Recovery of previously deducted expense

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Question - Recovery of Previously Deducted Expense:

In 2013, Fred received a $1,000 refund of state income taxes withheld from his salary during during 2012. For each of the following cases, indicate whether Fred must include any portion of the refund in his 2013 gross income.

a. Fred did not itemize during 2012.

b. Fred does not itemize during 2013.

c. Fred uses the accrual method for determining his deduction for state income taxes.

d. Fred suffered a net loss during 2012 of $20,000.

e. Fred suffered a net loss during 2013 of $20,000.

f. Fred's itemized deductions during 2012 exceeded the standard deduction by $400.

Reference no: EM131826240

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