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$1.$ Explain why it is difficult for a cash basis taxpayer that sells goods or services to claim a bad debt deduction when an account receivable resulting from such sale goes bad?

$2.$ J lends $$750,000$ to B and it is a business debt. In $2020,$ B declares bankruptcy and J learns that other creditors in her situation will most likely receive $25$ cents on the dollar for the loans outstanding. J does not receive any repayment until $2022,$ when she receives $$150,000.$ How much may J deduct in $2021?2022?$ Would the answers change if it was a non$-$business bad debt?

$3.$ Alan and Melissa are equal partners in a non$-$corporate business. The business has gross income of $$400,000$ and has operating expenses of $$300,000.$ They are both single. Alan also has long$-$term capital gains of $50,000.$ Assume that Alan and Melissa have no other income and no itemized deductions. What is the amount of the qualified business deduction for each of them?

$4.$ Ashley is married filing a joint return. She owns a sole proprietorship with QBI of $1,000,000.$ W$-2$ wages of the business was $$400,000$ and the total basis of property held in the business was $$100,000.$ Her taxable income before her QBI deduction was $$650,000($which was also her modified taxable income$).$ What is Ashley$$s QBI deduction?

$5.$ Gary is married and files a joint return. Gary owns a sole proprietorship with QBI of $$300,000.$ W$-2$ wages are $$80,000$ and the total basis of property held in the business was $$750,000.$ His taxable income before his QBI deduction was $$423,900($which was also his modified taxable income$).$ What is Gary$$s QBI deduction?

A owns a business and has two cars that are used in it$.$ They are both in an accident. Car $1$ has an adjusted basis of $$10,000,$ was worth $$13,000$ before the accident and $$2,000$ after the accident. Car $2$ has an adjusted basis of $$25,000$ had a fair market value of $$20,000$ before the accident and has no value after the accident. In both cases A received $$2,500$