Concepts in Federal Taxation 2019 (with Intuit ProConnect Tax Online 2017 and RIA Checkpoint 1 term (6 months) Printed Access Card)
26th Edition
ISBN: 9781337702621
Author: Kevin E. Murphy, Mark Higgins
Publisher: Cengage Learning
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Question
Chapter 4, Problem 60P
a.
To determine
Ascertain the amount of gross income that Person V must recognize.
b.
To determine
Ascertain the amount of gross income that Person V must recognize, if his liabilities are $800,000 before the forgiveness of debt.
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Albert, the managing director of Albert's Vehicle Parts, guaranteed a bank loan of $750,00 for Josh his employee. Josh left the Island unexpectedly owing the bank $150,000 which Albert had to pa Discuss whether Albert can claim this as an allowable deduction fro the accounts of Albert's Vehicle Parts? Would your answer be differen Albert's Vehicle Parts had lent Josh the money and had forgiven Josh the debt before he left?
1. Adrian is a bank manager. A customer Neo has come into the bank. Neo has a mortgage loan with the bank. Neo claims he has lost his job and will not be able to pay the loan back. His monthly payment is $1,000. Neo offers Adrian $7,500 as an accord and satis-faction. Can Neo enter into an accord and satisfaction with the bank? If not, how can he extinguish his liability to the bank?
2. Adrian is a bank manager. A customer Neo has come into the bank. Neo has a mortgage loan with the bank. Neo claims he has lost his job and will not be able to pay the loan back. His monthly payment is $1,000. Neo offers Adrian $7,500 as an accord and satis-faction. Can Neo enter into an accord and satisfaction with the bank? If not, how can he extinguish his liability to the bank?
Steinar loaned a friend $9,500 to buy some stock 3 years ago. In the current year the debt became worthless.
a. How much is Steinar's deduction for the bad debt for this year? (Assume he has no other capital gains or losses.)
4,750 X as a nonbusiness ✓ bad debt.
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Bad debts fall into one of two categories, business bad debts or nonbusiness bad debts. Debts that arise from the taxpayer's trade or busin
are classified as business bad debts, while all other debts are considered nonbusiness bad debts. The distinction between the two types of
debts is important, since business bad debts are ordinary deductions and nonbusiness bad debts are short-term capital losses.
b. What can Steinar do with the deduction not used this year?
The remaining $
0x can be carried forward as a short-term capital loss
and deducted in future years, subject to
an annual limitation
Chapter 4 Solutions
Concepts in Federal Taxation 2019 (with Intuit ProConnect Tax Online 2017 and RIA Checkpoint 1 term (6 months) Printed Access Card)
Ch. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - Prob. 3DQCh. 4 - Prob. 4DQCh. 4 - Prob. 5DQCh. 4 - Prob. 6DQCh. 4 - Prob. 7DQCh. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 10DQ
Ch. 4 - Prob. 11DQCh. 4 - Prob. 12DQCh. 4 - Prob. 13DQCh. 4 - Prob. 14DQCh. 4 - Prob. 15DQCh. 4 - Prob. 16DQCh. 4 - Prob. 17DQCh. 4 - Prob. 18DQCh. 4 - Prob. 19DQCh. 4 - Prob. 20PCh. 4 - Prob. 21PCh. 4 - Prob. 22PCh. 4 - Prob. 23PCh. 4 - LO2 Herman inherits stock with a fair market value...Ch. 4 - LO2 Fatima inherits a rental property with a fair...Ch. 4 - Prob. 26PCh. 4 - Prob. 27PCh. 4 - Prob. 28PCh. 4 - Prob. 29PCh. 4 - Prob. 30PCh. 4 - Prob. 31PCh. 4 - Prob. 32PCh. 4 - Prob. 33PCh. 4 - Prob. 34PCh. 4 - Prob. 35PCh. 4 - Prob. 36PCh. 4 - Prob. 37PCh. 4 - Prob. 38PCh. 4 - Prob. 39PCh. 4 - Prob. 40PCh. 4 - Prob. 41PCh. 4 - Prob. 42PCh. 4 - Prob. 43PCh. 4 - Prob. 44PCh. 4 - Prob. 45PCh. 4 - Prob. 46PCh. 4 - Prob. 47PCh. 4 - Prob. 48PCh. 4 - Prob. 49PCh. 4 - Prob. 50PCh. 4 - Prob. 51PCh. 4 - Prob. 52PCh. 4 - Prob. 53PCh. 4 - Prob. 54PCh. 4 - Prob. 55PCh. 4 - Prob. 56PCh. 4 - Prob. 57PCh. 4 - Prob. 58PCh. 4 - Prob. 59PCh. 4 - Prob. 60PCh. 4 - Prob. 61PCh. 4 - Prob. 62PCh. 4 - Prob. 63PCh. 4 - Prob. 64PCh. 4 - Prob. 65IIPCh. 4 - Prob. 66IIPCh. 4 - Prob. 67IIPCh. 4 - In each of the following problems, identify the...Ch. 4 - In each of the following problems, identify the...Ch. 4 - In each of the following problems, identify the...Ch. 4 - Prob. 71IIPCh. 4 - Prob. 72IIPCh. 4 - Prob. 73IIPCh. 4 - Prob. 74IIPCh. 4 - Prob. 75IIPCh. 4 - Prob. 76IIPCh. 4 - Prob. 77TACh. 4 - Prob. 80TACh. 4 - Reggie receives a 2-year scholarship to Big...Ch. 4 - Prob. 83IPCh. 4 - Calculate Carmins adjusted gross income on her...Ch. 4 - Prob. 85DCCh. 4 - Marlo and Merlins son, Alex, needs 20,000 to start...Ch. 4 - Prob. 87TPCCh. 4 - Prob. 88TPCCh. 4 - Prob. 89EDC
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