Sherry Moore, who is single, has a limited partnership investment in a commercial rental project in which she has no personal involvement. During 2018, her share of the partnership loss equals $15,000. Sherry also has a rental house that she actively manages, and this activity generated a $21,000 loss for 2018. Sherry had no passive loss carryover from prior years. If Sherry's modified adjusted gross income before passive losses is $102,000, calculate the deduction amounts for Sherry's 2018 tax return using Form 8582 (page 1).
If an amount box does not require an entry or the answer is zero, enter "0".
Note: If required, use the minus sign to enter a "loss" as a negative number on the lines 1d, 3d, 4, and 16. However, per the instructions on the tax return, enter all numbers in Part II as positive amounts.
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Sherry Moore, who is single, has a limited partnership investment in a commercial rental project in...
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....
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...
Diana is a 10% owner in an advertising agency named Bright Ideas (“BI”) (EIN 20-1234567). BI is a Subchapter S corporation. The company reported ordinary business income for the year of $150,000. Diana received a K-1 from BI reporting her allocation of this business income. Sarah acquired the stock several years ago. Her basis in the stock before considering her 2017 income allocation was $92,000. Sarah is a passive owner with respect to this entity. How can this be filled...
Use the following information to fill out schedule E (tax form). SCHEDULE E (Form 1040 Supplemental Income and Loss From rental real estate, royalties, partnerships, S corporations, estates, trusts, REMICs, etc) OMBNo. 1545-0074 201 Attach to Form 1040, 1040NA, cr Form 1041. Note: If you are in the business of renting personal property, use Schedule C or C-EZ(see instructions). It you are an individual, report farm rental income or loss trom Form 4835 on page 2, ine 40 A Did...
Problem 11-58 (LO. 3, 8). Ida, who has AGI of $80,000 before considering rental activities, is active in three separate real estate rental activities and is in the 22% tax bracket. She has $12,000 of losses from Activity A, $18,000 of losses from Activity B, and income of $10,000 from Activity C. She also has $2,100 of tax credits from Activity A. Calculate her deductions and credits allowed and the suspended losses and credits. If an amount is zero, enter...
Compare the 2017 and 2018 Schedule A’s. Note a subtle but important difference between the two forms as it relates to the taxes you paid deduction. Itemized Deductions SCHEDULE A (Form 1040) OMB No. 1545-0074 Go to www.rs.gov/ScheduleA for instructions and the latest information. Attach to Form 1040. 2017 Department of the Treasury Intemal Revenue Service (99) Caution: If you are claiming a net qualified disaster loss on Form 4684, see the instructions for line 28.Sequence No.07 Namels) shown on...
Janice Morgan, age 24, is single and has no dependents. She is a freelance writer. In January 2018, Janice opened her own office located at 2751 Waldham Road, Pleasant Hill, NM 88135. She called her business Writers Anonymous. Janice is a cash basis taxpayer. She lives at 132 Stone Avenue, Pleasant Hill, NM 88135. Her Social Security number is 123-45-6789. Janice’s parents continue to provide health insurance for her under their policy. Janice wants to contribute to the Presidential Election...
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 8-43 (LO. 2, 3, 9) On June 5, 2018, Javier Sanchez purchased and placed in service a new 7-year class asset costing $560,000 for use in his landscaping business, which he operates as a single member LLC (Sanchez Landscaping LLC). During 2018, his business generated a net income of $945,780 before any § 179 immediate expense election. Rather than using bonus depreciation, Javier would like to use § 179 to expense $200,000 of this asset and then use regular...
Hoki Poki, a cash-method general partnership, recorded the following items for its current tax year: Rental real estate income $3,000 Sales revenue 82,000 $ 5,000 13,000 $(33,000) $ (18,000) (8,000) $ (5,000) $(15,000) S1245 recapture income Interest income Cost of goods sold Depreciation-MACRS Supplies expense Employee wages Investment interest expense Partner's medical insurance premiums paid by Hoki Poki $ (7,000) As part of preparing Hoki Poki's current-year return, identify the items that should be included in computing its ordinary business...