1. Justin had loaned $6,800 to his brother Jeremy in 2015. Jeremy has never made a payment to Justin, nor has Justin attempted to collect from Jeremy. This year, Jeremy filed bankruptcy and told Justin that he would not be able to repay the $6,800 loan. Determine Justin’s tax treatment for the loan in the current year – i.e., the year of Jeremy’s bankruptcy.

2. Dan and Angela file a joint return. For 2019, they had the following items:

Salaries 110,000

Loss on § 1244 stock acquired 4 years ago 71,000

Gain on § 1244 stock acquired 6 months ago 7,000

Non-business Bad Debt 15,000

Determine Dan and Angela’s adjusted gross income (AGI) for 2019.

Answer rating: 100% (QA)

Determine Justins tax treatment for the loan in the current year ie the year of Jeremys bankruptcy A... View the full answer