Max,a single taxpayer,has a $270,000 loss from his sole proprietorship.How much of this loss is not deductible after considering the excess business loss rules?
A)$270,000.
B)$250,000.
C)$20,000.
D)$0.
E)All of the choices are correct

Question

Quizplus · Accepted Answer

For a single taxpayer, the excess business loss limit is $250,000. Therefore, $20,000 of Max's $270,000 loss is not deductible.

Max,a Single Taxpayer,has a $270,000 Loss from His Sole Proprietorship