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injured. The FMV of the car before the accident is $18,000; after the
accident it is worthless. Ned receives a $14,000 settlement from the
insurance company. Later in the same year his house is burglarized
and several antiques are stolen. The antiques were purchased a
number of years earlier for $8,000. Their value at the time of the theft
is estimated at $12,000. They are not insured. Ned’s AGI for the
current year is $60,000. What is the amount of Ned’s deductible
casualty loss in the current year, assuming the thefts are discovered in
the same year?
I:8-56
Net Operating Loss Deduction. Michelle and Mark are married and
file a joint return. Michelle owns an unincorporated dental practice.
Mark works part-time as a high school math teacher, and spends the
remainder of his time caring for their daughter. During 2015, they
report the following items:
I:9-49
Employment-Related Expenses. Mike incurs the following
employment-related expenses in the current year :
I:9-50
Travel and Entertainment. Monique is a self-employed manufacturer’s
representative (i.e., an independent contractor) who solicits business
for numerous clients and receives a commission based on sales. She
incurs the following expenditures during the current year:
I:13-33
Sec. 1231 Gains and Losses. Vivian’s AGI is $40,000 without
considering the gains and losses below. Determine her revised AGI
after the inclusion of any applicable gains or losses for the following
independent cases. Assume she has no nonrecaptured net Sec. 1231
losses at the beginning of the year.