Solution for Concepts in Federal Taxation 2016 23rd Edition Chapter 8, Problem 1

by Kevin E. Murphy, Mark Higgins
1463 Solutions 16 Chapters 129053 Studied ISBN: 9781305585157 Taxation 5 (1)

Chapter 8, Problem 1 : 1.What is the difference between a personal exemption...

1.What is the difference between a personal exemption and a dependency exemption? Are all taxpayers allowed a personal exemption?


Step-By-Step Solution

1.Both types of exemptions are worth the same amount in terms of a deduction. Personal exemptions are allowed to the taxpayer(s) filing the return (this can never be greater than two), while dependency exemptions are allowed for those individuals who qualify as a taxpayer's dependent.

Not all taxpayers are entitled to a personal exemption.  A taxpayer that is claimed as a dependent of another is not allowed a personal exemption deduction.  The effect of this provision is to allow only 1 exemption deduction per individual.  Note: If there is total tax compliance, then the total number of exemptions taken equals the total U.S. population.  However, two factors, administrative convenience and tax evasion, prevent this from happening.  For purposes of administrative convenience, the government does not require every taxpayer to file a return.  Other taxpayers who are required to file a return choose not to file -- tax evasion.


Unlimited Access Free
Signup & Access More than 10 Million+
  • Textbook Solutions
  • Flashcards
  • Homework Answers
  • Documents
All Chapters Solved


Is this a textbook?

We do not endorse or sell any Textbooks in this service. This is only a solution guide for the textbook shown. So, you will find all the answers to questions in the textbook, indexed for your ease of use. ExploreNow!

I am unable to find the book I need.

You can request for your textbook to be answered. While you may get the book resolved within 15-20 days’ subject to expert availability and can access it at no cost if you are premium member, We encourage you to use our Study Help service for the specific question or even a full chapter you currently, need within a 24-48-hour window.

My book is similar but not the same!

This may be due to different versions or editions of the same book. You can check the table of contents and match the questions in each chapter (As you can see, the questions are free to view for the entire book). You can subscribe if you decide the step-by-step solutions will be useful albeit the differences.

Not all questions are answered!

We try not to post guidebooks that are under progress. However, some guides are so high in demand that we have to post them as we work on them. If you find the notification stating, "An expert is currently solving this for you" in the answer section, you can contact customer support to know the status or even get an instant answer if you are a premium member.

The ISBN's are not matching!

Check if there are other ISBN's mentioned on the book cover page. If it still does not match, check the samples available to ensure you are on the right guide. 

Can I see some samples?

Every chapter in the book has the first three solutions displayed in full for free. Browse the chapters and questions to view the same. 

Is it possible to see a specific answer before I subscribe?

Contact customer support via Live Chat to request the same. They will assist you with the full answer if it is a simple question or a partial answer to assure you of the availability if it is a large solution.