CHAPTER 6 NOTES Fall 2009

CHAPTER 6 NOTES - CHAPTER 6 NOTES TAX 4001 Spring 2010 Major Concepts Bad Debt Expense Worthless Securities(Sec 1244 too Casualty Losses Net

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CHAPTER 6 NOTES TAX 4001 Spring 2010
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Major Concepts Bad Debt Expense Worthless Securities (Sec. 1244 too) Casualty Losses Net Operating Loss (NOL) (Corporations) At-Risk Rules Passive Activity Loss (PAL) Rules Rental Real Estate Exception to PAL  Rules
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Bad Debt Expense Business Bad Debts Must be related to a trade or business where  lending or extending credit occurs. Partial or Total Worthlessness may be claimed Ordinary Deduction Allowance Method  NOT  allowed Non Business Bad Debts Only  TOTAL  worthlessness may be claimed Short Term Capital Loss
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Only  TOTAL  worthlessness may be claimed Significant declines in value are not total Treated as a capital loss on the last day of  the tax year Sec. 1244 Stock Gains are capital Losses are ordinary ($50,000 single, $100,000  married filing joint return. Total capital of $1Million  or less and designated 
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This note was uploaded on 03/25/2011 for the course TAX 4001 taught by Professor Hampton,m during the Spring '08 term at University of Central Florida.

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CHAPTER 6 NOTES - CHAPTER 6 NOTES TAX 4001 Spring 2010 Major Concepts Bad Debt Expense Worthless Securities(Sec 1244 too Casualty Losses Net

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