
is used by taxpayers who do not have
enough deductions to itemize. The amount
of the deduction varies according to the taxpayers filing status, age, and vision.
Taxpayers who use this standard deduction
are not required to keep records. See
Chapter I:2.
State corporate income tax See Franchise tax.
Statements on Standards for Tax Services
(SSTS) Ethical guidelines of the AICPAFederal Tax Division for CPAs to promote
high standards of tax practice.
Statute of Limitations A period of time as provided by law in which a taxpayers return
may not be changed either by the IRS or the
taxpayer. The Statute of Limitations is generally three years from the later of the date
the tax return is filed or its due date. There
is no Statute of Limitations for a fraudulent
return.
Stock bonus plan A special type of defined
benefit plan under which the employers
stock is contributed to a trust. The stock is
then allocated and distributed to the participants. See also Employee stock ownership
plan.
Stock dividend A dividend paid in the form of
stock in the corporation issuing the dividend.
Stock option plan This category includes
incentive stock options and nonqualified
Stock option arrangements. Such plans are
used to attract and retain key employees.
Substance-over-form doctrine Judicial weighing of a transactions economic substance
more heavily than its legal form.
Surviving spouse A special filing status available to widows and widowers who file a
joint return for the year his or her spouse
dies and for the following two years. The
surviving spouse may not have remarried,
must be a U.S. citizen or resident, have qualified to file a joint return for the year, and

Glossary Individuals D-9

U.S. Production Activities Deduction
Production Activities Deduction.

See

U.S. Treasury Bill See Treasury bill.

Vertical equity A concept in taxation that provides that the incidence of taxation should be
borne by taxpayers who have the ability to
pay the tax. Taxpayers who are not similarlysituated should be treated differently under
the tax law.
Wash sale A wash sale results when the taxpayer (1) sells stock or securities and (2)
purchases substantially identical stock or
securities within the 61-day period extending from 30 days before the date of sale to
30 days after the date of sale.
Wealth transfer tax A tax imposed upon the
value of property transferred during ones

lifetime (i.e., a gift tax) or upon the death of

the transferor (i.e., an estate tax). The tax is
imposed upon the transferor of property or
upon the estate.
Writ of certiorari A petition to the U.S.
Supreme court to request that the Court
agree to hear a case. A writ of certiorari is
requested by the party (IRS or taxpayer)
that lost at the Court of Appeals level.

Zero coupon bond Bond that is issued at a

cost that is substantially less than the current market rate because no interest payments are made. The original issue discount
(OID) must be amortized over the term of
the bond by investors using the constant
rate method. Such bonds offer cash-flow
advantages to corporate issuers since no
cash outlay for interest is required until the
bonds mature.

ISBN 0-558-86017-6

Uniform Capitalization rules (UNICAP) The

requirements under the tax law for determining inventory cost. Under UNICAP certain indirect overhead costs are required to
be included in inventory for tax purposes
which are generally not included for financial accounting.
Unrelated use property Capital gain property
which is also tangible personal property and
which is contributed to a public charity for a
use that is unrelated to the charitys function. The contribution deduction (from
AGI) for such property is equal to the propertys fair market value minus the capital
gain that would be recognized if the property was sold at that value.
Unreported decision District Court decisions
that are not officially reported in the Federal
Supplement. Such decisions may be reported
in secondary reporters that report only taxrelated cases.

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

ISBN 0-558-86017-6
Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

A P P E N D I X

Note: The AICPA released revised Statements on Standards for Tax Services (SSTS) effective on January 1, 2010. These statements are
enforceable standards of tax practice for AICPA members. Changes to Statements No. 1 and 7 (formerly No. 8) were substantive in
nature. As a result, Interpretations No. 1-1 and 1-2 relating to former Statement No. 1 are currently under revision. The new statements
as well as the old statements can be found on the AICPA website at www.aicpa.org.

AICPA STATEMENTS ON STANDARDS

FOR TAX SERVICES NOS. 17
(NOVEMBER 2009)

ISBN 0-558-86017-6

P R E FA C E

will be undertaken on a case-by-case basis. Members are

expected to comply with them.

1. Standards are the foundation of a profession. The AICPA aids

its members in fulfilling their ethical responsibilities by instituting
and maintaining standards against which their professional
performance can be measured. Compliance with professional
standards of tax practice also reaffirms the publics awareness of
the professionalism that is associated with CPAs as well as the
AICPA.
2. This publication sets forth enforceable tax practice standards for members of the AICPA, Statements on Standards for
Tax Services (SSTSs or statements). These statements apply to all
members providing tax services regardless of the jurisdictions in
which they practice. Interpretations of these statements may be
issued as guidance to assist in understanding and applying the
statements. The SSTSs and their interpretations are intended to
complement other standards of tax practice, such as Treasury
Department Circular No. 230, Regulations Governing the
Practice of Attorneys, Certified Public Accountants, Enrolled
Agents, Enrolled Actuaries, Enrolled Retirement Plan Agents,
and Appraisers before the Internal Revenue Service; penalty
provisions of the Internal Revenue Code; and state boards of
accountancy rules.
3. The SSTSs are written in as simple and objective a manner
as possible. However, by their nature, practice standards provide
for an appropriate range of behavior and need to be interpreted
to address a broad range of personal and professional situations.
The SSTSs recognize this need by, in some sections, providing
relatively subjective rules and by leaving certain terms undefined. These terms are generally rooted in tax concepts and,
therefore, should be readily understood by tax practitioners.
Accordingly, enforcement of these rules, as part of the AICPAs
Code of Professional Conduct Rule 201, General Standards, and
Rule 202, Compliance With Standards (AICPA, Professional
Standards, vol. 2, ET sec. 201 par. .01 and ET sec. 202 par. .01),

4. The SSTSs have their origin in the Statements on

Responsibilities in Tax Practice (SRTPs), which provided a body
of advisory opinions on good tax practice. The guidelines as
originally set forth in the SRTPs became more important than
many members had anticipated when the guidelines were issued.
The courts, the IRS, state accountancy boards, and other professional organizations recognized and relied on the SRTPs as the
appropriate articulation of professional conduct in a CPAs tax
practice. The SRTPs became de facto enforceable standards of
professional practice, because state disciplinary organizations
and courts regularly held CPAs accountable for failure to follow
the guidelines set forth in the SRTPs.
5. The AICPAs Tax Executive Committee concluded it was
appropriate to issue tax practice standards that would become a
part of the AICPAs Professional Standards. At its July 1999
meeting, the AICPA Board of Directors approved support of the
executive committees initiative and placed the matter on the
agenda of the October 1999 meeting of the AICPAs governing
Council. On October 19, 1999, Council approved designating
the Tax Executive Committee as a standardsetting body, thus
authorizing that committee to promulgate standards of tax practice. As a result, the original SSTSs, largely mirroring the SRTPs,
were issued in August 2000.
6. The SRTPs were originally issued between 1964 and 1977.
The first nine SRTPs and the introduction were promulgated in
1976; the tenth SRTP was issued in 1977. The original SRTPs
concerning the CPAs responsibility to sign the tax return (SRTP
No. 1, Signature of Preparers, and No. 2, Signature of Reviewer:
Assumption of Preparers Responsibility) were withdrawn in
1982 after Treasury Department regulations were issued adopting

Copyright 2009 by the American Institute of Certified Public Accountants, Inc.

Reprinted with permission.

E-1

H I S T O R Y

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

E-2 Individuals Appendix E

substantially the same standards for all tax return preparers. The
sixth and seventh SRTPs, concerning the responsibility of a CPA
who becomes aware of an error, were revised in 1991. The first
interpretation of the SRTPs, Interpretation No. 1-1, Realistic
Possibility Standard, was approved in December 1990. The
SSTSs and Interpretation No. 1-1, Realistic Possibility
Standard, of SSTS No. 1, Tax Return Positions, superseded and
replaced the SRTPs and their Interpretation No. 1-1, effective
October 31, 2000. Although the number and names of the SSTSs,
and the substance of the rules contained in each of them, remained
the same as in the SRTPs, the language was revised to both clarify
and reflect the enforceable nature of the SSTSs. In addition,
because the applicability of these standards is not limited to
federal income tax practice (as was the case with the SRTPs),
the language was changed to indicate the broader scope. In 2003,
in connection with the tax shelter debate, SSTS Interpretation
No. 1-2, Tax Planning, of SSTS No. 1 was issued to clarify a
members responsibilities in connection with tax planning; that
interpretation became effective December 31, 2003.
7. When the original SSTSs were issued, an effort was made to
keep to a minimum any changes in the language of the SSTSs from
that of the predecessor SRTPs. This was done to alleviate concerns
regarding the enforceability of standards that differed from the
SRTPs under which members had been practicing. Since the
issuance of the original SSTSs, members have asked for clarification on certain matters, such as the duplication of the language in
SSTS No. 6, Knowledge of Error: Return Preparation, and No. 7,
Knowledge of Error: Administrative Proceedings. Also, certain
changes in federal and state tax laws have raised concerns regarding the need to revise SSTS No. 1. As a result, in 2008, the original
SSTS Nos. 18 were updated, effective January 1, 2010. The original SSTS Nos. 67 were combined into the revised SSTS No. 6,
Knowledge of Error: Return Preparation and Administrative
Proceedings. The original SSTS No. 8, Form and Content of
Advice to Taxpayers, was renumbered SSTS No. 7. In addition,
various revisions were made to the language of the original SSTSs.
O N G O I N G

P R O C E S S

1 A member should refer to the current version of Internal Revenue Code

Section 6694, Understatement of taxpayers liability by tax return preparer,
and other relevant federal, state, and jurisdictional authorities to determine

S TAT E M E N T O N S TA N D A R D S
F O R TA X S E RV I C E S N O . 1 ,
TA X R E T U R N P O S I T I O N S
I N T R O D U C T I O N
1. This statement sets forth the applicable standards for members when recommending tax return positions, or preparing or
signing tax returns (including amended returns, claims for
refund, and information returns) filed with any taxing authority.
For purposes of these standards
a. a tax return position is (i) a position reflected on a tax
return on which a member has specifically advised a taxpayer or (ii) a position about which a member has knowledge of all material facts and, on the basis of those facts,
has concluded whether the position is appropriate.
b. a taxpayer is a client, a members employer, or any other
third-party recipient of tax services.
2. This statement also addresses a members obligation to
advise a taxpayer of relevant tax return disclosure responsibilities and potential penalties.
3. In addition to the AICPA, various taxing authorities, at the
federal, state, and local levels, may impose specific reporting and
disclosure standards with regard to recommending tax return
positions or preparing or signing tax returns.1 These standards
can vary between taxing authorities and by type of tax.
S T AT E M E N T
4. A member should determine and comply with the standards,
if any, that are imposed by the applicable taxing authority with
respect to recommending a tax return position, or preparing or
signing a tax return.
5. If the applicable taxing authority has no written standards
with respect to recommending a tax return position or preparing
or signing a tax return, or if its standards are lower than the
standards set forth in this paragraph, the following standards
will apply:
a. A member should not recommend a tax return position or
prepare or sign a tax return taking a position unless the
member has a good-faith belief that the position has at
least a realistic possibility of being sustained administratively or judicially on its merits if challenged.
b. Notwithstanding paragraph 5(a), a member may recommend a tax return position if the member (i) concludes
that there is a reasonable basis for the position and
the reporting and disclosure standards that are applicable to preparers of
tax returns.

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

ISBN 0-558-86017-6

8. The following SSTSs and any interpretations issued thereunder

reflect the AICPAs standards of tax practice and delineate
members responsibilities to taxpayers, the public, the government, and the profession. The statements are intended to be part
of an ongoing process of articulating standards of tax practice for
members. These standards are subject to change as necessary or
appropriate to address changes in the tax law or other developments in the tax practice environment.
9. Members are encouraged to assess the adequacy of their
practices and procedures for providing tax services in conformity with these standards. This process will vary according to the
size of the practice and the nature of tax services performed.
10. The Tax Executive Committee promulgates the SSTSs
and their interpretations. Acknowledgment is also due to the

many members who have devoted their time and efforts over the
years to developing and revising the AICPAs standards.

AICPA Statements on Standards for Tax Services Nos. 17 (November 2009) Individuals E-3
(ii) advises the taxpayer to appropriately disclose that
position. Notwithstanding paragraph 5(a), a member may
prepare or sign a tax return that reflects a position if (i) the
member concludes there is a reasonable basis for the
position and (ii) the position is appropriately disclosed.
6. When recommending a tax return position or when preparing or signing a tax return on which a position is taken, a member
should, when relevant, advise the taxpayer regarding potential
penalty consequences of such tax return position and the opportunity, if any, to avoid such penalties through disclosure.
7. A member should not recommend a tax return position
or prepare or sign a tax return reflecting a position that the
member knows
a. exploits the audit selection process of a taxing authority, or
b. serves as a mere arguing position advanced solely to
obtain leverage in a negotiation with a taxing authority.
8. When recommending a tax return position, a member has
both the right and the responsibility to be an advocate for the
taxpayer with respect to any position satisfying the aforementioned standards.

ISBN 0-558-86017-6

E X P L A N AT I O N
9. The AICPA and various taxing authorities impose specific
reporting and disclosure standards with respect to tax return positions and preparing or signing tax returns. In a given situation, the
standards, if any, imposed by the applicable taxing authority may
be higher or lower than the standards set forth in paragraph 5. A
member is to comply with the standards, if any, of the applicable
taxing authority; if the applicable taxing authority has no standards or if its standards are lower than the standards set forth in
paragraph 5, the standards set forth in paragraph 5 will apply.
10. Our self-assessment tax system can function effectively
only if taxpayers file tax returns that are true, correct, and complete. A tax return is prepared based on a taxpayers representation of facts, and the taxpayer has the final responsibility for
positions taken on the return. The standards that apply to a taxpayer may differ from those that apply to a member.
11. In addition to a duty to the taxpayer, a member has a duty
to the tax system. However, it is well established that the taxpayer
has no obligation to pay more taxes than are legally owed, and a
member has a duty to the taxpayer to assist in achieving that
result. The standards contained in paragraphs 48 recognize a
members responsibilities to both the taxpayer and the tax system.
12. In reaching a conclusion concerning whether a given
standard in paragraph 4 or 5 has been satisfied, a member may
consider a well-reasoned construction of the applicable statute,
well-reasoned articles or treatises, or pronouncements issued by
the applicable taxing authority, regardless of whether such
sources would be treated as authority under Internal Revenue
Code Section 6662, Imposition of accuracy-related penalty on
underpayments, and the regulations thereunder. A position
would not fail to meet these standards merely because it is later
abandoned for practical or procedural considerations during an
administrative hearing or in the litigation process.

13. If a member has a good-faith belief that more than one tax
return position meets the standards set forth in paragraphs 45, a
members advice concerning alternative acceptable positions may
include a discussion of the likelihood that each such position might
or might not cause the taxpayers tax return to be examined and
whether the position would be challenged in an examination. In
such circumstances, such advice is not a violation of paragraph 7.
14. A members determination of whether information is
appropriately disclosed by the taxpayer should be based on the
facts and circumstances of the particular case and the disclosure
requirements of the applicable taxing authority. If a member recommending a position, but not engaged to prepare or sign the
related tax return, advises the taxpayer concerning appropriate
disclosure of the position, then the member shall be deemed to
meet the disclosure requirements of these standards.
15. If particular facts and circumstances lead a member to
believe that a taxpayer penalty might be asserted, the member
should so advise the taxpayer and should discuss with the taxpayer the opportunity, if any, to avoid such penalty by disclosing
the position on the tax return. Although a member should advise
the taxpayer with respect to disclosure, it is the taxpayers
responsibility to decide whether and how to disclose.
16. For purposes of this statement, preparation of a tax
return includes giving advice on events that have occurred at the
time the advice is given if the advice is directly relevant to determining the existence, character, or amount of a schedule, entry,
or other portion of a tax return.

S TAT E M E N T O N S TA N D A R D S
F O R TA X S E RV I C E S N O . 2 ,
ANSWERS TO QUESTIONS
ON RETURNS
I N T R O D U C T I O N
1. This statement sets forth the applicable standards for members when signing the preparers declaration on a tax return if
one or more questions on the return have not been answered.
The term questions includes requests for information on the
return, in the instructions, or in the regulations, whether or not
stated in the form of a question.
S T AT E M E N T
2. A member should make a reasonable effort to obtain from the
taxpayer the information necessary to provide appropriate
answers to all questions on a tax return before signing as preparer.
E X P L A N AT I O N
3. It is recognized that the questions on tax returns are not of
uniform importance, and often they are not applicable to the particular taxpayer. Nevertheless, there are at least three reasons why

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

E-4 Individuals Appendix E

a member should be satisfied that a reasonable effort has been
made to obtain information to provide appropriate answers to the
questions on the return that are applicable to a taxpayer:
a. A question may be of importance in determining taxable
income or loss, or the tax liability shown on the return, in
which circumstance an omission may detract from the
quality of the return.
b. A request for information may require a disclosure necessary for a complete return or to avoid penalties.
c. A member often must sign a preparers declaration stating
that the return is true, correct, and complete.
4. Reasonable grounds may exist for omitting an answer to a
question applicable to a taxpayer. For example, reasonable
grounds may include the following:
a. The information is not readily available and the answer is
not significant in terms of taxable income or loss, or the
tax liability shown on the return.
b. Genuine uncertainty exists regarding the meaning of the
question in relation to the particular return.
c. The answer to the question is voluminous; in such cases, a
statement should be made on the return that the data will
be supplied upon examination.
5. A member should not omit an answer merely because it
might prove disadvantageous to a taxpayer.
6. A member should consider whether the omission of an
answer to a question may cause the return to be deemed incomplete or result in penalties.
7. If reasonable grounds exist for omission of an answer to
an applicable question, a taxpayer is not required to provide on
the return an explanation of the reason for the omission.

S TAT E M E N T O N S TA N D A R D S
F O R TA X S E RV I C E S N O . 3 ,
C E R TA I N P R O C E D U R A L
A S P E C T S O F P R E PA R I N G
RETURNS
I N T R O D U C T I O N
1. This statement sets forth the applicable standards for members concerning the obligation to examine or verify certain
supporting data or to consider information related to another
taxpayer when preparing a taxpayers tax return.
S T AT E M E N T

E X P L A N AT I O N
5. The preparers declaration on a tax return often states that
the information contained therein is true, correct, and complete
to the best of the preparers knowledge and belief based on all
information known by the preparer. This type of reference
should be understood to include information furnished by the
taxpayer or by third parties to a member in connection with the
preparation of the return.
6. The preparers declaration does not require a member to
examine or verify supporting data; a member may rely on information furnished by the taxpayer unless it appears to be incorrect,
incomplete, or inconsistent. However, there is a need to determine
by inquiry that a specifically required condition, such as maintaining books and records or substantiating documentation, has been
satisfied and to obtain information when the material furnished
appears to be incorrect, incomplete, or inconsistent. Although a
member has certain responsibilities in exercising due diligence in
preparing a return, the taxpayer has the ultimate responsibility for
the contents of the return. Thus, if the taxpayer presents unsupported data in the form of lists of tax information, such as dividends and interest received, charitable contributions, and medical
expenses, such information may be used in the preparation of a
tax return without verification unless it appears to be incorrect,
incomplete, or inconsistent either on its face or on the basis of
other facts known to a member.
7. Even though there is no requirement to examine underlying documentation, a member should encourage the taxpayer to
provide supporting data where appropriate. For example, a
member should encourage the taxpayer to submit underlying
documents for use in tax return preparation to permit full consideration of income and deductions arising from security transactions and from pass-through entities, such as estates, trusts,
partnerships, and S corporations.
8. The source of information provided to a member by a taxpayer for use in preparing the return is often a pass-through
entity, such as a limited partnership, in which the taxpayer has an
interest but is not involved in management. A member may
accept the information provided by the pass-through entity without further inquiry, unless there is reason to believe it is incorrect,

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

ISBN 0-558-86017-6

2. In preparing or signing a return, a member may in good faith

rely, without verification, on information furnished by the
taxpayer or by third parties. However, a member should not
ignore the implications of information furnished and should
make reasonable inquiries if the information furnished appears

to be incorrect, incomplete, or inconsistent either on its face or

on the basis of other facts known to the member. Further, a
member should refer to the taxpayers returns for one or more
prior years whenever feasible.
3. If the tax law or regulations impose a condition with
respect to deductibility or other tax treatment of an item, such as
taxpayer maintenance of books and records or substantiating documentation to support the reported deduction or tax treatment, a
member should make appropriate inquiries to determine to the
members satisfaction whether such condition has been met.
4. When preparing a tax return, a member should consider
information actually known to that member from the tax return of
another taxpayer if the information is relevant to that tax return
and its consideration is necessary to properly prepare that tax
return. In using such information, a member should consider any
limitations imposed by any law or rule relating to confidentiality.

AICPA Statements on Standards for Tax Services Nos. 17 (November 2009) Individuals E-5
incomplete, or inconsistent, either on its face or on the basis of
other facts known to the member. In some instances, it may be
appropriate for a member to advise the taxpayer to ascertain the
nature and amount of possible exposure to tax deficiencies, interest, and penalties by taxpayer contact with management of the
pass-through entity.
9. A member should make use of a taxpayers returns for one
or more prior years in preparing the current return whenever
feasible. Reference to prior returns and discussion of prior-year
tax determinations with the taxpayer should provide information to determine the taxpayers general tax status, avoid the
omission or duplication of items, and afford a basis for the treatment of similar or related transactions. As with the examination
of information supplied for the current years return, the extent
of comparison of the details of income and deduction between
years depends on the particular circumstances.

