Gabriel, an accountant, earns $360,000 from his practice. He also receives $9,100 in dividends and interest from various portfolio investments. During the year, he pays $85,000 to acquire a 15% interest in a partnership that produces a $120,000 loss. In addition, he has a $12,000 passive income from other sources. Compute Gabriel's AGI, assuming that: a.  He does not participate in the operations of the partnership. In this case, Gabriel's AGI is $. b.  He is a material participant in the operations of the partnership. In this case, Gabriel's AGI is $.

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter11: Invest Or Losses
Section: Chapter Questions
Problem 51P
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Gabriel, an accountant, earns $360,000 from his practice. He also receives $9,100 in dividends and interest from various portfolio investments. During the year, he pays $85,000 to acquire a 15% interest in a partnership that produces a $120,000 loss. In addition, he has a $12,000 passive income from other sources. Compute Gabriel's AGI, assuming that:

a.  He does not participate in the operations of the partnership.

In this case, Gabriel's AGI is $.

b.  He is a material participant in the operations of the partnership.

In this case, Gabriel's AGI is $.

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