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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Business

Tomas Rogers

21 May, 00:01

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.

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Answers (1)

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Andres Anderson · Answer 1

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.