Question

QUESTION 10 1 points ✓ Saved A deduction is allowed for the partial worthlessness of a business bad debt. True • False 1 points ✓ Saved QUESTION 11 If uninsured business property is completely destroyed, the amount of the deduction is always the adjusted basis of the property True False 1 points Saved QUESTION 12 If investment use property is completely destroyed, the amount of the deduction is always the adjusted basis of the property True False QUESTION 13 1 points Saved By treating the loss from a worthless security as having occurred on the last day of the taxable year in which the security becomes worthless, the loss might be classified as a long-term loss rather than a short- term loss. True False QUESTION 14 1 points Saved Under the Tax Cuts and Jobs Act of 2017, a taxpayer may carry a net operating loss only forward True False
which questions have the wrong answer selected?

Answer 1

1)a deduction is allowed for the partial worthlessness of a business bad debt.

this statement is true : A deduction for the partial worthlessness of a business bad debt is also permitted. In contrast, a nonbusiness bad debt is deductible only as a short-term capital loss, and no deduction is permitted for partial worthlessness. The taxpayer must wait until the debt is totally worthless.

2)if unensured business property is completely destroyed, amout of the deduction is adjusted basis of the property.

this statement is true :If your property is business or income-producing property, such as rental property, and is completely destroyed, then the amount of your loss is your adjusted basis.

3)if investment use property is completely destroyed, amout of the deduction is adjusted basis of the property.

this statement is true : How much a rental property owner may deduct depends on whether the property was completely or partially destroyed. Adjusted basis is the property's original cost, plus the value of any improvements, minus any deductions taken for depreciation