ACC 456 STUDY Start With a Dream /acc456study.com ACC 456 STUDY Start With a Dream /acc456study.com | Page 23

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.