deduction is she allowed?
Q: Alison owns a painting that she received as a gift from her aont 10 years ago. The aunt created the…
A: The gift tax is an assessment on the exchange of property by one individual to another while…
Q: Charlie and his wife lived in the house for the last 15 years. In 2013 due to some unknown reasons,…
A: Here discuss about the details of the case which are incurred with the US Code § 121 for the sale of…
Q: John Johnson, single, sold his home that he had owned for 20 years for $650,000. He purchased it for…
A: Gain is the amount that is difference between the purchase price and sales price.
Q: At the beginning of the year, Amber has a carryover of unused losses in the amount of $1,250 under…
A:
Q: Jim had a car accident in 2019 in which his car was completely destroyed. At the time of the…
A: Formula: Deductible loss = Car value - ( car value x insurance recovery ) Car value and insurance…
Q: Alexa owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in…
A: AGI is, adjusted gross income of the business or individual which is used for calculation of taxable…
Q: Lazaro saved the life of Cory and three others who met ä car accident Unintentionally, it was found…
A: Tax is the charge which is levied by the government. There are different tax slabs for different…
Q: Roberta was involved in an automobile accident in 2021. Her car was used 60% for business and 40%…
A: Itemized deduction for the casualty loss shall be calculated for business part only.
Q: Simone, a single taxpayer, bought her home in Orlando 25 years ago for $55,000. She has lived…
A: Given that: Purchase price of home = $55000 Sale value of home = $405000
Q: What is the maximum gain that Olessa must report in connection with the sale of her principal…
A: Given case is: Olessa, single and age 60, sold her home for $540,000 after living there for 20…
Q: Alexa owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in…
A: Adjusted gross income (AGI) refers to gross income less the relevant adjustments to gross income.
Q: When Carolina's house burned down, she lost household items worth a total of $55,000. Her house was…
A: In the case of insurance, the amount receivable on loss is lower of the actual loss and maximum…
Q: Bernadette sold her home. She received cash of $40,000, the buyer assumed her mortgage of $180,000,…
A: This pertains to determination of gain and finding the character of that gain. Bernadette has sold…
Q: Sining stole a watch of Benita, then sold it to Goreng for the amount of 5,000. Goreng is in good…
A: Reimbursement: It implies to the repayment that is made to a person who has lost or spent his…
Q: Michelle is an active participant in the rental condominium property she owns. During the year, the…
A: Total Income of Michelle = $ 124,000 + $ 10,900 + $ 3,900 = $ 138,800
Q: Bradley goes into bankruptcy owing $25,000 as wages to his four employees. There is enough in his…
A: As per the bankruptcy Act, secured creditors and employees are paid first. Secured creditors are the…
Q: Chauncey, aged 17, sold his 1949 Anteater automobile for $500 to Chang, an adult. Two weeks later…
A: Disaffirmance of the sale can be defined as the act or right of renouncing the contract of sale…
Q: Tina disposed of a painting on 1 July 2020 for $500,000 which she had bought in February 2008 for…
A: Capital Gains are gains arising from sale asset when proceeds from such sale are compared with the…
Q: In 2011, Avery bought a gold necklace for her own use at a cost of $8,000. In 2018 when the fair…
A: Formula: Taxable Gain = Selling price - Fair market value Deduction of fair market value from…
Q: ose sued Mari for breach of promise to marry. Mari lost the duly paid the court's award that…
A: solution analysis of the case Jose sued Mari for breach of promise to marry Mari lost the duly paid…
Q: Barbara donates a painting that she purchased three years ago for $8,000, to a university for…
A: Barbara's charitable contribution deduction for this donation = $8000
Q: Luciana, a nonshareholder, purchases a condominium from her employer for $85,000. The fair market…
A: Luciana purchased a condominium from her employer for $ 85,000 having fair market value of $…
Q: What amount, if any, does Bob’s estate exceed the $11,000,000 exclusion amount?
A: Federal gift tax can be defined as the amount of tax to be paid by the transferor of the property to…
Q: Robyn is a taxpayer painted her office, which she uses for her business purposes. She has paid…
A: Robyn is a tax payer painted her office which is used for the purpose of business; she has paid…
Q: This year, Amy purchased $2,000 of equipment for use in her business. However, the machine was…
A: Equipment is the asset reported under the head plant, property, and equipment in the balance sheet…
Q: Noelle's diamond ring was stolen in 2017. She originally paid $15,400 for the ring, but it was worth…
A: Taxes are the amount of liabilities and dues that is being payable by individual to the government…
Q: Sean sued an unscrupulous person for derogatory remarks which he considered to have besmirched his…
A: Return on Capital = (Return / Capital) x 100 In the given case, Return = reimbursement for…
Q: what would you advise Rose to do with regard to the transactions?
