Problem 1 - Kendal reports the following income and loss:
Salary $120,000
Income from activity A 36,000
Loss from activity B (30,000)
Loss from activity C (60,000)
Activities A, B, and C are all passive activities, but none are rental properties. What is the amount of the suspended loss attributable to each activity?
Problem 2 - Wes owned a business which was destroyed by fire in May 2013. Details of his losses follow:
Asset Adj. Basis FMV Before FMV After Insurance Reimbursement
A $1,000 $2,000 $0 $2,000
B 15,000 10,000 3,000 2,000
C 2,400 5,000 2,500 1,000
His AGI without consideration of the casualty is $45,000.
What is Wes's net casualty loss deduction for 2013?