On January 1, 2006, Jim leased a building to be used in his business as an office building. The lease will terminate on December 31, 2014. On February 2, 2008, Jim made a capital improvement to the exterior of the building. The cost of the leasehold improvement to Jim was $80,000. Jim has no legal rights in the capital improvement after the termination of the lease. Determine Jim's 2014 loss deduction for unrecovered costs, if any, with respect to the leasehold improvement as a result of the termination of the lease.
Answer to relevant QuestionsLori, who is single, purchased 5-year class property for $31,000 and 7-year class property for $42,000 on May 20, 2014. Lori expects the taxable income derived from her business (without regard to the amount expensed under ...On June 5, 2013, Leo purchased and placed in service a new car that cost $20,000. The business-use percentage for the car is always 100%. Leo claims any available additional first-year depreciation. Compute Leo's cost ...Wes acquired a mineral interest during the year for $10 million. A geological survey estimated that 250,000 tons of the mineral remained in the deposit. During the year, 80,000 tons were mined, and 45,000 tons were sold for ...Wayside Fruit Company is a sole proprietorship owned by Neil Stephenson. The company's records reflect the following: Sales revenue ................... $185,000 Operating expenses ................ 125,000 Depreciation ...Sarah has investments in four passive activity partnerships purchased several years ago. Last year, the income and losses were as follows: Activity Income (Loss) A ............ $ 30,000 B ............ (30,000) C ...
Post your question