Tax | Tax Deduction | Deductible

of 12

Please download to get full document.

View again

All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
PDF
12 pages
0 downs
2 views
Share
Description
LOSSES Requisites for deductibility of Losses 1. Actually sustained during the taxable year 2. Not compensated by insurance or other forms of indemnity 3. Incurred in trade, profession or business 4. Loss arises from fire, storms, shipwreck, or other casualties, or from robbery, theft or embezzlement 5. Not claimed as a deduction for estate tax purposes in the estate tax return 6. Filed within 45 days after the occurrence of casualty loss Casualty Loss -One that has occurred in an identifi
Tags
Transcript
  LOSSES  Requisites for deductibility of Losses 1. Actually sustained during the taxable year 2. Not compensated by insurance or other forms of  indemnity3. Incurred in trade, profession or business4. Loss arises from fire, storms, shipwreck, or othercasualties, or from robbery, theft or embezzlement 5. Not claimed as a deduction for estate tax purposes in the estate tax return6. Filed within 45 days after the occurrence of casualty loss  Casualty Loss -One that has occurred in an identifiable event that wassudden, unexpected, or unusualBasis of the amount of loss deductible:a. Total Destruction- Net book value immediately preceding the casualty b. Partial destruction- replacement costDeductibleLoss > Net book value(preceding the casualty)  Insurance and Other Reimbursements -Must be subtracted in arriving at the amount of the loss Illustration: The buildings owned by Miss Fortune were destroyed by fire on September 5,2012. The pertinent data of which are as follows:Building 1 Building 2Cost 2 million 1.5 millionAccum. Depreciation 800,000 600,000Indemnity from Insurance None 600,000Extent of destruction PARTIAL TOTALThe replacement cost of Building 1 amounts to 1.5 million.
Related Search
We Need Your Support
Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

Thanks to everyone for your continued support.

No, Thanks