Question

1 points v Saved QUESTION 6 Tom participates for 300 hours in Activity A and 250 hours in Activity B, both of which are nonrental businesses. Both activities are active. True False 1 points Saved QUESTION 7 Kathy, who owns an apartment building, has AGI below $100,000 participates for 550 hours in the tax year in managing the activity. Therefore, a loss from the activity up to 25,000 will be treated as a deductible loss that can be offset against active income. True False QUESTION 8 1 points Saved In the current year, Kenny had a $35,000 loss from a real estate rental activity, Kenny performed 1,000 hours of services for that activity, which is more than half of his working hours for the year. If he is a material participant, Kenny can deduct the $35,000 loss. True False QUESTION 9 1 points ✓ Saved Paul owns and actively participates in the operations of an apartment building which produced a $40,000 loss during the year. He had AGI of $150,000 from an active business. He may not deduct $25,000 of the loss True False
which questions have the wrong answer selected?

Answer 1

Question 6 - TRUE, as total hours is more than 500, hence Active.

Question 7 - FALSE,.

Reason = In real estate business, they require participation of more than 750 hours in real property trade or business.Here kathy participated in 550 hours. Hence Passive Activity.

Question 8 - TRUE

Question 9 - TRUE, because individual can deduct $25000 of losses