A: Recognized gain or loss can be defined as the excess or deficit amount recovered over the sale of…
Q: In 2021, Morley, a single taxpayer, had an AGI of $30,000 before considering the following items:…
A: The gain and loss are canceled out when a taxpayer has both a personal casualty gain and a personal…
Q: Daniel, who is single, purchased a house on May 15, 1997, for $133,000. During the years he owned…
A: The question is multiple choice question. Required Choose the Correct Option?
Q: Explain why the loss resulting from the sale of a computer in the following three situations is…
A:
Q: Jeff is a single taxpayer who sold his home when he was transferred from NY to Denver by his…
A: Exclusion gain is the amount which is obtained when a house is sold and is the capital gain is…
Q: Sean sells land to Eli, his brother, for the fair market value of $39,000. Six months later when the…
A: Recognized gain or loss - It is a situation when an asset is sold at a price that is more than or…
Q: Mick was a flood victim and had to spend a good amount to restore his home after the flood. His…
A: Auditing is the systematic and independent examination of financial information of an entity whether…
Q: Eva Stone's home in Chicago was recently gutted in a fire. Her living and dining rooms were…
A: Insurance company pay the remaining value of the product lost.
Q: Jes had a personal casualty loss in 20X1 due to a hurricane damaging his home. The area where his…
A:
Q: Alexa owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in…
A: Itemized deductions refer to certain expenses incurred by the taxpayer that are allowed to be…
Q: Alex is a carpenter who purchased a vacant block of land in Sydney on 1 October 1980. On 1 September…
A:
Q: Alan owns a ranch in Kansas. During the year, a tornado damaged one of his barns and destroyed some…
A: Please see the next step for the solution
Q: The nephew of a well-known artist gave a costly artwork to an individual taxpayer. After two years,…
A: Answer Given is that The nephew of a well-known artist gave a costly artwork to an individual…
Q: Betty is an unmarried attorney. During the year a hurricane completely destroys her home, which had…
A: (Casual) - Casualty & Theft Losses from a federally declared disaster (>10% of AGI)…
Q: Becky purchased a P1,500,000 life insurance policy for P100,000. During the year, Becky died and her…
A: Life insurance appears to be an agreement between the owner of an insurance plan as well as an…
Q: Belinda was involved in a boating accident in 2021. Her speedboat, which was used only for personal…
A: Introduction: When it comes to taxes, your adjusted gross income is just your total income less any…
Q: Marika Katz bought a new Blazer and has insurance coverage of 25/50/25 with $200 deductible for…
A: given information insurance coverage 25/50/25 If you have limits on your insurance policy of…
Q: Rahim has a property worth OMR 500,000. He took insurance from Company A worth OMR 300,000 and from…
A: Property worth = OMR 500,000 Insurance from Company A = OMR 300,000 Insurance from Company B = OMR…
Kelsey sustained a loss on the theft of a painting. She had paid $20,000 for the painting, but it was worth $50,000 at the time of the theft. Her AGI was $40,000. She had held the painting as an investment. How much of a deduction is she allowed?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Belinda was involved in a boating accident in 2021. Her speedboat, which was used only for personal use and had a fair market value of $28,000 and an adjusted basis of $14,000, was completely destroyed. She received $10,000 from her insurance company. Her AGI for 2021 is $37,000. What is Belinda’s casualty loss deduction (after any limitations)?Sally is an employee of Blue Corporation. Last year, she purchased a very expensive computer with her own funds. She used the computer 100% for business purposes. During the current year, the computer was completely destroyed in a fire. Blue Corporation did not reimburse her for her loss. Discuss whether Sally’s loss will create or increase Sally’s net operating loss. How does Sally treat the loss (carryback or/and carryforward periods)? If a taxpayer who sustains a casualty loss in an area designated by the President of the United States as a disaster area, he or she may take the loss in the year in which the loss occurred or elect to take the loss in the previous year. Identify factors that should be considered in deciding in which year to take the lossErin's bank foreclosed on her office building when she stopped making payments on her loan. The loan was secured by the building when she purchased it three years ago for $750,000. Erin's Form 1099-A is shown below. If the building is sold for the fair market value (FMV), how much of Erin's personal assets can the lender attempt to collect to satisfy the judgment? (Answer choices are below the image.) LENDER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no. OAK RIDGE BANK 301 AUSTIN STREET YOUR CITY, YS XXXXX (XXX) 555-5678 LENDER'S TIN XX-XXXXXXX BORROWER'S name ERIN HERNANDEZ Street address (including apt. no.) 308 VIRGINIA AVENUE CORRECTED (if checked) BORROWER'S TIN XXX-XX-XXXX Account number (see instructions) XXXXXXXX Form 1099-A (Rev. 1-2022) City or town, state or province, country, and ZIP or foreign postal code YOUR CITY, YS XXXXX (keep for your records) $615.000 $595,000 $20,000 OSO (None of Erin's personal…
