Question

1.Bennett purchased a tract of land for $20,000 in 2012 when he heard that a new highway was going to be constructed through the property and the land would soon be worth $200,000. The highway project was abandoned in 2018 and the value of the land fell to $15,000. Bennett can claim a loss in 2018 of: a.$180,000 b.$5,000 c.$0 d.$165,000 e.None of these choices are correct.

2.The qualified business income deduction is a percentage of wages earned by an employee.

True

False

Answer 1

1. Answer will be option C $0.

Because the loss in market value is a unrealized loss. Unless he actually sales the land he can not claim any loss

2. This statement is false. Qualified business deduction is claimed by business man as a % of qualified business income.

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