A Taxpayer Recognized a $40,000 Loss in 2020 from a Small

question 7

Multiple Choice

A taxpayer recognized a $40,000 loss in 2020 from a small farm (which was a secondary activity to a full-time job as a dentist) .What is the maximum deduction that would be allowed from the farm loss for the 2020 tax year?

• A)$0
• B)$17,500.
• C)$21,250.
• D)$40,000.

---

Definitions:

Abnormally Folded

Refers to proteins that have not achieved their proper three-dimensional structure, often leading to diseases.

Prions

Misfolded proteins that can induce normal proteins to also misfold, leading to diseases in the nervous system.

Proteins

Complex molecules made of amino acids that perform a vast array of functions in living organisms, such as catalyzing metabolic reactions, DNA replication, responding to stimuli, and transporting molecules.

Organic Molecule

A compound containing carbon atoms covalently bonded to hydrogen atoms, often along with other elements such as oxygen and nitrogen, and found in living organisms.