QUESTION 10 Tim loaned a friend $4,000 to buy a used car. In the current year, Tim's friend declares bankruptcy and the debt is considered totally worthless. What amount may Tim deduct on his individual income tax return for the current year as a result of the worthless debt, assuming he has no other capital gains or losses for the year? a. $2,000 short-term capital loss b. $3,000 ordinary loss c. $4,000 short-term capital loss od. $3,000 short-term capital loss e. $4,000 ordinary loss a QUESTION 11 Arnold purchased interests in two limited partnerships 6 years ago. During 2019, Arnold had income of $22,000 from one of the partnerships. He had a loss from the other partnership of $32,000, salary income of $35,000, and dividend income of $2,000. What is the amount of net passive losses that Arnold may deduct for 2019? O a. None of these b. $10,000 OC. $2,000 od. $8.000 O e. $0 QUESTION 12 Arnold purchased two rental properties 6 years ago. He actively participates in their management. During 2019, Arnold had income of $22,000 from one of the rentals. He had a loss from the other rental of $32,000, as well as salary income of $35,000, and dividend income of $2,000. What is Arnold's net passive income or loss deduction? O a. $8,000 net loss b. $22,000 net loss O c. $10.000 net loss d. None of these e. $32,000 net loss QUESTION 13 Bennett purchased a tract of land for $20,000 in 2013 when he heard that a new highway was going to be constructed through the property and the land would soon be worth $200,000. The highway project was abandoned in 2019 and the value of the land fell to $15,000. Bennett can claim a loss in 2019 of: O a. $180.000 b. $165,000 OC. $0 O d. $5.000 e. None of these QUESTION 10 Tim loaned a friend $4,000 to buy a used car. In the current year, Tim's friend declares bankruptcy and the debt is considered totally worthless. What amount may Tim deduct on his individual income tax return for the current year as a result of the worthless debt, assuming he has no other capital gains or losses for the year? a. $2,000 short-term capital loss b. $3,000 ordinary loss c. $4,000 short-term capital loss od. $3,000 short-term capital loss e. $4,000 ordinary loss a QUESTION 11 Arnold purchased interests in two limited partnerships 6 years ago. During 2019, Arnold had income of $22,000 from one of the partnerships. He had a loss from the other partnership of $32,000, salary income of $35,000, and dividend income of $2,000. What is the amount of net passive losses that Arnold may deduct for 2019? O a. None of these b. $10,000 OC. $2,000 od. $8.000 O e. $0 QUESTION 12 Arnold purchased two rental properties 6 years ago. He actively participates in their management. During 2019, Arnold had income of $22,000 from one of the rentals. He had a loss from the other rental of $32,000, as well as salary income of $35,000, and dividend income of $2,000. What is Arnold's net passive income or loss deduction? O a. $8,000 net loss b. $22,000 net loss O c. $10.000 net loss d. None of these e. $32,000 net loss QUESTION 13 Bennett purchased a tract of land for $20,000 in 2013 when he heard that a new highway was going to be constructed through the property and the land would soon be worth $200,000. The highway project was abandoned in 2019 and the value of the land fell to $15,000. Bennett can claim a loss in 2019 of: O a. $180.000 b. $165,000 OC. $0 O d. $5.000 e. None of these
