1.. Distinguish between realized gains
and losses and recognized gains and losses.
2.Amos, a single individual with
Analyze the above expenses and determine which ones are deductible for
3. Carl had the
What is Carl’s AGI for 2010?
4. Sara owns a sole
5. John forms a
(a) How much gain does John recognize on his exchange? What is the basis to
6. XYZ Company had a net loss of $90,000 from operations
7. On April 18,
8. In 2010, OK Company had a net loss of $82,000 from
9. Bob Smith, a professional basketball player, raises Black
Angus cattle under circumstances that would indicate that the activity is a
hobby. His adjusted gross income for the year is $80,000, and he has $1,000 of
other miscellaneous itemized deductions, all of which are subject to the
two-percent floor. During the taxable year, the feed for the cattle cost
$3,000. The income from the sale of cattle was $2,800.
(a) Under the hobby loss rule, to what extent is the expense of
(b) Under the two-percent-of-adjusted-gross-income limitation,
how much is the overall deductible amount of his itemized deductions?