What is 1244 stock and how are capital gains and losses on 1244 stock treated under the IRC?

How does the tax treatment of casualty losses on personal property compare with the treatment of casualty losses on business or investment property?

Jason is a tax attorney. He uses the cash method of accounting and is a calendar-year taxpayer. Last year, Jason represented a client before the Tax Court. He billed the client $10,000 for his services. Jason made repeated attempts to collect the $10,000 receivable from his client. However, he was unsuccessful. In December of the current year, Jason discovers that his client has moved out of the country without leaving a forwarding address. May Jason deduct this $10,000 bad debt? Explain.Would your answer change if Jason were an accrual-basis taxpayer?

How does the IRC define a non-business debt, and how, if at all, is a non-business bad debt deducted?

What is a passive activity, and how are losses on a passive activity treated under the IRC? Explain.

A taxpayer who is employed as a custodian for a public school rents a house that he owns to a tenant. The taxpayer would like to deduct losses incurred on this rental activity against his salary and investment income. Under what circumstances would he be allowed to deduct the losses against his active and portfolio income? Are there any limitations on the amount of the rental activity loss the taxpayer may deduct? Explain.