S TAT E M E N T O N S TA N D A R D S
F O R TA X S E RV I C E S N O . 4 ,
U S E O F E S T I M AT E S

data may be difficult to achieve. Therefore, the use of estimates by

a taxpayer in determining the amount to be deducted for such
items may be appropriate.
5. When records are missing or precise information about a
transaction is not available at the time the return must be filed, a
member may prepare a tax return using a taxpayers estimates of
the missing data.
6. Estimated amounts should not be presented in a manner
that provides a misleading impression about the degree of factual accuracy.
7. Specific disclosure that an estimate is used for an item in
the return is not generally required; however, such disclosure
should be made in unusual circumstances where nondisclosure
might mislead the taxing authority regarding the degree of accuracy of the return as a whole. Some examples of unusual circumstances include the following:
a. A taxpayer has died or is ill at the time the return must be
filed.
b. A taxpayer has not received a Schedule K-1 for a passthrough entity at the time the tax return is to be filed.
c. There is litigation pending (for example, a bankruptcy
proceeding) that bears on the return.
d. Fire, computer failure, or natural disaster has destroyed
the relevant records.

I N T R O D U C T I O N
1. This statement sets forth the applicable standards for members when using the taxpayers estimates in the preparation of a
tax return. A member may advise on estimates used in the preparation of a tax return, but the taxpayer has the responsibility to
provide the estimated data. Appraisals or valuations are not considered estimates for purposes of this statement.
S T AT E M E N T
2. Unless prohibited by statute or by rule, a member may use the
taxpayers estimates in the preparation of a tax return if it is not
practical to obtain exact data and if the member determines that
the estimates are reasonable based on the facts and circumstances known to the member. The taxpayers estimates should
be presented in a manner that does not imply greater accuracy
than exists.

ISBN 0-558-86017-6

E X P L A N AT I O N
3. Accounting requires the exercise of professional judgment
and, in many instances, the use of approximations based on
judgment. The application of such accounting judgments, as
long as not in conflict with methods set forth by a taxing authority, is acceptable. These judgments are not estimates within the
purview of this statement. For example, a federal income tax
regulation provides that if all other conditions for accrual are
met, the exact amount of income or expense need not be known
or ascertained at year end if the amount can be determined with
reasonable accuracy.
4. When the taxpayers records do not accurately reflect information related to small expenditures, accuracy in recording some

S TAT E M E N T O N S TA N D A R D S
F O R TA X S E RV I C E S N O . 5 ,
D E PA R T U R E F R O M A
P O S I T I O N P R E V I O U S LY
CONCLUDED IN AN
A D M I N I S T R AT I V E
PROCEEDING OR COURT
DECISION
I N T R O D U C T I O N
1. This statement sets forth the applicable standards for members in recommending a tax return position that departs from
the position determined in an administrative proceeding or in a
court decision with respect to the taxpayers prior return.
2. For purposes of this statement, administrative proceeding
includes an examination by a taxing authority or an appeals
conference relating to a return or a claim for refund.
3. For purposes of this statement, court decision means a
decision by any court having jurisdiction over tax matters.
S T AT E M E N T
4. The tax return position with respect to an item as determined
in an administrative proceeding or court decision does not restrict
a member from recommending a different tax position in a later
years return, unless the taxpayer is bound to a specified treatment

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

E-6 Individuals Appendix E

in the later year, such as by a formal closing agreement. Therefore,
the member may recommend a tax return position or prepare or
sign a tax return that departs from the treatment of an item as
concluded in an administrative proceeding or court decision with
respect to a prior return of the taxpayer provided the requirements of Statement on Standards for Tax Services (SSTS) No. 1,
Tax Return Positions, are satisfied.
E X P L A N AT I O N
5. If an administrative proceeding or court decision has resulted
in a determination concerning a specific tax treatment of an item
in a prior years return, a member will usually recommend this
same tax treatment in subsequent years. However, departures
from consistent treatment may be justified under such circumstances as the following:
a. Taxing authorities tend to act consistently in the disposition
of an item that was the subject of a prior administrative proceeding but generally are not bound to do so. Similarly, a
taxpayer is not bound to follow the tax treatment of an item
as consented to in an earlier administrative proceeding.
b. The determination in the administrative proceeding or the
courts decision may have been caused by a lack of documentation. Supporting data for the later year may be appropriate.
c. A taxpayer may have yielded in the administrative proceeding for settlement purposes or not appealed the court
decision, even though the position met the standards in
SSTS No. 1.
d. Court decisions, rulings, or other authorities that are more
favorable to a taxpayers current position may have developed since the prior administrative proceeding was concluded or the prior court decision was rendered.
6. The consent in an earlier administrative proceeding and
the existence of an unfavorable court decision are factors that
the member should consider in evaluating whether the standards
in SSTS No. 1 are met.

S TAT E M E N T O N S TA N D A R D S
F O R TA X S E RV I C E S N O . 6 ,
KNOWLEDGE OF ERROR:
R E T U R N P R E PA R AT I O N A N D
A D M I N I S T R AT I V E
PROCEEDINGS
I N T R O D U C T I O N

S T AT E M E N T
4. A member should inform the taxpayer promptly upon
becoming aware of an error in a previously filed return, an error
in a return that is the subject of an administrative proceeding, or
a taxpayers failure to file a required return. A member also
should advise the taxpayer of the potential consequences of the
error and recommend the corrective measures to be taken. Such
advice and recommendation may be given orally. The member is
not allowed to inform the taxing authority without the taxpayers permission, except when required by law.
5. If a member is requested to prepare the current years return
and the taxpayer has not taken appropriate action to correct an
error in a prior years return, the member should consider whether to
withdraw from preparing the return and whether to continue a professional or employment relationship with the taxpayer. If the member does prepare such current years return, the member should take
reasonable steps to ensure that the error is not repeated.
6. If a member is representing a taxpayer in an administrative
proceeding with respect to a return that contains an error of which
the member is aware, the member should request the taxpayers
agreement to disclose the error to the taxing authority. Lacking
such agreement, the member should consider whether to withdraw
from representing the taxpayer in the administrative proceeding
and whether to continue a professional or employment relationship with the taxpayer.
E X P L A N AT I O N
7. While performing services for a taxpayer, a member may
become aware of an error in a previously filed return or may
become aware that the taxpayer failed to file a required return.
The member should advise the taxpayer of the error and the
potential consequences, and recommend the measures to be
taken. Similarly, when representing the taxpayer before a taxing
authority in an administrative proceeding with respect to a return
containing an error of which the member is aware, the member
should advise the taxpayer to disclose the error to the taxing
authority and of the potential consequences of not disclosing the
error. Such advice and recommendation may be given orally.

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

ISBN 0-558-86017-6

1. This statement sets forth the applicable standards for a member who becomes aware of (a) an error in a taxpayers previously
filed tax return; (b) an error in a return that is the subject of an
administrative proceeding, such as an examination by a taxing
authority or an appeals conference; or (c) a taxpayers failure to

file a required tax return. As used herein, the term error includes
any position, omission, or method of accounting that, at the
time the return is filed, fails to meet the standards set out in
Statement on Standards for Tax Services (SSTS) No. 1, Tax
Return Positions. The term error also includes a position taken
on a prior years return that no longer meets these standards due
to legislation, judicial decisions, or administrative pronouncements having retroactive effect. However, an error does not
include an item that has an insignificant effect on the taxpayers
tax liability. The term administrative proceeding does not
include a criminal proceeding.
2. This statement applies whether or not the member prepared or signed the return that contains the error.
3. Special considerations may apply when a member has
been engaged by legal counsel to provide assistance in a matter
relating to the counsels client.

ISBN 0-558-86017-6

AICPA Statements on Standards for Tax Services Nos. 17 (November 2009) Individuals E-7
8. It is the taxpayers responsibility to decide whether to correct the error. If the taxpayer does not correct an error, a member should consider whether to withdraw from the engagement
and whether to continue a professional or employment relationship with the taxpayer. Although recognizing that the taxpayer
may not be required by statute to correct an error by filing an
amended return, a member should consider whether a
taxpayers decision not to file an amended return or otherwise
correct an error may predict future behavior that might require
termination of the relationship.
9. Once the member has obtained the taxpayers consent to disclose an error in an administrative proceeding, the disclosure should
not be delayed to such a degree that the taxpayer or member might
be considered to have failed to act in good faith or to have, in effect,
provided misleading information. In any event, disclosure should be
made before the conclusion of the administrative proceeding.
10. A conflict between the members interests and those of the
taxpayer may be created by, for example, the potential for violating Code of Professional Conduct Rule 301, Confidential Client
Information (AICPA, Professional Standards, vol. 2, ET sec. 301
par. .01) (relating to the members confidential client relationship);
the tax law and regulations; or laws on privileged communications, as well as by the potential adverse impact on a taxpayer of a
members withdrawal. Therefore, a member should consider
consulting with his or her own legal counsel before deciding upon
recommendations to the taxpayer and whether to continue a professional or employment relationship with the taxpayer.
11. If a member believes that a taxpayer may face possible
exposure to allegations of fraud or other criminal misconduct,
the member should advise the taxpayer to consult with an attorney before the taxpayer takes any action.
12. If a member decides to continue a professional or employment relationship with the taxpayer and is requested to prepare a
tax return for a year subsequent to that in which the error occurred,
the member should take reasonable steps to ensure that the error is
not repeated. If the subsequent years tax return cannot be prepared
without perpetuating the error, the member should consider withdrawal from the return preparation. If a member learns that the
taxpayer is using an erroneous method of accounting and it is past
the due date to request permission to change to a method meeting
the standards of SSTS No. 1, the member may sign a tax return
for the current year, providing the tax return includes appropriate
disclosure of the use of the erroneous method.
13. Whether an error has no more than an insignificant
effect on the taxpayers tax liability is left to the professional
judgment of the member based on all the facts and circumstances known to the member. In judging whether an erroneous
method of accounting has more than an insignificant effect, a
member should consider the methods cumulative effect, as well
as its effect on the current years tax return or the tax return that
is the subject of the administrative proceeding.
14. If a member becomes aware of the error while performing
services for a taxpayer that do not involve tax return preparation
or representation in an administrative proceeding, the members
responsibility is to advise the taxpayer of the existence of the error
and to recommend that the error be discussed with the taxpayers
tax return preparer. Such recommendation may be given orally.

S TAT E M E N T O N S TA N D A R D S
F O R TA X S E RV I C E S N O . 7 ,
FORM AND CONTENT OF
A D V I C E T O TA X PAY E R S
I N T R O D U C T I O N
1. This statement sets forth the applicable standards for members concerning certain aspects of providing advice to a taxpayer
and considers the circumstances in which a member has a
responsibility to communicate with a taxpayer when subsequent
developments affect advice previously provided. The statement
does not, however, cover a members responsibilities when the
expectation is that the advice rendered is likely to be relied on by
parties other than the taxpayer.
S T AT E M E N T
2. A member should use professional judgment to ensure that
tax advice provided to a taxpayer reflects competence and
appropriately serves the taxpayers needs. When communicating
tax advice to a taxpayer in writing, a member should comply
with relevant taxing authorities standards, if any, applicable to
written tax advice. A member should use professional judgment
about any need to document oral advice. A member is not
required to follow a standard format when communicating or
documenting oral advice.
3. A member should assume that tax advice provided to a taxpayer will affect the manner in which the matters or transactions
considered would be reported or disclosed on the taxpayers tax
returns. Therefore, for tax advice given to a taxpayer, a member
should consider, when relevant (a) return reporting and disclosure
standards applicable to the related tax return position and (b) the
potential penalty consequences of the return position. In ascertaining applicable return reporting and disclosure standards, a
member should follow the standards in Statement on Standards
for Tax Services No. 1, Tax Return Positions.
4. A member has no obligation to communicate with a taxpayer when subsequent developments affect advice previously
provided with respect to significant matters, except while assisting a taxpayer in implementing procedures or plans associated
with the advice provided or when a member undertakes this
obligation by specific agreement.
E X P L A N AT I O N
5. Tax advice is recognized as a valuable service provided by
members. The form of advice may be oral or written and the
subject matter may range from routine to complex. Because the
range of advice is so extensive and because advice should meet
the specific needs of a taxpayer, neither a standard format nor
guidelines for communicating or documenting advice to the
taxpayer can be established to cover all situations.
6. Although oral advice may serve a taxpayers needs appropriately in routine matters or in welldefined areas, written

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

E-8 Individuals Appendix E

communications are recommended in important, unusual, substantial dollar value, or complicated transactions. The member
may use professional judgment about whether, subsequently, to
document oral advice.
7. In deciding on the form of advice provided to a taxpayer, a
member should exercise professional judgment and should consider such factors as the following:
a. The importance of the transaction and amounts involved
b. The specific or general nature of the taxpayers inquiry
c. The time available for development and submission of the
advice
d. The technical complexity involved
e. The existence of authorities and precedents
f. The tax sophistication of the taxpayer
g. The need to seek other professional advice
h. The type of transaction and whether it is subject to heightened reporting or disclosure requirements
i. The potential penalty consequences of the tax return position for which the advice is rendered
j. Whether any potential applicable penalties can be avoided
through disclosure
k. Whether the member intends for the taxpayer to rely upon
the advice to avoid potential penalties
8. A member may assist a taxpayer in implementing procedures or plans associated with the advice offered. When providing such assistance, the member should review and revise such
advice as warranted by new developments and factors affecting
the transaction.
9. Sometimes a member is requested to provide tax advice but
does not assist in implementing the plans adopted. Although such
developments as legislative or administrative changes or future
judicial interpretations may affect the advice previously provided,
a member cannot be expected to communicate subsequent developments that affect such advice unless the member undertakes this
obligation by specific agreement with the taxpayer.
10. Taxpayers should be informed that (a) the advice reflects
professional judgment based upon the members understanding
of the facts, and the law existing as of the date the advice is rendered and (b) subsequent developments could affect previously
rendered professional advice. Members may use precautionary
language to the effect that their advice is based on facts as stated
and authorities that are subject to change.
11. In providing tax advice, a member should be cognizant of
applicable confidentiality privileges.
These Statements on Standards for Tax Services were unanimously
adopted by the assenting votes of the 17 members of the 18-member Tax

Executive Committee who participated in the August 6, 2009, Tax

Executive Committee meeting.

Tax Executive Committee (20082009)

Alan R. Einhorn, Chair
Jeffrey A Porter
Jeffrey R. Hoops,
Immediate Past Chair
Roby Sawyers
Diane Cornwell
Christopher J. Sokolowski
Eve Elgin
Norman S. Solomon
Andrew D. Gibson
Patricia Thompson
Cherie J. Hennig
Christine Turgeon
Lawrence W. McKoy
Mark Van Deveer
T. Chris Muirhead
Richard P. Weber
Gregory A. Porcaro
Brian T. Whitlock
Tax Practice Responsibilities Committee
(20082009)
Arthur J. Kip Dellinger, Jr., Chair
Douglas Milford
Gregory M. Fowler, Vice Chair
Trenton S. Olmstead
Harvey Coustan
Gerald W. Padwe
Todd C. Craft
James W. Sansone
Diane D. Fuller
James H. Schlesser
Jan D. Hayden
Lisa G. Workman
Andrew M. Mattson
SSTS Revisions Task Force
Conrad M. Davis, Cochair
Gregory M. Fowler
Jay M. Levine, Cochair
John C. Gardner
Timothy J. Burke, Jr.
Keith R. Lee
Arthur J. Kip Dellinger, Jr.
Mark N. Schneider
Eve Elgin
Gerard H. Schreiber, Jr.
Jeffrey Frishman
J. Edward Swails
AICPA Staff
Thomas P. Ochsenschlager
Edward S. Karl
Vice PresidentTaxation
Director
Tax Division
Tax Division
Jean E. Trompeter
Technical Manager
Tax Division
Note: Statements on Standards for Tax Services are issued by the Tax
Executive Committee, the senior technical body of the AICPA designated
to promulgate standards of tax practice. Rule 201, General Standards,
and Rule 202, Compliance With Standards, of the Code of Professional
Conduct (AICPA, Professional Standards, vol. 2, ET sec. 201 par. .01 and
ET sec. 202 par. .01), require compliance with these standards.

ISBN 0-558-86017-6
Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

A P P E N D I X

ISBN 0-558-86017-6

INDEX OF CODE SECTIONS

1, 2-2n, 15-9 (Figure 15-2)
1(g)(7), 2-26n
1(h), 5-17n, 17-16, 17-30
1(h)(1)(B), 5-2n
1(h)(3), 7-15n
1(h)(4), 5-18n
1(h)11, 5-21n
2(a), 2-22n
2(b), 2-22n
2(c), 2-23n
11(b)(1), 16-10n
11(b)(2), 16-11n
21, 7-33, 14-11n, 14-28
21(b)(1), 14-11n
21(c), 14-13n
21(d)(2), 14-12n
21(e)(1), 14-11n
21(e)(6), 14-12n
22, 14-28
22(c)(2), 14-13n
23, 14-13n, 14-28
24, 2-19, 14-28
24(a), 14-11n
24(c), 14-10n
25A, 14-14n, 14-28
25A(b), 14-14n
25A(c), 14-14n
25B, 14-17, 14-28
25C, 14-16n, 14-28
25D, 14-17n, 14-28
26, 14-10n, 14-18n
27, 14-28
31, 14-28
32, 14-28
32(b)(1), 14-25n
32(c), 14-25n
32(c)(1)(A), 14-25n
36, 14-28
38(c), 14-24n
41, 14-23, 14-28
42, 13-15n
44, 14-23n, 14-28
45F, 14-22n, 14-28
47, 14-20n
47(a)(1), 14-20n
47(a)(2), 14-20n
47(c)(1)(A), 14-20n
48, 14-28
48(a)(2), 14-20n
50(c)(1), 14-20n
51, 14-21n, 14-28

53, 14-7, 14-7n

55, 16-12n
55(b)(1), 14-3n
55(d)(3), 14-3n
56(b)(2), 14-6n
56(b)(2)(D), 14-6n
57, 14-3n, 14-4, 16-12n
57(a)(1), 10-23n
57(a)(7), 14-4n
58, 16-12n
59A, 7-9
61, 3-23
61(a), 2-3n, 3-2, 3-13, 3-23,
4-2
61(a)(3), 5-2n
61(a)(12), 4-20
62, 2-5, 6-3, 6-3n
62(a)(2), 9-2
62(a)(3), 5-2n
62(a)(15), 9-20n
63, 2-4n
63(c)(6), 2-12n
66(b), 3-7n
66(c), 3-7n
67, 9-4
68(f), 6-4
72, 9-309-32, 9-30n, 9-39
72(e), 3-22n
72(e)(2), 4-6n
72(q), 4-6n
72(t), 9-39n
74, 3-24n, 4-4n, 4-7n, 4-14
74(b), 4-4
74(c), 4-14n, 4-32
79, 4-4, 17-29
79(a), 4-11n
82, 9-21, 9-21n
83, 9-31n, 9-33, 17-4n
83(b), 9-339-34, 9-34n
86, 3-15n, 3-24, 4-4
101, 4-4, 4-9
101(a), 4-5n
101(a)(2), 4-5n
102, 4-2, 4-4, 4-32
103, 4-4
103(a)(1), 3-14n
104, 4-4, 17-29
104(a), 4-84-9
104(a)(1), 4-10
104(a)(2), 3-26
104(a)(3), 4-9

105, 4-4, 17-29

105(a), 4-10n
105(h)(5), 4-10n
106, 4-4, 4-10, 7-6n, 17-29
108, 4-4, 4-20
108(a)(1)(E), 4-21, 8-2n
108(f)(2), 4-21
109, 3-40, 4-32
111, 3-27n
117, 4-2, 4-4, 4-7n, 4-24, 9-21,
14-14
117(d), 4-32
119, 4-144-15, 17-29
121, 3-13n, 4-4, 12-2,
12-1612-22, 12-25
121(a), 12-16n
121(b), 12-16n
121(c), 12-18n
121(d)(2), 12-18n
121(d)(3), 12-18n
121(d)(5)(A), 12-21n
121(d)(5)(B), 12-21n
121(d)(8), 12-21n
121(f), 12-22n
123, 4-32
124, 4-4
125, 4-4, 4-17n, 17-29
127, 4-17, 9-21, 9-22 (Table
9-3), 9-22n, 14-14, 17-29
129, 4-4, 4-16n, 4-24, 14-12n,
17-29
132, 4-4, 4-10, 4-124-13,
4-15, 4-24, 9-21, 16-8,
17-29
132(b), 4-13
132(c), 4-13, 4-32
132(d), 4-13
132(e), 4-134-14
132(f), 4-13
132(g), 9-21n
132(j)(4), 4-13
135, 3-29
135(c), 3-14n
135(c)(2)(B), 3-14n
146(d), 3-14n
148, 3-14n
149(b), 3-14n
151(b), 2-12n
151(e), 2-13n
152, 2-13n, 2-43, 6-9, 7-2n
152(c), 2-17n, 6-10

152(d), 6-10
152(d)(1)(C), 15-5n
152(e), 2-24n, 7-2
152(e)(1)(A), 15-5n
152(f)(2), 14-17
152(f)(3), 2-14n
162, 4-12, 4-12n, 6-2, 6-5, 6-8,
6-50, 7-9, 7-46, 8-13, 9-2,
9-13, 10-20, 10-22, 15-6,
16-3, 17-29
162(a), 9-6n
162(a)(1), 3-18n
162(a)(2), 9-64
162(c)(1), 6-12
162(c)(3), 6-13
162(e), 6-15
162(g), 6-14n
162(l), 2-5, 6-3n
162(l)(1), 17-29n
162(l)(5), 17-29n
162(m), 6-9, 16-8n
163, 7-19, 7-46
163(b), 11-22
163(d)(4), 11-24
163(d)(4)(B), 7-15n
163(d)(4)(C), 7-15n
163(h), 7-16n
163(h)(4)(C), 7-16n
164, 7-97-11
164(a), 5-6n
164(a)(3), 14-18n
164(c)(1), 7-11n
164(f), 1-11n, 2-5, 6-3n,
7-12n, 9-37, 10-7n,
14-8n
165, 8-4, 8-19, 8-23n, 8-25n,
15-11
165(d), 3-24n
165(g), 8-4, 15-11
165(g)(1), 5-23
165(g)(2), 5-23n, 8-3n
165(g)(3), 5-23n, 8-4n
165(h)(2)(A)(i), 15-9 (Figure
15-2)
165(h)(2)(A)(ii), 15-9 (Figure
15-2)
165(i), 8-23n
165(l), 8-28n
166, 8-25n
166(d)(1)(B), 5-16n
167, 5-13, 10-2

