Chapter 7 ICE with solutions_1

Chapter 7 ICE with solutions_1 - Stewart Tax 1 Chapter 7...

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Stewart – Tax 1 – Chapter 7 1 Net Operating Loss Example Carryback or carryover 2011 NOL??? ABC Corporation has taxable income as follows: 2008 2009 2010 2011 NOL 2012 Projected T. Income $25,000 $15,000 $20,000 $(50,000) $50,000 MTR? 15% 15% 15% N/A 15% Carryback 0 (15,000) (20,000) (15,000) Amended T. I. $ 0 $ 0 35,000 Total Refund (In tax) $2,250 $3,000 $2,250 = $7,500 Change: 2008 2009 2010 2011 NOL 2012 Projected T. I. $25,000 $15,000 $20,000 $(50,000) $95,000 MTR? 15% 15% 15% N/A 15-34% Forego carry-back : Tax on $45,000 Tax on 95,000 (95k-55k) Tax Savings in 2012 $20,550 $6,750 $13,800
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Stewart – Tax 1 – Chapter 7 2 Personal Casualty Loss Example Joe totals his personal use car which cost him $25,000 five years ago and is worth $10,000 at the time of the accident. He had a racing bike on his car (also totaled) which he had recently purchased for $2,000 but was actually worth $3,000. He was underinsured and his insurance recovery was $8,000 for his car and nothing for his bike. His AGI is $30,000. Casualty loss G r o s s FMV Adjusted Basis Loss (Insurance Recovery) Net Loss
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This note was uploaded on 02/22/2012 for the course ACCT 403 taught by Professor White during the Fall '11 term at South Carolina.

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Chapter 7 ICE with solutions_1 - Stewart Tax 1 Chapter 7...

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