Ask Question
29 January, 12:01

Max, a single taxpayer, has a $270,000 loss from his sole proprietorship. How much of this loss is deductible after considering the excess business loss rules? a. $270,000. b. $250,000. c. $20,000. d. $0. e. None of the choices are correct.

+1
Answers (1)
  1. 29 January, 15:35
    0
    Option "B" is the correct answer to the following statement.

    Explanation:

    According to excess business loss rules, $500,000 is deductible to joint return and $250,000 deductible for a single taxpayer or single return.

    In this situation, Max is a single taxpayer so, he would receive a maximum $250,000 loss deduction under excess business loss rules.

    Therefore, Max's maximum deductible amount is $250,000.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Max, a single taxpayer, has a $270,000 loss from his sole proprietorship. How much of this loss is deductible after considering the excess ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers