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3 May, 15:32

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.

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  1. 3 May, 15:40
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    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.
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