Deductions for Specified Losses
Learn about deductions for business, investment, casualty, and theft, as well as net operating losses.
In this lesson, we'll start by surveying the deductibility of specified losses for individual taxpayers under the Internal Revenue Code, or I R C. Then, we'll familiarize ourselves with net operating losses, or N O Ls.
A loss is usually a sale or other disposition of property in which the taxpayer's amount realized exceeds the adjusted basis. Suppose a taxpayer owns equipment with an adjusted basis of one hundred thousand dollars. The taxpayer sells the equipment for eighty thousand dollars....