F-1
Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

F-2 Individuals Appendix F

212, 2-5n, 6-2, 6-5, 6-76-8,
7-9, 7-287-29, 8-10n,
9-99-10, 9-13
212(1), 9-6n
213, 6-96-10, 7-3, 7-46
213(c), 7-6n
213(d), 7-6n, 9-43
217, 9-19, 9-19n, 9-21, 12-19
217(d)(2), 9-49n
217(d)(3), 9-49n
219, 3-15n
219(b)(5), 9-38n
219(g), 9-38n
221, 9-21
222, 9-22
223, 9-43n
224(a), 15-22 (Table 15-3)
243, 16-5n
246, 16-5n
248, 6-11, 10-17
259, 4-8
262, 2-4n
263, 6-10
263(c), 6-11n, 10-23n, 13-21n
263A, 5-6, 6-12, 11-11
263A(b)(2)(B), 11-11n
263A(f), 5-6n
263A(f)(1)(B), 5-6n
263A(f)(4)(B), 5-6n
265, 6-12, 6-17
266, 6-116-12, 6-17
267, 6-26, 6-28, 6-28n, 7-20,
10-7, 15-6, 17-13, 17-13n
267(a), 12-8n
267(a)(2), 6-28n
267(b), 7-20n, 8-9n, 17-13
267(c)(4), 7-18n, 15-5
267(e), 6-29n, 7-20n
268, 13-6n
269A(b), 6-28n
269A(b)(1), 8-13n
274, 4-5, 4-12n, 6-18, 9-9,
9-139-14
274(a)(3), 9-15n
274(b), 4-32
274(b)(1), 9-16n
274(c), 9-8n
274(d), 6-17n, 9-46, 9-46n
274(h), 9-8n
274(j), 4-14n, 9-16n
274(k), 9-13n
274(l)(2), 9-16n
274(m)(3), 9-8n
274(n), 9-13
276(a), 6-15n
280(c)(2), 14-24n
280A, 6-316-34, 6-35 (Figure
6-4), 6-31n, 7-32, 15-5
280A(c)(1), 9-25n
280A(c)(5), 9-26n
280A(c)(5)(B), 6-32n
280A(d)(1), 6-31n, 7-18, 7-18n
280A(d)(2), 6-32n, 7-18n
280A(d)(2)(B), 6-32n
280A(d)(2)(C), 6-32n
280A(e)(1), 6-32n
280E, 6-14
280F, 6-18

280F(b), 10-13n
280F(b)(4), 10-13n
280F(d)(3), 10-13n
280F(d)(5)(A), 10-13n
280F(d)(8), 10-14n
280H(a), 11-4n
291, 13-1613-18
291(a), 13-11n
291(a)(1), 13-16n
302, 3-18n
302(b)(1), 16-2916-30
302(b)(2), 16-29
302(b)(3), 15-8, 16-30, 16-52
302(c)(2), 16-30n, 16-52
302(c)(2)(A), 15-8
302(c)(2)(C)(i), 15-8
305(b), 16-28n
306, 15-8
307(a), 5-11n
307(b)(1), 5-12n
311(a), 16-27n
311(b), 16-21n, 16-27n, 17-28n
311(b)(2), 16-28n
312, 16-12n, 16-25n
316(a), 3-17n
318, 6-28n, 8-13n, 16-29n,
17-29
318(a)(1), 15-8
331, 16-33
331(a), 16-2n
331(a)(1), 16-32n
332, 16-3216-33
334(a), 16-32n
334(b)(1), 16-32n
336, 16-31n, 17-30
336(b), 16-28n
351, 11-20, 15-8, 16-2016-24,
16-3116-32, 16-42, 17-4,
17-6, 17-25
351(b), 16-21n
351(d), 16-20n
351(f), 16-21n
357, 16-23
357(a), 16-22
357(b), 16-23n
357(c), 16-23n
357(c)(3), 16-23n
358(a), 16-21n
362(a), 16-22n
362(e), 16-22n
368(a)(1)(B), 15-6
368(c), 16-20n
381, 16-32n
401(a), 9-29
401(a)(17), 9-37n
401(d), 9-37n
401(k), 9-289-32, 9-29n,
9-63, 18-10, 18-13n
401-416, 9-28n
402(e), 9-31n
402(g), 18-11n
403(b), 18-10, 18-11n, 18-13n
404, 8-13n
404(a)(3)(A), 9-31n
404(h)(1), 9-44n
404(l), 9-37n
408(k), 9-43n
408(p), 9-44n

408A, 9-40n
409(a), 9-29n
409A, 9-33n, 18-20
411(a)(2)(A), 9-30n
411(a)(2)(B), 9-30n
411(a)(12), 9-30n
414(q), 9-29n
414(v), 18-11n
415(b)(1), 9-31n
415(c), 9-31n, 18-11n
415(c)(1), 9-37n
422, 9-34n9-35n
441(a), 11-27
441(b), 15-22 (Table 15-3)
441(f), 11-3n
441(g), 11-2n
441(i)(2), 6-28n
442, 11-4n
443(b)(2), 11-6n
444, 11-4, 17-19n
446, 11-7n, 11-37
446(b), 6-18
446(e), 11-27
448, 6-20, 16-3
448(a), 11-8n
448(a)(2), 17-20n
448(b), 11-8n, 16-3n, 17-20n
448(c), 11-8n
451, 11-7n
452, 3-29
453, 11-7n, 11-18
453(b)(2), 11-18n
453(e), 11-21
453(i)(1), 13-19n
453(i)(1)(B), 13-20n
453(i)(2), 13-19n
453(k), 11-18n
453A(b)(2)(B), 11-21n
453A(c), 11-21n
453A(d), 11-20n
453B(a), 11-20n
460(a), 11-16n
460(b)(3), 11-17n
460(e), 11-16n
461(c), 6-22, 7-11
461(g), 6-19n, 7-20n
461(h), 6-21, 6-21n, 11-9n
465, 17-11n, 17-26n, 17-31n
465(a)(1)(B), 8-12n
465(c)(7), 8-13n
469, 3-15n, 6-34, 7-14, 8-7,
8-41, 17-11n, 17-26n,
17-31n
469(c)(1), 8-10n
469(c)(2), 8-10n
469(c)(6), 8-10n
469(e)(1), 8-8n
469(e)(3), 8-16n
469(g), 8-8n
469(g)(2), 8-9n
469(h)(4), 8-13n
469(i), 8-15
469(j)(1), 8-12n
469(j)(2), 8-13n
469(j)(8), 8-10n
469(k)(2), 8-13n
471, 11-37
471(b), 11-14n

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

ISBN 0-558-86017-6

167(a), 10-2n
167(f), 10-21
167(f)(1), 10-21n
168, 10-2, 14-20
168(c)(1), 10-10n
168(d)(3), 10-8n
168(d)(3)(B), 10-8n
168(e)(1), 10-5n
168(e)(2)(A), 10-10n
168(f), 10-5n
168(g), 10-11n
168(g)(7), 10-11n
169, 6-11, 10-17, 13-9n
169(a), 13-9n
170, 7-21, 7-37, 15-6, 16-7n
170(a)(2), 17-23n
170(b)(1)(E), 7-22n
170(e), 7-24n, 16-7
170(e)(1)(A), 13-18n, 13-23n
170(e)(1)(B), 7-23
170(e)(6), 7-24n
170(f)(3), 7-22n
170(f)(8), 7-34n
170(f)(11), 7-35n
170(f)(12), 7-35n
170(f)(17), 7-22n
170(g), 7-22n
170(i), 7-25n
172, 8-29, 8-32, 16-6n
172(b)(1)(C), 8-32n
172(d)(2), 8-30n
172(d)(4)(C), 8-31n
172(f), 8-32n, 16-7n
174, 6-11n, 6-17, 10-17, 10-19,
10-19n, 10-21, 11-7n,
14-24
175, 6-11n
175(a), 13-20n
179, 6-56-6, 6-11, 6-17,
6-50, 9-11, 10-610-15,
10-6n, 10-17, 10-21,
10-2410-25, 10-30,
13-913-10, 13-9n, 13-20,
16-4, 17-9 (Table 17-1),
17-17
179(a), 13-20n
179(b)(1), 13-20n
179(b)(3), 10-7n
179(b)(6), 10-14n
179(d)(10), 10-7n, 13-20n
180, 6-11n
183, 6-296-30, 6-32, 9-26n
183(d), 6-29n, 6-30
185, 13-9n
188, 13-9n
190, 6-11n, 13-9n
193, 6-11n, 13-9n
194, 13-9n
194(a), 13-9n
195, 6-156-16, 6-16 (Figure
6-1), 10-17, 10-20
197, 10-8, 10-1710-21, 10-24,
13-9
197(a), 5-28n, 10-17n
197(e)(3)(A), 10-21n
197(e)(3)(A)(i), 10-21n
197(f)(1), 10-19n
197(f)(7), 10-19n

ISBN 0-558-86017-6

Appendix F Individuals F-3

472(c), 11-12n
472(d), 11-30n
472(f), 11-13n
474(c), 11-13n
475, 5-15n
475(b), 5-15n
481, 11-27n
481(a), 11-26, 11-27n
481(b)(1), 11-27n
481(b)(2), 11-27n
481(c), 11-27n
483, 11-22
483(d), 11-22n
501(c)(3), 3-13, 7-24n, 7-27
529, 4-8, 4-8n, 9-22, 14-14
529(c)(3)(B)(v), 4-8n
530, 9-42n, 14-14
530(b)(1), 9-42n
531, 16-14n, 16-17
532(c), 16-14n
537, 16-14n
541, 16-16n, 16-17
542(a)(2), 8-12n
547, 16-16n
561, 16-14n, 16-16n
563, 16-14n
611, 17-10n
611(a), 10-22n
612, 10-22n
613(a), 10-22n
613A(c), 10-22n
613A(d)(1), 10-23n
616, 6-11n
617(d), 17-15
631, 13-5
631(a), 13-5n
631(c), 13-6n
678, 17-21n
691(c), 7-9n
704, 17-8
704(c), 17-48
704(d), 17-11
704(e), 17-32n
705, 17-10, 17-48
706, 17-19
706(d)(1), 17-10n
707, 17-12n
707(b), 8-9n, 17-12
707(b)(1), 6-28
709, 17-7n
721, 17-417-6, 17-8, 17-13,
17-4717-48
721(b), 17-4n
722, 17-4
723, 17-6
731, 17-5, 17-14n
732, 17-14n
733, 17-14n
741, 17-15, 17-48
751, 17-14n, 17-1517-16,
17-30
752, 17-5, 17-8
754, 17-1617-17, 17-3217-33
761(a), 1-21n, 17-2n
772(a), 17-17
773(a)(3), 17-17
773(a)(4), 17-17
773(b)(2), 17-17

773(b)(3), 17-17
775, 17-17
775(b), 17-17
852(b), 3-18n
904, 14-18n
911, 2-19, 3-15n, 4-4, 14-11n,
14-18n
911(a), 14-34n
911(b)(1)(B), 4-19n
911(b)(2), 4-18n
911(d), 4-19n
911(d)(2)(B), 4-19n
911(e)(2), 4-19n
931, 2-19, 3-15n, 14-11n
933, 2-19, 3-15n, 14-11n
1001, 8-2n, 15-6
1001(a), 4-3n, 5-3n
1012, 12-14n
1014(a), 5-8n, 5-10n, 13-23n
1014(b)(6), 5-10n
1015(a), 5-7n
1015(d)(2), 5-8n
1015(d)(6), 5-8n
1031, 5-30, 12-2, 12-4,
12-912-10, 13-19, 15-27
1031(a), 12-2, 12-2n, 12-5n
1031(a)(2), 12-4n
1031(a)(3)(A), 12-6n
1031(a)(3)(B), 12-6n
1031(b), 12-2n, 12-6n
1031(c), 12-6n
1031(d), 12-7n
1031(e), 12-4n
1031(f)(1)(C), 12-8n
1031(f)(2), 12-8n
1031(f)(3), 12-8n
1033, 12-2, 12-1012-15,
12-21, 13-19, 13-19n
1033(a)(1), 12-10n
1033(a)(2), 12-12n
1033(a)(2)(A), 12-12n12-14n
1033(a)(2)(A)(ii), 12-14n
1033(a)(2)(B), 12-15n
1033(a)(2)(B)(ii), 12-15n
1033(d), 12-12n
1033(e), 12-12n
1033(f), 12-13n
1033(g)(1), 12-14n
1033(g)(2), 12-15n
1033(g)(4), 12-15n
1034, 12-1612-17
1034(e), 12-17n
1036, 12-5
1038, 11-20n
1060, 10-24
1091, 6-236-24
1091(a), 6-24n
1201, 5-22n
1202, 1-15n, 5-185-20, 5-19n,
5-22, 5-34, 8-30n, 14-4,
16-4, 17-16, 18-2
1202(a), 4-21n
1202(a)(1), 16-35
1202(b)(1), 4-21n
1202(d), 4-22n
1202(e), 4-22n
1211(a), 16-5n
1211(b), 5-19n

1212(a), 5-21n, 16-5n

1212(b), 5-19n
1221, 2-30, 5-135-14, 5-50,
8-5n, 13-5
1221(2), 13-5n
1221(b)(3), 5-14
1222, 5-22, 5-29n
1222(11), 5-17n
1223, 9-34n, 12-10n
1223(1), 5-29n, 5-30n, 12-9n
1223(1)(A), 12-12n
1223(2), 17-6n
1223(5), 5-30n
1223(11), 5-30n
1231, 5-135-14, 5-30, 6-5n,
7-24, 7-24n, 8-3, 8-5, 8-7,
8-22, 8-24, 10-19, 11-19,
12-9, 12-22, 13-113-24,
13-2n, 13-15 (Table 13-1),
13-28, 13-33, 15-8, 16-4,
16-24, 16-34, 16-43, 17-6,
17-8, 17-9 (Table 17-1),
17-1217-13, 17-15,
17-1717-18, 17-23,
17-2517-26, 17-42
1231(a)(1), 13-2n13-3n
1231(a)(2), 13-2n13-3n
1231(a)(3)(A), 13-6n
1231(a)(4)(B), 13-6n
1231(a)(4)(C), 13-7n
1231(b)(1), 13-5n
1231(b)(2), 13-6n
1231(b)(3), 13-6n
1231(b)(4), 13-6n
1231(c)(1), 13-3n
1231(c)(3), 13-2n
1231(c)(4), 13-2n
1234(a), 5-26n
1234(b), 5-23n
1235, 5-27
1235(a), 5-27n
1236, 5-15
1237, 5-155-16
1237(b)(3), 5-15n
1239, 13-22
1239(a), 13-22n
1239(b)(2), 13-22n
1239(c), 13-22n
1241, 5-28n
1244, 1-15n, 5-15, 8-48-5,
8-5n, 8-7, 16-32n,
16-3316-34
1244(a), 5-15n
1244(b), 5-15n
1244(c)(2), 8-6n
1244(d)(1)(B), 16-52
1245, 7-24, 10-19, 11-18,
13-113-2, 13-5,
13-713-14, 13-8n13-9n,
13-15 (Table 13-1),
13-1613-20,
13-2213-24, 13-33, 17-9
(Table 17-1), 17-15
1245(a)(2)(C), 10-19n, 13-9n
1245(a)(3), 13-9n
1245(a)(3)(B)(i), 13-9n
1245(a)(3)(C), 13-9n
1245(a)(5), 13-10n

1245(b)(1), 13-18n
1245(b)(2), 13-18n
1245(b)(3), 16-21n
1245(b)(4), 13-19n
1245(d), 13-18n
1250, 5-18, 5-20, 5-34,
5-385-40, 13-113-2,
13-4, 13-7, 13-1013-20,
13-10n, 13-15 (Table
13-1), 13-22, 13-24, 13-33,
13-35, 17-9 (Table 17-1),
17-13, 17-1517-16,
17-30, 17-42
1250(a)(1)(B)(i), 13-15n
1250(a)(1)(B)(ii), 13-15n
1250(a)(1)(B)(iii), 13-15n
1250(a)(1)(B)(iv), 13-15n
1250(c), 13-11n
1250(d)(1), 13-18n
1250(d)(2), 13-18n
1250(d)(3), 16-21n
1250(d)(4), 13-19n
1250(i), 13-18n
1252, 13-2013-21, 13-24,
17-15
1252(a)(1), 13-20n, 13-23n
1252(a)(3), 13-21n
1253, 5-275-28, 5-28n
1253(a), 5-28n
1253(b)(2), 5-28n
1253(e), 5-28n
1254, 13-24, 17-15
1254(a)(1), 13-21n
1255, 13-24
1271(a), 5-23n
1271(a)(2), 5-23n
1272(a)(3), 5-24n
1273(a)(1), 5-24n
1273(a)(3), 5-24n
1274, 11-2211-23
1274A, 11-23
1274A(c), 11-23n
1274(c)(4), 11-23n
1276(a)(1), 5-25n
1276(b)(1), 5-25n
1276(b)(2), 5-25n
1278, 17-15
1278(a)(2)(C), 5-25n
1283, 17-15
1301, 3-10n
1341, 3-28n
1361, 17-20n
1361(b)(3), 17-21n
1362, 17-21n
1363, 17-23n
1366(a)(1), 17-26n
1366(d)(1), 17-26n, 17-48
1366(d)(1)(A), 17-27n
1366(e), 17-32n
1367, 17-25n
1367(a)(2), 17-27n
1368(b), 17-28n
1371, 8-41
1371(a)(1), 17-3n
1374, 17-30, 17-30n
1375(a), 17-30n
1377(a)(2), 17-22n, 17-25n
1378(a), 11-2n

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

F-4 Individuals Appendix F

1378(b), 17-29n
1400I, 8-15n
1400N, 14-20n
1402(a)(12), 1-11n
1501, 15-10n
1502, 15-10
1504, 17-21
1504(a)(2), 16-32n
1504(a)(8), 17-21n
1561, 16-17n
1563(a)(1), 16-19n
1563(a)(2), 16-18n
1563(a)(3), 16-19n
2032(a), 5-9n
2503(b), 1-8n, 5-8n, 5-32n
2512(b), 1-8n
2523(a), 1-8n
2601, 7-9n

3301, 1-11n
3302, 1-11n
3401, 4-24n
3402(f)(1)(E), 14-30n
3403, 14-29n
4973(b), 9-40n
4975(e)(7), 9-29n
6012(a)(1), 2-33n
6012(c), 2-33n
6013, 2-21n
6013(d)(3), 2-32n
6013(g), 2-21n
6014, 14-35n
6015(b), 2-32n
6017, 14-8n
6018(a), 5-9n
6045(e)(4), 7-35n
6072(a), 2-34n

6072(b), 2-34n
6110, 15-13
6501(a), 1-28n
6501(b)(1), 1-28n
6501(c), 1-28n
6501(e), 1-28n
6511(a), 1-28n
6511(d)(1), 8-34n
6611(e), 1-28n, 14-34n
6621(a), 1-28n
6651(a)(1), 1-28n
6651(a)(2), 1-29n
6651(c)(1), 1-29n
6651(f), 1-28n
6654, 1-29n, 14-29n, 14-31n
6655(d), 16-35n
6655(e), 16-35n
6662, 1-29n

6663, 1-29n
6672, 4-24n, 14-46
6674, 4-24n
6695(g), 14-36n
6721, 4-24n
7463, 15-17n
7491, 15-8
7503, 2-34n
7519, 17-19n
7519(b), 11-4n
7701, 15-8
7701(a)(2), 17-2n
7701(b), 2-13n
7704(c), 8-13n
7805, 15-10

ISBN 0-558-86017-6
Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

A P P E N D I X

ISBN 0-558-86017-6

INDEX OF TREASURY
REGULATIONS
Final Regulations
1.2-2(d), 2-23n
1.41-2, 14-23n
1.44A-2(b)(3)(B)(ii), 14-12n
1.61-7, 3-13n
1.61-14(a), 3-24n
1.62(c), 9-17
1.62-2(c), 9-17n
1.72-9, 3-21
1.74-1, 3-24n
1.83-7, 9-34n
1.102-1, 4-4n
1.109-1, 3-16n, 3-40
1.117-6(d)(5), 4-32
1.119-1(c)(1), 4-14n
1.121-1(b)(2), 12-17n
1.121-1(c)(2)(i), 12-18n
1.121-3(c), 12-19n
1.121-3(d), 12-19n
1.121-3(g), 12-18n
1.123-1, 4-32
1.132-6(e)(1), 4-32
1.152-1(a)(2)(i), 2-15n
1.152-2, 2-43
1.152-2(d), 2-14n
1.162-2(a), 9-64
1.162-2(b)(1), 9-7n
1.162-4, 6-10n
1.162-5, 9-23n, 9-27
1.162-11, 10-21n
1.162-27, 16-8n
1.163-9T, 7-46
1.163-10T(p)(3)(ii), 7-18
1.164-3(c), 7-10n
1.164-4, 7-11n
1.165-1(d)(2)(i), 8-22n
1.165-2, 5-23n
1.165-5, 15-11
1.165-5(i), 15-11
1.165-7(a)(2), 8-19n
1.165-7(a)(3), 8-18n
1.165-7(b)(2), 8-20n
1.165-7(b)(2)(ii), 8-20n
1.165-7(b)(3), 8-20n
1.165-8(d), 8-19n
1.165-9(a), 12-16n
1.165-9(b)(2), 5-10n
1.165-11(e), 8-35n
1.166-1(c), 8-24n
1.166-2, 8-26n

