Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 5, Problem 32MCQ
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 loss
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
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?
Question 12 of 20.
Which statement is INCORRECT about net operating losses under the CARES Act?
OGwen has a 2018 NOL caused by a casualty loss She may carry the loss back five years to her 2013 return, then forward indetinitely
O Sam has a 2019 NOL caused by a casualty loss If he carries the loss forward to his 2020 return, the 80% taxable income limitation will apply.
O LIly has a 2018 NOL caused by a casualty loss. She may walve any carryback by altaching a statement to her timely-filed 2020 retum.
O Ted has a 2019 NOL caused by a casualty loss He may carry back the NOL by filing Form 1040-X within three years of the due date (including exdensions) of his
2019 return
All of the following are covered under "Coverage D: Loss of Use" of the Homeowners 3 policy
EXCEPT
a. Additional living expenses if the home cannot be used because of loss from an insured
peril.
O b. The cost to repair or replace property destroyed by a covered peril.
c. Loss of rent if part of the premises rented to a boarder cannot be used.
O d. Additional living expenses if the home cannot be used because of the order of civil
authority.
Chapter 5 Solutions
Income Tax Fundamentals 2020
Ch. 5 - Prob. 1MCQCh. 5 - Prob. 2MCQCh. 5 - Prob. 3MCQCh. 5 - Which of the following is true about the...Ch. 5 - Lyndon, age24, has a nonworking spouse and earns...Ch. 5 - Prob. 6MCQCh. 5 - Prob. 7MCQCh. 5 - Prob. 8MCQCh. 5 - Prob. 9MCQCh. 5 - Prob. 10MCQ
Ch. 5 - Prob. 11MCQCh. 5 - Prob. 12MCQCh. 5 - Prob. 13MCQCh. 5 - Prob. 14MCQCh. 5 - Eliza is a kindergarten teacher for Alexander...Ch. 5 - Prob. 16MCQCh. 5 - Prob. 17MCQCh. 5 - Prob. 18MCQCh. 5 - Prob. 19MCQCh. 5 - Prob. 20MCQCh. 5 - Prob. 21MCQCh. 5 - Prob. 22MCQCh. 5 - Prob. 23MCQCh. 5 - Prob. 24MCQCh. 5 - Prob. 25MCQCh. 5 - Prob. 26MCQCh. 5 - Prob. 27MCQCh. 5 - Prob. 28MCQCh. 5 - Prob. 29MCQCh. 5 - Prob. 30MCQCh. 5 - Which of the following would typically be...Ch. 5 - Which of the following is not a possible...Ch. 5 - Prob. 33MCQCh. 5 - Prob. 34MCQCh. 5 - Evan participates in an HSA carrying family...Ch. 5 - Prob. 2PCh. 5 - Karen, 28 years old and a single taxpayer, has a...Ch. 5 - Phil and Linda are 25 -year-old newlyweds and file...Ch. 5 - Prob. 5PCh. 5 - Prob. 6PCh. 5 - Prob. 7PCh. 5 - Bob is a single, 40 -year-old doctor earning...Ch. 5 - Prob. 9PCh. 5 - During 2019 , Jerry is a self-employed therapist,...Ch. 5 - Prob. 11PCh. 5 - Prob. 12PCh. 5 - Prob. 13PCh. 5 - Prob. 14PCh. 5 - Janet needs an elevator seat attached to her...Ch. 5 - Lyndon's employer withheld $10,100 in state income...Ch. 5 - Mike sells his home to Jane on April 2,2019 . Jane...Ch. 5 - Prob. 20PCh. 5 - Prob. 21PCh. 5 - Prob. 22PCh. 5 - Ken paid the following amounts for interest during...Ch. 5 - Prob. 24PCh. 5 - Prob. 25PCh. 5 - At the end of 2019, Mark owes $250,000 on the...Ch. 5 - Prob. 27PCh. 5 - Prob. 28PCh. 5 - Prob. 29PCh. 5 - Prob. 30PCh. 5 - On January 3,2019, Carey discovers his diamond...Ch. 5 - Prob. 32PCh. 5 - Prob. 33P
Additional Business Textbook Solutions
Find more solutions based on key concepts
How is activity-based costing useful for pricing decisions?
