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NEW QUESTION: 1
Cobb, an unmarried individual, had an adjusted gross income of $200,000 in 1990 before any IRA deduction, taxable social security benefits, or passive activity losses. Cobb incurred a loss of $30,000 in 1990 from rental real estate in which he actively participated. What amount of loss attributable to this rental real estate can be used in 1990 as an offset against income from nonpassive sources?
A. $30,000
B. $25,000
C. $12,500
D. $0
Answer: D
Explanation:
Explanation
Choice "a" is correct. Cobb may not use any of the loss attributable to his rental real estate as an offset against income from nonpassive sources in 1990 because he does not qualify for the "Mom and Pop" exception. Under this exception, up to $25,000 of passive losses and the deduction equivalent of tax credits that are attributable to rental real estate may be used as an offset against income from nonpassive sources. This $25,000 allowance is reduced, but not below zero, by 50% of the amount by which the individual's modified AGI exceeds $100,000. The $25,000 is therefore completely phased out when modified AGI reaches $150,000. Because Cobb's AGI was $200,000, he did not qualify for the exception.
Choices "b", "c", and "d" are incorrect. Rental activities are passive activities and generally are not allowed to use any of the loss attributable to the rental activity to offset any income produced from nonpassive sources. There is a limited exception in the case of losses from rental real estate in which the taxpayer actively participates, but Cobb did not qualify for it.
NEW QUESTION: 2
IS 감사인은 조직이 필요에 따라 비용 효율적인 방식으로 새 서버를 추가 할 수 없다는 사실을 발견했습니다. 다음 중 감사인이 가장 권장하는 것은 무엇입니까?
A. 하드웨어를 최신 기술로 업그레이드 하십시오.
B. 가상 환경 구축
C. IT 기능을 위해 임시 계약 근로자를 고용합니다.
D. 기존 시스템의 용량을 늘립니다.
Answer: B
NEW QUESTION: 3
Last summer I worked in the chemical laboratory at the Brass Company; most the work came into the lab for testing marked with thewords top priority.
A. Words "top priority
B. words, "Top Priority."
C. words top priority.
D. words - top priority.
E. words: Top priority.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
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