Max, a single taxpayer, has a $270,000 loss from his soleproprietorship. How much of this...
Max, a single taxpayer, has a $270,000 loss from his sole proprietorship. How much of this loss is not deductible after considering the excess business loss rules? A. $255,000 B. $0 C. $270,000 D. $15,000 E. None of the above.
This year Andrew, a single taxpayer, paid $15,000 of real estate taxes on her personal residence and 9,500 of state income taxes. Which of the following is true?
A. He can deduct $15,000 of real estate taxes as an itemized deduction.
B. He can deduct $9,500 of state income taxes as a for AGI deduction.
C. Even if he has no other itemized deductions, he should claim the standard deduction.
D. None of the choices are correct.
E. He can deduct $10,000 of taxes as an itemized deduction
Homework Answers
Ans : Max a single taxpayer has a $ 2,70,000 loss from his sole proprietorship. According to excess business loss rules $ 15,000 is not deductible.
An excess business loss is the amount by which your total deductions from all your trade or business are more than your gross income plus a threshold amount. For 2019 the threshold amount is $ 2,55,000 ( $ 5,10,000 if married filing jointly).
So, option D is correct.
• Andrew a single taxpayer paid real estate tax and state income tax.
For 2019, IRS says you can deduct up-to $10,000 ( $ 5,000 if married filing separately) of the following costs :
1. Property taxes including real estate taxes and personal property taxes.
2. State and local income taxes or state and local sales taxes ( we can't claim both )
So, option E is correct.
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Max, a single taxpayer, has a $270,000 loss from his soleproprietorship. How much of this...
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