Mort is the sole owner of rental real estate that produces a net loss of $18,000 in

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Mort is the sole owner of rental real estate that produces a net loss of $18,000 in 2019 and $20,000 in 2020 and income of $6,000 in 2021. His adjusted gross income, before considering the rental property for the years 2019 through 2021, is $120,000, $140,000, and $90,000, respectively.

a. What is Mort’s adjusted gross income for 2019, 2020, and 2021 if he qualifies as a real estate professional?

b. What is Mort’s adjusted gross income for 2019, 2020, and 2021 if he actively participates in the rental activity?

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Concepts In Federal Taxation 2021

ISBN: 9780357141212

28th Edition

Authors: Kevin E. Murphy, Mark Higgins, Randy Skalberg

Question Posted: Nov 18, 2020 12:15 AM

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Mort is the sole owner of rental real estate that produces a net loss of $18,000 in

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a As a real estate professional the rental activity is not passive and Mort can deduct the 2019 and ...View the full answer

Concepts In Federal Taxation 2021

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