Which of the following can be used to offset a passive loss? a. Dividend income from...
Which of the following can be used to offset a passive loss?
a. Dividend income from stock held as an investment
b. Pension income
c. Passive income such as income from a limited partnership
d. Active income such as wages
e. All of choices are correct but "Active income such as wages".
q6
Arnold purchased two rental properties 6 years ago. He actively participates in their management. During 2018, Arnold had income of $22,000 from one of the rentals. He had a loss from the other rental of $32,000, as well as salary income of $35,000, and dividend income of $2,000. What is Arnold's net passive income or loss deduction?
a. $10,000 net loss
b. $32,000 net loss
c. $8,000 net loss
d. $22,000 net loss
e. None of these choices are correct.
q7
Selma owns a beach cottage that she rents to tourists. In the current year she rented the cottage for 90 days. What is the maximum number of days Selma can use the cottage before her expense deduction will be limited to her gross rental income?
a. 0 days
b. 18 days
c. 14 days
d. 9 days
Homework Answers
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Which of the following can be used to offset a passive loss?
a. Dividend income from...
Cory owns an apartment building and incurred a $35,000 rental loss. Janelle has no other passive activities and is not a...
Cory owns an apartment building and incurred a $35,000 rental loss. Janelle has no other passive activities and is not a real estate professional. She actively participates in renting the building. Her income is: Form W-2 wages $30,000 Schedule C proprietorship 90,000 Schedule E rental loss ( 35,000) IRA deduction 2,000 **What amount of rental loss is allowed?** **Explain the rule on rental loss and provide the calculation and answer of your decision.**
Generally, if an activity is classified as passive, a loss from that activity can offset .....................
Generally, if an activity is classified as passive, a loss from that activity can offset .................. activity income. If the activity is classified as active, the loss can offset income from a................. Therefore, Carlos would prefer to have the activity classified as ...............
Multiple Choice 4-21 Passive Loss Limitations (LO 4.8) Nancy has active modified adjusted gross income before...
Multiple Choice 4-21 Passive Loss Limitations (LO 4.8) Nancy has active modified adjusted gross income before passive losses of $75,000. She has a loss of $5,000 on a rental property she actively manages. How much of the loss is she allowed to take against the $75,000 of other income? Oa. $10,000 Ob. $5,000 Oc. $2,500 x Od. None of these choices are correct.
How much rental loss can she deduct against other income sources without regard to the at-risk rules?
Evelyn has rental income of $48,500 and passive income of $17,000. She also has $144,000 of losses from a real estaterental activity in which she actively participates. Evelyn's AGI is $95,500 before considering this activity.Required:How much rental loss can she deduct against other income sources without regard to the at-risk rules?
Thanks For your HELP : ) 4. In determining accumulated taxable income for the purpose of...
Thanks For your HELP : ) 4. In determining accumulated taxable income for the purpose of the accumulated earnings tax, which one of the following is allowed as a deduction? A) excess charitable contributions B) dividends-received deduction C) net operating loss deduction D) net capital loss for the current year 5. Identify which of the following statements is true. A) Daisy Corporation is owned by a father and his son. The corporation employs 5 individuals to provide public accounting services....
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...
Ilene rents her second home. During the year, Ilene reported a net loss of $16,100 from...
Ilene rents her second home. During the year, Ilene reported a net loss of $16,100 from the rental. If Ilene is an active participant in the rental and her AGI is $138,000, how much of the loss can she deduct against ordinary income in the year?
Ilene rents her second home. During the year, Ilene reported a net loss of $11,400 from...
Ilene rents her second home. During the year, Ilene reported a net loss of $11,400 from the rental. If Ilene is an active participant in the rental and her AGI is $136,000, how much of the loss can she deduct against ordinary income in the year?
Which of the following is not classified as portfolio income for tax purposes? a.Dividend income from...
Which of the following is not classified as portfolio income for tax purposes? a.Dividend income from stock. b.Interest income on savings accounts. c.Dividends paid from a credit union. d.Net rental income from real estate partnership. e.All of these choices are classified as portfolio income. John owns a second home in Palm Springs, CA. During the year, he rented the house for $5,000 for 56 days and used the house for 14 days during the summer. The house remained vacant during...
Multiple Choice 4-21 Passive Loss Limitations (LO 4.8) Nancy has active modified adjusted gross income before passive losses of $75,000. She has a loss of $5,000 on a rental property she actively manages. How much of the loss is she allowed to take against the $75,000 of other income? Oa. $10,000 Ob. $5,000 Oc. $2,500 x Od. None of these choices are correct.
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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