If an owner participates for more than 500 hours in a bicycle rental activity located at a beach resort, any loss from that activity is treated as an active loss that can offset active income. True False
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- helpRequired information [The following information applies to the questions displayed below.] This year, Amy purchased $2,000 of equipment for use in her business. However, the machine was damaged in a traffic accident while Amy was transporting the equipment to her business. Note that because Amy did not place the equipment into service during the year, she does not claim any depreciation or cost recovery expense for the equipment. a. After the accident, Amy had the choice of repairing the equipment for $1,800 or selling the equipment to a junk shop for $300. Amy sold the equipment. What amount can Amy deduct for the loss of the equipment? Deductible amounttimed task, need help thanks
- Employer gave a certain car to its employee in consideration of the latter's services rendered to the company. The transfer of the ownership of the car to the employee is subject to transfer tax, in this case donor's tax. Yes NoChapter 15 Please remember that you must do your own work. Any plagiarism will result in a grade of zero for all students involved. Please use your own words even if you are using the textbook for answers. Always provide a citation when a reference is used. The purpose of deductibles in property insurance policies is to reduce the number of small claims that are costly to adjust and provide claims service. The purpose of deductibles and coinsurance in health insurance is quite different. Discuss the purpose of deductibles and coinsurance in health insurance and the need for insureds to share in those types of costs. A. Describe a person (individual or family) who would likely benefit from establishing a health savings account (HAS) B. Briefly explain the major characteristics of a health savings account (HSA). A. Explain the following renewal provisions that may appear in individual health insurance policies: Guaranteed renewable: Noncancelable: Conditionally renewable:…This year, Amy purchased $2,780 of equipment for use in her business. However, the machine was damaged in a traffic accident while Amy was transporting the equipment to her business. Note that because Amy did not place the equipment into service during the year, she does not claim any depreciation or cost recovery expense for the equipment. Problem 9-57 Part-b (Algo)b. Suppose that after the accident, Amy repaired the equipment for $3,890. What amount can Amy deduct for the loss of the equipment? c. Suppose that after the accident, Amy could not replace the equipment so she had the equipment repaired for $3,800. What amount can Amy deduct for the loss of the equipment?
- Uninsured motorists face the burden of paying for accidents themselves if involved in an accident. They also impose costs on others if they are unable to bear the cost of the damages to third parties. In this case, a.the government could not improve upon this outcome. b.the government could improve the market outcome by requiring everyone carry auto insurance. c.the government could improve this outcome by requiring insurance d.companies to lower premiums for all drivers.Question 3 Marvin sells computer equipment and is objecting to an assessment received from SARS. During the current year of assessment (28 February), Marvin donated second-hand office equipment to a local radio station. In return, the radio station agreed to broadcast 'specials' that Marvin had on certain computer products for the week. SARS taxed the value of the office equipment donated to the radio station and stated that the donation fell within the definition of gross income. Marvin believes otherwise. YOU ARE REQUIRED: Discuss all the gross income requirements that Marvin should bear in mind when preparing the objection of the assessment. (Assume that Marvin is a resident of the Republic.)Injured on the job, you received workers’ compensation benefits of $400,000 to cover your medical expenses, but also another $100,000 for “lost wages.” Obviously you would have been taxable on that $100,000 had you not been in-jured and therefore had actually been able to work for those “wages.” So, as a “substitute for taxable income” (so to speak), the $100,000 has to be included in your gross income while the $400,000 doesn’t, right? Wrong? Why?
- Problem 5-36 (LO. 2) Leigh sued an overzealous bill collector and received the following settlement: Damage to her automobile that the collector attempted to repossess Physical damage to her arm caused by the collector Loss of income while her arm was healing Punitive damages $3,300 $15,000 $6,000 $80,000 a. Regarding Leigh's settlement, classify the following as either "Included in" or "Excluded from" her gross income. Included in/Excluded from Income Damage to her automobile that the collector attempted to repossess • Physical damage to her arm caused by the collector • Loss of income while her arm was healing • Punitive damages b. Assume that Leigh also collected $25,000 of damages for slander to her personal reputation caused by the bill collector misrepresenting the facts to Leigh's employer and other creditors. Is this $25,000 included in Leigh's gross income?The negligence of Dave, driver of a certain bus company, resulted in the death of Pedro's wife, physical injuries to Pedro that prevented him from working for a month, and the total wreck of Pedro's brand new car which he had bought for P400,000. In the action for damages filed by Pedro against the bus company, the court awarded the following: • P30,000 for Pedro's injuries consisting mainly in the loss of his right hand; • P45,000 for Pedro's loss of one month salary: P25,000 for the death of his wife; P100,000 moral damages on account of the death of Pedro's wife; and P800,000 for the loss of Pedro's car. How much is excluded from gross income?Hobby Losses (LO 3.12) Lew is a practicing CPA who decides to raise bonsai as a business. Lew engages in the activity and has the following revenue and expenses: Sales $ 5,000 Depreciation on greenhouse 10,000 Fertilizer, soil, pots 1,500 If an amount is zero, enter "0". b. If the activity is deemed to be a regular business, what is the amount of Lew's loss from the activity?$fill in the blank 9a0cfdf68fac035_1 c. If the activity is deemed to be a hobby, what is the amount of Lew's expenses (if any) from the activity that may be deducted?$fill in the blank 12b81b026feafdb_1
