A cash-basis taxpayer made a bona fide, nonbusiness loan to an acquaintance in year 1. At the end of year 2, it is determined that the taxpayer will likely be able to collect only 20% of the principal, and no interest has been or will be collected. How should the loss be treated for tax purposes in year 2

Answers

Answer 1

Answer:

None of the loss amount in year 2 will be deductible

Explanation:

Based on the information given How the loss will be treated for tax purposes in year 2 is that the LOSS amount will NOT be deductible in Year 2 reason been that tax payer can only collect the deduction in bad debt in the year the bad debt has no real value and become un-useful.

Secondly the tax payer should not wait till the debt is due before knowing whether the bad debt has no real value reason been that bad debt will has no real value when there is no hope that the debt amount that is owed will be paid which is why to a limited extent a non business bad debt that has no real value will not be deductible.

Therefore How the loss will be treated for tax purposes in year 2 is that None of the loss amount in year 2 will be deductible


Related Questions

Please help solve this

Answers

Answer:

The Gross Domestic Product of the territory is $ 172 million.

Explanation:

The Gross Domestic Product (GDP), measured in monetary units, is the market value of all goods and services within a territory in a given period of time, usually annual, which is estimated by the following expression:

[tex]GDP = C+BI+GEx+GEn+E-I[/tex] (1)

Where:

[tex]C[/tex] - Consumption.

[tex]BI[/tex] - Business investments.

[tex]GEx[/tex] - Government expenditures.

[tex]GEn[/tex] - Government entitlements.

[tex]E[/tex] - Exports.

[tex]I[/tex] - Imports.

Please notice that positive sign represents money that has entered into the economy of the territory.

If we know that [tex]C = 50\times 10^{6}[/tex], [tex]BI = 10\times 10^{6}[/tex], [tex]GEx = 75\times 10^{6}[/tex], [tex]GEn = 38\times 10^{6}[/tex], [tex]E = 12\times 10^{6}[/tex] and [tex]I = 13\times 10^{6}[/tex], then the GDP of the territory is:

[tex]GDP = 50\times 10^{6}+10\times 10^{6} + 75\times 10^{6}+38\times 10^{6}+12\times 10^{6}-13\times 10^{6}[/tex]

[tex]GDP = 172\times 10^{6}[/tex]

The Gross Domestic Product of the territory is $ 172 million.

Explain how growing personal income is related to economic conditions.

Answers

Answer:

see below

Explanation:

Personal income is the total earning an individual gets from wages, investments, bonuses, dividends, profits, or other ventures.  It is the sum of a household income. Personal income is calculated per period, usually one year.

Economic conditions refer to the prevailing state of a country or region's economy.  Economic conditions are ever-changing and are influenced by business cycles of expansions and contraction, government fiscal and monetary policies, macroeconomic factors, and global factors.  Governments and investor use indicators to tell the state of the economy

Economic conditions impact people's and business income. Government policies and global economics influence the level of economic activities. The expansion period has increased economic activities are leading to increased incomes. At contraction, business activities decline, resulting in reduced income.

Which is not one of the main sections of a resume?
A. contact information
B. salary requirement
C. education
D. work experience

Answers

Answer:

B. salary requirement

Explanation:

Salary is typically posted in the job description or negotiated by the employer/employee as part of the hiring process

Why is education an important factor in setting wages?
O A. People with more education tend to earn higher wages.
B. High levels of education make it harder for a person to earn
wages.
C. The high cost of education tends to reduce wages.
D. Companies are less likely to hire a candidate with a high level of
education.
SUBMIT

Answers

Answer:

A. People with more education tend to earn higher wages.

Explanation:

Employers require some minimum level of education when hiring workers. Lower cadre jobs may require low education levels, but higher positions demand a higher education level. Lower cadre jobs don't pay as handsomely as the higher-level jobs.

As employers always demand minimum qualifications for jobs, an individual without any educational qualification will find it difficult to get employed. Their chances of earning decreases. Educated individuals are better placed to get hired and earn more compared to others.

Answer: a

Explanation: just took it on a test

Which job in the Finance career cluster is ideal for a person with a master’s degree?

A. Bank Teller
B. Controller
C. New Accounts Clerk
D. Loan Officer

Answers

Answer:

i put d

Explanation:

Answer:

ddddddddddddddddddddddddddddddddddddddddddd

Explanation:

__________ relies on consumers to pass messages about products among themselves, typically through email.

Answers

Companies just a wild guess sorry if I'm wrong

The shelf life of milk is 7 days. You have 22 gallons on hand. You normally sell 4 gallons each day. Do you expect to have to throw out any milk?

Answers

Explanation: You will  throw away no gallons of milk because if you sell 4 gallons every day then 7 times 4 equals 28 so you will only work for 5 an a half days.

Answer:

B

Explanation:

Define the word inquisitive in entrepreneurship form .

Answers

Answer:

Inquisitive, according to the Merriam-Webster Dictionary, means “tending to ask questions: having a desire to know or learn more.” The word is derived from the Latin root inquirere, later becoming inquire, which means to “seek information by questioning.” To be inquisitive is to be curious and hungry for knowledge

Explanation:

1. inclined to ask many questions or seek information; eager to learn. 2. asking more questions than is necessary or proper; prying. SIMILAR WORDS: ˈcurious.

how many months weeks days are in 157 days?

Answers

The answer is 5.162 months
Other Questions
1. Suppose that there were two isotopes of Sodium.28% of the naturally occurring sodium atoms had amass of 22, and 72% atoms had a mass of 23. Whatwould the average atomic weight of sodium be? are the triangles in the given figure congruent? Your answer must be simplified. 3 < x -10 determine the slope of the table which of the following items is Marco least likely to use in his seventh period class?A.un mapaB.una computadoraC.una calculadora D.una caperta de argollas plz help i will mark you as brainlist hello, why do all electromagnetic waves travel at the same speed in vacuum? A small windmill is to be built at a science competition. A large floor fan is used to power each windmill The taskis to lift a bucket filled with the most number of pennies possible from a height of one meter in one minute.Which change in decision would most likely increase the weight that the windmill could lift?A)Make the fan blades smaller.B)Make the arms of the windmill longer,C)Make the arms of the windmill shorterD)Make the fan blades out of a lighter material. how do you choose an answer as the brainiest Select the correct answer.During which period was the first stone pyramid built in Saqgara?A. Old KingdomB. Middle KingdomC. Second IntermediateD. New Kingdom 25cm3 of a 0.4M sodium hydroxide solution was diluted into 250cm3 of water. What is the molarityof the resultant solution. HELPHELPHELPWhat is the least common den omin ator of the equation 2/9x+2/3=73)92763 Which type of cases are heard in federal courts?a. only criminal casesb.only civil casesc. both criminal and civil casesd. only murder casese. none of the above a soup recipe calls for 1 1/2 quarts of vegetable broth and 3/4 quart of chicken broth. what is the total number of cups of chicen broth and befetable broth needed for yhe soup revipe? is competition necessary for success? Iraqi sunnis are in conflict with what group in Iran ? one who ewas raised by authorative parents What were the Jesuits, and who founded them? What did the Jesuits do? Some historians argue that it was indentured servitude that started the American tradition of seeing humans as a commodity to be bought, sold, and abused. Do you agree with this statement? Why or why not? Simplify (write in the smallest terms) the following expressions using the laws of exponents and distribution.:))) I WILL GIVE BRAINLIST: )))