Cost Accounting (15th Edition)
BE1-7 Indicate which statement you would examine to find each of the following items: income statement (IS), ba...
Financial Accounting
How would the decision to dispose of a segment of operations using a split-off rather than a spin-off impact th...
Advanced Financial Accounting
18. What is the calculation for return on assets (ROA)? Explain what ROA measures.
Horngren's Financial & Managerial Accounting, The Financial Chapters (6th Edition)
Preparing Financial Statements from a Trial Balance The following accounts are taken from Equilibrium Riding, I...
Fundamentals Of Financial Accounting
This year, Prewer Inc. received a 160,000 dividend on its investment consisting of 16 percent of the outstandin...
Principles Of Taxation For Business And Investment Planning 2020 Edition
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
- In choosing between taking the standard deduction and itemizing deductions from AGI, what effect, if any, does each of the following have? a. The age of the taxpayer(s). b. The health (i.e., physical condition) of the taxpayer. c. Whether taxpayers rent or own their residence. d. Taxpayers filing status (e.g., single, married, filing jointly). e. Whether married taxpayers decide to file separate returns. f. The taxpayers uninsured personal residence was recently destroyed by a wildfire (the region was declared a disaster area by the Federal government). g. The number of dependents the taxpayer can claim.arrow_forwardWhich 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_forwardWhich 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_forward
- Question 78 of 85. Choose the response that correctly describes a condition, or conditions, that must be met for property to be considered depreciable. The property must be an item that will eventually wear out, get used up, become obsolete, or otherwise lose its value. The taxpayer must place the property in service and dispose of it within the same year. The taxpayer must either rent or own the property and use it in their business or in an income-producing activity. The useful life of the property must not exceed one year.arrow_forwardWhich of the following statements is incorrect? Assume that the rental activity is classified as ‘production-of-income.’ If the taxpayer sells the rental property later at a loss, the loss will be treated as a capital loss (i.e., $3,000/$1,500 deduction limit in the current year). An amount that would have been paid in an arm’s-length transaction is considered a reasonable amount as deduction. Payment (except for medical or educational expense) of another person’s obligation does not result in a tax deduction for the payer. Regarding the start-up costs, if the new business is in the same line of business as the existing one and if the new business is not launched, then none of the start-up costs are deductible. Payments for a speeding ticket are nondeductible. HELParrow_forwardA taxpayer who sells his or her principal residence at a realized loss can elect to recognize the loss even if a qualified residence is not acquired during the statutory time period True Falsearrow_forward
- svitaarrow_forwardAssume that in addition to the information in Problems 47 and 48, Nell had the following items in 2019: The casualty loss is net of the 100-per-event floor. Determine Nells taxable income and NOL for 2019.arrow_forward. A __________ __________ is a part of a fire insurance policy that requires the policyholder to purchase coverage at least equal to a specified percentage of the replacement cost of the property to obtain full reimbursement for losses.arrow_forward
- 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.arrow_forwardThe first step that must be completed to determine the allowable losses when a taxpayer has multiple passive activities is tto figure the what?arrow_forward24 These statements are presented to you for evaluation:Statement I – When property is transferred in contemplation of death for insufficient consideration, such property shall be collated to the estate at its fair market value as of the time of death of the transferor.Statement II – Proceeds of life insurance policy taken by the decedent upon his own life shall be excluded from the gross estate if the designation of the beneficiary is irrevocable, whether such beneficiary is the estate or a third person.In your evaluation of the foregoing statements: Group of answer choices Only Statement II is true. Only Statement I is true. Both statements are false. Both statements are true.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
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
Operating Loss Carryback and Carryforward; Author: SuperfastCPA;https://www.youtube.com/watch?v=XiYhgzSGDAk;License: Standard Youtube License