1.166-5(b)(2), 8-27n
1.167(a)-3, 10-18n
1.167(a)-8, 5-23n
1.167(a)-8(a)(4), 8-3n
1.167(g)-1, 5-10n
1.167(j)-3(b)(1)(i), 13-13n
1.168(d)-1(b)(3), 10-8n
1.168(i)-4(b)(1), 10-3n
1.170A-1(c)(2), 7-22
1.170A-4(b)(1), 7-24n
1.170A-4(d), 7-24n
1.170A-7(a)(1), 7-22n
1.170A-13, 7-34n
1.170A-13(f), 7-34n
1.172-3, 8-30n
1.172-5(a)(2)(ii), 8-33n
1.174-2(a)(2), 10-19n
1.179-1(e), 10-7n, 13-20n
1.179-2(c)(5)(iv), 10-7n
1.183-1(b), 6-30n
1.183-2(b), 6-29
1.197-2(b)(1), 10-18n
1.213-1(a)(1), 7-6n
1.213-1(e)(1)(ii), 7-3n
1.213-1(e)(1)(iii), 7-5n, 7-46
1.217-2(b)(3), 9-20n
1.262-1b)(4), 12-16n
1.263(a)-2(h), 6-10n
1.267(c)-1(b), 6-26n
1.268-1, 13-6n
1.274-2(f)(2)(i)(b), 9-15n
1.274-4, 9-8n
1.280A-2, 9-26n
1.302-4, 16-52
1.305-4, 3-17n
1.316-2, 16-26n
1.316-2(b), 16-27n
1.357-2(a), 16-24n
1.441-1(b)(4), 11-2n
1.441-2(c)(2), 11-5n
1.442-1(b)(2), 11-5n
1.442-1(c), 11-5n
1.442-1(e), 11-5n
1.443-1(a)(2), 11-6n
1.443-1(b)(2), 11-6n
1.446-1(a)(1), 11-7n
1.446-1(c)(1)(i), 11-8n
1.446-1(c)(1)(ii), 3-11n
1.446-1(c)(2)(i), 3-8n
1.446-1(e)(1), 11-25n

1.446-1(e)(2)(ii)(b), 11-26n
1.446-1(e)(3), 11-37
1.451-1(a), 3-11n, 11-9n
1.451-2(a), 9-32n
1.451-2(b), 3-10n
1.451-3(a)(1), 11-15n
1.451-3(b), 11-15n
1.451-5, 3-11n, 3-29
1.453-1(d)(3)(iii), 11-21n
1.454-1(a)(4), Ex. (1), 3-30n
1.461-1(a)(1), 11-8n
1.461-1(a)(2), 6-21n
1.461-1(c), 15-22 (Table 15-3)
1.461-2(a)(1), 6-21n
1.461-4(d)(4)(i), 6-22
1.461-4(d)(6)(ii), 6-22
1.469-1(e)(3)(iii), 8-10n
1.469-4, 8-10n
1.469-4(g), 8-9
1.469-5T, 8-42
1.471-1, 11-8n
1.471-2, 11-37
1.471-2(a), 11-36
1.471-2(b), 11-14n
1.471-2(c), 11-11n, 11-14n
1.471-3(d), 11-36
1.471-4, 11-37
1.471-11(d)(3), 11-12n
1.472-2(c), 11-30n
1.472-2(e), 11-13n
1.472-3(a), 11-26n, 11-30n
1.612-4(a), 13-21n
1.631-1, 13-5n
1.631-1(d)(4), 13-6n
1.631-3(a)(1), 13-6n
1.631-3(a)(2), 13-6n
1.631-3(b)(4), 13-6n
1.671-1(h), 15-22 (Table 15-3)
1.704-1(b)(2)(iv), 17-7
1.704-1(c), 17-48
1.706-1(a)(3), 11-2n
1.706-1(c)(2), 17-10n
1.721-1(a), 17-4n, 17-47
1.721-1(b)(1), 17-4n
1.722-1, 17-5n
1.723-1, 17-6n
1.754-1(b), 17-32n
1.1001-1(c)(1), 5-3n
1.1001-2, 8-2n
1.1002-1(d), 5-22n

G-1
Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

G-2 Individuals Appendix G

1.1012-1(c)(1), 5-6n
1.1012-1(e), 5-7n
1.1019-1, 3-16n
1.1031(a)-1(a)(1)(ii), 12-5n
1.1031(a)-1(b), 12-3n
1.1031(a)-2, 12-3n
1.1031(a)-2(b), 12-3n
1.1031(a)-2(b)(3), 12-4n
1.1031(a)-2(b)(7), 12-4n
1.1031(a)-2(c)(1), 12-4n
1.1031(b)-1(c), 12-7n
1.1031(d)-1(c), 12-8n
1.1033(a)-1, 12-11n
1.1033(a)-2(c), 12-14n
1.1033(a)-2(c)(2), 12-23n
1.1033(a)-2(c)(4), 12-14n
1.1034-1(b)(4), 12-16n
1.1034-1(b)(4)(i), 12-16n
1.1034-1(b)(5), 12-16n
1.1034-1(c)(3), 12-18n
1.1034-1(c)(4), 12-17n
1.1036-1(a), 12-5n
1.1212-1(b), 5-19n
1.1223-1(a), 12-9n12-10n, 17-6n

1.1223-1(b), 5-29n
1.1223-1(e), 5-30n
1.1231-1(c)(5), 13-6n
1.1231-1(f), 13-6n
1.1234-1(b), 5-23n
1.1235-2, 5-49
1.1235-2(b), 5-27n
1.1244(c)-1(b), 16-52
1.1244(d)-2(a), 16-52
1.1245-2(a)(4), 13-18n13-19n
1.1245-2(c)(4), 13-19n
1.1245-4(d)(1), 13-19n
1.1245-6(a), 13-18n
1.1245-6(f), 13-22n
1.1250-1(c)(1), 13-18n
1.1250-2(d), 13-18n
1.1250-3(d), 13-19n
1.1361-1(l), 17-21n
1.1502-75(c), 16-20n
1.6013-1(a), 2-33n
1.6050H-1(f)(3), 7-18n
31.3401(a)(10)-1(a), 14-29n
31.3401(a)-1(a)(2), 14-29n
31.3401(a)-1(b)(9), 4-24n

31.3401(c)-1(b), 9-3n
31.3402(f)(2)-1, 14-30n
31.3402(g)-1(a), 14-29n
152(d)(1)(D), 2-17n
301.7701-1, 1-23n, 16-2n, 17-3n, 17-20n
301.7701-2, 1-23n, 16-2n, 17-3n, 17-20n
301.7701-3, 1-23n, 16-2n, 17-3n, 17-20n
301.7701-4, 1-23n, 17-3n
Proposed Regulations
1.671-1(h), 15-22 (Table 15-3)
Temporary Regulations
1.62-1T(e), 15-22 (Table 15-3)
1.163-8T, 7-13n
1.163-8T(c), 7-13n
1.163-8T(c)(4)(ii), 7-13n
1.163-8T(c)(4)(iv), 7-13n
1.168(k)-1T(d)(3), 10-8n
1.274-5T(k), 10-16n
1.469-5T(a), 8-11n
1.469-5T(c), 8-11n
1.469-5T(d), 8-12n
1.709-1T, 17-7
15A.453-1(c), 11-21n
15A.453-1(d)(2)(ii)(A), 11-21n

ISBN 0-558-86017-6
Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

A P P E N D I X

INDEX OF GOVERNMENT
PROMULGATIONS
2002-37, 11-5n
2003-75, 10-16n
2004-34, 3-12, 3-29,
11-15n
2005-18, 15-14n
2007-16, 10-21n
2008-52, 11-27n
2009-47, 9-18n
2009-54, 9-11n
Revenue Rulings
53-271, 12-13n
54-567, 2-13n
54-97, 5-34n
55-327, 8-18n
56-60, 5-9n
56-602, 6-24n
57-102, 4-2n
57-246, 14-9n
57-344, 2-15n
57-418, 6-16 (Figure 6-1)
57-599, 8-18n
58-67, 2-15n
58-234, 5-26n
58-256, 11-5n
58-419, 2-15n
58-601, 11-27n
59-58, 4-32
59-102, 12-11n
60-31, 9-31n
60-329, 8-18n
61-119, 12-5n
62-197, 8-3n
62-210, 7-3n
63-91, 7-4n
63-144, 4-15, 4-15n
63-221, 12-11n
64-31, 12-18n
64-162, 17-28n
64-222, 2-16n
64-237, 12-14n
65-34, 2-13n
65-185, 11-19
65-261, 5-50
65-307, 2-15n

66-216, 7-6n
68-20, 4-7n
68-37, 12-13n
68-537, 17-28n
68-591, 9-23n
68-662, 7-29n
69-88, 8-18n
69-240, 12-13n
69-292, 9-24n
69-498, 8-3n
69-654, 12-11n
70-104, 16-30
70-598, 5-29n
71-41, 12-14
71-137, 12-2
71-468, 2-15n
72-112, 8-19n
72-224, 3-6n
72-225, 6-24n
72-312, 3-6n
72-593, 7-4n
73-35, 12-13n
73-136, 7-13n
73-156, 2-43
73-597, 14-12n
74-7, 12-4n
74-78, 9-23n
74-187, 7-13n
75-168, 9-7n, 9-64
75-170, 9-7n
75-302, 7-7n, 7-31n
75-303, 7-6, 7-7n, 7-31n
75-432, 9-64
75-502, 16-29n, 16-30n
75-538, 13-37
76-226, 9-4n
76-255, 2-33n
76-319, 12-13
76-364, 16-29n, 16-30n
76-541, 12-32
77-77, 4-2
77-282, 2-15, 2-15n
78-39, 7-7n, 11-9n
79-157, 13-22n

79-174, 8-18n, 8-19n

79-175, 7-6n
79-417, 11-26
80-45, 7-25
81-180, 12-11n
82-74, 12-11n
82-149, 6-13n
82-166, 12-4n
82-204, 5-50
83-39, 12-23n
83-49, 12-13n
84-15, 17-7n
84-111, 15-22 (Table 15-3)
84-113, 9-6n
87-22, 6-20n, 7-18n
87-106, 7-5n
89-51, 7-22n
90-91, 15-13
91-26, 17-29n
92-29, 6-6n, 7-29n
92-54, 16-35n
93-72, 7-6, 7-31n
93-86, 9-6, 9-6n
95-37, 1-23n, 17-30n
97-4, 15-12
97-9, 7-3n
99-7, 9-6n, 9-10n
99-28, 7-3n
2000-22, 11-7n
2000-43, 17-23n
2001-10, 11-7n
2002-19, 7-3n
2002-28, 11-7n
2003-72, 2-14n
2006-56, 9-17n
2009-24, Appendix C
(Table 13)
Technical Advice
Memoranda
9628002, 8-41
9801001, 15-13
Treasury Decisions
8756, 15-22 (Table 15-3)
9386, 15-11

ISBN 0-558-86017-6

Announcements
2007-3, 15-13, 15-22
(Table 15-3)
Information Releases
86-70, 15-13
Letter Rulings
8227010, 8-18n
8544001, 8-18n
8752010, 7-16n
8906031, 7-16n
8919009, 7-4n
9237014, 9-8n
9526020, 4-7n
200130006, 15-13
News Releases
83-93, 7-20n
Notices
88-74, 7-17n, 15-22
(Table 15-3)
89-28, 8-29n
93-4, 7-35n
2007-9, 15-13
Revenue Procedures
71-21, 11-15n
72-18, 6-12n
74-33, 11-4n
77-28, 15-22 (Table 15-3)
87-15, 6-20n, 7-18n
87-32, 11-4n
87-56, 10-5n, 12-3
87-57, 10-6
89-46, 3-30n
92-12A, 7-18n
93-27, 17-48
93-86, 15-6n
94-27, 6-20n, 7-18n
97-19, 15-12
97-37, 11-26n
99-49, 11-26n
2000-22, 3-8n
2001-10, 3-8n, 6-20n
2002-1, 3-8n
2002-28, 3-8n, 6-20n,
16-3, 16-3n

H-1
Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

ISBN 0-558-86017-6
Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

A P P E N D I X

ISBN 0-558-86017-6

INDEX OF COURT CASES

Abdo, Alfred, Jr. v. IRS, 15-19, 15-22
(Table 15-3)
Acme Construction Co., Inc., 6-36n
Allmeier, Daniel R. Jr., 9-23n
American Liberty Pipe Line Co. v.
CIR, 11-37
Andrew, Giffin A., 8-25
Apkin, Philip, 3-30n
Arkansas Best Corporation v. CIR, 5-14,
5-14n
Arrowsmith, F. Donald Exr., v. CIR, 3-27n
Asjes, Jr., Everet, 12-14
Astone, Anthony, 13-19
Ayers, Gary, 3-24n
Azar Nut Co. v. CIR, 5-50
Balistrieri, Joseph P., 12-11n
Barbetti, Desio, 2-43
Bart, Stuart, 8-27n
Belloff, Paul F., 15-18, 15-22 (Table 15-3)
Berger, Ernest H., 6-35n
Berry, Henry W., 8-18n
Berry, James E., v. Wiseman, 7-5
Bertolini, Raymond, Trucking Co. v.
CIR, 6-12
Biscayne Bay Islands Co., 5-11
Black Limited, E. E., v. Alsup, 11-16n
Blood Enterprises, Inc., George, 3-18n
Boeing Company, U.S. v., 15-21, 15-22
(Table 15-3)
Bolding, Dennis E., v. U.S., 17-48
Bolton, Dorance D., v. CIR, 6-32n
Bonaire Development Co. v. CIR, 6-19n,
11-8n
Bonner v. City of Prichard, 15-20n
Boston Fish Market Corporation, 4-32
Bradley, M. A., Estate of, CIR v., 6-18n
Brumber, Loren S., 2-15n
Bufferd, Sheldon B. v. CIR, 15-23n
Burgess, Newton A., 7-20n
Burns, Howard F., v. U.S., 8-18n
Calhoun, Q.A., v. U.S., 11-3n
Campbell, Michael O., v. Amax
Coal Co., 14-30
Campbell, William G., v. CIR, 17-48
Carlson, Ernest W., v. U.S., 14-46
Carpenter, William H., 8-19n
Cartwright, Douglas B., Executor, U.S. v.,
15-10n
Central Illinois Public Service Co. v. CIR,
15-23n
Cesarini, Ermenegildo, v. U.S., 3-24n

Chaitlen, Morrie, 11-36

Click, D. H., 12-32
Cohan, George M., v. CIR, 6-176-18,
6-17n
Comm v. Kikalos, 7-46
Commerford, Patrick, U.S. v., 3-24n
Cooney, James J., 3-10n
Coors, Adolph, Co., 4-14
Cordner, Warren C., v. U.S., 16-27
Corn Products Refining Co. v. CIR, 5-14,
5-14n
Correll v. U.S., 9-7n, 9-64
Correll, O. Homer, U.S. v., 15-10n
Costello, Edward J., 3-27
Court Holding Co., CIR v., 1-36
Crane, Beulah B., v. CIR, 5-4n, 8-2n
Creative Solutions, Inc. v. U.S., 12-11n
Cumberland Public Service Co., U.S. v.,
1-36
Cunningham, Grace H., CIR v., 3-40
Davis, Harold, v. U.S., 7-21n
Davis, Kenneth C., 9-23n
Davis, Maclin P., U.S. v., 16-29n
Dawson, Henry B., 5-10
Dayton Hudson Corp. v. CIR, 11-14n
DeMarco, Frank, 14-20
Diamond, Sol, v. CIR, 17-48
Diaz, Leonarda C., 15-33
Drazen, Michael, 11-7
Duberstein, Mose, CIR v., 4-16n
DuPont, Pierre S., Deputy v., 6-6n, 7-12n
Durden, Ray, 8-18n
Eboli, Saverio, 6-19
Eckel, Vincent W., 9-9
Ehret-Day Co., 11-16n
Eisner v. Myrtle H. Macomber, 3-6n,
3-17n, 3-34, 4-2
Estate of Louis Yaeger, Deceased, Judith
Winters, Ralph Meisels, Abraham J.
Weber and the Bank of New York,
6-50
Fairmont Homes, Inc., 6-8
Farina, Antonino, v. McMahon, 3-24n
Farrelly-Walsh, Inc., 5-28n
Fausner, Donald W., v. CIR, 9-10
Fehlhaber, Robert v. CIR, 15-23n
Feldman, Richard L., 14-29
First National Bank of Gainesville,
Trustee, 11-26
Flamingo Resort, Inc. v. U.S., 3-11
Flower, Harriet C., v. U.S., 2-15n

Flower, Harry M., 5-50

Flushingside Realty & Construction Co.,
12-12n
Ford, Achille F., v. U.S., 5-34n
Forest City Chevrolet, 12-11n
Fox Chevrolet, Inc., 11-13
France, Rose C., v. CIR, 7-3n
Frank, Morton, 6-16 (Figure 6-1)
Franklin, H. C., CIR v., 7-20n
Frederick Mayer and Jan Perry Mayer,
6-50
Fuchs, Frank, Estate of, v. CIR, 8-3n
Gerstell, Robert S., 8-44
Golconda Mining Corp. v. CIR, 16-14n
Goldin, H.J., v. Baker, 3-25
Goldman, Estelle, 5-50
Golsen, Jack E., 15-21n
Gould v. Gould, 3-19n
Graham, Bette C., v. U.S., 13-22
Green, Charles T., v. CIR, 15-23n
Greene, Leonard, v. U.S., 15-20, 15-22
(Table 15-3)
Gregg v. U.S., 8-42
Griswold, Donald G., 16-34
Guito, Ralph M., Jr. v. U.S., 14-29n
Gurvey, Gary, v. U.S., 5-28
Haberkorn, Ronald L., 6-31n
Hagaman v. CIR., 3-18
Hallmark Cards, Inc. v U.S., 4-32
Hanlin, Marie, Executrix v. CIR, 6-25n
Harrahs Club v. U.S., 10-3
Harris, J. Wade, 13-19
Heininger, S. B., CIR v., 6-8n
Higgins v. CIR, 6-50
Higgins, Eugene, v. CIR, 6-6n
Hill, Thomas W. and Pamela A., 6-5
Hollman, Emanuel, 2-43
Hooper, H. M., 5-29n
Horst, Helvering v., 3-31
Hort, Walter M., v. CIR, 5-28n
Howard, Jack R., 9-16
Humphreys, Murray, v. CIR, 3-24n
Hunt, C. L., 8-25n
Hunter Mfg. Co., 5-23
Huntsman, James R., v. CIR, 6-20n,
7-18n
Hutchinson, Charles L., 8-27n
Indopco, Inc., v. CIR, 6-10n
James, Eugene C., v. U.S., 3-24n
Janis v. Commissioner, 5-34
Janss, Peter F., 9-7

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Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

I-2 Individuals Appendix I

Jeanese, Inc. v. U.S., 15-10n
Johnson, Richard E., v. Bingler, 4-7n
Justus & Parker Co., 11-36
Kahler, Charles F., 3-10n, 6-18n
Keenan, W. J. Jr., v. Bowers, 8-19n
Keller, Stephen A., v. CIR, 6-19n
Kelley, Daniel M. v. CIR, 15-23n
Kentucky & Indiana Terminal Railroad
Co. v. U.S., 4-20
Kowalski, Robert J., CIR v., 4-15n
Lang Chevrolet Co., The, 3-18n
Leavitt, Estate of Daniel, v. CIR, 17-48
Lennard, Milton S., Estate of, v. CIR,
16-52
Levin, Samuel B., v. U.S., 6-6n
Lerew, P.A., 7-46
Lessinger, Sol, v. CIR, 16-52
Lewis, Nat, 9-6
Liang, Chang H., v. CIR, 6-6n
Liddle v. Comr., 10-37
Liddle, Brian P., 6-10n
Limericks, Inc. v. CIR, 3-18n
Lindeman, Jack B., 4-14n
London Shoe Co. v. CIR., 4-6n
Loughlin, John O., v. U.S., 6-31n
Lucas v. Earl, 3-31
Lynch,William M., v. CIR, 16-52
Marinello Associates, Inc., Marco S.,
12-13
Markarian, Frank, v. CIR, 2-15n
Marshman, Homer H., CIR v., 5-4n
Matheson, Chester, 8-35n
McDaniel, David, 8-18n
McDonald v. CIR, 15-10n
McKenna, James P., 3-24n
McKinney, Edith G., 15-18
McKinney, Edith G., v. CIR, 6-32n
McShain, John, 12-23n
McWilliams, John P., 6-24n
MedChem Products, Inc., 15-17
Meersman, J. P., v. U.S., 8-18n
Melat, George R., 2-15n
Menz, Norman W., 7-20n
Miller, John F., 2-15n
Miller, William R., 8-18n
Mizl, Daniel E., 7-3n
Monteleone, Michele, 8-44
Morgenstern, Joseph, 3-18n
Morris, Homer P., 4-3n
Morrison, James H., 7-24

