On March 15, 2013, York Technology Inc. filed for bankruptcy resulting in a total loss for its" only two shareholders. Bruce and a friend founded the company on April 10, 2011, with each owning 50% of the outstanding shares. Both Bruce and his friend each initially contributed $150,000 in exchange for their 509% interest in the company. Bruce and Alice earned $2,900.00 interest income from savings in 2013. Bruce earned $2,700 in interest income from US Treasury Bonds in 2013. On November 15, 2013, Alice received $2,000 of dividend income from JP Morgan Chase Stock, which she purchased on October 28, 2013. On November 30, 2013 Bruce sold some of his JP Morgan Stock for $52,500, which he purchased on July 01, 2013 for $31,000. Bruce was named as the sole beneficiary on his late mother's life insurance policy, and on December 31, 2013, Bruce received a check for $175,000 from the insurance company, which he held and deposited on January 02, 2014. On September 15, 2013, Bruce sold 1,200 shares Citibank Stock for $39,000. He purchased that stock on March 13, 2011 for $19,000. On December 24, 2013, Alice received a settlement award for injuries sustained in 2012. The settlement award included the following amounts: o Reimbursements of medical expenses which were not deducted on previous tax returns $25,000 0 Loss income $ 7,000 Punitive damages $20,000 Compensatory relating to a broken leg $75,000 On October 15, 2013, the truck purchased by Bruce and used exclusively for the business was totally destroyed in a auto accident. Bruce sued the driver of the automobile and received a damage award in November 2013 of $25,000. Bruce used the money to invest in the stock market. Since 2013 was the year of acquisition, no depreciation on the truck was previously taken. On November 30, 2013, Bruce determined that a personal loan to a friend was uncollectible because his friend had recently and unexpectedly died. The amount of the loan was $15,000. In 2013 the Jones paid only the following expenses for the Avenue A property: mortgage interest $21,875, and real estate taxes $14,350. They also E