Problem 06-40 (Static) [LO 6-11] Margaret, a married taxpayer filing a joint return, engaged in two business activities this year. Business A earned $400,000 of profit. Business B incurred a loss of $(995,000) Required: How much of Margaret's net business loss is not currently deductible? Note: Negative amount should be entered with a minus sign. Answer is complete but not entirely correct. $ (95,000) Margaret's excess business loss not currently deductible TERUSSAN

Problem 06-40 (Static) [LO 6-11] Margaret, a married taxpayer filing a joint return, engaged in two business activities this year. Business A earned $400,000 of profit. Business B incurred a loss of $(995,000) Required: How much of Margaret's net business loss is not currently deductible? Note: Negative amount should be entered with a minus sign. Answer is complete but not entirely correct. $ (95,000) Margaret's excess business loss not currently deductible TERUSSAN

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter5: Corporations: Earnings & Profits And Dividend Distributions

Section: Chapter Questions

Problem 26P

See similar textbooks

Similar questions

karan subject-Accounting Margaret, a married taxpayer filing a joint return, engaged in two business activities this year. Business A earned $470,000 of profit. Business B incurred a loss of $(995,000). How much of Margaret’s net business loss is not currently deductible if the MFJ threshold is $510,000?
Required information Problem 8-77 (LO 8-5) (Algo) [The following information applies to the questions displayed below.] This year Lloyd, a single taxpayer, estimates that his tax liability will be $12,250. Last year, his total tax liability was $16,500. He estimates that his tax withholding from his employer will be $9,225. Problem 8-77 Part b (Algo) b. Assuming Lloyd does not make any additional payments, what is the amount of his underpayment penalty? Assume the federal short-term rate is 5 percent. Note: Do not round intermediate calculations. Round your final answers to 2 decimal places. Dates April 15th June 15th September 15th January 15th Total Actual Withholding Required Withholding Over (Under) Withheld Penalty Per Quarter $ 0.00
Required Information Problem 9-60 (LO 9-4) (Static) [The following Information applies to the questions displayed below.] Jeremy is a calendar-year taxpayer who sometimes leases his business equipment to local organizations. He recorded the following receipts this year. Indicate the extent to which these payments are taxable Income to Jeremy this year if Jeremy is 1. a cash-method taxpayer and 2. an accrual-method taxpayer. Note: Leave no answers blank. Enter zero If applicable. Problem 9-60 Part-b (Static) b. $800 from the Ladies' Club for leasing the trailer from December of this year through March of next year ($200 per month). Answer is complete and correct. Income under cash method Income under accrual method 800 $ 800
Exercise 7-27 (Algorithmic) (LO. 6) Tim, a single taxpayer, operates a business as a single-member LLC. In 2020, his LLC reports business income of $407,500 and business deductions of $713,125, resulting in a loss of $305,625. What are the implications of this business loss? a. Tim has an excess business loss of $ b. Can this business loss be used to offset other income that Tim reports? If so, how much? If not, what happens to the loss? Tim may use $ of the $305,625 LLC business loss, to offset The excess business loss is
Required information Problem 9-73 (LO 9-4) (Algo) [The following information applies to the questions displayed below) Rebecca is a calendar-year taxpayer who operates a business. She made the following business-related expenditures in December of this year. Indicate the amount of these payments that she may deduct this year under both the cash method of accounting and the accrual method of accounting. Note: Leave no answers blank. Enter zero if applicable. Problem 9-73 Part-c (Algo) c. $3,900 for property taxes payable on her factory. Cash method Accrual method Deductible Amount
Required information Skip to question [The following information applies to the questions displayed below.] Louis files as a single taxpayer. In April of this year he received a $900 refund of state income taxes that he paid last year. How much of the refund, if any, must Louis include in gross income under the following independent scenarios? Assume the standard deduction last year was $12,200. (Leave no answer blank. Enter zero if applicable.) a. Last year Louis claimed itemized deductions of $12,450. Louis’s itemized deductions included state income taxes paid of $1,750 and no other state or local taxes.
Required information [The following information applies to the questions displayed below.] Clyde is a cash-method taxpayer who reports on a calendar-year basis. This year Paylate Corporation has decided to pay Clyde a year-end bonus of $1,000. Determine the amount Clyde should include in his gross income this year under the following circumstances. (Leave no answer blank. Enter zero if applicable.) b. Paylate Corporation mistakenly wrote the check for $100. Clyde received the remaining $900 after year-end. Amount to be included in gross income
alculate his taxable income for the year. Assume that Blake has a non-capital loss carryforward from last year of $5,000. Problem 4 ITA: 3, 111 The following information has been provided by your client, Mr. Stanley Norman: Employment income Property income (loss) Capital gains (CG) Capital losses (CL) (excluding BIL). Business investment loss (BIL) 2020 2021 $75,000 2022 $80,000 $ 90,000 (4,000) 3,000 (6,000) 144,000 160,000 18,000 22,500 80,000 36,000 54,000 Additional Information (1) The above capital gains do not include capital gains from qualified farm property or qualified small business corporation shares. (2) Mr. Norman had a $21,000 net capital loss which was realized in 2017. (3) Mr. Norman did not have a capital gain prior to 2020. Dealing with each item line-by-line across the years, rather than one year at a time: (A) determine Mr. Norman's income from the sources indicated for 2020 to 2022 according to the ordering rules in section 3, and (B) determine Mr. Norman's…
Michelle Puxton has the following Bourcer of income and payroll deductions: Employment income $39,400 Interest income 7,000 Taxable capital gain Allowable capital lose 8,000 13,000 RRSP contribution 4,000 Alimony paid 6,600 Requirement: 1. What is Michelle's Net Income for Tax Purposes (in good form, copy the appropriate description of accounts in your anewer)? 2. Determine if there are losses that can be carried back and forward.
Last year, lana purchased a $100,000 account receivable for $90,000. During the current year, Lucy collected $97,000 on the account. What are the tax consequences to Lucy associated with the collection of the account receivable? No subsequent collections are expected. a.$7,000 gain b.$3,000 loss c.$13,000 loss d.$2,000 gain
Julie, a single taxpayer, has completed her 2023 Schedule C and her net loss is $40,000. Her only other income is wages of $30,000. Julie takes the standard deduction of $13,850 in 2023. Question Content Area a. Calculate Julie's taxable income or loss.fill in the blank 1 of 2$ fill in the blank 2 of 2 Feedback Area Feedback The net operating loss provision is primarily designed to provide relief for trade or business losses. Generally, only losses from the operation of a trade or business, casualty and theft losses, or confiscation losses can generate a net operating loss. The TCJA modified the rules regarding the carry back and carry forward of NOLs. Question Content Area b. Calculate the business and nonbusiness portions of her taxable income or loss.Business: fill in the blank 1 of 4$ fill in the blank 2 of 4 Nonbusiness: fill in the blank 3 of 4$ fill in the blank 4 of 4 Feedback Area Feedback Partially correct…
True or False 1. The hobby losses is deductible for 2022. 2. The education expenses is deductible if maintain or improves skills of the taxpayer. 3. A taxpayer can deduct $55 per day for meals and incidentals without keeping receipts on a business trip. 4. A taxpayer can take depreciation on a business auto and use the $0.60 mileage rate in the same years. 5. Transportation costs are allowed only when the taxpayer visits various clients in the same days. I want answer within one hour,Thanks