Fundamentals of Taxation for Individuals and Business Entities, with eBook Access Code: A Practical Approach, 2026 Edition

An innovative approach to understanding the federal income tax laws and using them to develop tax-efficient strategies for individuals and businesses. Present the big picture with a practice-based approach to understanding tax laws so students can develop critical thinking and problem-solving skills that prepare them for the real world. Fundamentals of Taxation — Individuals and Business Entities, 2026 Edition introduces a logical foundation for the income tax system so students can understand why a law exists and how to apply the law to practical tax problems. Professional skill-building exercises develop critical thinking and communication skills and the ability to identify and address ethical dilemmas, preparing students to be effective tax professionals. WILEY ADVANTAGE Features Professional Skill-Building Exercisesthat focus on tax-planning skills, analytical skills, research skills, communication skills, and the ability to identify and address ethical dilemmas Prepares students for their careers and the CPA Exam with Task-Based Simulation Problems that include realistic source documents such as 1099s, W-2s, invoices, and legal agreements that students use to solve problems Teaches tax planning skills through real-world cases, Spotlight on the Tax Law boxes, and Excel exercises that stimulate critical analysis and evaluation Creates a realistic environment to teach students how to apply their knowledge that will transfer to job-ready skills with Tax Form and Tax Return Problems Includes instructor and student companion sites with an extensive collection of additional resources, such as lesson plans, a Solutions Manual, presentation slides, practice quizzes, downloadable forms, and spreadsheets. AN INTERACTIVE, MULTIMEDIA LEARNING EXPERIENCE This textbook includes access to an interactive, multimedia e-text. Icons throughout the print book signal corresponding digital content in the e-text. Videos: Fundamentals of Taxation — Individuals and Business Entities integrates abundant video content developed to complement the text and engage readers more deeply. Content Review Videos provide a detailed review of each learning objective in each chapter and help students learn key concepts and an understanding of tax laws, the big picture, and the Why behind it. Solution Walkthrough Videos created by the authors provide step-by-step instruction on how to complete problems like those in the text. Downloadable Figures and Files: Downloadable Content appears throughout the E-Book, enabling students to see and work with tax forms, legal agreements, and spreadsheets. Interactive Self-Scoring Quizzes: Concept Check Questions at the end of each section provide immediate feedback, helping readers monitor their understanding and mastery of the material.

Table of Contents:
Dedication iii Brief Contents v Learning the Big Picture of Tax to Be a Valued Professional vi What Are Our Stories? vii What Makes Our Approach to Learning Tax Distinctive? ix Assessment xiii Connecting to the Profession xvi An Interactive, Multimedia Learning Experience xviii Preparing for the Cpa Exam xix For Instructors xx Acknowledgments xxi Table of Contents xxiii Part I Introduction to Income Taxation 1 The Professional Practice of Taxation 1-1 2 Fundamentals of the Federal Income Tax System 2-1 3 Tax Authority, Research, Compliance Rules, and Professional Responsibilities 3-1 4 Dependents and Filing Status 4-1 Part II Income 5 Framework for Income Recognition 5-1 6 Income from Personal Activities 6-1 7 Income from Services 7-1 Part III Deductions 8 Framework for Deductions 8-1 9 Deductions for AGI and Itemized Deductions 9-1 10 Business Expenses 10-1 11 Limitations on Business Losses and Expenses 11-1 Part IV Taxation of Property Transactions 12 Taxation of Investment Income 12-1 13 Cost Recovery of Property 13-1 14 Taxation of Assets Used in a Trade or Business 14-1 15 Property Transactions: Nonrecognition of Gains and Losses 15-1 Part V Other Individual Topics 16 Personal Tax Credits 16-1 17 Alternative Minimum Tax and Other Taxes 17-1 Part VI CPA Evolution: Core—Tax 18 Business Entity Topics: CPA Exam Core—Taxation and Regulation 18-1 Part VI (Chapter 18): Comprehensive Tax Return Problem 18-107 Appendix A Tax Formula Items A- 1 Appendix B Tax Forms B- 1 Glossary G- 1 Index I- 1

About the Author :
GREGORY A. CARNES is the Raburn Eminent Scholar of Accounting at the University of North Alabama. He served as Dean of Sanders College of Business and Technology for 11 years. With a passion for education and taxation, he has dedicated his career to teaching accounting students and guiding them toward successful careers. Specializing in tax, he has taught for over 25 years in CPA review programs and professional tax seminars. In addition to his teaching, he is an accomplished author of tax textbooks and over 30 academic articles. SUZANNE YOUNGBERG joined the faculty at Northern Illinois University as a full-time member in 2000 and is currently teaching in the accounting graduate and undergraduate programs. Prior to joining NIU, she worked for five years in the tax department of a medium-sized public accounting firm and then maintained her own tax practice for 30 years specializing in individual and small business compliance and strategic tax planning. Suzanne received her Bachelor of Science in Accountancy from NIU and her Master of Science in Taxation from DePaul University. ALSO BY THE AUTHORS Taxation of Business Entities, 2026 Edition provides in-depth analysis of the income taxation of business entities, estates, and trusts; and of other advanced topics such as estate and gift taxation, accounting for income taxes, state and local taxation, and the taxation of multijurisdictional businesses.