Mountain Fuel Supply Co. v. U.S., 11-27

Murphy, Marrita, 4-9n
Notter, George K., 8-19n
Nowland, Robert L., v. CIR, 4-3n
OConnell, Emmett J., v. U.S., 8-18n
Ohio River Collieries, 11-9
Oppenheims Inc. v. Kavanagh, 3-26n
Orr, William P., 16-23
Oswald, Vincent E., 6-35n
Pahl, J. G., 6-35n
Parker, James Edward, 2-15n
Peacock, Cassius L., 2-14n
Peterson & Pegau Baking Co., 3-18n
Picknally, Robert J., 9-23n
Plastics Universal Corp., 6-36n
Polacsek, R.A., 7-46
Pollock v. Farmers Loan & Trust Co.,
1-2n
Powers, William J., 8-3n
Poyner, Ernest L., v. CIR, 4-16n
Price, William K. III, 2-15n
Purvis, Ralph E., v. CIR, 6-6n
Quinn, Frank D. Exec., v. CIR, 11-9n
Raphan, Benjamin, v. U.S., 15-19
Reeves, Richard A., 3-24
Robbins, J.H., 7-46
Robinson, Willie C., 8-18n
Rose, Robert M., v. CIR, 7-7n, 7-31n
Rothenberg, George, 17-33
Ruddick Corp. v. U.S., 15-22 (Table 15-3)
Rudolph W. and Abbie A. Steffler, 6-50
Schiff, Renate, v. U.S., 14-29n
Schira, Mathias, v. CIR, 3-24n
Schlude, Mark E., v. CIR, 3-12
Schneider and Co., Charles, v. CIR, 6-36n
Security State Bank, 15-18, 15-22 (Table
15-3)
Selfe, Edward M., v. U.S., 17-48
Shaffer, Stephen L., 8-18n
Sharp, Jeffrey G. v. U.S., 15-19, 15-22
(Table 15-3)
Shauna C. Clinger, 10-37
Simon v. Comr., 10-37
Simon, Richard L., 6-10n
Sirbo Holdings Inc. v. CIR, 4-32
Smith, Algerine Allen, Estate of, 15-18
R. N. Smith v. U.S., 9-4n
Smithgall, Charles A. v. U.S., 8-18n
Soffron, George N., 5-49
South Texas Lumber Co., CIR v., 15-10n

St. Charles Investment Co. v. Comm.,

8-41
Stacy, Howard, 8-18n
Standard Fruit Product Co., 6-10n
Stein, Frank, 6-24n
Stewart, Spencer D., v. CIR, 12-12n
Stone, Tracy Co., Flint v., 1-2n
Stuart, James P., 7-29
Sullivan, Manley S., U.S. v., 2-3n, 3-24n
Sullivan, Neil, et al., CIR v., 6-14n
Sunstein, Cass, 3-24n
Super Food Services, Inc. v. U.S., 10-24
Sutter, Richard A., 4-15n
Tellier, Walter F., CIR v., 6-8n
Thoene, John J., 7-3n
Thompson-King-Tate, Inc. v. U.S., 11-16n
Thompson, William, A., Jr., 6-50
Thor Power Tool Co. v. CIR, 11-11,
11-11n, 11-37
Timberlake, J. E., v. CIR, 3-18n
Tomburello, Louis R., 4-5
Trent, John M., v. CIR, 8-27n
Tsouprake, Ted E., v. U.S., 14-29n
Tucker, Marvin D., 2-15n
Tyler, Jean C., v. Tomlinson, 8-25n
U.S. v.
, See opposing party
Vila v. U.S., 8-22
Vogel Fertilizer Co. v. U.S., 15-20n
Vogel Fertilizer Co., U.S. v., 15-10n
Wagensen, F.S., 12-32
Wal-Mart Stores Inc. v. CIR, 11-14n
Weiler, Jeffry L., 9-23n
Weiner, L., 3-24n
Welch, Thomas H., v. Helvering, 6-7n,
6-8n, 6-50
Wells Lumber Co., J.W., Trust A.,
15-18
White, John P., 8-18n
White, Layard M., 6-18n
Whiting, Lauren, 8-18n
Wilcox, Laird, CIR v., 3-24n
Williams v. Patterson, 9-7n
Williams, H.O., v. U.S., 11-36
Wisconsin Cheeseman, Inc. v. U.S.,
6-12n
Wohlfeld, Nathan, 11-16n
Young, Minnie K., v. CIR, 5-23n
Zaninovich, Martin J., v. CIR, 6-19n,
11-8n
Zarin, David, v. CIR, 4-20n

ISBN 0-558-86017-6
Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

A P P E N D I X

ISBN 0-558-86017-6

SUBJECT INDEX
Abandoned spouse, 2-232-24
Abandonment, of principal residence,
12-1712-18
Accelerated cost-recovery system
(ACRS), 10-110-16
alternative depreciation system, 10-11
listed property, 10-1210-16
luxury automobiles, limitations on,
10-1410-16
real property, classification/recovery
rates for, 10-10
restrictions, 10-1210-16
straight-line method, use of, 10-11
See also Modified ACRS
Accelerated death benefits, 4-6
Accountable plan, 9-17
Accounting methods, 3-83-12,
11-111-28
accrual method, 3-113-12,
11-911-10
calendar-year requirement, 11-28
cash receipts and disbursements
method, 3-83-10, 11-711-9
change in, 11-2511-27
amount of change, 11-2611-27
reporting amount of change, 11-27
voluntary changes, 11-27
definition of, 11-2
hybrid method, 3-12, 11-10
imputed interest, 11-2211-25
accrual of interest, 11-2311-24
applicable federal rate, 11-23
gift, shareholder and other loans,
11-2411-25
installment sales, 11-28
inventories, 11-1111-14, 11-28
special accounting methods,
11-1511-22
deferred payment sales, 11-21
installment sales method,
11-1711-21
long-term contracts, 11-1511-17
See also specific methods
Accounting periods, 11-211-7, 11-28
calendar-year requirement, 11-311-4
changes in, 11-411-5
Form 1128, Application for
Change in Accounting Period,
11-5
52- to 53-week year, 11-3
fiscal year, 11-2
periods of less than 12 months,
returns for, 11-511-6
tax-planning considerations, 11-28
See also specific methods

Accrual method of accounting,

3-113-12, 6-216-22, 11-911-10
all-events test, 6-21, 11-9
deductible expenses, 6-216-22
economic performance test,
6-216-22, 11-911-10
prepaid income, 3-113-12
Accumulated earnings and profits,
16-2516-27, 17-28
Accumulated earnings tax, 16-1416-15
Acquiescence policy, U.S. Tax Court,
15-17
Acquired property
cost of, 5-55-7
capitalization of interest, 5-6
identification problems, 5-65-7
uniform capitalization rules, 5-6
received as gift, 5-75-8
gifts after 1921, 5-75-8
gifts after 1976, 5-8
received from decedent, 5-85-10
basis of property, 5-85-10
community property, 5-10
See also Property transactions
Acquisition indebtedness, 7-167-17
Active trade/business, interest expense,
7-14
Adjusted basis of property, 5-45-5
See also Basis
Adjusted current earnings, 16-12
Adjusted gross income (AGI), 2-4
deductions for, 2-42-5
deductions from, 2-4, 2-72-19
dependency exemptions,
2-132-19
itemized deductions, 2-72-10
personal exemptions, 2-122-13
standard deduction, 2-102-12
definition of, 2-4
state income taxes and, 1-7
See also Gross income
Adjusted ordinary gross income, 16-16
Administrative appeal procedures, 1-29
Administrative convenience, income,
3-33-4
Administrative exclusion, definition of,
4-2
Administrative interpretations,
15-1115-14
announcements, 15-1315-14
citations of, 15-11
information releases, 15-13
letter rulings, 15-1215-13
notices, 15-1315-14
revenue procedures, 15-12

revenue rulings, 15-12

technical advice memoranda, 15-13
Administrative interpretations, of tax
law, 1-25
information releases, 1-25
letter rulings, 1-25
revenue procedures, 1-25
revenue rulings, 1-25
technical advice memoranda, 1-25
Treasury Regulations, 1-25
Adoption credit, 14-1314-14
Adoption expenses, 4-64-7
Advance payments for services, 3-12
Advance payments, annuities, 3-22
Affiliated corporations, sale/exchange of
securities in, 5-23
Alimony
as gross income, 3-183-20
definition of, 3-19
recapture provisions, 3-193-20
significance as income, 3-28
All-events test, 6-21, 11-9
Allocation of basis, 5-115-12
basket purchase, 5-11
common costs, 5-11
nontaxable stock dividends received,
5-115-12
nontaxable stock rights received, 5-12
See also Basis
Allocation of expenses
residential property, 6-326-35
transportation expenses, 9-129-13
Allocation of joint income, 3-63-7
Alternative depreciation system, 10-11
See also Modified ACRS
Alternative minimum tax (AMT),
14-214-7, 16-1216-13
adjusted current earnings, 16-12
adjustments, 14-414-6, 16-1216-13
alternative minimum taxable income,
14-314-4, 16-1216-13
avoidance of, 14-3214-33
computation aspects, 14-314-4,
16-12
filing procedures, 14-3514-36
itemized deduction limitation, 14-5
minimum tax credit, 14-614-7,
16-1216-13
tax preference items, 14-4,
16-1216-13
taxpayers subject to, 14-214-3,
16-1216-13
American Federal Tax Reports (AFTR)
(Research Institute of America),
15-19

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Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

J-2 Individuals Appendix J

American Opportunity Tax Credit,
14-1414-16
See also Education credits
Amortization
Form 4562, 10-25
of intangible assets, 10-1710-18
reporting of, 10-25
Sec. 197 intangibles, 10-1710-20
Annotated tax services, 15-25
Announcements, tax law, 15-1315-14
Annuities
advance payments, 3-22
as gross income, 3-203-22
current year exclusion, 3-21
exclusion ratio, 3-21
expected return, 3-20
Appeals Court procedures, 15-20
Appreciated property
avoiding income tax on decedents, 5-33
donation of, 7-327-33
Archer Medical Savings Accounts, 9-43n
Asset depreciation range (ADR) system,
10-11
Assets
business-use assets, 10-1210-13
capital assets, 2-30, 5-135-16,
5-305-31
intangible assets, amortization of,
10-1710-20
partnership assets, basis of, 17-617-7
personal-use assets, 10-12
See also specific types of asests
Assignment, of income, 3-6
Associated with entertainment
expenditure, 9-14
Athletic facilities, 4-13
Audits
field audit, 1-27
office audit, 1-27
Automobile expenses, 9-119-12
actual expenses, 9-119-12
standard mileage rate method of
deduction, 9-119-12
See also Transportation expenses;
Travel expenses
Average tax rate, 1-51-6
Awards
court awards, 3-26
employee achievement awards, 4-14
employee length of service awards,
9-16
meritorious achievement awards, 4-7
See also Gifts
Away-from-tax-home requirement, travel
expenses, 9-69-7

C corporations, 2-27, 16-216-37

accrual method of accounting and,
3-113-12
calculation of tax liability,
16-1016-12
tax formula, 2-27
See also Closely held C corporations;
Corporations; S corporations
Cafeteria plans, as gross income
exclusion, 4-17
Calendar year, 17-36
requirement, 11-28
C corporations, 11-28

partnerships, 11-2, 11-28,

17-1817-19, 17-36
S corporations, 11-2, 11-28,
17-29, 17-36
See also Tax year
Capital assets, 2-30, 5-135-16,
5-305-31
dealers in securities, 5-15
definition of, 2-30, 5-135-16
holding period, 5-295-30
nontaxable exchange, 5-30
property received as gift, 5-29
property received from decedent,
5-295-30
receipt of nontaxable stock
dividends/stock rights, 5-30
nonbusiness bad debt, 5-16
real property subdivided for sale,
5-155-16
sale/exchange, 5-225-29
franchises, 5-275-28
lease cancellation payments,
5-285-29
options, 5-26
patents, 5-27
retirement of debt instruments,
5-235-25
trademarks, 5-275-28
worthless securities, 5-23
securities dealers, 5-15
See also Assets
Capital expenditures, definition of,
6-106-12
Capital gain dividends, 3-18
Capital gains/losses
as inflation adjustment, 5-31
C corporations, 16-416-5
determination of, 5-35-5
realized gain or loss, 5-35-5
recognized gain or loss, 5-5
investment model, 18-8
net gains/losses, tax treatment of,
2-30
netting process, 5-195-20
noncorporate taxpayers, 5-165-21
property transactions, 5-15-40
basis considerations, 5-55-12
corporate taxpayer tax treatment,
5-215-22
documentation of basis, 5-335-34
holding period, 5-295-30
noncorporate taxpayer tax
treatment, 5-165-21
sale/exchange, 5-225-29
recognition, 5-3
reporting on Schedule, D, 5-345-40
tax treatment after 1990, 5-21
Capital losses, 5-195-21
corporate taxpayers, 5-215-22
Capital recoveries, 5-45-5
Capitalization
of deduction items, 6-116-12
of interest, 5-6
of legal fees, 6-7
requirements for cash-method
taxpayers, 11-811-9
versus expense deduction, 6-106-11
election to deduct currently, 6-11
general capitalization
requirements, 6-10
Carrybacks/carryovers
net operating losses, 8-328-33

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

ISBN 0-558-86017-6

Bad debts, 8-248-29

bona-fide debtor-creditor
relationship, 8-248-25
related-party transactions,
8-248-25
business bad debts, 8-28
discharge of indebtedness, 3-23,
4-204-21
employee loans, 8-27
nonbusiness bad debts, 8-268-28
recovery of, 8-28
tax-planning considerations, 8-34
worthlessness of debt, 8-26
See also Business bad debts;
Discharge of indebtedness;
Nonbusiness bad debts

Basis
allocation of, 5-115-12
basket purchase, 5-11
nontaxable stock dividends
received, 5-115-12
nontaxable stock rights received,
5-12
bad debts, 8-258-26
documentation of, 5-335-34
of acquired property, from decedent,
5-85-10
of partnership assets, 17-617-7
of partnership interest, 17-10
of stock, wash sales, 6-236-25
property converted from personal use
to business use, 5-105-11
property transactions, 5-55-12
S corporation stock, 17-2517-26
Basket purchase, 5-11
Bonus depreciation, 10-710-8
Boot
involuntary conversions, 12-1012-15
like-kind exchanges, 12-212-10
Bribes, as expense contrary to public
policy, 6-126-13
Brother - sister controlled groups,
16-1816-19
Business bad debts, 8-28
reserve method, 8-28
specific write-off method, 8-28
See also Bad debts; Discharge of
indebtedness; Nonbusiness bad
debts
Business energy credit, 14-2014-21
Business expenses, 6-46-16
business or investment requirement,
6-5
criteria for deductions, 6-46-16
activity engaged in for profit,
6-56-30
business investigation expenses,
6-156-16
capitalization versus expense
deduction, 6-106-12
employee expenses, 9-29-4
expenses contrary to public policy,
6-126-14
expenses related to exempt
income, 6-12
lobbying expenses, 6-146-15
necessary expense, 6-8
ordinary expense, 6-76-8
political contributions, 6-146-15
reasonable expense, 6-86-9
deductions/losses, 6-46-16
reporting employee expenses, 9-46
Business income, as gross income, 3-13
Business, definition of, 6-56-6

ISBN 0-558-86017-6

Appendix J Individuals J-3

election to forgo carryback period,
8-33
of foreign tax credits, 14-19
passive losses, 8-88-9
recomputation of taxable income in
carryover year, 8-33
Cash method of accounting, See Cash
receipts and disbursements method of
accounting
Cash receipts and disbursements method
of accounting, 3-83-10, 6-186-20,
11-711-9, 17-1917-20
capitalization requirements,
11-811-9
constructive receipt, 3-93-10
deductible expenses, 6-186-20
prepaid expenses, 6-19
prepaid interest, 6-196-20
exceptions, 3-10
recovery of previously deducted
expenses, 3-263-27
tax benefit rule, 3-27
Casualty losses, 8-178-23
as itemized deduction, 7-28
casualty defined, 8-178-19
deductible amount of, 8-198-20
disaster area election, 8-23, 8-348-35
exclusion of gain, 8-218-22,
12-1012-15
reporting on Form 4684,
13-2413-27
substantiation of loss, 8-34
CCH Tax Court Memorandum
Decisions, 15-18
Certified public accountants (CPAs)
positions on tax returns, 15-3415-35
proper behavior of, 15-3415-35
responsibilities, 15-3415-35
Change in accounting methods, See
Accounting methods, change in
Charitable contributions, 7-217-27
alternative minimum tax, 14-5
amount of deduction, 7-217-27
appreciated property, 7-327-33
athletic events, 7-25
C corporations, 16-716-9, 16-34
capital gain property, 7-227-24
electing to reduce contribution,
7-32
to private nonoperating
foundation, 7-23
carryovers, application of, 7-26
corporations
donation of inventory, 7-24
limitation, 7-267-27
pledges made by accrual-basis
corporation, 7-26
deduction limitations, 7-257-26
overall 50% limitation, 7-25
30% limitation, 7-25
20% limitation, 7-25
ordinary income property, 7-24
qualifying organizations, 7-217-22
reporting of, 7-337-35
services, 7-247-25
to private nonoperating foundation,
7-23
CheckpointTM (CHECKPOINT), 15-26,
13-3015-31
Child and dependent care credit,
14-1114-13
computation, 14-12

dependent care assistance,

14-1214-13
employment-related expenses,
14-1114-12
Child tax credit, 2-192-20
Children
as dependent with unearned income,
2-242-26
dependency exemptions for, 2-132-19
minor children, income of, 3-8
Circuit court of appeals, precedential
value of decisions, 15-2015-21
Citations
administrative interpretations,
15-1115-14
Internal Revenue Code, 15-8
judicial decisions, 15-1415-23
Treasury Regulations, 15-915-11
Citators, 15-3015-31
CHECKPOINT (RIA), 15-3015-31
INTELLICONNECT (CCH),
15-3015-31
Citizenship test, for dependency
exemptions, 2-13
Claim of right doctrine, 3-273-28
Claims Court Reporter, 15-19
Client letter, 15-36
Client-oriented tax research, 15-215-3
closed-fact situations, 15-2
open-fact situations, 15-215-3
Clienteles, 18-2818-29
Closed-fact situations, client-oriented tax
research and, 15-2
Closely held C corporations
personal holding company,
16-1616-17
See also C corporations
Closely held corporations
C corporations, 8-128-13
material participation by, 8-13
personal service corporation, 8-13
See also C corporations
Club dues, 9-159-16
Coal, Sec. 1231 and, 13-6
Commissioner of Internal Revenue, 1-26
Community income, definition of,
3-63-7
Community property, received from
decedent, 5-10
Compensation
deduction limit, publicly-held
corporations, 6-86-9, 16-8
deferred compensation,
3-30, 9-279-44
employee compensation, as gross
income, 3-13
nonqualified deferred compensation
plans, 9-319-34
nontaxable compensation, employers
provision of, 9-45
unreasonable compensation,
6-356-36
See also specific types of
compensation
Complete liquidation, 16-3116-33
Completed contract method, 11-16
Computer applications
tax planning, 1-31
tax research, 1-31
tax return preparation, 1-31
Computer software, amortization,
10-2010-21

Computers, as tax research tool,

15-2615-30
Condemnations, Sec. 1231 gains/losses
resulting from, 13-613-7
Conference Committee, tax law and,
15-715-8
Conformity with financial accounting,
gross income, 17-7
Conservation expenditures, Sec. 1252
recapture, 13-2013-21
Consolidated tax returns, 16-1916-20
Constructive dividends
gross income, 3-18, 16-34
Constructive receipt, 3-93-10
Constructive stock ownership,
corporations, 16-29
Contributions, See Charitable
contributions
Controlled groups, tax for, 16-1716-19
Controlled subsidiary corporations,
liquidation of, 16-3216-33
Copyright, as asset, 5-13
Corn Products doctrine, 5-14
Corporate Taxation, 15-24
Corporations, 16-116-37, 17-2017-31
accumulated earnings tax,
16-1416-15
alternative minimum tax,
16-1216-13
capital gains/losses, 5-215-22,
16-416-5
corporate capital loss limitations,
16-5
capitalization of, 16-24
thin capitalization exception,
16-24
charitable contributions, 7-24, 16716-9, 16-34
compared to individuals, 16-316-4
compared to other forms of business
organization, 17-3517-37
constructive stock ownership, 16-29
corporate formation, 16-2016-24
basis considerations, 16-2116-22
liabilities, treatment of,
16-2216-24
Sec. 351 nonrecognition
requirements, 16-2016-21
debt versus equity, 16-24
distributions in complete liquidation,
16-3116-33
liquidation of controlled
subsidiary, 16-3216-33
tax consequences to liquidated
corporation, 16-3116-32
tax consequences to shareholders,
16-32
dividends-received deduction,
16-516-6, 16-3416-35
earnings and profits (E&P),
16-2516-27
current versus accumulated E&P,
16-2516-27
filing requirements, 16-35
net operating losses, 16-616-7
personal holding company tax,
16-1616-17
property distributions, 16-2716-28
tax consequences to distributing
corporation, 16-2716-28
tax consequences to shareholders,
16-27

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

J-4 Individuals Appendix J

Corporations (continued)
Schedule M reconciliation, 16-36
stock redemptions, 16-2816-30
complete termination of
shareholders interest, 16-30
substantially disproportionate
redemption, 16-2916-30
tax computation, 16-1016-20
tax formula/rates, 1-5, 1-61-7, 2-27
tax rates, 1-41-7, 2-27
See also C corporations; Personal
service corporations (PSCs);
S corporations
Court system, overview of, 15-14
Covenant not to compete
definition of, 10-18
reporting requirements, 10-25
Coverdell Education Savings Accounts,
9-429-43
Credits, 14-1014-13, 16-1416-15
accumulated earnings credit,
16-1416-15
adoption credit, 14-1314-14
alternative motor vehicle credit, 14-17
American opportunity tax credit,
14-1414-15
business energy credits, 14-2014-21
child and dependent care credit,
14-1114-13
child tax credit, 2-192-20,
14-1014-11
disabled access credit, 14-2214-23
earned income credit, 14-25
elderly and disabled credit, 14-13
foreign tax credit, 4-184-19
general business credit limitation,
14-10
homebuyer tax credit, 14-2614-27
lifetime learning credit, 14-1514-16
making work pay credit, 14-2714-28
minimum tax credit, 14-514-6
nonrefundable personal credits,
2-6, 14-10, 14-28
partnerships, allocations to partners,
17-10
qualified retirement savings
contribution credit, 14-1714-18
rehabilitation expenditures, credit
for, 14-20
research activities, credit for,
14-2314-24
residential energy credits, 14-1614-17
work opportunity credit,
14-2114-22
See also specific types of credit
Cumulative Bulletin (C.B.), 15-12, 15-17
Current investment model, 18-2,
18-218-5
Customs duties, 1-11

