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
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 17, Problem 8DQ
A
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
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.
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
1. List five events that would likely qualify as a casualty:
2. Generally, casualty losses of personal use property are deductible only if the loss resulted from a Presidentially
declared disaster.
TrueFalse
3. Calculate the amount of the casualty loss deduction, if any, that would claimed given that a business warehouse was
completely destroyed by fire:
FMV of the warehouse before the fire
$600,000
FMV of the warehouse after the fire
$0
Basis of the warehouse
$500,000
Insurance recovery
$400,000
4. Assume the same facts as in (3) above except that the warehouse was not completely destroyed and the FMV of the
warehouse after the fire was
$450,000 and the insurance recovery was $100,000. Now what would be the amount of the casualty loss deduction?
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
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Which of the following statements with respect to the depreciation of property under MACRS is incorrect? Under the half-year convention, one-half year of depreciation is allowed in the year the property is placed in service. If a taxpayer elects to use the straight-line method of depreciation for property in the 5 -year class, all other 5 -year class property acquired during the year must also be depreciated using the straight-line method. In some cases, when a taxpayer places a significant amount of property in service during the last quarter of the year, real property must be depreciated using a mid-quarter convention. Real property acquired after 1986 must be depreciated using the straight-line method. The cost of property to which the MACRS rate is applied is not reduced for estimated salvage value.arrow_forwardAn office machine used by Josie in her accounting business was completely destroyed by fire. The adjusted basis of the machine was $9,250 (original basis of $13,875 less accumulated depreciation of $4,625). The machine was not insured. Calculate the amount and nature of Josie's gain or loss as a result of this casualty. (Assume this is the taxpayer's only casualty gain or loss.) Amount of gain or loss: $arrow_forwardWhich of the following transactions would most likely be a deductible repair under s 25-10? a. Repair of damage to property that existed at the time of purchase but was not known to the purchaser. b. Repainting a rental property after purchase but before tenants move in. c. Repainting a rental property in-between tenants vacating and new tenants moving in. d. Mechanical repairs to a vehicle that was not drivable at the time of purchase.arrow_forward
- A resident citizen acquired a property for use in his business. After a devastatingtyphoon, the machinery suffered partial damage. The following were made available:Cost P570,000Accumulated depreciation 300,000Restoration cost 300,000Estimated useful life 5 yearsThe taxpayer received insurance proceeds of P50,000 to cover the loss.Determine the amount of allowable deductionsarrow_forwardFire loss sustained on business asset which was insured is deductible- a. In the period of loss b. In the period of insurance settlement c. In the period deemed practical by the taxpayer d. It is not deductible because the lost asset was insuredarrow_forward32. Under MACRS, which one of the following is not considered in determining depreciation for tax purposes? A) Half-year convention B) Cost of asset C) Salvage value D) Property classarrow_forward
- AC/DC-Corporation owns a building that it uses in its operations that has a basis of $70,000. During the year, a tornado occurs and partially destroys the building. The fair market value of the building before the tornado was $200,000 and the value of the building afterwards is $120,000. They are reimbursed by an insurance company for $25,000. How much can AC/DC-Corporation deduct as a casualty loss? Group of answer choices $25,000. $45,000. $70,000. $80,000.arrow_forward16. Erwin Company, a calendar year taxpayer, made only two purchases of depreciable personalty this year. The first purchase was five-year recovery property costing $312,800, and the second purchase was seven-year recovery property costing $574,000. Compute Erwin's first-year MACRS depreciation with respect to the personalty assuming that a. The first purchase occurred on February 2, and the second purchase occurred on June 18. b. The first purchase occurred on February 2, and the second purchase occurred on October 13.arrow_forwardAn apartment building was acquired in 2014 by an individual taxpayer. The depreciation taken on the building was $283,760, and the building was sold for a $85,128 gain. What is the amount of unrecaptured § 1250 gain? 198,632arrow_forward
- Which of the following is NOT true about the MACRS depreciation system? A. Residential rental buildings are depreciated over 27.5 years straight-line. B. MACRS uses a half-year convention method C. Commercial real estate buildings are depreciated over 39 years straight-line. D. MACRS depreciation is no longer used for tax returns.arrow_forwardWhich 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_forwardVirginia has business property that is stolen and partially destroyed by the time it was recovered. She receives an insurance reimbursement of $6,000 on property that had a $14,000 basis and a decrease in market value of $10,000 due to damage caused by the theft. What is the amount of Virginia's casualty loss? $14,000 $8,000 $10,000 $4,000 None of the abovearrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT
Depreciation -MACRS; Author: Ronald Moy, Ph.D., CFA, CFP;https://www.youtube.com/watch?v=jsf7NCnkAmk;License: Standard Youtube License