REG Individual Taxation and Return Computation

This part covers the federal taxation of individuals. The goal is to move from gross income through deductions and limitations to the reporting consequences that affect the return and the taxpayer’s ultimate liability.

In This Part

• Individual Gross Income and Exclusions covers what enters or stays out of the tax base.
• Individual Deductions, Credits, and Filing Rules explains how taxable income and liability are reduced.
• Individual Loss Limitation Rules covers the limitation regimes that frequently change the answer.
• Pass-Through Income Reporting for Individuals connects individual returns to partnership and S corporation activity.

How to Use This Part

• Read this part in order because the individual tax computation builds step by step.
• Focus on what changes inclusion, deduction, or limitation treatment.
• Revisit these chapters whenever a REG miss turns on individual-return mechanics or pass-through reporting.

In this section

• Individual Gross Income and Exclusions
  REG individual-tax coverage for gross income, exclusions, capital gains, and kiddie-tax issues.
  • Wages, Dividends, Pensions, and Gross Income Inclusions
    How common compensation, investment, and retirement items enter individual gross income.
  • Taxable and Tax-Exempt Interest and Dividends
    Tax treatment for interest, municipal bond income, ordinary dividends, and qualified dividends.
  • Short-Term and Long-Term Capital Gains and Losses
    Holding-period classification, netting, annual loss limits, and carryforward mechanics for individuals.
  • Gross Income Exclusions for Gifts, Insurance, Scholarships, and Fringe Benefits
    Major statutory exclusions from individual gross income and the facts that can make them taxable.
  • Kiddie Tax on Minor Children's Unearned Income
    When a child's unearned income is taxed using the parent-rate framework.
• Individual Deductions, Credits, and Filing Rules
  REG individual-tax coverage for AGI adjustments, itemized deductions, credits, QBI, and filing-status issues.
  • AGI Adjustments for Self-Employment, IRAs, and HSAs
    Above-the-line deductions that reduce adjusted gross income before itemized deductions or credits.
  • Itemized Deduction Categories and Limits
    Medical, tax, interest, charitable, and casualty deductions with their key thresholds and limitations.
  • Refundable and Nonrefundable Tax Credits
    How individual tax credits reduce liability and when a credit can generate a refund.
  • Qualified Business Income Deduction Rules
    Section 199A QBI deduction eligibility, SSTB limits, wage limits, UBIA factors, and taxable-income thresholds.
  • Filing Status and Estimated Tax Payment Rules
    How filing status affects individual tax computation and when estimated-payment safe harbors apply.
• Individual Loss Limitation Rules
  REG coverage of at-risk rules, passive-loss limits, suspended losses, hobby losses, and related disallowances.
  • At-Risk and Material Participation Rules
    How at-risk amounts and participation facts limit individual loss deductions.
  • Passive Losses and Rental Real Estate Activities
    Passive activity loss limits, rental real estate exceptions, real estate professional rules, and suspended losses.
  • Suspended Losses Released on Disposition
    When complete taxable disposition releases passive or at-risk suspended losses.
  • Hobby Losses and Other Nondeductible Items
    Profit-motive factors, hobby loss limits, and other individual deductions that may be disallowed.
• Pass-Through Income Reporting for Individuals
  REG pass-through reporting coverage for K-1 items, separate statements, basis, and loss utilization.
  • Partnership and S Corporation Flow-Through Items
    How partnership and S corporation items pass to individual owners and preserve tax character.
  • Separately Stated Items and Ordinary Income
    How pass-through entities separate items that must keep their tax character on owner returns.
  • Owner Basis Calculations and Loss Utilization
    How partner and shareholder basis limits individual deductions from pass-through entities.
  • Schedule K-1 Reporting and Compliance
    How individual owners read, classify, and report Schedule K-1 items from pass-through entities.