Depletion, 10-2110-23
intangible drilling and development
costs (IDCs), treatment of,
10-2310-24
methods, 10-2210-23
cost depletion method, 10-22
percentage depletion method,
10-2210-23
reporting of, 10-25
Depreciation, 10-110-16
accelerated cost-recovery system
(ACRS)
restrictions, 10-1210-16
asset depreciation range (ADR)
system, 10-11
bonus, 10-710-8
Form 4562, 10-25
listed property, 10-1210-13
mid-quarter convention, 10-810-9
modified ACRS (MACRS) rules, 10-2
alternative depreciation system,
10-11
conventions, 10-810-9
real property, 10-10
restrictions, 10-1210-16
reporting of, 10-25
Sec. 179 expensing election,
10-610-7
See also Accelerated cost-recovery
system (ACRS); Modified ACRS
system; and Sec. 179
Directly related entertainment
expenses, 9-14
Disabled access credit, 14-2214-23
Disaster losses, 8-23
Discharge of indebtedness
gross income exclusion and,
4-204-21
income from, as gross income, 3-23
Discounted notes, timing of interest
deduction, 7-20
Discriminant Function (DIF) program,
1-27
Discrimination awards, 4-9
Distributions
C corporations, 16-2716-33
dividends, 16-27
liquidating, 16-3116-33
stock redemptions, 16-2816-30
partnerships, 17-1317-14
liquidating distributions,
17-1317-14
nonliquidating distributions,
17-14
S corporations, 17-2817-29
District directors, IRS, 1-26
Dividends
as gross income, 3-163-18
capital gain dividends, 3-18
gross income, 16-27
liquidating, 16-3116-33
qualifying, 3-173-18, 5-17
reporting, Form 5452, 16-37
S corporations, 17-2817-29
stock dividends, 3-163-17
stock redemptions, 16-2816-30
Dividends-received deduction
general rules, 16-3416-35
Donations, 7-217-27
See also Charitable contributions
Due dates
for filing corporate tax return, 16-35

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

ISBN 0-558-86017-6

De minimis fringe benefits, 4-12, 4-13,

9-13n
Death benefits, employees, as gross
income exclusion, 4-154-16
Debt
retirement of debt instruments,
5-235-25
taxpayers basis in, 8-258-26
worthlessness of, 8-26
See also Bad debts; Business bad
debts; Nonbusiness bad debts
Deduction equivalent, definition of, 8-16

Deductions, 6-16-37
AGI classification, 6-36-4
criteria for deductions, 6-46-16
expenses, 6-186-22
accrual method of accounting,
6-216-22
cash method of accounting,
6-186-20
proper substantiation requirement,
6-176-18, 6-37
special disallowance rules, 6-236-34
hobby losses, 6-296-31,
6-346-35, 6-37
home office expenses, 6-34
related-party transactions,
6-266-29
wash sales, 6-236-25
See also Itemized deductions; Losses
Deductions for adjusted gross income,
definition of, 2-42-5
Deductions from adjusted gross income,
definition of, 2-4
Deferred compensation, 3-30, 9-279-44,
18-2018-26
avoiding constructive receipt, 3-30
individual retirement accounts (IRAs),
9-389-44
nonqualified plans, 9-319-34, 18-20
qualified plans, 9-289-30
pension plans, 9-28
profit-sharing plans, 9-29
qualification requirements for,
9-299-30
self-employed individuals, 9-379-38
stock option plans, 9-349-36
incentive stock option plans, 9-35
nonqualified stock option plans,
9-36
tax treatment, 9-309-31
employee retirement payments,
9-309-31
employer contribution limitations,
9-31
versus current salary, 18-2018-26
See also Individual retirement accounts
(IRAs); Sec. 401(k) plans; qualified
pension plans; nonqualified
deferred compensation plans
Deferred gain
corporate formation, 16-2016-24
involuntary conversions, 12-1012-15
like-kind exchange, 12-212-10
partnership formation, 17-4
sale of principal residence,
12-1612-21
Deferred investment model, 18-2,
18-518-10
Deferred payment sales, 11-21
Defined benefit pension plan, 9-28
Defined contribution pension plan, 9-28
Demolition of property, losses from, 8-4
Dependency exemptions, 2-5, 2-132-19
citizenship test, 2-13
definition of, 2-5
gross income test, 2-15
phase-out of, 2-18
qualification as dependent, 2-132-19
relationship test, 2-13
support test, 2-152-18
Dependent care assistance programs,
employees, as gross income exclusion,
4-16, 14-1214-13

Appendix J Individuals J-5

ISBN 0-558-86017-6

for filing individual income tax

return, 2-34
for filing partnership tax return, 17-36
Dues, club, 9-159-16
Earned income credit, 14-25
Earnings and profits (E&P), 16-2516-27
current versus accumulated E&P,
16-2516-27
reporting of, Form 5452, 16-37
Economic income, 1-51-6
Economic performance test, 6-216-22,
11-911-10
Education credits
American Opportunity Tax Credit,
14-1414-16
Lifetime learning credit, 14-1514-16
Education expenses
employees, 9-219-24
general requirements for
deduction, 9-239-24
Educational assistance plan, 4-17
Educational travel deductions, 9-9
Effective tax rate, 1-51-6
Elderly, tax credit for the, 14-13
Employee achievement awards, 4-14
Employee compensation
as gross income, 3-13
as gross income exclusion, 4-104-18
cafeteria plans, 4-17
dependent care, 4-16
employee awards, 4-14
employer-paid insurance,
4-104-12
interest-free loans, 4-17
meals/entertainment, 4-15
meals/lodging, 4-144-15
Sec. 132 benefits, 4-124-13
Employee death benefits, 4-154-16
Employee expenses, 9-19-27
accountable plan, 9-17
classification of, 9-29-4
unreimbursed employee expense
limitations, 9-4
education expenses, 9-219-24
entertainment expenses, 9-139-16
business gifts, 9-16
business meals, 9-149-15
classification of expenses,
9-139-14
entertainment facilities,
9-159-16
moving expenses, 9-199-21,
9-449-45
direct moving expenses, 9-20
distance requirement, 9-19
employee reimbursements, 9-21,
9-449-45
employment duration, 9-199-20,
9-44
expense classification, 9-20
indirect moving expenses, 9-21
reimbursement treatment, 9-21,
9-449-45
office in home, 9-249-50, 9-49
general requirements for
deduction, 9-249-25
gross income limitations,
9-269-27
reporting of, Form 8829, 6-37,
9-49
transportation expenses, 9-99-13

automobile expenses, 9-119-12

definition of, 9-99-11
travel expenses, 9-59-9
away-from-tax-home requirement,
9-69-7
business versus pleasure, 9-79-8
deductibility of, 9-5
definition of, 9-59-6
foreign travel, 9-8
See also Unreimbursed employee
expenses
Employee fringe benefits, tax planning,
4-23
Employee stock ownership plans
(ESOPs), 9-29
Employer identification numbers (EINs),
2-35
Employer-employee relationship,
definition of, 9-29-3
Employment taxes, 1-11, 14-814-32,
14-33
Endowment policies, income from, as
gross income, 3-22
Entertainment expenses, 9-139-16
business gifts, 9-16
business meals, 9-149-15
partial disallowance for, 9-13
entertainment ticket limitations, 9-16
partial disallowance for, 9-13
associated with entertainment
expenditure, 9-14
directly related entertainment
expenses, 9-14
substantiation of, 9-46
Equilibrium condition, investment,
18-2818-29
Estate Planning, 15-24
Estate planning, selecting property to
transfer at death, 5-33
Estate tax, 1-91-10
Estimated taxes
C corporations, 16-35
individuals
required estimated tax payments,
14-3114-32
withholding and, 14-35
Exchange
definition of, 5-22
See also Sales/exchanges of property
Excise taxes, 1-11
Exclusion ratio, annuities, 3-21
Exclusions
from gross income, 2-3, 2-3, 4-14-24
awards for meritorious
achievement, 4-7
employee fringe benefits,
4-104-18
foreign-earned income exclusion,
4-184-19
gifts, 4-44-5
income from discharge of
indebtedness, 4-204-21
inheritances, 4-44-5
injury/sickness payments,
4-84-10
life insurance proceeds, 4-54-6
sale of residence, 4-22,
12-1812-21
scholarships/fellowships, 4-7
selling price of property, 4-3
unrealized income, 4-24-3
Exempt income, expenses related to, 6-12

Exempt investment model, 18-10

Exemptions
dependency exemptions, 2-5,
2-132-19
personal exemptions, 2-122-13
Expected return, annuities, 3-20
Expenses
accrual method of accounting,
deductible expenses, 6-216-22
allocation of
residential property, 6-326-33
transportation expenses, 9-99-13
automobile expenses, 9-119-12
business investigation expenses,
6-156-16
cash receipts and disbursements
method of accounting, deductible
expenses, 6-186-20
contrary to public policy, 6-126-14
bribes, 6-126-13
fines, 6-14
illegal activity expenses, 6-14
kickbacks, 6-126-13
legal fees, 6-66-7
penalties, 6-14
disallowed expenses, 6-146-16
business investigation expenses,
6-156-16
lobbying expenses, 6-146-15
political contributions, 6-146-15
pre-operating/start-up costs,
6-156-16
employee expenses, 9-19-27
entertainment expenses, 9-139-16
home office expenses, 6-34, 9-249-27
interest expenses, 7-127-21
investment expenses, 6-46-16
medical expenses, 7-27-8
moving expenses, 9-199-21
taxpayer responsibility for, 6-176-18
transportation expenses, 9-99-13
travel expenses, 9-59-9
unreimbursed employee expenses,
limitations on, 9-4
Failure-to-file penalty, 1-28
Failure-to-pay penalty, 1-29
Fair market value (FMV)
definition of, 5-4, 11-14
Farming
Sec. 1231 and, 13-513-6
livestock, 13-6
timber, 13-513-6
unharvested crops/land, 13-6
Sec. 1252 recapture, 13-2013-21
Federal Claims Reporter, 15-19
Federal Court System, 1-25, 15-1415-24
Appeals court procedures, 15-20
District court procedures,
15-1815-19
Overview of court system, 15-14
Precedential value of various
decisions, 15-2015-23
Supreme Court, appeals to,
15-2015-21
Tax Court procedures, 15-1415-18
IRS acquiescence policy, 15-17
Small cases procedures, 15-17
Federal estate tax, See Estate tax
Federal gift tax, See Gift tax
Federal Insurance Contributions Act
(FICA), 1-3, 1-11, 14-814-29, 14-33

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

J-6 Individuals Appendix J

Form 1099-R, 2-35
Form 1116, 14-36
Form 1120, 16-35
Schedule D, 16-35
Form 1120S, 17-34
Schedule K, 17-34
Schedule K-1, 17-34
Form 1128, 11-5
Form 1139, 8-35
Form 2106, 3-31, 6-37n, 9-469-49,
10-25
Form 2119, 12-24
Form 2120, 2-18
Form 2210, 14-32
Form 2441, 14-35
Form 3468, 14-35
Form 3800, 14-35
Form 3903, 3-31, 6-37n, 9-46
Form 4562, 9-49, 10-25
Form 4626, 14-35, 16-35
Form 4684, 13-24, 13-2413-27
Form 4782, 9-49
Form 4797, 3-31, 11-28, 13-2413-26,
13-28
Form 5213, 6-37
Form 5452, 16-37
Form 6251, 14-35
Form 6252, 11-2811-29
Form 7004, 16-35
Form 8283, 7-337-34, 7-35
Form 8829, 6-37, 9-49
Form W-2, 2-35, 4-24, 9-46, 14-35
Form W-4, 14-30, 14-34
Form W-5, 14-36
Forum shopping, precedential value of
decisions and, 15-23
Franchise tax, 1-7
Franchises, sale/exchange of,
5-275-28
Fraud
penalty for, 1-29
Fringe benefits
discrimination, 4-10
partnerships, treatment of, 17-29
S corporations, treatment of, 17-29
See also Employee compensation
General business credit, 14-19
claiming the credit, 14-35
limitation on, 14-10
Generally accepted accounting principles
(GAAP), 11-1111-12, 17-7
Gift tax, 1-81-9
effect on basis, 5-8
general concepts/rules, 1-81-9
marital deduction, 1-8
Gifts
acquired property, 5-75-8
business gifts, 9-16
exclusion from gross income, 4-44-5
holding period, 5-29
imputed interest, 11-2411-25
gift loans, 11-2411-25
inter vivos gifts, 4-4
of property subject to recapture, 13-18
selection of property to transfer as,
5-325-33
testamentary gifts, 4-4
to employees, as gross income
exclusion, 4-14
Good faith belief requirement,
certified 1-32

Goodwill
Sec. 197 intangibles, amortization of,
10-1710-20
Gray areas, tax research, 15-4
Gross income, 3-133-28
alimony, 3-183-20
annuities, 3-203-22
awards, 3-24
business income, 3-13
compensation, 3-13
constructive dividends, 3-18
court awards, 3-26
definition of, 2-3
discharge of indebtedness, income
from, 3-23
dividends, 3-163-18
endowment contracts, income from,
3-22
exclusions, 4-14-24
filing levels, 2-332-34
gains realized from property, 3-13
gambling winnings, 3-24
illegal income, 3-24
inclusions, 3-13-30
economic/accounting concepts of
income, 3-23-3
tax concept of income, 3-33-6
to whom income is taxable,
3-63-8
when income is taxable,
3-83-12
income passed through to taxpayer,
3-23
insurance proceeds, 3-26
interest, 3-133-15
Series EE savings bonds exclusion,
3-143-15
tax-exempt interest, 3-133-14
life insurance, income from, 3-22
pensions, 3-203-22
prizes, 3-24
property settlements, 3-183-19
recovery of previously deducted
expenses, 3-263-27
tax benefit rule, 3-27
rents, 3-153-16
improvements by lessees,
3-153-16
royalties, 3-153-16
Sec. 61(a) definition, 3-2
social security benefits, 3-243-26
treasure finds, 3-24
unemployment compensation, 3-24
when taxable, 3-9
See also Adjusted gross income (AGI)
Gross income test, for dependency
exemptions, 2-15
Group term life insurance exclusion,
4-104-11
Guarantor, bad debts, 8-25
Head-of-household, 2-222-23
abandoned spouse as, 2-232-24
Health insurance benefits, as gross
income exclusion, 4-84-10
Health Savings Accounts, 9-43
Hobby losses, 6-296-31, 6-346-35, 6-37
deductible expenses, 6-30
order of deductions, 6-306-31
Holding period
capital assets, 5-29
property transactions, 5-295-30

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

ISBN 0-558-86017-6

Federal Reporter, Third Series, 15-25,

15-26, 15-27, 15-28
Federal Supplement (F. Supp.),
15-1815-19
Federal Tax Coordinator 2d (Research
Institute of America), 15-25, 15-26,
15-27, 15-28
Federal tax revenue, breakdown of, 1-3
Federal Taxation: Research, Planning,
and Procedures (Norwood et al.),
1-30n
Fellowships, exclusion from gross
income, 4-7
Field audit, 1-27
Filing requirements
C corporations, 16-3516-37
individuals, 2-332-35, 14-3514-36
partnerships, 17-33
S corporations, 17-34
Filing status, standard deduction and,
2-102-12
Final regulations, 15-915-10
Finance charges, deductibility of,
7-127-13
Finance Committee, U.S. Senate, tax law
and, 15-715-8
Financial accounting, conformity with,
17-7
Financial planning, 1-31
Fines
as expense contrary to public policy,
6-14
Fiscal year
election, 11-211-7
Flat tax, 1-4
Flexible spending accounts, 4-17
Foreign tax credit, 4-18, 14-1814-19
Foreign travel, deduction of expenses,
9-8
Foreign-earned income
definition of, 4-19
exclusion, 4-184-19
Form 706, 5-34
Form 1040, 2-2, 2-82-9, 2-34,
3-303-33, 3-31, 5-34, 6-366-37,
7-357-37, 8-35, 9-49, 13-28
Schedule A, 3-30, 3-31, 6-37,
7-337-37, 9-46, 13-28
Schedule B, 3-30, 3-31, 3-33
Schedule C, 3-31, 6-366-37,
7-357-37, 9-49, 10-25
Schedule C-EZ, 9-49
Schedule D, 3-31, 5-34, 8-35, 11-28,
13-24
Schedule E, 3-30, 3-31, 6-37,
7-357-37, 10-25
Schedule EIC, 14-36
Schedule F, 3-31
Schedule R, 14-35
Schedule SE, 14-9
Form 1040A, 2-35, 14-3514-36
Form 1040EZ, 2-342-35, 14-3514-36
Form 1040X, 8-35, 9-49
Form 1045, 8-35
Form 1065, 17-3317-34
Schedule K, 17-33
Schedule K-1, 17-33
Form 1099-B, 2-35
Form 1099-DIV, 2-35
Form 1099-G, 2-35
Form 1099-INT, 2-35
Form 1099-MISC, 2-35

Appendix J Individuals J-7

ISBN 0-558-86017-6

Home equity indebtedness, 7-17

Home office expenses, 6-34, 9-249-27,
9-49
general requirements for deduction,
9-249-25
gross income limitations, 9-269-27
reporting of, 6-37, 9-49
See also Self-employed individuals
Homebuyer tax credit, 14-2614-27
House trailers, as principal residence,
12-18
House-hunting trips, as indirect moving
expense, 9-21
Houseboats, as principal residence, 12-18
H.R. 10 plans, 9-379-38
Hybrid method of accounting, 3-12,
11-10
Illegal activity expenses, nondeductibility
of, 6-14
Illegal income, taxability of, 3-24
Illegal kickbacks, 6-126-13
Implicit taxes, 18-2718-28
Imputed interest, 7-21, 11-2211-25
accrual of interest, 11-2311-24
applicable federal rate, 11-23
gift, shareholder and other loans,
11-2411-25
Incentive stock option (ISO) plans, 9-35
Income
accounting concept of, 3-23-3
allocation between married persons,
3-63-7
assignment of, 3-6
definition of, 2-3, 3-43-6
economic concepts, 3-2
economic income, 1-51-6
of minor children, 3-8
prepaid income, 3-113-12
reporting of, 3-31
tax concept of, 3-33-6
administrative convenience,
3-33-4
wherewithal-to-pay concept, 3-4
Income shifting, 3-28
S corporations, 17-32
to family members, 2-31
Income splitting
between tax entities, 2-31
Income tax formula, 1-61-7
Independent contractor status, versus
employee status, 9-39-4
Individual income tax
capital gains and losses, treatment of,
2-30, 5-165-21
determination of, 2-22-26
due dates for filing returns, 2-342-35
filing joint or separate returns,
2-322-33
forms, 2-342-35
formula, 2-22-7
gross tax determination, 2-202-26
rate structures, 1-41-7
progressive tax rate, 1-4
proportional tax rate, 1-4
shifting income to family
members, 2-31
who must file, 2-332-34
Individual retirement accounts (IRAs),
9-389-44
deductible contributions, 9-389-44
investment model, 18-1118-13

nondeductible contributions,
9-399-40, 18-518-8
tax advantages, 9-40
tax rules, 9-399-44
Information releases, 1-25
Information releases, tax law, 15-13
Inheritances, exclusion from gross
income, 4-44-5
Injury payments, as gross income
exclusion, 4-84-10
Innocent spouse provision, 2-322-33
Insolvent financial institutions, deposits
in, 8-288-29
Installment obligations, disposition of,
11-1911-20
Installment sales, 11-1711-21
installment sale defined, 11-18
recapture, 13-1913-20
related-party sales, 11-21
reporting on Form 6252, 11-2811-29
repossession, 11-20
Insurance
casualty losses, failure to file claim,
8-22
employer-paid insurance, 4-104-12
health insurance benefits, as gross
income exclusion, 4-84-10
life insurance, 4-54-6
exclusion from gross income,
4-54-6
income from, 3-26
proceeds, 4-54-6
losses, 8-228-23
medical insurance, 7-67-8
tax treatment of, 4-11
Intangible assets
amortization of, 10-1710-20
research expenditures, 10-1910-20
Sec. 197 intangibles, 10-17
Intangible drilling costs (IDCs),
10-2310-24
definition of, 10-22
recapture provisions, 13-2113-22
tax preference item, 14-4
treatment of, 10-2310-24
IntelliConnectTM (INTELLICONNECT),
15-26, 15-3015-31
Interest
as gross income, 3-133-15
Series EE savings bonds exclusion,
3-143-15, 3-293-30
tax-exempt interest, 3-133-14
as itemized deduction, 7-127-21
capitalization of, 5-6
definition of, 7-127-13
imputed interest, 11-2211-25
interest expense
acquisition indebtedness,
7-167-17
active trade/business, 7-14
classification of, 7-137-18
incurred to generate tax-exempt
income, 7-15
investment interest, 7-147-15
passive activity, 7-14
personal, 7-16
qualified residence interest, 7-16
student loans, 7-19
late payment of taxes, 1-28
timing of interest deduction,
7-197-21
discounted notes, 7-20

interest paid with loan proceeds,

7-20
prepaid interest, 7-20
Internal Revenue Bulletin (I.R.B.), 15-17
Internal Revenue Code, 1-3, 1-24, 15-8
as source of tax law, 1-24
general language of, 1-24
history of, 15-8
organizational scheme, 15-8
tax law and, 15-8
Internal Revenue Service
audits, 1-27
selecting returns for, 1-27
Discriminant Function (DIF) system,
1-27
enforcement procedures, 1-27
organization of, 1-26
Internet, as research tool, 15-2615-30
citation search, 15-29
content search, 15-29
index search, 15-2815-29
key word search, 15-2715-28
noncommercial Internet services,
15-2915-30
Interpretations, tax law, 15-7
Interpretative regulations, 1-25, 15-10
Inventories, 11-1111-14
accounting methods, 11-1111-14
donation of, 7-24
generally accepted accounting
principles (GAAP), 11-1111-12
inventory cost
determination of, 11-1111-14
first-in, first-out, method
(FIFO), 11-12
last-in, first-out method (LIFO),
11-1211-14
lower of cost or market (LCM)
method, 11-14
mark-to-market method, 5-15
uniform capitalization rules,
11-1111-12
valuation methods, 11-1111-14
Investment expenses, 6-46-16
deduction criteria, 6-46-16
activity engaged in for profit,
6-56-30
business/expense requirement,
6-56-30
expenses related to exempt
income, 6-12
lobbying expenses, 6-146-15
necessary expense, 6-8
ordinary expense, 6-76-8
reasonable expense, 6-86-9
trade/business versus investment
classification, 6-56-6
Investment interest
interest expense, 7-147-15,
7-317-32
net investment income, 7-15
Investment models, 18-218-15
C corporation model, 18-1718-20
flow through model, 18-1618-17
multiperiod strategies,
18-1418-15
Investment tax credit (ITC),
14-2014-21
Investments
fixed-income investments
tax-exempt securities
tax preference item, 14-4

