Nicole has a weekend home on Pecan Island that she purchased in 2013 for $250,000. Recently, the home was appraised at $260,000. After the appraisal, a hurricane hit Pecan Island, severely damaging Nicole’s home. The hurricane was declared a federal disaster. An appraisal placed the value of the home at $140,000 after the hurricane. Because of its prohibitive cost, Nicole had no hurricane insurance. Before any reductions or limitations, Nicole’s casualty loss amount is

Which of the following is most likely not considered a casualty?

Gwen, an independent consultant, traveled to New York City on a business trip in 2023. Gwen spent 4 days in business meetings and conferences and then spent 2 days sightseeing in the area. Gwen’s plane fare for the trip was $250. Meals cost $80 per day. Lodging and other incidental expenses amounted to $250 per day. Gwen may deduct

During 2023 and 2024, Danny pays property taxes of $3,500 each year on a piece of land. During 2023, the land is vacant and unproductive. In 2024, Danny uses the land as a parking lot and generates $16,000 in income. Which of the following is true regarding the property taxes?

Carlos, a self-employed CPA, entertains a client in a luxury box at the hockey game. Immediately before the game starts, while dining on chicken wings and other food and beverages, and at various points throughout the evening, they discuss an ongoing project Carlos is working on for the client and a potential new project. Carlos is billed a fixed $300 for the box for the evening, which includes the refreshments and the game tickets. Carlos estimates the cost of the refreshments at $100. Carlos will deduct

Joy reports the following income and loss:Salary$ 120,000 Income from activity A60,000 Loss from activity B( 35,000)Loss from activity C( 55,000)Activities A, B, and C are all passive activities.Based on this information, Joy has

Van pays the following medical expenses this year:•$1,500 for doctor bills for Van’s son who is claimed as a dependent by Van’s former spouse.•$300 for Van’s eyeglasses.•$900 for Van’s dental work.•$3,800 for Van’s face lift. Van, a newscaster, is worried about the wrinkles around his eyes.How much can Van include on his return as qualified medical expenses before limitation?

Jamie sells investment real estate for $80,000, resulting in a $15,000 loss. Jamie’s loss is

Joan bought a business machine for $15,000. In a later year, she sold the machine for $12,800 when the total allowable depreciation is $8,500. The depreciation actually taken on the tax returns totaled $8,000. Joan must recognize a gain (or loss) of

Patrick’s records for the current year contain the following information: -He donated stock having a fair market value of $5,000 to a qualified charitable organization. Patrick acquired the stock two years ago at a cost of $3,000. -He donated 20 hours of his time as a professional plumber to a qualified charitable organization. He bills his time to his customers at $50 per hour. -He also donated $7,500 cash to a qualified charitable organization. Patrick’s adjusted gross income for the year is $100,000. What is the amount of his charitable contribution deduction?