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jolli1 [7]
3 years ago
10

In the current year, Don has a $55,000 loss from a business he owns. His at-risk amount at the end of the year, prior to conside

ring the current-year loss, is $36,000. He will be allowed to deduct the $55,000 loss this year if he is a material participant in the business. True/ False?
Business
2 answers:
jeyben [28]3 years ago
8 0

Answer:

False

Explanation:

It is false that In the current year, Don has a $55,000 loss from a business he owns. His at risk amount at the end of the year, prior to considering the current year loss, is $36,000. He will be allowed to deduct the $55,000 loss this year if he is a material participant in the business.

icang [17]3 years ago
7 0

Answer:

FALSE

Explanation:

The capital at risk refers to an amount set aside for future losses for people who are self-insured. Don can only deduct up to their at-risk amount As this amount was 36,000 it cannot exceed it. from 36,000 to 55,000 0are not deductible It will only deduct 36,000 not the whole amount. As their other losses were not part of the business capital at-risk

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6 0
3 years ago
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<h3>What is cash discount?</h3>

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8 0
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Answer:

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