Bruce, who is single, had the following items for the current year:Salary of $80,000.Gain of $20,000 on the sale of §§1244 stock acquired two years earlier.Loss of $75,000 on the sale of §§1244 stock acquired three years earlier.Worthless stock of $15,000.The stock was acquired on February 1 of the prior year and becameworthless on January 15 of the current year.Determine Bruce's AGI for the current year.

To determine Bruce's Adjusted Gross Income (AGI) for the current year, we will calculate his income,…

Answered: Bruce, who is single, had the following…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter7: Deductions And Losses: Certain Business Expenses And Losses

Section: Chapter Questions

Problem 31P

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Similar questions

Soong, single and age 32, had the following items for the tax year 2019: Salary of 30,000. Interest income from U.S. government bonds of 2,000. Dividends from a foreign corporation of 500. Sale of small business 1244 stock on October 20, 2019, for 20,000. The stock had been acquired two years earlier for 65,000. Business bad debt of 4,000. Nonbusiness bad debt of 5,000. Sale of small business 1244 stock on November 12, 2019, for 4,000. The stock had been acquired on June 5, 2019, for 800. Sale of preferred stock on December 4, 2019, for 40,000. The stock was acquired four years ago for 18,000. Total itemized deductions of 25,000 (no casualty or theft). a. Determine Soong's NOL for 2019- b. Assuming that Soong had taxable income for each of the last five years, deter mine to which years the 2019 NOL should be applied.
6
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Sally purchased a share of stock for $78.00. During the year she received a dividend of $3.11. At the end of the year she sold the stock for $91.40. Calculate the holding period return for her investment (excluding taxes).
Juan Diego began the year with a tax basis in his partnership interest of $53,800. During the year, he was allocated $21,520 of partnership ordinary business income, $75,320 of §1231 losses, and $32,280 of short-term capital losses and received a cash distribution of $53,800. Note: Do not round intermediate calculations. a. What items related to these allocations does Juan Diego actually report on his tax return for the year? [Hint: See Regulations §1.704-1(d)(2) and Revenue Rule 66-94.] b. If any deductions or losses are limited, what are the carryover amounts, and what is their character? [Hint: See Regulations §1.704-1(d).]
B sold shares of a qualified small business corporation (QSBC) in the current year realizing a capital gain of $640,000 and shares of a public company realizing a loss of $30,000. B has a net capital loss of $60,000 carried over from last year that he wants to deduct in the current year. B's cumulative net investment loss (CNIL) account at the end of the current year should be $0. B claimed a capital gains deduction of $120,000 three years ago. What is B's maximum capital gains deduction for the current year?
B sold shares of a qualified small business corporation (QSBC) in the current year realizing a capital gain of $640,000 and shares of a public company realizing a loss of $40,000. B has a net capital loss of $80,000 carried over from last year that he wants to deduct in the current year. B’s cumulative net investment loss (CNIL) account at the end of the current year should be $0. B claimed a capital gains deduction of $140,000 three years ago. What is B’s maximum capital gains deduction for the current year? Individual L donated $16,000 to a Canadian registered charity. L’s taxable income is $226,000. What is the amount of the federal donation tax credit? (Enter the amount as a positive number.)
Juan Diego began the year with a tax basis in his partnership interest of $53,600. During the year, he was allocated $21,440 of partnership ordinary business income, $75,040 of §1231 losses, and $32,160 of short-term capital losses and received a cash distribution of $53,600. a. What items related to these allocations does Juan Diego actually report on his tax return for the year? [Hint: See Regulations §1.704-1(d)(2) and Revenue Rule 66-94.]
A owns ABC, Inc., an S corporation. A's stock basis was $10,000 at the beginning of year 1 and he loaned ABC $3,000 on Jan. 1. ABC has loss of $15,000 for the year. 30. How much of the loss can A deduct in year 1. In year 2 ABC has income of $12,000. 31. What is A's stock basis at the end of year 2. 32. What is A's loan basis at the end of year 2. 33. In year 5 when A's stock basis was $25,000 and his loan basis was $10,000, ABC distributed $30,000 to him. What is the amount and character of any gain A must recognize on the distribution?
The following information is for Doug Santiago for the 2023 taxation year: • Doug sold shares of a qualified small business corporation (QSBC), for $480,000. The ACB of the shares was $187,000. and selling costs were $4,000. • Also, in 2023 Doug realized a business investment loss (before any adjustment) of $267,000. • At the end of 2023, Doug had a Cumulative Net Investment Loss (CNIL) balance of $2,300. • Doug has a 2019 net capital loss balance of $3,400 [(1/2)($6,800)] that he would like to use to minimize tax in 2023. • Doug claimed the capital gains deduction to eliminate a 2013 capital gain of $29,500, as well as a 2016 capital gain of $49,000. Required: • Doug has asked you to calculate his capital gains deduction for 2023 supported by all the necessary calculations. (Make sure to include all the steps and calculations).
2.
At the beginning of the tax year, Lizzie holds a $10,000 stock basis as the sole shareholder of Spike, Inc., an S corporation. During the year, Spike reports the following: Net taxable income from sales $25,000 Net short-term capital loss (18,000) Cash distribution to Lizzie, 12/31 40,000 If an amount is zero, enter "0". a. Determine Lizzie's stock basis at the end of the year. $fill in the blank 1. b. Of Lizzie's $40,000 cash distribution, $fill in the blank 2 is tax-free and $fill in the blank 3 is . c. $fill in the blank 5 of the short-term capital loss is suspended this year.

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