CengageNOWv2, 1 term Printed Access Card for Hoffman/Young/Raabe/Maloney/Nellen's South-Western Federal Taxation 2018: Individual Income Taxes, 41st
41st Edition
ISBN: 9781337389518
Author: William H. Hoffman, James C. Young, William A. Raabe, David M. Maloney, Annette Nellen
Publisher: Cengage Learning
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Question
Chapter 11, Problem 37P
To determine
Identify the amount of the net losses that Person D might deduct.
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Judy acquired passive Activity A in January 2015 and Activity B in July 2016. Until 2020, Activity A was profitable. Activity A produced
a loss of $54,500 in 2020, and a loss of $99,500 in 2021. She has $45,500 passive income from Activity B in 2020 and $27,500 in
2021.
Required:
After offsetting passive income, how much of the net losses may she deduct?
Note: Leave no cells blank - be certain to enter "0" wherever required.
Deductible passive losses
Dorothy acquired a 100% interest in two passive activities: Activity A in January 2015 and Activity B in 2016. Through 2018, Activity A was
profitable, but it produced losses of $200,000 in 2019 and $100,000 in 2020. Dorothy has passive activity income from Activity B of
$20,000 in 2019 and $40,000 in 2020.
After offsetting passive activity income, how much of the net losses may she deduct?
If an amount is zero, enter "0".
In 2019, Dorothy may deduct $
of the net passive activity losses and has $
x of passive activity losses
suspended. In 2020, Dorothy may deduct $
of the net passive activity losses and has total suspended losses carried
forward to 2021 of $
Dorothy acquired a 100% interest in two passive activities: Activity A in January 2015 and Activity B in 2016. Through 2018, Activity A was profitable, but it produced losses of $200,000 in 2019 and $100,000 in 2020. Dorothy has passive activity income from Activity B of $20,000 in 2019 and $40,000 in 2020.
After offsetting passive activity income, how much of the net losses may she deduct?
If an amount is zero, enter "0".
In 2019, Dorothy may deduct $ of the net passive activity losses and has $ of passive activity losses suspended. In 2020, Dorothy may deduct $ of the net passive activity losses and has total suspended losses carried forward to 2021 of $.
Chapter 11 Solutions
CengageNOWv2, 1 term Printed Access Card for Hoffman/Young/Raabe/Maloney/Nellen's South-Western Federal Taxation 2018: Individual Income Taxes, 41st
Ch. 11 - Prob. 1DQCh. 11 - List some events that increase or decrease an...Ch. 11 - Roberto invested 18,000 in a chicken production...Ch. 11 - Prob. 4DQCh. 11 - Carlos owns an interest in an activity that...Ch. 11 - Kim owns an interest in an activity that produces...Ch. 11 - Prob. 7DQCh. 11 - Prob. 8DQCh. 11 - LO.3 Bronze Corporation has 100,000 of active...Ch. 11 - LO.4 Discuss what constitutes a passive activity.
Ch. 11 - Prob. 11DQCh. 11 - LO.5 How many hours must a participant work in a...Ch. 11 - LO.5 Suzanne owns interests in a bagel shop, a...Ch. 11 - Prob. 14DQCh. 11 - Prob. 15DQCh. 11 - LO.5 Some types of work are counted in applying...Ch. 11 - LO.5 Last year Alans accountant informed him that...Ch. 11 - Prob. 18DQCh. 11 - Prob. 19DQCh. 11 - Prob. 20DQCh. 11 - What is a real estate professional? Why could...Ch. 11 - Prob. 22DQCh. 11 - LO.8 Since his college days, Charles has developed...Ch. 11 - LO.8 Brad owns a small townhouse complex that...Ch. 11 - Prob. 25DQCh. 11 - Prob. 26DQCh. 11 - LO.2 In the current year, Ed invests 30,000 in an...Ch. 11 - Prob. 28CECh. 11 - Prob. 29CECh. 11 - LO.7 Rhonda has an adjusted basis and an at-risk...Ch. 11 - Prob. 31CECh. 11 - LO.9 Rose dies with passive activity property...Ch. 11 - Prob. 33CECh. 11 - Prob. 34PCh. 11 - LO.2 In the current year, Bill Parker (54 Oak...Ch. 11 - LO.2, 11 Heather wants to invest 40,000 in a...Ch. 11 - Prob. 37PCh. 11 - Prob. 38PCh. 11 - Prob. 39PCh. 11 - LO.3, 11 Emily has 100,000 that she wants to...Ch. 11 - LO.3 Seojun acquired an activity several years...Ch. 11 - LO.3, 11 Jorge owns two passive investments,...Ch. 11 - LO.3 Sarah has investments in four passive...Ch. 11 - LO.3 Leon sells his interest in a passive activity...Ch. 11 - LO.3 Ash, Inc., a closely held personal service...Ch. 11 - Prob. 46PCh. 11 - LO.2, 3, 7, 11 Kristin Graf (123 Baskerville Mill...Ch. 11 - LO.2, 3, 7, 11 The end of the year is approaching,...Ch. 11 - Prob. 49PCh. 11 - Grace acquired an activity four years ago. The...Ch. 11 - Prob. 51PCh. 11 - Prob. 52PCh. 11 - LO.3, 8 Several years ago Benny Jackson (125 Hill...Ch. 11 - Prob. 54PCh. 11 - Prob. 55PCh. 11 - Prob. 56PCh. 11 - Prob. 57PCh. 11 - Prob. 58PCh. 11 - LO.8 Jiu has 105,000 of losses from a real estate...Ch. 11 - Prob. 60PCh. 11 - LO.9 In the current year, Abe gives an interest in...Ch. 11 - Prob. 62PCh. 11 - Prob. 63PCh. 11 - Prob. 64PCh. 11 - Carol is a successful physician who owns 100% of...Ch. 11 - Prob. 2RPCh. 11 - Prob. 3RPCh. 11 - Prob. 4RPCh. 11 - Which of the following statements regarding...Ch. 11 - Michael owns a rental house that generated a...Ch. 11 - Prob. 3CPACh. 11 - Prob. 4CPA
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- Dorothy acquired a 100% interest in two passive activities: Activity A in January 2017 and Activity B in 2018. Through 2020, Activity A was profitable, but it produced losses of $200,000 in 2021 and $100,000 in 2022. Dorothy has passive activity income from Activity B of $20,000 in 2021 and $40,000 in 2022. After offsetting passive activity income, how much of the net losses may she deduct? If an amount is zero, enter "0". In 2021, Dorothy In 2021, Dorothy may deduct ?? of the net passive activity losses and has $? of passive activity losses suspended. In 2022, Dorothy may deduct ? of the net passive activity losses and has total suspended losses carried forward to 2023 of $ ????arrow_forwardJacob purchased business equipment for $89,100 in 2017 and has taken $53,460 of regular MACRS depreciation. Jacob sells the equipment in 2020 for $40,095. What is the amount and character of Jacob's gain or loss? If an amount is zero, enter "0" Jacob has § 1245 gain of $__________ and § 1231 gain of $__________.arrow_forwardSissie owns two items of business equipment. Both were purchased in 2015 for 100,000, both have a 7-year MACRS recovery period, and both have an adjusted basis of 37,490. Sissie is considering selling these assets in 2019. One of them is worth 60,000, and the other is worth 23,000. Because both items were used in her business, Sissie simply assumes that the loss on one will be offset against the gain from the other and that the net gain or loss will increase or reduce her business income. What is the amount and character of Sissies gain or loss?arrow_forward
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