The Fundamentals of Federal Taxation

The seventh edition of The Fundamentals of Federal Taxation is current through January of 2026 and incorporates a thoughtful treatment of the One Big Beautiful Bill Act enacted in July of 2025. It is a problem-based, transaction-oriented treatment of the basics of federal income taxation. It features a balanced approach toward tax planning and tax policy and is structured for easy accessibility through the use of forty-two chapters, each of which can readily be covered in one, or occasionally, two, class sessions. Changes since the 6th edition include new treatments of the SALT cap and other extensions of the Tax Cuts and Jobs Act, as well as expensing and depreciation of capital expenditures, and deductions for charitable gifts, tips, overtime, car loan interest, and seniors. This edition also further engages students by noting how tax law intersects with diverse and hot topics such as artificial intelligence, the Gig economy, cryptocurrency, the legalized marijuana industry, Silicon Valley job perks, wrongful incarceration, and human egg donations. The first half of the book provides students with an understanding of the overall structure of the federal income tax. This part culminates in two major review problems that assist students in integrating the knowledge gained. Thereafter, the book covers various major topics of taxation―including real estate taxation, intellectual property taxation, family taxation, the tax consequences of litigation, and deferred compensation―with an emphasis on tax planning. It is designed to give students an appreciation for how the law of taxation connects with everyday events of American life. The Fundamentals of Federal Taxation is a cogent, straightforward treatment of a complex subject. The topics, the selection of cases, and the design of the problems are all calculated to make tax fun and thought-provoking.