Tim, a single taxpayer, operates a business as a single-member LLC. In 2018, his LLC reports business income of $394,000 and bus
iness deductions of $689,500, resulting in a loss of $295,500. 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 $295,500 LLC business loss, to offset nonbusiness income . The excess business loss is treated as part of Tim's NOL carryforward .
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 $295,500 LLC business loss, to offset nonbusiness income . The excess business loss is treated as part of Tim's NOL carryforward .
1 answer:
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Answer:
PV $19,242.04
Explanation:
We will calculate the present value of an annuity using our cost of capital
C 309
time 72
rate 0.004083333 (A)
PV $19,242.04
This will be the present value of the lease at our capital rate.
<em>Notes</em>
(A)The payment are on a monthly basis, so the interest rate must be monthly to. For that we divide the 4.9 percent which is annual by 12
That way the time and rate are on the same metric.