Which of the following is NOT a requirement for a qualifying disposition of passive activity to...
Which of the following is NOT a requirement for a qualifying disposition of passive activity to allow prior unallowed passive losses? The disposition must be
a) Of the entire interest (or substantially all of it)
b) A fully taxable event, where all gain and loss is realized and recognized.
c) To an unrelated party.
d) A passive net gain.
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Which of the following is NOT a requirement for a qualifying
disposition of passive activity to...
Nell earns $50,000 salary income in the current year. In addition, Nell sells a passive activity...
Nell earns $50,000 salary income in the current year. In addition, Nell sells a passive activity with an adjusted basis of $45,000 for $155,000 in the current year. Suspended losses attributable to this property total $45,000. Nell owns another separate passive activity which has $10,000 passive loss for the current year and $80,000 suspended passive losses from prior years. Nell will report the following on her current year income tax return (as a result of just these transactions): a. $$50,000...
Problem 11-44 (Algorithmic) (LO. 3) Leon sells his interest in a passive activity for $126,500. Determine...
Problem 11-44 (Algorithmic) (LO. 3) Leon sells his interest in a passive activity for $126,500. Determine the tax effect of the sale based on each of the following independent facts: If an amount is zero, enter "0". a. Adjusted basis in this investment is $44,275. Losses from prior years that were not deductible due to the passive activity loss restrictions total $48,703. The taxable gain is $ 33,522 The suspended losses at the end of the year are s b....
Problem 11-43 (LO. 3) Sarah has investments in four passive activity partnerships purchased several years ago....
Problem 11-43 (LO. 3) Sarah has investments in four passive activity partnerships purchased several years ago. Last year the income and losses were as follows: Activity Income (Loss) $30,000 (30,000) (15,000) (5,000) In the current year, she sold her interest in Activity D for a $10,000 gain. Activity D, which had been profitable until last year, had a current loss of $1,500. Answer the following questions to determine how the sale of Activity D affects Sarah's taxable income in the...
Question 36 of 75 Mary Beth owns a rental house. Her current tenant, Carl, signed a...
Question 36 of 75 Mary Beth owns a rental house. Her current tenant, Carl, signed a two-year lease and moved into the house in January of last year. At that time, Carl paid Mary Beth $1,600 for the first month's rent, $1,600 for the last month's rent, and $1,600 as a security deposit. Carl paid the $1,600 monthly rent in cash on the first of each month during the year, except in November when he replaced the water heater in...
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....
QUESTION 18 Which of the following is not an adjustment or tax preference item for 2019...
QUESTION 18 Which of the following is not an adjustment or tax preference item for 2019 for purposes of the individual alternative minimum tax (AMT)? a. Interest from private activity bonds b. State income tax refunds c. Cash charitable contributions d. All of these are adjustment or tax preference items for AMT e. Certain passive losses QUESTION 19 Mary sells to her father, Robert, her shares in AA Corp for $55,000. The shares cost Mary 580,000. How much loss may...
Tax Drill - Real Estate Exception Complete the statements below regarding the real estate exception. The...
Tax Drill - Real Estate Exception Complete the statements below regarding the real estate exception. The passive loss limits contain an exception related to real estate activities that is not restricted to real estate professionals. This exception allows individuals to deduct up to $ of losses from real estate rental activities against active and portfolio income. The potential annual deduction is reduced by percent of the taxpayer's AGI in excess of $ of the following requirements: To qualify for the...
Brad owns a small townhouse complex that generates a loss during the year. Complete each item...
Brad owns a small townhouse complex that generates a loss during the year. Complete each item below regarding (a) the circumstances where Brad can deduct a loss from the rental activity and (b) any limitations that would apply. a. Brad might be allowed to deduct up to $ ...............of the passive activity losses from the townhouse complex against ................. income. To qualify for the deduction under the real estate rental exception, Brad must actively participate in the activity and own...
Which of the following items would be included in the discontinued operations section of the income...
Which of the following items would be included in the discontinued operations section of the income statement? A. The gain or loss on disposal of the segment. B. Both the income or loss from operating the segment prior to its disposal, and the gain or loss on disposal of the segment. C. Income or loss from operating the segment prior to its disposal. D. Only losses and not gains on the disposal of a segment. 2. All things being equal,...
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...
Problem 11-44 (Algorithmic) (LO. 3) Leon sells his interest in a passive activity for $126,500. Determine the tax effect of the sale based on each of the following independent facts: If an amount is zero, enter "0". a. Adjusted basis in this investment is $44,275. Losses from prior years that were not deductible due to the passive activity loss restrictions total $48,703. The taxable gain is $ 33,522 The suspended losses at the end of the year are s b....
Problem 11-43 (LO. 3) Sarah has investments in four passive activity partnerships purchased several years ago. Last year the income and losses were as follows: Activity Income (Loss) $30,000 (30,000) (15,000) (5,000) In the current year, she sold her interest in Activity D for a $10,000 gain. Activity D, which had been profitable until last year, had a current loss of $1,500. Answer the following questions to determine how the sale of Activity D affects Sarah's taxable income in the...
Question 36 of 75 Mary Beth owns a rental house. Her current tenant, Carl, signed a two-year lease and moved into the house in January of last year. At that time, Carl paid Mary Beth $1,600 for the first month's rent, $1,600 for the last month's rent, and $1,600 as a security deposit. Carl paid the $1,600 monthly rent in cash on the first of each month during the year, except in November when he replaced the water heater in...
QUESTION 18 Which of the following is not an adjustment or tax preference item for 2019 for purposes of the individual alternative minimum tax (AMT)? a. Interest from private activity bonds b. State income tax refunds c. Cash charitable contributions d. All of these are adjustment or tax preference items for AMT e. Certain passive losses QUESTION 19 Mary sells to her father, Robert, her shares in AA Corp for $55,000. The shares cost Mary 580,000. How much loss may...
Tax Drill - Real Estate Exception Complete the statements below regarding the real estate exception. The passive loss limits contain an exception related to real estate activities that is not restricted to real estate professionals. This exception allows individuals to deduct up to $ of losses from real estate rental activities against active and portfolio income. The potential annual deduction is reduced by percent of the taxpayer's AGI in excess of $ of the following requirements: To qualify for the...
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