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    Sammy had the following for last year:

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    Sammy had the following for last year:

    Salary $40,000
    Short-term Capital gain $3000
    nonbusiness bad debt ($10,000)

    for the current year:
    salary $45000
    nonbusiness bad debt ($1000)
    collection of last years bad debt $10,000

    Calculate her AGI for the current year

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    Solution Preview

    The rule on nonbusiness bad debt is:
    If you do not choose to deduct the loss as a casualty loss or as an ordinary loss, you must wait until the year the actual loss is ...

    Solution Summary

    The solution provides detailed explanations and calculations for the problem.