In 2012, Bob's Unincorporated Business Has a Net Loss of $30,000.Bob

question 68

Essay

In 2012, Bob's unincorporated business has a net loss of $30,000.Bob has investment income of $40,000.Itemized deductions and personal exemptions total $26,000.Thus, on his 2012 tax return, his taxable income was a negative $16,000.In 2012, Bob discovered that an employee has stolen $25,000 (pocketing the proceeds from unrecorded sales) from the business.This $25,000 theft loss is included in calculating the net loss of Bob's business of $30,000.In 2013, Bob recovers the $25,000 from the former employee.How can the tax benefit rule assist Bob in 2013?

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Definitions:

KSA's

Abbreviation for Knowledge, Skills, and Abilities; the attributes required to perform a job and are generally demonstrated through qualifying service, experience, or education.

Employee Motivation

The level of energy, commitment, and creativity that a company's workers bring to their jobs.

Performance Expectations

Standards set by an organization or manager to define the desired level of performance from employees.

Performance Appraisal

The assessment of an employee's job performance and overall contribution to a company.