CHANGES IN FUNDAMENTALS OF TAXATION, 2010 EDITION

For the 2010 edition of Fundamentals of Taxation, the Cruz author team has spent considerable time making careful revisions to the textbook and its supplements. These specific enhancements have been made in the 2010 edition:

• All chapters and tax forms have been updated for new tax law, making them current through September of 2009. Other updates beyond September can be found on the book's Online Learning Center, www.mhhe.com/cruz2010.
• An independent accuracy checker read every page of page proof and solutions manual to ensure that there were no errors. Each tax return problem, exhibit, and example was carefully checked to make sure that the calculations and form references were accurate.
• In addition, in the Testbank, every multiple choice question, true/false question, and problem was checked for accuracy by an independent reviewer.
• On the book's Online Learning Center, source documents for all tax return problems and comprehensive problems are now included.
• For all chapters and comprehensive problems, social security numbers and addresses are now included where needed.
• In chapter 2, coverage of children of divorced or separated parents has been expanded to include a new explanation of the revocation of a release of claim.
• Changes to 2009 unemployment compensation exemptions have been added to chapter 3. Also, changes for qualified higher education expenses in 2009 have been added below Example 3-12.
• Concept check 4-4 has been expanded to include an additional requirement. Also, 2009 changes to the Health Savings Account deduction have been added.
• Significant coverage of the National Disaster Relief Act is now included in the Limitation on Personal Casualty Losses section of chapter 5. New coverage of investment scam losses has been added. Under the State and Local taxes area, new coverage of changes in the excise sales tax has been added, along with a new question (#13) in the end-of-chapter material.
• In chapter 7, new explanations for adjusted basis have been added in LO1. Also, under Capital Gain Rates, more detail has been added for the 25% bracket; more detail and examples have also been added for recapture provisions and depreciation.
• More detail has been added to the rental expenses and passive activities sections of chapter 8.
• Chapter 9 has been revised to correspond with changes to the Hope credit and the addition of two new credits (Making Work Pay and Government Retiree). Concept check 9-9 has been added.
• Changes to the payroll wage withholding tables as a result of the American Recovery and Reinvestment Act of 2009 (ARRA), including changes to Form 941, are covered in learning objectives 1 and 2 of chapter 10.
• Changes to the required minimum distributions for retirees as a result of the Worker, Retiree, and Employer Recovery Act of 2008 are covered in learning objective 5 of chapter 11.