Samaa is a full-time teacher at the local high school. In the summer, she operates a...

 

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Samaa is a full-time teacher at the local high school. In the summer, she operates a farm as a part-time business. During the current year, her farm experienced a loss of $14,000. How can Samaa use that loss in the most effective manner? Deduct the full amount of the loss under 3D, against all sources of income. Deduct $7,000 against all sources of income under 3D and carry the remainder forward to be used against farming income. Deduct $8,250 in the current year against all sources of income in 3D) and carry the remaining amount back 3 years forward 20 years to be used against farming income. The deduction is not allowed by the anti-avoidance rules. Samaa is a full-time teacher at the local high school. In the summer, she operates a farm as a part-time business. During the current year, her farm experienced a loss of $14,000. How can Samaa use that loss in the most effective manner? Deduct the full amount of the loss under 3D, against all sources of income. Deduct $7,000 against all sources of income under 3D and carry the remainder forward to be used against farming income. Deduct $8,250 in the current year against all sources of income in 3D) and carry the remaining amount back 3 years forward 20 years to be used against farming income. The deduction is not allowed by the anti-avoidance rules.

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