Problem 11-51 (a) (LO. 2, 3, 5, 7) 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 $fill in the blank f46766ff1f8af84_1.
Problem 11-51 (a) (LO. 2, 3, 5, 7)
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
a. He does not participate in the operations of the partnership.
In this case, Gabriel's AGI is $fill in the blank f46766ff1f8af84_1.
Problem 11-53 (a) (LO. 3, 8)
Several years ago Otto acquired an apartment building that currently generates a loss of $49,000. He has AGI of $155,000 before considering the loss. Otto is not an active participant in the activity.
Complete the paragraph below explaining what effect the loss will have on his AGI.
The activity is activity, and Otto is not an active participant. Therefore, deduction is allowed under the real estate rental exception. The $49,000 loss is under the rules, and Otto's AGI is $fill in the blank 5.
b. He is a material participant in the operations of the partnership.
In this case, Gabriel's AGI is $fill in the blank ff081b05105f015_1
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