chpt 6 HW solutions

chpt 6 HW solutions - Individual Tax Accounting 2011...

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Individual Tax Accounting – 2011 edition Chapter 6 Homework Solutions 10. a. Deductible. b. Not deductible because it is a personal use asset. c. Deductible. d. Deductible as a casualty loss to a personal use asset. However, since the asset is a personal use asset, the loss is subject both to a $100 ($500 in 2009) per casualty limit and a 10%-of-AGI floor for the taxable year. e. Deductible. p. 6-8 27. In prior years, the beach home has been classified as a rental property since the personal use (exactly 14 days) did not exceed the greater of 14 days or 10% of rental days (200 × 10% = 20 days). Thus, if the total available deductions exceeded the rental income, the loss could be deducted on Karen and Andy’s tax return. If Sarah is permitted to use the beach house for 7 days, the total personal use days of 21 will exceed the statutory limit of 20 days (i.e., 10% of rental days of 200). In this case, the deductions are permitted only to the extent of the rental income. What needs to be determined are whether the deductions
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This note was uploaded on 12/22/2010 for the course BUSACC 1242 taught by Professor Staff during the Spring '10 term at Pittsburgh.

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chpt 6 HW solutions - Individual Tax Accounting 2011...

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