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

J-8 Individuals Appendix J

Involuntary conversions, 12-1012-15
condemnation, threat of, 12-11
definition of, 12-1112-12
into boot, 12-1212-13
involuntary defined, 12-1112-12
principal residence, 12-21
recapture, 13-19
replacement property, 12-1312-14
functional use test, 12-13
replacement with like-kind
property, 12-14
taxpayer-use test, 12-14
reporting of, 12-2312-24
time requirements, for replacement,
12-15
IRS collection costs, 1-13
IRS Letter Rulings, 15-13
IRS rulings, 1-25
IRS Service centers, location of, 1-26
Itemized deductions, 2-42-5, 2-72-10,
7-17-37
casualty/theft losses, 7-28
charitable contributions, 7-217-27
carryovers, 7-26
deduction limitations, 7-257-26
election to reduce amount of
charitable contribution, 7-32
property contributions, 7-327-33
qualifying organizations,
7-217-22
reporting of, 7-337-35
special rules for corporations,
7-267-27
type of property contributed,
7-227-25
definition of, 2-42-5
interest, 7-127-21
definition of, 7-127-13
incurred to generate tax-exempt
income, 7-15
interest expense classifications,
7-137-18
timing of deduction, 7-197-21
list of, 2-10
medical expenses, 7-27-8
amount/timing of deduction,
7-67-8
qualified expenses, 7-37-6, 7-31
qualified individuals, 7-27-3
reporting of, 7-33
miscellaneous deductions, 7-287-29
employment-related expenses, 7-28
expenses to produce income,
7-287-29
tax return preparation fees, 7-29
reduction for high-income taxpayers,
7-297-30
taxes, 7-97-12
deductible taxes, 7-9
definition, 7-9
reporting of, 7-357-37
See also specific deductions

Keogh plans, 9-379-38

Key employees, employer-paid insurance,
4-104-12
Kickbacks, 6-126-13
Kiddie tax, 2-242-26
Last-in, first-out method (LIFO), See
LIFO method
Lease cancellation payments, 5-285-29
Legal fees, as nondeductible expense,
6-66-7
Legislative process, steps in, 1-241-26,
15-715-8
Legislative reenactment doctrine, 15-10
Legislative regulations, 1-25, 15-10
Letter rulings, 1-25
tax law, 15-1215-13
LEXIS data base, 1-31
Life insurance, 4-54-6
exclusion from gross income, 4-54-6
dividends, 4-6
surrender of policy before death,
4-6
income from, as gross income, 3-26
Lifetime learning credit, 14-1514-16
See also Education credits
LIFO method, 6-18, 11-1211-14
simplified LIFO method, 11-13
Like-kind exchanges, 12-212-10
basis of property received, 12-712-8
boot
holding period, 12-10
property transfers involving
liabilities, 12-7
receipt of, 12-612-7
definition of, 12-212-5
recapture, 13-19
related-party transactions, 12-812-9
three-party exchanges, 12-512-6
Limited liability company (LLC),
1-221-23, 17-4
Limited liability partnership (LLP), 1-23,
17-317-4
Limited partnerships
passive activity, 8-12
Liquidating distributions
corporations, 16-3116-33
partnerships, 17-1317-14
Listed property, 10-1210-13

Livestock, Sec. 1231 and, 13-6

Loans
compensation loans, 11-24
gift loans, 11-24
shareholder loans, 11-24
tax avoidance loans, 11-24
Lobbying expenses, 6-146-15
Locked-in effect, 6-28
Lodging, See Meals/lodging
Long-term capital gains and losses
(LTCG and LTCL), 2-30, 5-175-21
Long-term care expenses, 7-5
Long-term contracts, 11-1511-17
completed contract method, 11-16
definition of, 11-15
look-back interest, 11-17
percentage of completion method,
11-16
Losses, 8-18-35
casualty/theft losses, 8-178-23
casualty defined, 8-178-19
deductible amount of, 8-198-20
disaster area election, 8-348-35
documentation of losses, 8-34
limitations on personal-use
property, 8-208-21
netting casualty gains/losses on
personal-use property, 8-21
theft defined, 8-19
when losses are deductible,
8-228-23
classification of
disallowance possibilities, 8-6
on tax return, 8-48-6
ordinary versus capital loss,
8-58-6
corporations, utilization of NOLs,
16-34
disaster losses, 8-23
hobby losses, 6-296-31, 6-34, 6-37
insurance/other reimbursements,
8-228-23
net operating losses, 8-298-33
carryback/carryover periods,
8-328-33
computation of, 8-308-32
election to forgo carryback, 8-33
recomputation of taxable income
in carryover year, 8-33
reporting the NOL, 8-35
partnerships, allocation to partners,
17-10
passive losses, 8-78-16
carryovers, 8-88-9
computation of, 8-78-10
credits, 8-10
passive activity defined, 8-108-12
publicly traded partnerships,
8-138-14
real estate trades or businesses,
8-148-16
rental real estate, 8-158-16
taxpayers subject to passive loss
rules, 8-128-13
rental real estate, 8-158-16
active participation, 8-15
limitation on deduction of loss,
8-158-16
S corporations, allocation to
shareholders, 17-2617-27
transactions that may result in, 8-28-4
abandoned property, 8-3

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

ISBN 0-558-86017-6

Joint returns
filing of, 2-32
innocent spouse provision, 2-322-33
surviving spouse and, 2-22
versus separate returns, 2-23
who may file, 2-202-21
Journal of Taxation, The, 15-24
Judicial decisions
importance of facts, 15-515-7

tax law, 15-715-24

Circuit Court of Appeals, 15-20
court system, overview of, 15-14
precedential value of decisions,
15-2015-23
Supreme Court, 15-2015-21
U.S. Court of Federal Claims,
15-19
U.S. district courts, 15-1815-19
U.S. Tax Court, 15-1415-18
Judicial doctrines, 1-25
Judicial exclusions, definition of, 4-2
Judicial interpretations, of tax law, 1-25
Federal Court System, 1-25
Judicial interpretations, tax law,
15-1415-23
citations, 15-11
primary cite, 15-19
secondary cite, 15-19
unreported decisions, 15-1815-19
Federal court system, 15-14
precedential value, 15-2015-23

Appendix J Individuals J-9

ISBN 0-558-86017-6

confiscated property, 8-3

demolition of property, 8-4
expropriated property, 8-3
sale/exchange of property, 8-28-3
seized property, 8-3
worthless securities, 8-38-4, 8-35
See also Bad debts; Capital gains/
losses; specific types of losses
Low-income housing, 13-15
Lower of cost or market method,
inventories, 11-14
Luxury automobiles, accelerated cost
recovery system (ACRS and MACRS)
and, limitations on, 10-1410-16
leased luxury automobiles, 10-16
Luxury water travel, deductions for, 9-9
Marginal tax rate, 1-4
Mark-to-market method, 5-15
Market discount bonds, 5-245-25
Market value, definition of, 5-4, 11-14
Married individuals
allocation of income between, 3-63-7
joint returns, 2-202-21
separate returns, 2-23
Material participation
in active trade/business, 7-14,
8-118-12
passive activity rules, 8-118-12
by closely held corporations, 8-13
by limited partnership, 8-12
by personal service corporations
(PSCs), 8-13
Meals/lodging
as gross income exclusion, 4-144-15
business meal disallowance,
9-149-15
Medical expenses, 7-27-8
amount/timing of deduction, 7-67-8
limitation on amount
deductible, 7-7
medical insurance
reimbursements, 7-77-8
timing of payment, 7-67-7
deductions vs. dependent care
credit, 7-33
qualified expenses, 7-37-6
capital expenditures for medical
care, 7-57-6
cost of living in institutions, 7-6
deductible medical services, 7-37-4
long-term care expenses, 7-5
medical insurance premiums, 7-6
transportation, 7-4
qualified individuals, 7-27-3
working with AGI floor, 7-31
Medical insurance
premiums, 7-6
reimbursements, 7-77-8
Medicare, tax rate, 9-3
Meetings, travel deductions, 9-9
Memorandum decisions, U.S. Tax
Court, 15-18
Minimum tax credit
corporations, 16-1216-13
individuals, 14-614-7
Minimum vesting requirements, qualified
pension plans, 9-30
Minor children, income of, 3-8
Modified ACRS (MACRS) System, 10-2
alternative depreciation system,
10-11, 10-24

listed property, 10-1210-13

luxury automobiles, limitations on,
10-1410-16
personal property
midquarter convention, 10-810-9
year of disposition, 10-9
real property,
classification/recovery rates for,
10-10
residential rental property, 10-10
restrictions, 10-1210-15
business-use assets, 10-1210-13
personal-use assets, 10-12
recapture of excess cost-recovery
deductions, 10-13
straight-line method under, 10-11
Moving expenses, 9-199-21, 9-449-45
direct moving expenses, 9-20
distance requirement, 9-19
employer reimbursements, 9-21,
9-449-45
employment duration, 9-199-20
expense classification, 9-20
indirect moving expenses, 9-21
reporting of, 9-49
Multiple support agreements, 2-17
Multiple support agreements, for medical
expenses, 7-31
Mutual funds, 3-173-18

corporations, 16-2716-28
partnerships, 17-14
S corporations, 17-2817-29
Nonqualified deferred compensation
plans, 9-319-32
restricted property plans, 9-339-34
unfunded deferred compensation
plans, 9-32
Nonqualified stock option plans, 9-36
taxation of, 9-36
Nonrefundable credits, definition of, 2-6
Nonresident aliens, head-of-household
status and, 2-222-23
Nonresidential real estate
Sec. 1250 recapture provisions,
13-1413-15
Nontaxable exchanges
holding period, 5-295-30
of property, 12-112-24
involuntary conversions,
12-1012-15
like-kind exchanges, 12-212-10
sale of principal residence,
12-1612-21
reporting nontaxable exchanges,
12-2312-24
Nontaxable stock dividends received,
5-115-12
Nontaxable stock rights received, 5-12

National Office, IRS, 1-26

Natural resources
Sec. 1231 and, 13-513-6
coal/domestic iron ore, 13-6
livestock, 13-6
timber, 13-513-6
Necessary expense, 6-8
Negligence penalty, 1-29
Net capital gain, 5-17
long-term, 5-17
preferential treatment for, 5-2, 5-21,
5-305-31
short-term, 5-17
Net gains/losses, treatment of, 2-30,
5-165-21
Net investment income, 7-15
Net operating losses, 8-298-33
carryback/carryover periods, 8-32833
election to forgo carryback period,
8-33
loss carryovers from two or more
years, 8-33
computation of, 8-308-32
corporations, 16-616-7
definition of, 8-29
obtaining the refund, 8-35
S corporations, utilization of, 17-31
Nonaccountable plans, 9-17, 9-18
Nonbusiness bad debts, 5-16, 8-268-28
definition of, 8-268-27
nonaccountable plan, 9-18
partial worthlessness, 8-278-28
tax treatment, 8-27
See also Bad debts; Business bad debts
Noncontributory pension plan, 9-28
Noncorporate taxpayers
capital gains/losses tax treatment,
5-165-21
Noncustodial parents, dependency
exemptions and, 2-172-18
Nonliquidating distributions

Objectives of tax law, 1-141-15

Office audit, 1-27
Office in home expenses, 9-249-27
See also Home office expenses
Oil and gas property, working interest in,
8-12
Open-fact situations, tax research,
15-215-3
Options
incentive stock option (ISO) plans,
9-35
nonqualified stock options, 9-36
sale/exchange of, 5-26
See also Call options, nonqualified
stock option plans and stock
option plans
Oral conclusions, tax research, 15-5
Ordinary expense, 6-76-8
Ordinary income property
as charitable contribution, 7-24
donation of inventory by
corporation, 7-24
definition of, 7-24
Ordinary loss, 5-23
versus capital loss, 8-58-6
Original issue discount, 5-24
Parent-subsidiary controlled groups,
16-19
Partnerships, 17-417-20
allocation to partners, 17-10
basis adjustments for operating items,
17-1017-11
basis of partnership assets, 17-617-7
basis of partnership interest,
17-417-5
capital contributions followed by
distribution to partner,
17-1217-13
cash method restrictions,
17-1917-20
credits, allocation to partners, 17-10

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

J-10 Individuals Appendix J

S corporations, 17-28
taxpayers subject to, 8-128-13
Patents, sale/exchange of, 5-27
Payment of taxes, 14-2914-32, 16-35
corporations, 16-35
estimated tax payments, 14-3114-32,
16-35
withholding, 14-2914-31
withholding allowances/methods,
14-30
Penalties
as nondeductible expense, 6-14
summary, 1-281-29
Pension investment model, 18-1018-13
Pension plans, 9-289-29
contributory pension plan, 9-28
defined benefit pension plan, 9-28
defined contribution pension plan,
9-28
non-contributory pension plan, 9-28
qualification of, 9-50
types of, 9-289-29
Pensions
advance payments, 3-22
as gross income, 3-203-22
determining nontaxable portion of,
3-203-22
paid as annuities, 3-203-22
Per diem allowances, 9-189-19
Percentage depletion method, 10-2210-23
Percentage of completion method, 11-16
Personal exemption, 2-122-19
definition of, 2-5
phase-out of, 2-18
Personal injury award, 4-84-10
Personal interest, definition of, 7-16
Personal property taxes, as itemized
deduction, 7-10
Personal service corporations (PSCs), 8-13
material participation by, 8-13
tax calculation, 16-1116-12
tax year, 11-211-7
Personal tax credits, 14-1114-13
child and dependent care credit,
14-1114-13
earned income credit, 14-25
reporting of, 14-3514-36
tax credit for the elderly, 14-13
Personal-use property
conversions to business use,
10-310-4
limitations on, 8-208-21
netting casualty gains/losses on, 8-21
rental value, as nonincome item, 4-3
self-help and use of, personal use
property, 4-23
Points, as interest, 6-20, 7-127-18
Policy-oriented research, 15-2
Precedential value of decisions,
15-2015-23
Circuit Court of Appeals, 15-23
forum shopping, 15-23
Tax Court, 15-21
U.S. Court of Federal Claims,
15-2115-23
U.S. District Court, 15-21
Prepaid expenses, cash method of
accounting, 6-19
Prepaid income
accrual method of accounting and,
3-113-12
tax planning and, 3-29

Prepaid interest
cash method of accounting,
6-196-20
timing of interest deduction, 7-20
Prepayments, as tax credits, 2-6
Previously deducted expenses
recovery of, 3-263-27
tax benefit rule, 3-27
Primary cites, 15-19
Principal residence, sale of, 12-1612-21
deferred gain, 12-1612-21
excluded gain, 12-1612-21
identifying principal residence, 12-22
involuntary conversion, 12-21
more than one residence in two-year
period, 12-1812-19
principal residence defined,
12-1712-18, 12-22
property converted to business
use, 12-22
property rented prior to sale,
12-1712-18
realized gain, determination
of, 12-16
reporting of, 12-2312-24
Private activity bonds, 14-4
Private letter ruling, 15-1215-13
Private nonoperating foundations
contributions to, 7-23
20% limitation on capital gain
property, 7-25
Prizes, as gross income, 3-24
Production activities deduction,
16-816-9
See also U.S. Production activities
deduction
Profit-sharing plans, 9-29
distinguishing features, 9-29
qualification of, 9-50
Progressive tax rate, 1-4
Property distributions
C corporations, 16-2716-28
tax consequences to distributing
corporation, 16-2716-28
tax consequences to shareholders,
16-27
Partnerships, 17-1317-14
S corporations, 17-2817-29
Property settlements, as gross income,
3-19
Property taxes, 1-11
Property transactions
capital gains/losses, 5-15-40
basis considerations, 5-55-12
capital asset defined, 5-135-16
corporate taxpayer tax treatment,
5-215-22
determination of, 5-35-5
holding period, 5-295-30
noncorporate taxpayer tax
treatment, 5-165-21
reporting, 5-345-40
sale/exchange, 5-225-28
nontaxable exchanges, 12-112-24
involuntary conversions,
12-1012-15
like-kind exchanges, 12-212-10,
12-2112-22
three-party exchanges, 12-512-6
sale of principal residence,
12-1612-21
See also Recapture

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

ISBN 0-558-86017-6

Partnerships (continued)
deductions, allocation to partners,
17-10
distributions, 17-1317-14
liquidating distributions,
17-1317-14
nonliquidating distributions,
17-14
elections, 17-33
filing requirements, 17-33
financial accounting considerations,
17-7
Form 1065, 17-3317-34
formation of, 17-417-7
fringe benefits, 17-29
guaranteed payments, 17-13
income, allocation to partners, 17-10
limited liability company (LLC),
17-317-4
limited liability partnership (LLP),
17-4
limited partnership interest, sale of,
17-1417-16
losses
allocation to partners, 17-10
limitations on, 17-1117-12
operating items, basis adjustments for,
17-1017-11
operations, 17-8
optional basis adjustments
election under Sec. 754,
17-3217-33
organizational expenses, 17-7
partnership interest
holding period for, 17-6
sale of, 17-1417-16
passive losses, limitations on, 17-12
required payments and fiscal years,
11-311-4
Sec. 751 ordinary income treatment,
17-1517-16
special allocations, 17-817-9
syndication fees, 17-7
tax attributes, 17-3517-37
tax year, 11-2, 11-28, 17-1817-19,
17-36
transactions between partner and
partnership, 17-1217-13
See also Limited partnerships; Oil and
gas limited partnerships
Passive activity
definition of, 8-108-12
interest expense, 7-14
limited partnerships, 8-12
material participation, 8-118-12
working interest in oil and gas
property, 8-12
Passive losses, 8-78-16
carryovers
from former passive activities, 8-9
taxable disposition of interest,
8-88-9
credits, 8-10
identification of an activity, 8-108-11
partnerships, limitations on, 17-12
passive activity defined, 8-108-12
passive income and, 8-88-10
publicly traded partnerships,
8-138-14
real estate trades or businesses,
8-148-16
rental real estate, 8-158-16

Appendix J Individuals J-11

Property transfers
corporations, 16-2016-24
basis considerations, 16-2116-22
liabilities, treatment of,
16-2216-24
Sec. 351 nonrecognition
requirements, 16-2016-21
like-kind exchanges, 12-212-10,
12-2112-22
recapture, 13-19
partnerships, 17-417-7
basis considerations, 17-417-5
gain recognition, 17-4
organization and syndication fees,
17-7
selection of property to transfer at
death, 5-33
selection of property to transfer by
gift, 5-325-33
Proportional tax rate, 1-4
Proposed regulations, 15-9
Publicly traded partnerships
passive losses, 8-138-14
Published opinions, U.S. Tax Court,
15-1715-18
Punitive damages, exclusion, 4-9

ISBN 0-558-86017-6

Qualified electric vehicle credit, 2-6

Qualified employee discounts,
4-124-13
Qualified pension plans, 9-289-29
qualification requirements, 9-28
tax treatment employees/employers,
9-30
employee retirement payments,
9-309-31
employer contribution limitations,
9-31
Qualified plan awards, 4-14
Qualified residence
definition of, 7-18
interest expense, 7-167-18
Qualified Retirement Savings
Contribution Credit, 14-1714-18
Qualified transportation fringes,
4-124-13
Qualified tuition programs, 4-8
Qualifying children, 2-132-14
Qualifying relative, 2-142-15
Real Estate Taxation, 15-24
Real estate taxes, 1-11, 7-107-11
apportionment of, 7-107-11
as itemized deduction, 7-107-11
real property assessments for local
benefits, 7-11
Real estate trades or businesses, passive
loss rules, 8-148-16
Real property
assessments for local benefits,
7-117-12
modified ACRS,
classification/recovery rates for,
10-10
subdivided for sale, 5-155-16
Realization, definition of, 3-2
Realized gain/loss, 5-35-5
adjusted basis of property, 5-45-5
amount realized, 5-35-4
determination of, 5-35-5
fair market value (FMV), 5-4
recovery of basis doctrine, 5-5

