Landon, a sole proprietor, made the following loans during the year. Two loans were closely related to
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Landon, a sole proprietor, made the following loans during the year. Two loans were closely related to his business operation, and the other two were personal. ToLoanAmountTypeUnrecoverable Debt Written Off Landon’s Books during the Year A$2,000Nonbusiness$1,000 B$1,000Nonbusiness$1,000 C$3,000Business$1,000 D$5,000Business$2,000 The unpaid balance of each loan that is not recoverable has been written off. What is the total maximum tax deduction Landon can take for business and nonbusiness worthless debt for the year?
A. $2,000 B. $3,000 C. $4,000 D. $5,000
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: