How does the tax benefit rule apply in the following cases?
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a In the Orange Furniture Store, an accrual method sole proprietorship, sold furniture on credit for $ to Sammy. The cost of the furniture was $ In Orange took a bad debt deduction for the $ In Sammy inherited some money and paid Orange the $ he owed. Orange's owner was in the marginal tax bracket in the marginal tax bracket in and the marginal tax bracket in
Orange Furniture must include $fill in the blank eacfcfd in gross income as the recovery of a prior deduction. The timing of the income and deductions cost Orange $fill in the blank eacfcfd
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b In Marvin, a cash basis taxpayer, took a $ itemized deduction for state income taxes paid; the deduction was not limited by the SALT cap. This increased his itemized deductions to a total that was $ more than the standard deduction. In Marvin received a $ refund when he filed his state income tax return. Marvin was in the marginal tax bracket in but was in the marginal tax bracket in How much must Marvin include in his gross income for
$fill in the blank feebfbf
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c In Barb, a cash basis taxpayer, was in an accident and incurred $ in medical expenses, which she claimed as an itemized deduction for medical expenses. Because of the ofAGI reduction, the expense reduced her taxable income by only $ In Barb successfully sued the person who caused the physical injury and collected $ to reimburse her for the cost of her medical expenses. Barb was in the marginal tax bracket in in What amount, if any, will Barb include in her gross income?
$fill in the blank cedfffefce
