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Marsellus also has a large amount of illegal income from his business as a bookie and involvement with organized crime. He doesnt want trouble with
- Marsellus also has a large amount of illegal income from his business as a bookie and involvement with organized crime. He doesnt want trouble with the IRS, though. He gives you the following information regarding those activities:
Income from contracts | $450,000 |
Salaries for employees (all P/R returns filed): | |
Vincent Vega | 100,000 |
Jules Winfield | 125,000 |
Rent for gambling hall | 36,000 |
Utilities for gambling hall | 26,000 |
Cleaning service for gambling hall | 10,000 |
- Two years ago, Marsellus and Mia sold stocks held as investments that had declined considerably in value. As a result, they recognized a long-term capital loss of $77,000. Because they were able to claim only $3,000 of this loss on their prior year tax return, they have a $74,000 long-term capital loss carryover to the current tax year.
- Marsellus sold three bottles of 50 year old single-malt whiskey on March 12 of the CTY. The bottles were purchased for $675 each on July 10 of the prior tax year. At the time, Marsellus thought he wanted to collect whiskey to diversify his portfolio. However, it was simply a temptation to drink, so Marsellus sold all three to a friend who was collector for $1,500 total.
Mia is filing jointly with her husband Marsellus using the cash basis. How do you treat these activities on their joint 2019 tax return and what tax forms should be used?
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