For many years, Tamara Hung has had employment income in excess of $300,000. This will also...

 

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For many years, Tamara Hung has had employment income in excess of $300,000. This will also be the case in 2019. During 2019, she has a $38,000 loss on the disposition of shares of a small business corporation. Also during this year, she has capital gains on publicly traded securities of $5,000. The only other year in which she experiences capital gains was 2011. In that year she had a capital gain of $8,000 on the sale of shares of a qualified farm property. She eliminated all of this gain with the lifetime capital gains deduction. Determine the amount of the Allowable Business Investment Loss that can be deducted in 2019, as well as the amount and type of any losses available for carry over at the end of the year. For many years, Tamara Hung has had employment income in excess of $300,000. This will also be the case in 2019. During 2019, she has a $38,000 loss on the disposition of shares of a small business corporation. Also during this year, she has capital gains on publicly traded securities of $5,000. The only other year in which she experiences capital gains was 2011. In that year she had a capital gain of $8,000 on the sale of shares of a qualified farm property. She eliminated all of this gain with the lifetime capital gains deduction. Determine the amount of the Allowable Business Investment Loss that can be deducted in 2019, as well as the amount and type of any losses available for carry over at the end of the year.

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Allowable business investment loss ABIL is unlike other deductions In this you can de... View the full answer