Tax Question
Mary, who is single, had thefollowing items for 2016:
Salary
$80,000
Loss on sale of 1244 small businessstock acquired 3 years ago
(60,000)
Stock acquired 2 years ago becameworthless during the year
(15,000)
Long-term capital gain
25,000
Nonbusiness bad debt
(9,000)
Mary had a car accident during theyear in which his car was completely destroyed. At the time of theaccident, the car had a fair market value of $30,000 and anadjusted basis of $40,000. She used the car 100% of the time forpersonal use. She received an insurance recovery of $21,000.
Provide a detailed calculation of Mary's AGI. Your answer shouldalso include any applicable rules, exceptions to rules,limitations, tax treatment of certain items, etc.
What is the rule for calculating the amount of the casualtyloss. Apply the rule to the facts and show a detailed calculationof the loss.
Tax Question
Mary, who is single, had thefollowing items for 2016:
Salary | $80,000 |
Loss on sale of 1244 small businessstock acquired 3 years ago | (60,000) |
Stock acquired 2 years ago becameworthless during the year | (15,000) |
Long-term capital gain | 25,000 |
Nonbusiness bad debt | (9,000) |
Mary had a car accident during theyear in which his car was completely destroyed. At the time of theaccident, the car had a fair market value of $30,000 and anadjusted basis of $40,000. She used the car 100% of the time forpersonal use. She received an insurance recovery of $21,000.
Provide a detailed calculation of Mary's AGI. Your answer shouldalso include any applicable rules, exceptions to rules,limitations, tax treatment of certain items, etc.
What is the rule for calculating the amount of the casualtyloss. Apply the rule to the facts and show a detailed calculationof the loss.