- Jose sued Mari for breach of promise to marry. Mari lost the duly paid the court's award that included, among others, P100,000 as moral damages for the mental anguish Jose suffered. Did Jose earn a taxable income? He had no taxable income because it was a donation. He had no taxable income since moral damages are compensatory. He had taxable income since he made a profit. He had a taxable income of P100,000 since income is income from whatever source.Noelle's diamond ring was stolen in 2017. She originally paid $15,400 for the ring, but it was worth considerably more at the time of the theft. Noelle filed an insurance claim for the stolen ring, but the claim was denied. Because the insurance claim was denied, Noelle took a casualty loss deduction for the stolen ring on her 2017 tax return. In 2017, Noelle had AGI of $77,000. After Noelle threatened legal action in early 2019, the insurance company had a "change of heart" and sent Noelle a check for $9,240 for the stolen ring. The per-event floor is $100. What is the proper tax treatment of the $9,240 Noelle received from the insurance company in 2019? Noelle should _______the amount of______.trish sells her personal car for $13,000. the car cost $20,000 so she realizes a $7,000 loss. she may deduct a $3,000 capital loss. (true or false)
- Elena purchased a living room set for $3,500. Elena’s home and the contents were destroyed by a fire. At the time of the loss, the living room set was worth $2,100 due to depreciation. Comparable replacement furniture will cost $4,000. If the living room set was insured on an actual cash value basis, how much will Elena collect for this loss? Assume a $250 deductible applies to the loss settlement.Marci purchased her home seven years ago for $175,000. She sold it at a loss for $150,000 in 2022. Which of the following statements is true? Marci can claim a loss of $25,000 because the home sale was an involuntary conversion. O Marci can claim a loss of $3,000 but must carry over the remainder to future years until the loss is completely deducted. Marci cannot claim a loss for the sale of her home. If she itemizes deductions, she can claim a loss of $25,000 on her tax return.Your client was the beneficiary of an annuity contract purchased by her stepmother. When the stepmother died, the insurance company paid the client $400,000 and sent her a Form 1099 indicating that the taxable portion (i.e., the amount in excess of the investment in the contract) was $50,000. However, according to the client, her father fraudulently convinced her that he was the intended beneficiary. She gave her father a check equal to the amount she had received from the insurance company. She did not report any of the annuity proceeds in her income tax return. She later discovered the fraud and filed a lawsuit to collect from her father. The IRS has examined your client’s return and has taken the position that she must include the $50,000 in her gross income. Evaluate the IRS’s position.
- Roberta was involved in an automobile accident in 2021. Her car was used 60% for business and 40% for personal use. The car had originally cost $40,000. At the time of the accident, the car was worth $20,000 and Alicia had taken $8,000 of depreciation. The car was totally destroyed and Roberta had let her car insurance expire. If her AGI is $50,000 (before considering the loss), determine her AGI and itemized deduction for the casualty loss. a.$50,000; $-0-. b.$34,000; $4,500. c.$26,000; $5,700. d.$34,000; $-0-.2. Donald owns a car repair business. Hoodlums broke into his shop at night and stole his personal vehicle, which was there being repaired. His vehicle’s FMV before being stolen was 25,000 and FMV after was zero. The cost to replace his vehicle was 19,000, which is the amount he received in insurance proceeds. Donald’s AGI is $90,000. What deduction can Donald take on his 1040 due to the break-in? 0 6000 19000 25000Alex purchased a boat for $100,000 and used it for personal reasons for two years. After two years, it was worth $50,000. Alex then transfers the boat to his business to use with clients. After another year, he sells it for $40,000. What is the basis used when computing the loss? What gain or loss will Alex recognize in his business for tax purposes?
