1 A small business is expected to be in the 25 percent tax bracket this year and in the 39 percent tax bracket next year Provide two tax planning strategies the business might want to consider before the year end 2 Brian Greene, a self employed musician who uses the accrual method of accounting, made a nonbusiness related loan of $1,000 to his friend Pam in Year 1 It becomes clear in Year 2 that Pam will be unable to repay the entire debt (a ) Can Brian claim a bad debt deduction in Year 2 Explain your answer (b ) Assume the same facts, except that the debt is business related Can Brian claim a bad debt deduction in Year 2 Explain your answer 3 Grotto, Inc exchanged an eight unit apartment building for a four unit apartment building Grotto's adjusted basis in the eight unit building was $320,000 and its fair market value was $400,000 The four unit building was worth $440,000 and was subject to a $40,000 mortgage, which Grotto assumed Grotto's realized and recognized gain on the exchange are 1 A small business is expected to be in the 25 percent tax bracket this year and in the 39percent tax bracket next year Provide two tax planning strategies the business might want to consider before the year end 2 Brian Greene, a self employed musician who uses the accrual method of accounting, made a nonbusiness related loan of $1,000 to his friend Pam in Year 1 It becomes clear in Year 2 that Pam will be unable to repay the entire debt (a ) Can Brian claim a bad debt deduction in Year 2 Explain your answer (b ) Assume the same facts, except that the debt is business related Can Brian claim a bad debt deduction in Year 2 Explain your answer 3 Grotto, Inc exchanged an eight unit apartment building for a four unit apartment building Grotto's adjusted basis in the eight unit building was $320,000 and its fair market value was $400,000 The four unit building was worth $440,000 and was subject to a $40,000 mortgage, which Grotto assumed Grotto's realized and recognized gain on the exchange are

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1. A small business is expected to be in the 25-percent tax bracket this year and in the 39-percent tax bracket next year. Provide two

1. A small business is expected to be in the 25-percent tax bracket this year and in the 39-percent tax bracket next year. Provide two tax planning strategies the business might want to consider before the year end.??? 2. Brian Greene, a self-employed musician who uses the accrual-method of accounting, made a nonbusiness-related loan of $1,000 to his friend Pam in Year 1. It becomes clear in Year 2 that Pam will be unable to repay the entire debt. (a.) Can Brian claim a bad debt deduction in Year 2? Explain your answer. (b.) Assume the same facts, except that the debt is business-related. Can Brian claim a bad debt deduction in Year 2? Explain your answer. 3. Grotto, Inc. exchanged an eight unit apartment building for a four-unit apartment building. Grotto's adjusted basis in the eight-unit building was $320,000 and its fair market value was $400,000. The four-unit building was worth $440,000 and was subject to a $40,000 mortgage, which Grotto assumed. Grotto's realized and recognized gain on the exchange are: image text in transcribed

1. A small business is expected to be in the 25-percent tax bracket this year and in the 39percent tax bracket next year. Provide two tax planning strategies the business might want to consider before the year end.??? 2. Brian Greene, a self-employed musician who uses the accrual-method of accounting, made a nonbusiness-related loan of $1,000 to his friend Pam in Year 1. It becomes clear in Year 2 that Pam will be unable to repay the entire debt. (a.) Can Brian claim a bad debt deduction in Year 2? Explain your answer. (b.) Assume the same facts, except that the debt is business-related. Can Brian claim a bad debt deduction in Year 2? Explain your answer. 3. Grotto, Inc. exchanged an eight unit apartment building for a four-unit apartment building. Grotto's adjusted basis in the eight-unit building was $320,000 and its fair market value was $400,000. The four-unit building was worth $440,000 and was subject to a $40,000 mortgage, which Grotto assumed. Grotto's realized and recognized gain on the exchange are