Answered step by step
Verified Expert Solution
Question
1 Approved Answer
can you help me solve these tax questions Question Help * is the $100 floor on personal-use casualty losses imposed on each individual loss item
can you help me solve these tax questions
Question Help * is the $100 floor on personal-use casualty losses imposed on each individual loss item if more than one item of property is destroyed in a single casualty? Is the floor imposed before or after the casualty gains are netted against the casualty losses? O A. The reduction on personal-use casualty losses is S100 per casualty. The $100 reduction is imposed on each individual item if more than one item is destroyed in a single casualty. The $100 floor decreases the amount of the casualty loss B. The educ on on personal-use casual y losses 1s S 100 per casualty. The $10 reduction is not imposed upon each individua iten more th none item is destroyed in a single casualty. The or decreases e amount he C. The $100 floor on personal use casualty losses are imposed on each individual loss item if more than one item is destroyed in a single casualty. The floor decreases the amount of the casualty loss after it is netted against the casualty D. The $100 floor on persona -use casualty losses are imposed on each indiv dual loss n if more than one itomis d stroyed in a single casual y, Then or decreases the am unt of the casua oss before tis ne ted against he as a y after it is netted against the casualty gain. casualty loss before the loss is netted against the casualty gain. gain. gain. Question Help Dana is an attorney who specializes in family law. She uses the cash method of accounting and is a calendar-year taxpayer. Last year, she represented a client in a lawsuit and billed the client $5,000 for her services. Although she made repeated atter pts, ara was unable to collect the outstanding ech able. Finally, in No ember of the current year, she finds out that the iv du has mo ed withoutle ng any lo wa din address ana's attempts to catethe divid al ret tile what is the amount of deduction that Dana may take with respect to this bad debt? O A Dana may take a deduction up to 85% of the S5 000 with respect to this bad debt. Though the amount was billed at $5,000, only 85% is allowed as a deduction since Dana is a cash method taxpayer. Dana may not take any deduction with respect o this bad deot unless she waits a tree year waiting period and the amount is still not received. This is what makes a bad debt ful y unco lec ble and deductible to a cash method axpayer C. Dana may take a $5,000 deduction with respect to this bad debt. The amount was billed to her client during the year and included in her receivables during the year. D Dana may not take any deduction with respect to this bad debt. Although t is a bad debt that had been incurred in her business, she has no basis in the debt because she is a cash method taxpayer and did not report the receivable in income. Question Help In the current year Emma reports $175,000 of salary income, $24,000 of income from activity X, and $18,000 and $22,000 losses from activities Y and Z, respectively. All three activities are passive with respect to Emma and are purchased during the current year Requirement What is the amount of loss that may be deducted with respect to each of these activities? Also compute the amount of loss that must be carried over for each activity Compute the amount of loss that may be deducted per activity. Then compute the amount of loss that must be carried over per activity. (Do not round intermediary calculations. Enter loss amounts as a positive number. If an input field is not used in the table, leave the input field empty; do not enter a zero.) Loss deducted in current year Activity 10800 13200 Loss carried over per activity Activity 7200 8800Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started