THE-WFT08-06-1001-ch_06_V4-SM

THE-WFT08-06-1001-ch_06_V4-SM - CHAPTER 6 LOSSES AND LOSS...

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CHAPTER 6 LOSSES AND LOSS LIMITATIONS SOLUTIONS TO PROBLEM MATERIALS Status: Q/P in Question/ Present Prior Problem Topic Edition Edition 1 Bad debts: business Unchanged 1 2 Bad debts: nonbusiness Unchanged 2 3 Bad debts: bona fide debt New 4 Bad debt and § 1244 stock Unchanged 4 5 § 1244 stock Unchanged 5 6 Transfer of § 1244 stock to another individual Unchanged 6 7 Casualty loss: amount of loss Unchanged 7 8 Casualty loss: disaster area loss Unchanged 8 9 Issue ID Unchanged 9 10 Casualty loss: insurance recovery Unchanged 10 11 Net operating loss: calculation Modified 11 12 At-risk rules Unchanged 12 13 At-risk rules Unchanged 13 14 Classification of businesses and application of Unchanged 14 at-risk and passive activity loss rules 15 Treatment of suspended losses Unchanged 15 16 Passive activity loss rules: general application Unchanged 16 17 Sale of passive activity and suspended losses Modified 17
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18 Sale of passive activity and suspended losses Unchanged 18 19 Passive losses of personal service corporation Unchanged 19 20 Passive, active, portfolio income of closely held New corporation 21 Interaction of at-risk and passive loss rules Unchanged 21 22 Planning for material participation status Unchanged 22 23 Issue ID Unchanged 23 24 Character of property: held as investment Unchanged 24 property or rental property 25 Interaction of at-risk and passive loss rules Unchanged 25 26 Interaction of at-risk and passive loss rules Unchanged 26 27 Interaction of at-risk and passive loss rules New 28 Interaction of at-risk and passive loss rules Unchanged 28 29 Passive loss deduction amounts Unchanged 29 6-1
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6-2 2008 Entities Volume/Solutions Manual Status: Q/P in Question/ Present Prior Problem Topic Edition Edition 30 Spousal participation in real estate activities Unchanged 30 31 Ethics problem Unchanged 31 32 Joint or separate return: real estate rental Modified 32 exception 33 Real estate rental exception Unchanged 33 34 Passive activity loss allowed, suspended Unchanged 34 losses and credits 35 Rental real estate loss deduction Unchanged 35 36 Ethical consideration Unchanged 36 37 Gift of a passive activity Unchanged 37 Bridge Discipline Problem 1 Bad debt expense Unchanged 1 2 At-risk rules Unchanged 2 3 Passive activity loss rules: Unchanged 3 general application Research Problem 1 Casualties or theft loss Unchanged 1 2 Offsetting rent income by passive losses New 3 Classification of property as rental: Unchanged 3 extraordinary personal services exception 4 Internet activity Unchanged 4
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5 Internet activity New
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Losses and Loss Limitations 6-3 PROBLEMS 1. Smith, Raabe, and Maloney, CPAs 5191 Natorp Boulevard Mason, OH 45040 January 29, 2007 Loon Finance Company 100 Tyler Lane Erie, PA 16563 Dear Sir: This letter is to inform you of the possibility of taking a bad debt deduction. Your loan to Sara is a business bad debt; therefore, you are allowed to take a bad debt
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This note was uploaded on 04/19/2009 for the course BUSINESS ACCT 305 taught by Professor Poletti during the Spring '09 term at DeVry Columbus North.

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THE-WFT08-06-1001-ch_06_V4-SM - CHAPTER 6 LOSSES AND LOSS...

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