CengageNOWv2, 1 term Printed Access Card for Hoffman/Young/Raabe/Maloney/Nellen's South-Western Federal Taxation 2018: Individual Income Taxes, 41st
41st Edition
ISBN: 9781337389518
Author: William H. Hoffman, James C. Young, William A. Raabe, David M. Maloney, Annette Nellen
Publisher: Cengage Learning
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Chapter 17, Problem 4DQ
To determine
Explain the manner in which Person H should handle the situation.
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Students have asked these similar questions
4. Which of the following situations would not be permitted to defer the recognition of any recapture that
might arise from the disposition of an asset?
A building that was used for income earning purposes was destroyed in a flood. Insurance proceeds
were received which generated recapture. A new building was built 18 months later.
B
A piece of equipment that belonged to a company was stolen in November 2019. Insurance
proceeds were received which generated recapture. The equipment was replaced in December of
2020.
A piece of equipment that belonged to a construction company was sold in June 2019. The
proceeds from the sale generated recapture. A new piece of equipment was purchased in January of
2020. The company's fiscal year-end is December 31st.
D. A building that was used for income earning purposes was sold in December 2019. The proceeds
from the sale generated recapture. A new building was purchased in April 2020. The company's fiscal
year-end is December 31st.
none of the above
LO.4 Belinda was involved in a boating accident in 2020. 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 2020 is $37,000. What is Belinda’s casualty loss deduction (after any limitations)?
5. Assume the same facts as in (4) above except the destroyed property was a personal residence and that the fire was
declared a Presidential disaster. Now calculate the amount of the deductible loss assuming the taxpayer's AGI was
$200,000.
6. Briefly recap the current rules applicable to net operating losses. How much of the NOL is currently deductible and
what happens to unused losses.
Chapter 17 Solutions
CengageNOWv2, 1 term Printed Access Card for Hoffman/Young/Raabe/Maloney/Nellen's South-Western Federal Taxation 2018: Individual Income Taxes, 41st
Ch. 17 - Prob. 1DQCh. 17 - Prob. 2DQCh. 17 - Prob. 3DQCh. 17 - Prob. 4DQCh. 17 - Prob. 5DQCh. 17 - A depreciable business dump truck has been owned...Ch. 17 - Prob. 10DQCh. 17 - Prob. 11DQCh. 17 - Prob. 12DQCh. 17 - Prob. 13DQ
Ch. 17 - Prob. 15DQCh. 17 - Prob. 16DQCh. 17 - Prob. 17DQCh. 17 - Prob. 18DQCh. 17 - Prob. 19DQCh. 17 - Prob. 20DQCh. 17 - Prob. 21CECh. 17 - Prob. 22CECh. 17 - Prob. 23CECh. 17 - Prob. 24CECh. 17 - Prob. 25CECh. 17 - Prob. 26CECh. 17 - Prob. 27CECh. 17 - Prob. 28CECh. 17 - Prob. 29CECh. 17 - Prob. 30CECh. 17 - Prob. 31PCh. 17 - Prob. 32PCh. 17 - LO.2 A sculpture that Korliss Kane held for...Ch. 17 - Prob. 34PCh. 17 - Prob. 35PCh. 17 - Prob. 36PCh. 17 - Prob. 37PCh. 17 - Prob. 38PCh. 17 - Prob. 39PCh. 17 - Prob. 40PCh. 17 - Prob. 41PCh. 17 - Prob. 43PCh. 17 - Joanne is in the 24% tax bracket and owns...Ch. 17 - Prob. 45PCh. 17 - Prob. 46PCh. 17 - Prob. 47PCh. 17 - Prob. 48PCh. 17 - Prob. 49PCh. 17 - Prob. 50PCh. 17 - Prob. 51PCh. 17 - Prob. 52PCh. 17 - Prob. 53PCh. 17 - Prob. 54PCh. 17 - Jay sold three items of business equipment for a...Ch. 17 - Prob. 1RPCh. 17 - Prob. 2RPCh. 17 - Prob. 3RPCh. 17 - Prob. 4RPCh. 17 - Prob. 1CPACh. 17 - Prob. 2CPACh. 17 - Jerry uses a building for business purposes. The...Ch. 17 - Prob. 4CPACh. 17 - Prob. 5CPACh. 17 - Prob. 6CPACh. 17 - Wally, Inc., sold the following three personal...Ch. 17 - Net Section 1231 losses are: a. Deducted as a...Ch. 17 - Prob. 9CPACh. 17 - Prob. 10CPA
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- Which of the following is not a possible limitation on the deduction of a personal casualty loss? The lesser of the fair market value of the property or the adjusted basis at the time of the loss A100 floor for each casualty event A10 percent of AGI floor for all casualty losses during the year A personal casualty not associated with a federally declared disaster All of the above are possible limitations on a personal casualty lossarrow_forwardMark had a structure that was destroyed by hurricane Michael, in a federally declared disaster area. Unfortunately, he had no insurance coverage on the structure. He gives you the following information: Fair Market Value of Structure before casualty $12,000 Adjusted Basis of building 18,000 Mark's Adjusted Gross Income before casualty 5,000 (2)Compute his deduction assuming this structure was used in his business. Show in your answer WHERE this deduction would be taken.arrow_forwardAntoine LaDuke suffered a major loss on his older home due to mud from a flood. Although he had homeowner's insurance, what was the probable reason he was not covered? A) His home was probably too expensive. B) His policy excluded flood-related damages. C) This is a personal liability issue. D) Older homes are excluded from flood-related damages. 29) Insurers in California are required to offer ________ coverage to consumers due to the substantial risk factors in that state.arrow_forward
- Which of the following would typically be deductible as a casualty loss in 2019? Long-term damage to a home from termites An automobile accident during the daily commute A theft of a big screen television Dropping your smartphone in the pool None of the abovearrow_forwardFenwick operates a grocery store and his retail building was completely destroyed by a hurricane on August 22, Year 10. The fair market value of the building before the hurricane was $1,200,000 with an adjusted basis of $800,000. His insurance company reimbursed him $1,200,000 of December 2, Year 10. When is the last date that Fenwick can replace this building with qualifying property and avoid recognizing gain from this transaction?arrow_forwardErin'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…arrow_forward
- 27) Suzan’s office building was damaged by a fire caused by a careless tenant. After paying Suzan for her loss, the insurance company sued the tenant to recover its loss. This suit is based on the principle ofarrow_forward. An insured dies in a fire at his/her home caused by careless smoking. What action will the insurer of the dwelling take? Deny the loss to building and contents as the insured caused the fire. Pay the loss to the building and contents to the insured's estate. Pay the building and contents loss into Court in trust. Be unable to pay the property loss as the named insured is no longer available to sign the proof of loss.arrow_forwardBelinda was involved in a boating accident in 2023. Her speedboat, which was used only for personal use and had a fair market value of $46,000 and an adjusted basis of $23,000, was completely destroyed. She received $16,100 from her insurance company. Her AGI for 2023 is $57,500. Belinda's tentative casualty loss before any limitations (i.e., $100 floor and AGI) is $fill in the blank 1 . Is her loss currently deductible?arrow_forward
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