What are the rules limiting the amount of capital losses a taxpayer may deduct in a given year? Name at least three.
What will be an ideal response?
First, a maximum of $3,000 of net capital loss may be applied against ordinary income annually. Any amount of capital loss over $3,000 or any capital loss not used because of insufficient ordinary income is carried forward indefinitely. Second, while capital gains on personal assets are required to be reported, capital losses on personal-use assets are not deductible. Third, capital losses on sales to related parties are not deductible. Fourth, capital losses from wash sales are not currently deductible. A wash sale occurs when an investor sells stock or other securities at a loss and within 30 days either before or after the day of sale buys substantially identical stocks or securities.
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Under what circumstances might the court reject a debtor's Chapter 13 plan?
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Neptune Corp. buys a wide range of products from automobile parts manufacturers, motorcycle riding gear manufacturers, and commercial paint manufacturers. It then sells these products to a wide range of different customers. It is evident that Neptune Corp. is a(n) _____.
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