This year Robert had the following income and losses from four passive activities:Activity 1Activity 2Activity 3Activity 4$ (21,500)(10,900)(5,600)35,400Activity 4 had $10,750 of passive losses that are carried over from a prior year. Robert also had wages of $122,000.Required:a. How much income or loss does Robert have from the four activities?b. How are the suspended PALS allocated?c. If Activity 1 were sold at an $19,950 gain, what would be the total income or loss from the four activities?Complete this question by entering your answers in the tabs below.Required A Required BRequired CHow much income or loss does Robert have from the four activities?Net loss< Required ARequired B >

a. Calculate Total Income or Loss from the Four Activities:To find the total income or loss, sum up…

Answered: This year Robert had the following…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

Problem 36P

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Noah Yobs, who has $97,000 of AGI (solely from wages) before considering rental activities, has $87,300 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 $48,500 of income. He has other passive activity income of $31,040. a. What amount of rental loss can Noah use to offset active or portfolio income in the current year? b. Compute Noah’s AGI on Form 1040 [pages 1 and 2; also complete Schedule 1 (Form 1040)] for the current year. Use the minus sign to indicate a loss. What amounts should go on lines 1, 6, & 7 on page 2 of FORM 1040? What amount s go on lines 17, & 22 on schedule one of FORM 1040?
Lou incurred the following business expenses during the year: Penalty for breach of business contract $3,200 State sales tax penalty for late remittance $2,500 Rent expense $6,000 Office supplies $450 Early withdrawal penalty on investment account at a savings and loan $185 What are Lou’s allowable current-year deductions? A. $6,635 B. $9,835 C. $12,150 D. $12,335
Assume that Ernesto purchased a digital camera on July 10 of year 1 for $3,000. In year 1, 80 percent of his camera usage was for his business and 20 percent was for personal photography activities. This was the only asset he placed in service during year 1. Ignoring any potential §179 expense and bonus depreciation, answer the questions for each of the following alternative scenarios: (Use MACRS Table 1, Table 2.) (Leave no answer blank. Enter zero if applicable.) b. What would be Ernesto’s depreciation deduction for the camera in year 2 if his year 2 usage was 75 percent business and 25 percent for personal use? depreaction expense c. What would be Ernesto’s depreciation deduction for the camera in year 2 if his year 2 usage was 45 percent business and 55 percent for personal use? depreaction expense d. What would be Ernesto’s depreciation deduction for the camera in year 2 if his year 2 usage was 30 percent business and 70 percent for personal use?…
10.Landscaping costs can be deducted in the determination of net business income, even if they involve items that would normally be considered capital assets True or False? 11. For the hobby farmer, deductible farming losses for a year are restricted to $2,500, plus one-half of the next $30,000. True or False?
Bryan is a salaried worker whose salary is $48,000 per year. The $2,000 he receives twice a month represents Bryan's. O A. net pay O B. gross earnings C. pay category O D. withholdings SUBMIT
Mr. Chico provided the following data. Salary for the year (P10,000 for 12 months, MWE-P10,000/mo.) Overtime pay Hazard pay Holiday pay Commission income as additional compensation income from the same company Professional income as dentist P 120,000 50,000 Prof. expenses 1. Using the above facts, how much is Mr. Chico taxable net income is? 2. Using the same facts, If he has no commission income, how much is Mr. Chico taxable net Income is? 20,000 20,000 10,000 250,00 0 50,000 3. Using the same facts, if he has no commission income & professional income, Mr. Chico taxable net income is how much?
H1. profile-image Carlos owns a property which he has rented. During 2021, the property generated $24,000 in rental income. Carlos incurred the following expenses related to rental operations: • Depreciation $5,000 • Real estate tax 2,000 Utilities (water and electricity) Maintenance 3,000 • Boat expenses which Carlos uses to 1,500 meet clients and sign contracts 5,500 Determine the net income from rental operations that Carlos will include in his individual income tax return. Submit your computations.
Hobby Losses (LO 3.12) Lew is a practicing CPA who decides to raise bonsai as a business. Lew engages in the activity and has the following revenue and expenses: Sales $ 5,000 Depreciation on greenhouse 10,000 Fertilizer, soil, pots 1,500 If an amount is zero, enter "0". b. If the activity is deemed to be a regular business, what is the amount of Lew's loss from the activity?$fill in the blank 9a0cfdf68fac035_1 c. If the activity is deemed to be a hobby, what is the amount of Lew's expenses (if any) from the activity that may be deducted?$fill in the blank 12b81b026feafdb_1
11. During the month. the company paid for the monthly renta! of a dormitory. which is being occupied by the supervisor in the amount of P10,000. It also provided fringe benefit to a clerk amounting to P3,000. The deductible expense of the company is - P 15,692 12,692 а. C. 13,000 b. d. 7.200 CS Scanned with CamScanner
Black Company paid wages of $180,000 of which $40,000 was qualified for the work opportunity tax credit under the general rules. Black Company's deduction for wages for the year is: a.$180,000. b.$140,000. c.$166,000. d.$164,000.
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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