Discuss the tax treatment

Assignment Help Taxation

Reference no: EM13318336

In 2012, Rob met Susan at a party. Susan told Bob she was directing a business venture that bought poorly managed restaurants in order to turn them around, and she found a real "gold mine" but needed additional cash in order to purchase it. Bob loaned $100,000 to Susan under a written agreement whereby Susan would repay the loan for a five year period plus 15 percent interest annually on the unpaid balance. Later in the year, Bob discovered Susan never intended to purchase the restaurant and had used the money for her personal benefit. He then sued Susan in 2014, but was unable to recover any of the $100,000. Discuss the tax treatment that Bob may take with regard to this loan.

Reference no: EM13318336

Questions Cloud

Between air pollution and lung disease : You just received funding from the EPA to conduct a study to see if there is a link between air pollution and lung disease. How would you design a study that is not weakened by the ecologic fallacy? (Include the following considerations:

What is the path difference for the rays from the two slits : Suppose in the double-slit arrangement, d = 0.150mm, L =120cm, %u03BB =833nm, What is the path difference %u03B4 for the rays from the two slits arriving at point P

How many vehicle would have to be tested to have probability : In polluted areas of Texas, registered vehicles must undergo an annual emissions inspection. In Fort Bend County (near Houston), 27 vehicles failed the emissions test, from among 200 randomly selected vehicles.

Evaluate the molarity (m) of a solution : Calculate the molarity (M) of a solution prepared by dissolving 13.1 g of HI in enough water to make 2.35 L of solution.

Discuss the tax treatment : Discuss the tax treatment that Bob may take with regard to this loan.

Find the terminal velocity of the big drop : 8 equal drops of water are falling through air with a steady velocity of 10 cm/s. then the terminal velocity of the big drop is

What is the molar mass at temperature of 22 degrees c : What is the molar mass if a 0.550-g sample occupies 258mL at a pressure of 744 torr and a temperature of 22 degrees C

Do you observe any trend-cycles or random variation : Plot above data on a graph. Do you observe any trend, cycles or random variation? Starting in year 4 and moving to year 12, forecast demand using a 3-year moving average. Plot your forecast on the same graph as the original data

Determine x the downstream position of the pitot tube : Air at 20oC and 1atm flows at 20 m/s past the flat plate . A pitot tube placed 2mm from the wall, develops a manometer head h=16mm of Meriam red oil (SG = 0.827), measured relative to atmospheric pressure.

User Account

All Pages