Chapter 7 Fall 11

Chapter 7 Fall 11 - Burkett Tax 1 Chapter 7 Net Operating...

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Burkett – 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? Carryback Amended T. I. Refund Change: 2008 2009 2010 2011 NOL 2012 Projected T. I. $25,000 $15,000 $20,000 $(50,000) $95,000 MTR?
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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 Car $10,000 $25,000 $8,000 Bike $3,000 $ 2,000 T o t a l Personal per occurrence reduction 10% of AGI limitation Net deduction Where deducted? What if the car was a business vehicle used 100% for business with an adjusted basis of $11K and there
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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 Fall 11 - Burkett Tax 1 Chapter 7 Net Operating...

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