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Leona [35]
3 years ago
13

Exercise 7-29 (LO. 6) Tim, a single taxpayer, operates a business as a single-member LLC. In 2018, his LLC reports business inco

me of $225,000 and business deductions of $575,000, resulting in a loss of $350,000. What are the implications of this business loss? Tim has an excess business loss of $ . Can this business loss be used to offset other income that Tim reports? If so, how much? If not, what happens to the loss? Tim may use $ of the $350,000 LLC business loss, to offset . The excess business loss is .
Business
1 answer:
Taya2010 [7]3 years ago
4 0

Answer:

From 2018, there is a threshold limit of $250,000 defined by IRS for single:

(a) Tim has an excess business loss:

= Business loss - Threshold

= $350,000 - $250,000

= $100,000

(b) Tim may use $250,000 of the $350,000 LLC business loss to offset non business income.

The excess business loss is treated as the portion of the Tim's NOL carry forward.

Excess business loss of $100,000 will be treated as the NOL carryforward to subsequent years.

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Answer: True.

Explanation:

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3 years ago
The management approach of _____ was one of the first to recognize that enriching the lives of organizational and community fami
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Answer:

Spaulding

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If we look back at the idea of motive, in this speech the prosecuting attorney would try to convince the jury members that the defendant is guilty beyond reasonable doubt.

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6 0
2 years ago
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Answer:

The correct option is C

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3 years ago
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