Noah Yobs, who has $75,400 of AGI (solely from wages) before considering rental activities, has $67,860 of losses from a real estate rental activity in which he actively participates. He also actively participates in another real estate rental activity from which he has $37,700 of income. He has other passive activity income of $24,128.a. What amount of rental loss can Noah use to offset active or portfolio income in the current year?$b. Complete Noah's Form 1040 (page 1) for the current year. Use the minus sign to indicate a loss.

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Asked Apr 21, 2019
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Noah Yobs, who has $75,400 of AGI (solely from wages) before considering rental activities, has $67,860 of losses from a real estate rental activity in which he actively participates. He also actively participates in another real estate rental activity from which he has $37,700 of income. He has other passive activity income of $24,128.
a. What amount of rental loss can Noah use to offset active or portfolio income in the current year?
$
b. Complete Noah's Form 1040 (page 1) for the current year. Use the minus sign to indicate a loss.

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Expert Answer

Step 1

We have solved part (a) as part (b) where it is asked to complete Form 1040 (page1) all the personal information is required which we do not have.

Even if we assume and update Page 2 of Form 1040, as it is the page where all finance related information can be updated, it still requires a lot of information that is not mentioned in your question. We would need the following to solve part (b) – Items of standard deductions.Kindly repost the question again with complete information so that we can help you.

Rent from property is a passive activity. Therefore, the IRS rules related to passive activity will be applicable here. When a loss is incurred from Real estate rent, IRS consider it as a loss on passive activity. The losses from passive activities needs to be allowed to settle off from income from passive activity.

Even after disposing off passive activities, if any loss is left out to be settled then it shall be settled off against any other income.

Step 2

N has a gross adjusted income of $75,400. N has an active participation in rental property. Therefore, the loss will be deduc...

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