McGraw-Hill's Taxation of Individuals 3rd Edition by Brian Spilker,Benjamin Ayers,John Robinson,Edmund Outslay ,Ronald Worsham,John Barrick,Connie Weaver

Exercise 19

In January of year 0, Justin paid $4,800 for an insurance policy that covers his business property for accidents and casualties.Justin is a calendar-year taxpayer who uses the cash method of accounting.What amount of the insurance premium may Justin deduct in year 0 in each of the following alternative scenarios
a.The policy covers the business property from April 1 of year 0 through March 31 of year 1.
b.The policy begins on February 1 of year 1 and extends through January 31 of year 2.
c.Assume Justin paid $6,000 for a 24-month policy that covers from April 1, year 0 through March 31, year 2.
d.Assume that instead of paying an insurance premium, Justin paid $4,800 to rent his business property from April 1 of year 0 through March 31 of year 1.