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Nesterboy [21]
3 years ago
8

Lee qualified as head of a household for 2019 tax purposes. Lee’s 2019 taxable income was $100,000, exclusive of capital gains

and losses. Lee had a net long-term capital loss of $8,000 in 2019. What amount of this capital loss can Lee offset against 2019 ordinary income?
Business
1 answer:
Vlada [557]3 years ago
3 0

Answer:

$3,000

Explanation:

The IRS allows a head of household or joint filers to deduct from their gross income up to $3,000 as net capital losses in one year. If there exists any remaining amount it should be treated as long-term capital loss carryover for next year's taxes.

In this case Lee will be able to deduct $3,000 this year and the remaining $5,000 will remain as long-term capital loss carryover for 2020.

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Answer:

The maximum amount that the firm should invest in the project $695,603.10

Explanation:

The applicable formula in this scenario is the present value of an ordinary annuity,modified for timing of the cash flows,which is given below:

PV=A*(1-(1+r)^-N)/r

PV is the unknown

A is the periodic inflow of $10,000

r is the rate of return of 12.05% divided by 12 months i.e 12.05%/12=0.010041667

N is the number of years multiplied by 12 months i,e 10*12=120

PV=10000

annuity factor=(1-(1+r)^-N)/r

annuity factor=1-(1+0.010041667 )^-120/0.010041667

annuity factor=(1-0.301498531 )/0.010041667

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PV=$695,603.10

3 0
3 years ago
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Explanation:

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I hope my answer helps you

7 0
3 years ago
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