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During the past tax year, Jane identified $50,000 as a nonbusiness bad debt. In that tax year, Jane had $100,000 of taxable income, of which
During the past tax year, Jane identified $50,000 as a nonbusiness bad debt. In that tax year, Jane had $100,000 of taxable income, of which $5,000 con- sisted of short-term capital gains. During the current tax year, Jane collected $10,000 of the amount she had previously identified as a bad debt. Determine Janes tax treatment of the $10,000 received in the current tax year.
assuming that the $50,000 no business bad debt became wholly worthless. How much will Jane (single) include in her gross income during the current year?
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