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Rom4ik [11]
3 years ago
8

Max, a single taxpayer, has a $270,000 loss from his sole proprietorship. How much of this loss is deductible after considering

the excess business loss rules?a. $270,000.b. $250,000.c. $20,000.d. $0.e. None of the choices are correct.
Business
1 answer:
Lunna [17]3 years ago
6 0

Answer:

Option "B" is the correct answer to the following statement.

Explanation:

According to excess business loss rules, $500,000 is deductible to joint return and $250,000 deductible for a single taxpayer or single return.

In this situation, Max is a single taxpayer so, he would receive a maximum $250,000 loss deduction under excess business loss rules.

Therefore, Max's maximum deductible amount is $250,000.

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