Recapture
alimony, gross income, 3-183-20
avoiding depreciation recapture
provisions, 13-23
transferring property at death,
13-23
charitable contributions, 13-18,
13-2013-21
corporations, 13-1613-17
gifts of property subject to, 13-18
installment sales, 13-1913-20
involuntary conversions, 13-19
like-kind exchanges, 13-19
of excess cost-recovery deductions,
10-13
property transfers subject to at death,
13-18
Sec. 1245 provisions, 13-813-11
Sec. 1250 provisions, 13-1013-16
Recognized gain/loss, determination of, 5-5
Recovery of basis doctrine, 5-5
Recovery of capital principle, 4-3
Refundable credits, definition of, 2-6
Regressive tax rate, 1-5
Regular corporations, See C corporations
Regular decision, U.S. Tax Court, 15-15
Regular tax liability
corporations, 16-1016-12
individuals, 14-314-4
Rehabilitation expenditures
credit for, 14-20
Reimbursement
automobile expenses, 9-129-13
insurance, 8-228-23
moving expenses, 9-21
expense classification and, 9-20
Related party transactions
definition of, 13-22
Related-party tranaction rules
sales or exchanges, 11-21
Related-party transaction rules, 6-266-29
definition of, 6-266-27
disallowed losses, 6-28
expense transactions, 6-286-29
Relationship test
for dependency exemptions, 2-13
Rental real estate
passive losses, 8-158-16
principal residence, 12-1712-18
real property trades or businesses,
8-148-16
Rents
as gross income, 3-153-16
Replacement property
involuntary conversions,
12-1312-14
functional use test, 12-13
replacement with like-kind
property, 12-14
taxpayer-use test, 12-14
principal residence, 12-1612-19
Repossession of property, 11-20
Research
client-oriented research, 15-2
closed-fact situations, 15-2
definition, 15-2
open fact situations, 15-215-3
steps in research process, 15-315-5
tax planning research, 15-3
Research expenditures, 10-1910-20
computation of, 10-1910-20
deduction/amortization, 10-1910-20

Reserve method, business bad debts and,

8-28
Residence, exclusion for sale, 4-22
Residential rental property
allocation of expenses, 6-326-33
definition of, 6-316-32
Sec. 1250 recapture provisions,
13-1013-16
used for both personal/rental
purposes, 6-316-34
Restricted property plans, 9-339-34
elections, 9-339-34
Retirement payments, 9-309-31
Returns, due dates for filing, 2-34,
16-35, 17-3317-34
Revenue Act of 1913, 1-3
Revenue Act of 1938, Sec. 1231 and,
13-2
Revenue Act of 1939, 1-3
Revenue procedures, 1-25, 1-25, 15-12
Revenue rulings, 1-25, 1-25, 15-12
Revenue sources, 1-3
Roth IRA, 9-409-42
See also Individual retirement
accounts
Royalties
as gross income, 3-153-16
defined, 3-15
Rulings
letter rulings
tax law, 15-1115-14
revenue rulings, 15-12
S corporations, 2-272-28, 17-2017-31
basis adjustments to stock,
17-2517-26
corporate tax on built-in gains,
17-30
election requirements, 17-2117-22
filing requirements, 17-34
fringe benefits, treatment of, 17-29
income shifting among family
members, 17-32
losses, utilization of, 17-31
passive loss limitations, 17-28
operations, 17-2317-25
qualification requirements,
17-2017-21
corporate restrictions,
17-2017-21
one class of stock restriction,
17-21
shareholder restrictions, 17-21
thirty-five shareholder limitation,
17-20
restoration of debt basis,
17-2717-28
shareholder taxation, 17-2617-28
cash/property distributions,
17-2817-29
limitations on loss deductions,
17-2617-28
single class of stock requirement,
17-21
tax attributes, 17-3417-37
restrictions, 17-29
tax year, 11-211-7, 11-28
required payments, 11-311-4
taxation of, 17-2017-31
termination of election, 17-2217-23
general effective date, 17-22
inadvertent termination, 17-23

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

J-12 Individuals Appendix J

Sec. 1250
purpose of, 13-11
recapture provisions, 13-1013-16
low-income housing, 13-15
nonresidential real estate,
13-1413-15
residential rental property,
13-1213-14
Sec. 1250 property defined, 13-11
Sec. 1252, conservation/land clearing
expenditures, 13-2013-21
Sec. 1253, transfer of franchise/
trademark/trade name, 5-275-28
Sec. 1254, oil and gas expenditures,
13-21
Secondary cites, 15-19
Securities
like-kind exchanges, 12-5
See also Shareholders; Worthless
securities
Securities dealers, 5-15
Seized property, losses from, 8-3
Self-employed individuals
deferred compensation, 9-379-38
defined contribution H.R. 10 plan,
9-379-38
Keogh plans, 9-379-38
medical insurance plans, 7-6
Sec. 179 expensing election, 10-7n
See also Home office expenses;
Individual retirement accounts
(IRAs)
Self-employment tax, 7-12, 14-814-9
purpose of, 14-8
self-employment income defined, 14-9
Seminar travel deductions, 9-9
Separate maintenance, 3-183-20
Separate property, definition of, 3-7
Separate returns
filing of, 2-32
joint returns versus, 2-23
Series EE savings bonds
accrued interest exclusion, 3-143-15
reporting interest income,
3-293-30
Severance damages, 12-13
Sex discrimination settlement, exclusion,
4-9
Shareholders loans, 11-24
Shareholders, C corporations
complete liquidations, 16-32, 16-33
dividend distributions, 3-163-18,
16-27, 16-34, 16-37
Stock redemptions, 16-2816-30
Shareholders, S corporations
cash/property distributions,
17-2817-29
fringe benefits, 17-29
limitations on loss deductions,
17-2617-27
restrictions, 17-2717-28
taxation, 17-2617-28
Shifting income, See Income shifting
Short-term capital gains and losses
(STCG and STCL), 2-30, 5-175-19
Sickness payments, as gross income
exclusion, 4-84-10
SIMPLE retirement plans, 9-44
Simplification of tax law, attempts at, 2-31
Simplified employee pensions, 9-44
Single class of stock requirement, S
corporations, 17-21

Single taxpayers, 2-23

Small business stock, exclusion, 4-214-22
Small cases procedures, U.S. Tax Court,
15-17
Smith, Adam, 1-11
Social objectives, tax law, 1-15
Social security benefits, 3-243-26
dependency exemption gross income
test and, 2-15
dependency exemption support test
and, 2-15
filing status, 3-243-26
Social security (FICA) taxes, 1-3, 1-11,
14-814-9, 14-33
Sources of tax law, 1-241-25
Special accounting methods, 11-1511-22
deferred payment sales, 11-21
installment sales method,
11-1711-21
See also Installment sales
long-term contracts, 11-1511-17
See also Long-term contracts
See also Accounting methods
Specific write-off method, bad debts,
8-28
Splitting income, See Income splitting
Standard deduction, 2-42-5, 2-102-12
Standard Federal Income Tax Reporter
(CCH), 15-2515-28, 15-30
Start-up costs, definition, 6-15
State income taxes, 1-7
as itemized deduction, 7-10
Statements on Standards for Tax
Services, (SSTSs), 15-3215-35
Statute of limitations, 1-28
Statutory regulations, 15-10
Stock bonus plans, 9-29
Stock dividends, 3-173-18
allocation of basis, 5-115-12
holding period, 5-30
Stock option plans, 9-349-36
incentive stock option (ISO) plans,
9-35
employee requirements, 9-35
nonqualified stock option plans, 9-36
Stock redemptions, 16-2816-30
as dividends or capital gains, 162916-30
complete termination of shareholders
interest, 16-30
Stock rights, 5-12
Straight-line method (SL)
use under Modified ACRS, 10-11
Student loan interest, 7-19, 9-21
Substantiation requirements, deduction,
6-176-18, 6-37
Support test
for dependency exemptions, 2-152-18
Supreme Court
tax law decisions, 15-1415-23
Supreme Court Reporter (S.Ct.),
15-2015-21
Surviving spouse
definition of, 2-22
joint returns and, 2-22
Sutter rule, 4-15
Syndication expenditures, partnerships,
17-7
Targeted jobs credit, 14-2114-22
Tax Adviser, The, 15-24
Tax benefit rule, 3-27

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

ISBN 0-558-86017-6

S corporations (continued)
involuntary revocations, 17-23
specified termination date, 17-22
See also C corporations;
Corporations
Salary reduction plans, 4-17
Salary, dependency exemption gross
income test and, 2-15
Sales taxes, 1-11
deductibility, 7-10
exempt items, 1-11
Sales/exchanges of property
capital assets, 5-225-29
See also Capital Assets
Schedule, tax return, See Form and
particular form number
Scholarships
definition of, 4-7
dependency exemption gross income
test and, 2-15
exclusion from gross income, 4-7
Scholes, Myron and Mark Wolfson,
1-301-31, 18-2, 18-2n
Sec. 61, gross income, 3-133-28
Sec. 102, gifts and, 4-4
Sec. 104(a), payments for injury/sickness,
4-84-10
Sec. 132
employee fringe benefits, 4-124-13
Sec. 179, 10-610-7
employee, conduct of trade or
business, 10-7n
expensing election, 10-610-7
recapture provisions, 13-20
self-employed individuals, 10-7n
Sec. 197 intangibles, 10-1710-20
Sec. 332, liquidation of controlled
subsidiary, 16-3216-33
Sec. 351, nonrecognition requirements,
16-2016-21
Sec. 721, nonrecognition rules,
partnerships, 17-4
Sec. 751, ordinary income treatment,
17-1517-16
Sec. 754, optional basis adjustments,
election, 17-3217-33
Sec. 1221, properties not regarded as
capital assets, 5-135-14
Sec. 1231 property, 13-113-28
history of, 13-2
involuntary conversions, 13-613-7
property, 13-513-6
definition of, 13-5
relationship to capital assets,
13-5
reporting gains/losses on Form 4797,
13-2413-28
tax treatment overview, 13-313-4
tax treatment procedure, 13-713-8
net gains, 13-3
net losses, 13-313-4
Sec. 1237, subdividing real estate,
5-155-16
Sec. 1239
depreciable property, gain on sale
between related parties, 13-22
Sec. 1244, stock
losses, 8-4, 8-58-6
Sec. 1245
property subject to, 13-913-11
purpose of, 13-913-11
recapture provisions, 13-813-11

ISBN 0-558-86017-6

Appendix J Individuals J-13

Tax computation methods, See
Computation methods
Tax Court Memorandum Decisions
15-18
Tax Court of the United States Reports,
15-1715-18
Tax credits See Credits
Tax law
administration of, 1-261-29
administrative appeal procedures,
1-29
audits, selection of returns for,
1-27
enforcement procedures, 1-27
penalties, 1-281-29
statute of limitations, 1-28
administrative interpretations,
15-1115-14
announcements, 15-1315-14
information releases, 15-13
letter rulings, 15-1215-13
notices, 15-1315-14
revenue procedures, 15-12
revenue rulings, 15-12
technical advice memoranda, 15-13
definition of, 15-115-2, 15-7
enactment of, 1-241-26
Internal Revenue Code, 15-8
judicial decisions, 15-1415-23
circuit court of appeals, 15-20
court system, overview of, 15-14
precedential value of decisions,
15-2015-23
Supreme Court, 15-2015-21
U.S. Court of Federal Claims,
15-19
U.S. district courts, 15-1815-19
U.S. Tax Court, 15-1415-18
judicial interpretations, 1-25
legislative process, 15-715-8
objectives of, 1-141-15
economic objectives, 1-14
encouragement of certain activities
and industries, 1-141-15
social objectives, 1-15
sources of, 1-241-25, 15-715-24
administrative interpretations,
1-25
Internal Revenue Code, 1-241-25
Treasury Regulations, 1-25
Treasury Department regulations,
15-915-11
authoritative weight, 15-10
citations, 15-11
final regulations, 15-915-10
interpretative regulations, 15-10
proposed regulations, 15-9
statutory regulations, 15-10
temporary regulations, 15-9
Tax Law Review, 15-24
Tax Management Portfolios (Bureau of
National Affairs), 15-25
Tax Notes, 15-24
Tax periodicals, 15-24
Tax planning
accounting methods, 11-28
accounting periods, 11-28
alternative minimum Tax,
14-3214-33
bad debts, 8-34
cash flow, 14-34
casualty losses, 8-34

charitable contributions, 7-327-33,

16-34
computer applications, 1-31
corporations, 16-3316-35
dividend policy, 16-34
dividends-received deduction,
16-3416-35
employee compensation, 4-23
employee expenses, 9-449-45
foreign earned income exclusion,
14-34
foreign tax credits, 14-34
general business tax credits, 14-34
gross income exclusions, 4-23
gross income inclusions, 3-283-30
hobby losses, 6-346-35
income shifting among family
matters, 17-32
individual income tax, 2-312-33
installment sales method, 11-28
interest expense deduction, 7-317-32
itemized deductions, 7-317-33
like-kind exchanges, 12-2112-22
losses, 8-34
medical expenses, 7-31
moving expenses, 9-449-45
net operating losses, 8-34, 17-31
nontaxable compensation, 9-45
nontaxable exchanges, 12-2112-22
principal residence, sale of, 12-22
property transactions, capital
gains/losses, 5-325-33
Selection of property to transfer at
time of death, 5-33
Selection of property to transfer
by gift, 5-325-33
S corporations, 17-3117-32
self-help income, 4-23
timing of deductions, 6-36
underpayment penalty, 14-33
unreasonable compensation, 6-356-36
utilization of losses, 16-34
Tax practice
components of, 1-291-31
tax compliance/procedure,
1-291-30
tax planning, 1-301-31
tax research, 1-30
computer applications, 1-31
tax research applications, 1-31
tax return preparation, 1-31
tax-planning applications, 1-31
statements on responsibilities in,
15-3215-35
Tax preference items
corporate alternative minimum tax,
16-1216-13
individual alternative minimum
tax, 14-4
Tax rate structures
average tax rate, 1-51-6
corporate income tax rate, 1-5
effective tax rate, 1-51-6
individual income tax rates, 1-41-5
progressive tax rate, 1-4
proportional tax rate, 1-4
regressive tax rate, 1-5
marginal tax rate, 1-51-6
Tax rates
corporate, 16-10
definition of, 1-41-5, 2-5
self-employment tax, 14-814-9

Tax Reform Act of 1986

preferential treatment for capital gain
income and, 5-2
Tax research, 15-115-25
citators, 15-3015-31
CHECKPOINT (RIA),
15-3015-31
INTELLICONNECT (CCH),
15-3015-31
client-oriented tax research,
15-2
computers as research tool,
15-3015-33
definition of, 15-2
end product of, 15-2
gray areas, 15-4
overview of, 15-215-3
policy-oriented tax research,
15-2
sample work papers and client letter,
15-36
steps in process, 15-315-5
tax advisors conclusions, 15-5
tax periodicals, 15-24
tax services, 15-25
tax treaties, 15-24
See also Research
Tax services, 15-25
Federal Tax Coordinator 2d,
15-25, 15-26, 15-27, 15-28
Standard Federal Income Tax
Reporter (CCH service),
15-25, 15-28, 15-30
Tax Management Portfolio,
15-25
United States Tax Reporter,
15-25
Tax system structure
criteria for, 1-111-14
Tax treaties, 15-24
Tax year, 11-211-7, 11-28,
17-1817-19, 17-29, 17-36
C corporations, 11-2, 11-28, 17-29,
17-36
partnerships, 11-2, 11-28,
17-1817-19, 17-36
personal service corporations (PSCs),
11-2, 17-29, 17-36
S corporations, 11-2, 11-28, 17-29,
17-36
Tax-deferred bonds, 3-29
Tax-exempt obligations, 3-29
accrual of original issue discount,
5-24
interest income, 3-29
dependency exemption gross
income test and, 2-15
interest expense incurred to
generate, 7-15
tax preference item, 14-4
private activity bonds, 14-4
Taxable bonds, 3-29
Taxable income
corporations, 16-1016-11
individuals, 2-5
Taxable interest, dependency exemption
gross income test and, 2-15
Taxation, 1-11-31
administration of, 1-261-29
determination of, 2-12-35
enactment of tax law, 1-241-26
objectives of, 1-141-15

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

J-14 Individuals Appendix J

reimbursed expenses, 9-129-13
to medical facility, 7-4
Travel expenses, 9-59-9
business versus pleasure, 9-79-8
deductibility of, 9-5
definition of, 9-59-6
foreign travel, 9-8
limitations, 9-9
production or collection of income,
9-59-6
qualification requirements, 9-6
substantiation of, 6-176-18, 9-46
Treasure finds, as gross income, 3-24
Treasury Regulations, 1-25,
15-915-11
authoritative weight, 15-10
citations, 15-11
forms of, 15-915-11
interpretative regulations, 1-25,
15-10
legislative regulations, 1-25
statutory regulations, 15-10
Treble damages, as expenditure contrary
to public policy, 6-14
2% nondeductible floor, 9-4
U.S. Circuit Court of Appeals, 15-20
precedential value of decisions, 15-23
primary cites, 15-19
secondary cites, 15-19
U.S. Court of Federal Claims, 15-19
precedential value of decisions,
15-2115-23
primary cites, 15-19
secondary cites, 15-19
U.S. district courts, 15-1815-19
precedential value of decisions,
15-21
primary cites, 15-19
secondary cites, 15-19
unreported decisions, 15-1815-19
U.S. Production activities deduction,
16-816-9
See also Production activities
deduction
U.S. Tax Cases (USTC), 15-19
U.S. Tax Court, 15-1415-18
acquiescence policy, 15-17
history of, 15-14
language of, 15-1515-17
memo decisions, 15-18
precedential value of decisions,
15-2015-21
published opinions and citations,
15-1715-18
regular decisions, 15-15
small cases procedures, 15-17
Underpayment penalty
avoidance of, 14-33
estimated taxes, 14-3114-32
Unearned income, dependents with,
2-242-26
Unemployment compensation, 3-24
Unemployment taxes, 1-11
Unfunded deferred compensation plans,
9-32

Unharvested crops/land, Sec. 1231

and, 13-6
UNICAP rules, See Uniform
capitalization rules
Uniform capitalization rules, cost of
acquired property and, 5-55-6,
11-1111-12
United States Board of Tax Appeals
Reports, 15-23
United States Reports, Lawyers Edition
(L. Ed.), 15-2015-21
United States Supreme Court Reports
(U.S.), 15-2015-21
United States Tax Reporter (Research
Institute of America), 15-25, 15-26
Unmarried individuals, surviving
spouse/head-of-household status,
2-222-23
Unrealized income, as nonincome item,
4-24-3
Unreasonable compensation, taxplanning considerations, 6-356-36
Unrecaptured Section 1250 gain, 13-12
Unreimbursed employee expenses
deductibility, 9-4
exceptions to floor, 9-4
limitations on, 9-4
2% nondeductible floor, 9-4
Vacation home rental, 6-316-34
Voluntary changes, in accounting
methods, 11-27
Wage reduction plans, 4-17
Wash sales, 6-236-25
basis of stock, 6-246-25
deduction of losses on, 6-236-25
substantially identical stock/securities,
6-246-25
Ways and Means Committee, U.S. House
of Representatives, tax law and,
15-715-8
Wealth transfer taxes, 1-71-10
estate tax, 1-91-10
gift tax, 1-81-9
See also Estate tax; Gift tax
Welfare benefits, dependency exemption
support test and, 2-15
Wherewithal-to-pay concept, 3-4
Widow/widower, as surviving
spouse, 2-22
Withholding, 4-24, 14-2914-31, 14-35
allowances/methods, 14-30
failure to withhold, 4-24
federal income tax withheld
computation, 14-31
Wolfson, Mark and Myron Scholes,
18-2, 18-2n
Work opportunity credit, 14-2114-22
Working condition benefits, 4-124-13
Worthless securities
losses from, 8-38-4
reporting losses from, 8-35
sale/exchange of, 5-23
Writ of certiorari, 15-14
Written conclusions, tax research, 15-5

Prentice Hall's Federal Taxation 2011: Individuals, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer. Published by Prentice Hall.
Copyright 2011 by Pearson Education, Inc.

ISBN 0-558-86017-6

Taxation (continued)
tax rate structures, 1-41-7
criteria for, 1-111-13
taxes, types of, 1-71-11
U.S. history, 1-21-3
early periods, 1-2
revenue acts, 1-3
revenue sources, 1-3
See also Individual income tax
Taxes
deductible taxes, 7-9
definition of, 7-9
local income taxes, 7-10
nondeductible taxes, 7-12
payment of, 14-2914-32
personal property taxes, 7-10
real estate taxes, 7-107-11
apportionment of taxes, 7-107-11
real property assessments for local
benefits, 7-11
reporting itemized deduction,
7-357-37
state income taxes, 7-10
types of, 1-71-11
customs duties, 1-11
employment taxes, 1-11
federal excise taxes, 1-11
franchise tax, 1-7
property taxes, 1-11
sales taxes, 1-11
state income taxes, 1-7
unemployment taxes, 1-11
wealth transfer taxes, 1-71-10
Taxesthe Tax Magazine, 15-24
Taxpayer identification numbers, 2-35
TC Memorandum Decisions (RIA),
15-18
Technical advice memoranda, 1-25
tax law, 15-13
Temporary living expenses, as indirect
moving expense, 9-21
Temporary regulations, 15-9
Testamentary gifts, 4-4
The Individual Income Tax (Goode),
1-3n
The Wealth of Nations (Smith), 1-11n
Theft losses
as itemized deduction, 7-28
deductible amount of, 8-198-20
documentation of loss, 8-34
identifiable event, 8-18
measuring losses, 8-198-20
reporting on Form 4684,
13-2413-27
Three-party exchanges, of property,
12-512-6
Tickets, entertainment, limitations on,
9-16
Timber, Sec. 1231 and, 13-513-6
Topical tax services, 15-25
Trade, definition of, 6-56-6
Trademarks, sale/exchange of, 5-275-28
Transportation expenses, 9-99-13
automobile expenses, 9-119-12
deductibility of, 9-9
definition of, 9-99-11