Question

In the context of the real estate professional exception to the passive activity loss (PAL) rules,...

In the context of the real estate professional exception to the passive activity loss (PAL) rules, making the aggregation election to attain real estate professional status:

A. May or may not be advisable for net investment income tax (NIIT) reasons

B. Is always advisable for net investment income tax (NIIT) purposes.

C. Is never advisable for net investment income tax (NIIT) purposes

D. Is always advisable for passive activity loss (PAL) reasons

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Hi

Let me know in case you face any issue:

Add a comment
Know the answer?
Add Answer to:
In the context of the real estate professional exception to the passive activity loss (PAL) rules,...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 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...

  • Is real-estate rental a passive activity? Explain your answer and indicate an exception.

    Is real-estate rental a passive activity? Explain your answer and indicate an exception.

  • For passive activity loss limitation purposes, what have several court decisions clarified about a member of...

    For passive activity loss limitation purposes, what have several court decisions clarified about a member of a multi member LLC who is an individual? a. The individual is treated as a limited partner when determining if the member can pass any of the material participation tests, b. The individual is treated as a general partner when determining if the member can pass any of the material participation tests, c. The individual can never pass any of the material participation tests,...

  • For passive activity loss limitation purposes, what have several recent court decisions indirectly indicated about a...

    For passive activity loss limitation purposes, what have several recent court decisions indirectly indicated about a member of a disregarded single member LLC who is an individual? a. The individual should be treated as a limited partner when determining if the member can pass any of the material participation tests, b. The individual can never pass any of the material participation tests, c. The individual should be able to use all seven of the material participation tests, d. The individual...

  • 11. Assume that in 2019 Taxpayer makes a donation to qualified public charity of real estate...

    11. Assume that in 2019 Taxpayer makes a donation to qualified public charity of real estate held by Taxpayer for investment for five years and having a fair market value of $20,000 on the date of the contribution. Taxpayer's basis in the property is $30,000. How much loss or deduction would be allowable to or recognized by taxpayer as a result of this transaction? a.             Taxpayer would recognize a capital loss of $10,000 that may be used to offset...

  • Problem 4-49 (0.6) Gigi transfers real estate (basis of $60,000 and fair market value of $40,000...

    Problem 4-49 (0.6) Gigi transfers real estate (basis of $60,000 and fair market value of $40,000 to Monarch Corporation in exchange for shares of 5 1244 stock. Assume that the transfer qualifies under 5 351. a. What is the basis of the stock to Gigi? (Gigi and Monarch do not make an election to reduce her stock basis.) The basis of the stock to Gigi is $ 60,000 In an exception to the capital treatment that generally results. 1244 permits...

  • 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 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....

  • 2. Susan is the owner of a 35-unit apartment complex. She spends 950 hours a year...

    2. Susan is the owner of a 35-unit apartment complex. She spends 950 hours a year managing the property. In addition, she works part-time for a mortgage company. She spends 1,150 hours a year as a bookkeeper at the mortgage company. The apartment complex generated a loss of $32,000, and Susan's adjusted gross income for the current year, before considering the apartment complex, is $48,000. How much of the loss can Susan deduct? a. $- 0 - b. $14,476   c....

  • 11-18 PART 3 Deductions and Credits employee are not treated as being related to employee performing...

    11-18 PART 3 Deductions and Credits employee are not treated as being related to employee performing the services Owns more In addition, a closely held C corpo relief if more than 50 percent of its gross property trades or businesses in which it materia sely held C corporation may also quality O a real estate inde or business unless the than a 5 percent interest in the employer. ality for the passive activity loss year are derived from real gross...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT