Analyzing scenarios using ppt concepts

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Reference no: EM133925929

Question: Provide brief explanations (2-4 sentences) analyzing scenarios using PPT concepts.

1. Scenario: Sarah buys handmade yarn and sells scarves she knits online, putting in regular effort to market and profit. She also knits for fun sometimes. Analyze if this is a business or hobby, and why expenses might be deductible. 2. Scenario: Tom buys a house in Canada on April 1, 2025, and sells it on March 15, 2026, for a $40,000 profit due to a quick market flip (no life events). Analyze the tax treatment of the profit under the flipping rule. 3. Scenario: A business receives $15,000 in advance for consulting services in 2025. Explain the income inclusion and reserve treatment, including what happens in the next year. 4. Scenario: A part-time farmer (farming not main income) has a $18,000 farm loss in 2025. Analyze the split between unrestricted loss and restricted farm loss (RFL), and what can be done with the RFL. 5. Scenario: An employee uses 15% of their home exclusively as an office for regular client meetings (not principal workplace). They claim utilities and repairs. Analyze deductibility and any limitations. Get expert-level assistance in any subject with our assignment help services.

Reference no: EM133925929

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