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Unformatted text preview: 1. Is a business bad debt tax deductible? Yes Non-business? Yes under stcl 2. Name 2 items of income not subject to fed income tax. 1. Child support;2. Muni bonds;3. Gift 3. TP owes $20,000 in ccard debt. He files ch 13 bk and reduces debt to $5,000. Does he have taxable income? CODI = $15,000 income insolvency exception or personal residence If so, how much? What are the tax ramifications to the creditor? Tax deductible for AGI 4. Jim purchased annuity contract for $60,000 that pays $1000 per month for 100 months. How much of each payment should he include in income? 60,000/100,000 = 60% not taxable ; 40% is taxable 1000 per month x 40% = $400 is taxable 5. T/F Sec 197 intangible assets (patents & trademarks) are depreciated for tax purposes. F, its amortized not depreciated....
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- Spring '10