Jed Is an Electrician

question 4

Multiple Choice

Jed is an electrician. Jed and his wife are accrual basis taxpayers and file a joint return. Jed wired a new house for Alison and billed her $15,000. Alison paid Jed $10,000 and refused to pay the remainder of the bill, claiming the fee to be exorbitant. Jed took Alison to Small Claims Court for the unpaid amount and was awarded a $2,000 judgement. Jed was able to collect the judgement but not the remainder of the bill from Alison. What amount of loss may Jed deduct in the current year?

• A) $0
• B) $2,000
• C) $3,000
• D) $5,000
• E) None of the above

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Definitions:

Electronic Cottage

A concept where individuals work from home, using technology to perform their jobs, instead of commuting to a traditional office.

Alternative Work Arrangements

Employment setups that differ from traditional full-time, on-site roles, including remote work, flexible schedules, and part-time positions.

Compressed Workweek

A schedule that allows employees to work their required hours over fewer days, such as four 10-hour days.

Self-Directed Work Team

A group of employees with varying skills and functions who collaborate without hierarchical supervision to achieve shared goals and improve operations.