Mike Deducts a Bad Debt on His 2015 Tax Return

question 66

Multiple Choice

Mike deducts a bad debt on his 2015 tax return. How many years is the statute of limitations for the bad debt deduction?

• A)Zero
• B)3 years
• C)6 years
• D)7 years
• E)No limit

---

Definitions:

Domestic Servants

Workers employed within the household, performing various chores and tasks such as cooking, cleaning, and childcare.

Cotton Kingdom

Cotton-producing region, relying predominantly on slave labor, that spanned from North Carolina west to Louisiana and reached as far north as southern Illinois.

New Orleans

A major city in Louisiana, known for its vibrant music scene, distinct Creole cuisine, and as the annual host of Mardi Gras, a colorful and festive carnival.

Elite Planter Class

A social and economic class prominent in the antebellum South, composed of wealthy landowners who held numerous enslaved people to work on large agricultural plantations.