Homework Answers
Option B -$5000
Nancy can deduct upto $ 25000 in passive losses against MAGI(Modified adjusted gross income) of $100000 or less.
The loss of $ 5000 on rental property is treated as a passive loss , hence since her MAGI is less than $100000 she is allowed $5000 of passive loss against MAGI of $75000
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Multiple Choice 4-21 Passive Loss Limitations (LO 4.8) Nancy has active modified adjusted gross income before...
Problem 4-11 Passive Loss Limitations (LO 4.8) Walter, a single taxpayer, purchased a limited partnership interest...
Problem 4-11 Passive Loss Limitations (LO 4.8) Walter, a single taxpayer, purchased a limited partnership interest in a tax shelter in 1992. He also acquired a rental house in 2018, which he actively manages. During 2018, Walter's share of the partnership's losses was $30,000, and his rental house generated $20,000 in losses. Walter's modified adjusted gross income before passive losses is $130,000. If an amount is zero, enter "0". a. Calculate the amount of Walter's allowable deduction for rental house...
Problem 4-12 Passive Loss Limitations (LO 4.8) Clifford Johnson has a limited partnership investment and a...
Problem 4-12 Passive Loss Limitations (LO 4.8) Clifford Johnson has a limited partnership investment and a rental condominium. Clifford actively manages the rental condominium. During 2018, his share of the loss from the limited partnership was $11,000, and his loss from the rental condo was $17,000. Assume Clifford's modified adjusted gross income is $122,000 for 2018, he has no prior year unallowed losses from either activity, and he and his wife will file a joint return. Complete Form 8582 below....
Exercise 11-28 (Algorithmic) (LO. 3) Lucy sells her partnership interest, a passive activity, with an adjusted...
Exercise 11-28 (Algorithmic) (LO. 3) Lucy sells her partnership interest, a passive activity, with an adjusted basis of $341,500 for $375,650. In addition, she has current and suspended losses of $51,225 associated with the partnership and has no other passive activities. a. Calculate Lucy's total gain and her current deductible loss. Her total gain is $ 25,000 X and her deductible loss is $ -3,000 X. b. What type of income can the deductible loss offset? Lucy's deductible loss is...
22 Alain Mire files a single tax return and has adjusted gross income of $309,000. His net ilvestment income is $...
22 Alain Mire files a single tax return and has adjusted gross income of $309,000. His net ilvestment income is $48,000. What is the additional tax that Alain will pay on his net investment income for the year? None of the choices are correct 24 Michelle is an active participant in the rental condominium property she owns. During the year, the property generates a (522,500) loss however, Michelle has sufficient tax basis and at risk amounts to absorb the loss...
Sullivan, a pilot for Northern Airlines, has adjusted gross income of $92,000 before considering the following...
Sullivan, a pilot for Northern Airlines, has adjusted gross income of $92,000 before considering the following losses. The passive activity rules disallow the deduction for a loss in which of the following? I. Sullivan has a $4,500 loss from his ownership interest in Cowco, a feeder-cattle limited partnership. Sullivan is a general partner and is responsible for day-to-day management decisions. II. Sullivan has a $7,000 loss from his ownership interest in Swineco, a feeder-pig limited partnership. Sullivan is a limited...
22 Alain Mire files a single tax return and has adjusted gross income of $309,000. His...
22 Alain Mire files a single tax return and has adjusted gross income of $309,000. His net ilvestment income is $48,000. What is the additional tax that Alain will pay on his net investment income for the year? None of the choices are correct 24 Michelle is an active participant in the rental condominium property she owns. During the year, the property generates a (522,500) loss however, Michelle has sufficient tax basis and at risk amounts to absorb the loss...
Sherry Moore, who is single, has a limited partnership investment in a commercial rental project in...
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Exercise 11-28 (Algorithmic) (LO. 3) Lucy sells her partnership interest, a passive activity, with an adjusted basis of $341,500 for $375,650. In addition, she has current and suspended losses of $51,225 associated with the partnership and has no other passive activities. a. Calculate Lucy's total gain and her current deductible loss. Her total gain is $ 25,000 X and her deductible loss is $ -3,000 X. b. What type of income can the deductible loss offset? Lucy's deductible loss is...
22 Alain Mire files a single tax return and has adjusted gross income of $309,000. His net ilvestment income is $48,000. What is the additional tax that Alain will pay on his net investment income for the year? None of the choices are correct 24 Michelle is an active participant in the rental condominium property she owns. During the year, the property generates a (522,500) loss however, Michelle has sufficient tax basis and at risk amounts to absorb the loss...
22 Alain Mire files a single tax return and has adjusted gross income of $309,000. His net ilvestment income is $48,000. What is the additional tax that Alain will pay on his net investment income for the year? None of the choices are correct 24 Michelle is an active participant in the rental condominium property she owns. During the year, the property generates a (522,500) loss however, Michelle has sufficient tax basis and at risk amounts to absorb the loss...
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